‘That’s the cost of doing business’: Joly says telcos won’t be compensated for complying with cybersecurity orders

The telecom industry has expressed concerns that companies could face financial difficulties in complying with government orders made possible under Bill C-8. Canadian telecommunications service providers (TSPs) should not expect reimbursement for cybersecurity investments made to comply with government orders, according to Industry Minister Mélanie Joly (Ahuntsic—Cartierville, Que.). Joly appeared before the House Public Safety Committee on Monday, as part of the ongoing study of Bill C-8, which would allow Ottawa to compel Canadian telecommunications firms to take action in the event of cybersecurity threats. Industry stakeholders had previously raised concerns that any such orders could require companies to make large-scale investments in infrastructure and operations, and suggested that some costs should be covered by the government. “We continue to believe that the legislation should expressly recognize that TSPs may incur significant costs in complying with an order,” read the Canadian Telecommunications Association’s (CTA) written submission to the committee. “It should be clear that the Minister retains discretion to authorize compensation in such cases.” The CTA has recommended that Bill C-8 be amended to include language that would give the industry minister authority to approve reimbursements “for the purpose of offsetting all or part of the financial losses or costs.” However, in response to a question from Liberal MP Jacques Ramsay (La Prairie—Atateken, Que.), Joly said following government orders is the “cost of doing business” for TSPs. “As the government, our role is to explain what’s necessary to protect our fellow citizens,” said Joly in French. “Most investments necessary in the circumstances will have to come from the telecommunications companies themselves, and it’s in their interests to make those investments.” “We’re living in a world that is increasingly digital, we’re living in a world in which security can’t be taken for granted , in such circumstances, I expect that business shoulders its responsibility.” Following the exchange, Bloc Québécois MP Claude DeBellefeuille (Salaberry—Suroît, Que.) pressed the minister on support for smaller distributors or co-op service providers that could face financial obstacles in complying with a government order, emphasizing that she’s “a bit worried about whether they’ll have the resources to implement these new requirements.” In turn, Joly did not address the crux of DeBellefeuille’s question, only noting that she “always seeks to respect provincial jurisdiction” with regards to the increased powers she would be granted under the bill. Bill C-8 is the second iteration of proposed legislation originally introduced by Justin Trudeau’s government in 2022. Effectively, the bill would expand government authority over the country’s telecommunications networks, allowing the industry minister to force TSPs to “do anything, or refrain from doing anything, that is necessary to secure” the Canadian system. Joly described the current framework as “voluntary” and “lacking teeth,” leaving Canada vulnerable to hostile actors. The original bill, also known as Bill C-26, progressed through the House of Commons, but senators identified a drafting error that could have rendered much of the legislation moot and made a subsequent amendment that required approval from MPs. The House did not address the proposed amendment before Trudeau prorogued Parliament last January, effectively killing the legislation. “I inherited a bill that had already been passed,” said Joly. “The new bill was tabled and it’s the same bill, so the legislative parliamentary work has already been done.” “Time is of the essence.” C-26 was also accompanied by a policy statement in 2022, in which the federal government vowed to ban the Chinese tech companies Huawei and ZTE from Canada’s 5G networks, citing potential cybersecurity concerns. Each of Canada’s ‘Five Eyes’ intelligence partners, including the U.K., U.S., Australia, and New Zealand, have already implemented similar bans. During Tuesday’s meeting, Joly confirmed that the Liberals would move forward with the ban, should C-8 become law. dlegree@thewirereport.ca

‘That’s the cost of doing business’: Joly says telcos won’t be compensated for complying with cybersecurity orders

Regulatory |
By Davis Legree
|January 28, 2026

The telecom industry has expressed concerns that companies could face financial difficulties in complying with government orders made possible under Bill C-8.

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‘That’s the cost of doing business’: Joly says telcos won’t be compensated for complying with cybersecurity orders

Regulatory | By Davis Legree |January 28, 2026

The telecom industry has expressed concerns that companies could face financial difficulties in complying with government orders made possible under Bill C-8.

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Regulatory |
By Davis Legree
|January 28, 2026