Uncertainty surrounding scope of telecom foreign ownership review

The wireless and cable industries are applauding the government’s decision to review current foreign ownership rules in the telecommunications industry, but there appears to be a level of uncertainty surrounding the scope of the consultation. The ambiguity won’t be clarified until the rules are clearly set by the House of Commons Standing Committee on Industry, Science and Technology, which will conduct the review. While cable players are keying in on the phrase telecommunications infrastructure, the wireless industry maintains that the consultation is targeted only at telecommunications firms. After weeks of speculation, Industry minister Allan Rock officially announced the review on November 19. To support the review, the minister released a discussion paper outlining the key issues and identifying questions to be considered. Dean Proctor, VP regulatory affairs at Microcell Telecommunications Inc., recognizes that non-telecom players might want to get involved in the review, but he argues that the process is about telecommunications and the minister of Industry has jurisdiction over telecommunications. "I suppose there’s any number of arguments that can be made as to whether ILECs should be included in this, whether cable companies should be included in this, but the bottom line is that minister Rock has to deal with the jurisdiction he has and that’s what he’s doing," he tells Report on Wireless. "There is a standing committee on heritage which is looking at issues on broadcasting and they may well look at this issue for cable companies." The cable industry, however, disagrees with Proctor’s assessment of the scope of the consultation. Ken Engelhart, VP regulatory affairs at Rogers Communications Inc., says the scope is still unclear at the moment, but that Rogers will be there in full force to argue its position that ownership in cable companies be included in the review. "The telecommunications broadband infrastructure is on both cable and phone networks. So obviously we’ll be arguing that the review should look at both," he tells Report on Wireless. The Canadian Cable Television Association (CCTA) is of the same view. Janet Yale, president and CEO of the CCTA, notes that the department’s news release mentions infrastructure, and cable plant is used to distribute high-speed Internet service to Canadians. She therefore concludes that the review should include the infrastructure of all sectors. The standing committee has been ordered to report back to the minister by February 2003. Despite recent comments from the committee chair saying the deadline cannot be met, industry players and observers agree that the tight timeframe given by the minister shouldn’t pose any problems. They indicate that the debate has been ongoing ever since World Trade Organization talks were held in 1996, and that arguments are already well articulated.

Uncertainty surrounding scope of telecom foreign ownership review

News | 11/25/2002 5:00 am EST

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