Little by little, the telecommunications industry has undergone changes that have opened it up to foreign investment. As Canadians begin to demand equitable and reasonable access to high-speed Internet connections, the need for foreign investment actually becomes a necessity. The Canadian government should once again consider easing restrictions to encourage foreign investment and proliferate high-speed Internet access across Canada to better serve Canadians.

Unlock all the Canadian telecom, broadcasting and digital media news you need.

Take a free trial or subscribe to The Wire Report now.

Allowing for greater foreign control of our communication companies in order to fulfill our new national dream of wiring every community with high-speed Internet services is just pure nonsense.

Unlock all the Canadian telecom, broadcasting and digital media news you need.

Take a free trial or subscribe to The Wire Report now.

As expected, there are differing views on whether foreign ownership restrictions in the telecommunications, cable and satellite fields should be lifted. We have heard the arguments from some that a relaxation of the rules would make Canadian companies better able to compete with other global players, increase their access to badly needed capital and create the means for companies to build broadband networks to the most remote parts of Canada.

Unlock all the Canadian telecom, broadcasting and digital media news you need.

Take a free trial or subscribe to The Wire Report now.

The existing restrictions on direct foreign investment in the telecommunications sector are without merit. The rules create a disincentive for investment in transmission (read local broadband) facilities; they increase the cost of capital for Canadian firms; and they are detrimental to healthy domestic competition in telecommunications. Moreover, the rules do not serve any public policy objectives that cannot be otherwise achieved through other means.

Unlock all the Canadian telecom, broadcasting and digital media news you need.

Take a free trial or subscribe to The Wire Report now.

There is no better time to do an indepth analysis of the major issue facing the Canadian telecommunications sector, foreign ownership restrictions. It is a topic Network Letter has dealt with several times in the past and no doubt will in the future.

Unlock all the Canadian telecom, broadcasting and digital media news you need.

Take a free trial or subscribe to The Wire Report now.