Canadians oppose foreign control of telcos more than of broadcasters: Decima poll

More Canadians support foreign ownership of broadcasters than telcos and cablecos, despite the government's preference for easing the restrictions for facilities-based carriers. The results, revealed in a Decima Research Inc telephone survey of nearly 1200 Canadians held between June 15 and 20, could create a public relations challenge for industry executives and politicians who see the elimination of foreign ownership rules as a way to stimulate investment capital for the beleaguered telecom sector. Of those surveyed, only one quarter said they strongly or somewhat favour changing the current foreign ownership laws for media and communications companies. Forty per cent strongly opposed the idea, with an additional 28 per cent saying they are somewhat against the plan. "This level of opposition provides a clear indication that a substantial segment of the public would have a difficult time accepting this type of regulatory change," says Keith Neuman, senior VP at Decima Research. When asked about specific industry sectors, 44 per cent of Canadians find foreign majority ownership in private TV and radio broadcasters acceptable, compared to about half who consider it to be unacceptable. The comfort levels drop for companies that carry the content. Only 37 per cent accepted the idea of telcos being run by outsiders, while 59 per cent decried the proposal. Cablecos posted similar results, with 37 per cent in favour and 57 per cent rejecting the plan. The strongest reaction was reserved for newspapers, with only 30 per cent finding foreign ownership acceptable. "I don't know if I would have predicted it, but I'm not surprised," says Neuman. "Overall, these results reveal that the general public isn't prepared - at least not now - to go along with changes that would lead to greater foreign control over the country's media and communications industry," he adds. "This presents the federal government with a clear, but not insurmountable, challenge as it looks for ways to help Canadian cable and telecom companies attract greater foreign investment to pay for the expansion of the country's electronic infrastructure." Canadians may be uncomfortable when it comes to foreign ownership, but that sentiment doesn't extend to foreign investment, support for which has increased since December 1990, according to the survey. Back then only 56 per cent of Canadians felt that outside capital, in all sectors, was a good idea. Last month 62 per cent told interviewers this is a good thing, with 24 per cent feeling the opposite. The general belief is that bringing in money from other countries benefits Canada and its economy. Neuman notes these numbers are well below the 77 per cent who held this belief in September 1987. "As the economy went down and free trade became an issue, people worried more about foreign investment," he tells Network Letter. With the economic recovery and the dissipation of free trade as a dominant issue, citizens appear more accepting of the concept of foreign ownership. Gov't may review foreign ownership of "pipes" Having more Canadians favour foreign ownership of broadcasters than those companies that own the pipes is at odds with the recent report of the National Broadband Task Force. "The federal government should conduct an urgent review of foreign investment restrictions for telecommunication common carriers and distribution undertakings with a view to determining whether they are currently restricting or are likely to restrict increased industry participation in the competitive deployment of broadband infrastructure in Canada," the panel recommended. Even before the report was released, Industry minister Brian Tobin stressed that any review of foreign ownership caps would apply to facilities-based companies, and not those that produce the content. Loss of culture a worry Respondents were also asked their reasons for opposing foreign takeovers in the media and communications sector. The prevailing ones were loss of Canadian identity and culture, loss of control over the nation's economy or significant parts of it, and concerns about the basic economic impact and the loss of jobs. Other worries cited were the loss of R&D capabilities, higher prices and the relocation of firms out of Canada. Those who support the concept see foreign ownership as a boon to the economy or, at the very least, a necessary trend that will guarantee continued prosperity and growth. They also believe it will help Canada compete globally and that the selection of services will improve. Decima asked respondents if they felt the amount of foreign investment in Canada has increased, decreased or stayed the same over the past three or four years. Almost half, 49 per cent, expressed the belief it has risen, as opposed to the nine per cent who think it has declined. One quarter think it is the same, while 17 per cent do not know or would not give an opinion. Neuman points out that these views are based more on a general belief that such a trend exists rather than on specific facts or figures. The survey is considered accurate to within plus or minus 2.8 per cent, in 19 out of 20 samples. The Decima Express is a national telephone survey conducted monthly by Decima Research.

Canadians oppose foreign control of telcos more than of broadcasters: Decima poll

News | July 3, 2001

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