Essay: Canadian Telecommunication Act

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[. . .] Literature suggests that several studies had been conducted in order to understand the restrictions that had been applied on foreign investments in Canadian telecommunication sector (Beaudry, 2010). Over last decade, several independent studies recommended that the Canadian government should remove these restrictions in order to increase capital and to allow transference of knowledge related to technology. Furthermore, it would provide better choices to consumers through affordable pricing. In the year 2003, the House of Commons Standing Committee on Industry Science and Technology, proposed to modify the Telecommunication Act and liberalizing foreign ownership in the industry. Same proposals were made by Telecommunications Policy Review Panel and Competition Policy Review Panel in the year 2006 and 2007 respectively.

Digital Economy

The liberalization of foreign ownership in Canadian Telecommunication sector would allow the country to become the next global leader in the digital economy. With foreign investments, the Canadian telecommunication sector can successfully create new products and services. Reports suggests that as compared to other countries such as United States, Britain and France, Canada lags behind its international peers as it has been unsuccessful in taking failed to modify its Telecommunication Act ( Ofir & Alexander, 2012). However, with the restriction remove, foreign investments can make direct investments on small telecom companies that are present in Canada. According to Ofir & Alexander (2012), it was suggested that foreign direct investments cost can decrease the operational costs and assists in increasing productivity. Furthermore, it is believed that foreign investments can allow the telecommunication industry to strengthen itself through enhanced competitiveness and income.


From research, it is predicted that the liberal policy would allow the telecommunication sector to grow and it is expected that in the future, direct foreign can further accelerate this growth. Canadian government had understood the significance of foreign investors and therefore, had concentrated on removing the restrictions that were previously applied on non-Canadians owning telecommunication sectors. For growth and development, foreign investors are required to increase competition and efficiency. By liberalizing the telecommunication sector, Canadian government anticipated that it would attract foreign investments as this is the strategy used by other developed countries such as United States, Britain, France, India, Nigeria, etc. Liberalization policy is important strategy implemented by the Canadian government to attract foreign investment.

Modifications in the Telecommunication Act would attract foreign investors to take full advantage of the new market and increasing profitability. This would allow the investors to implement their knowledge and experience in the domain and contribute towards the development of this sector. In coming years, Canada would emerge as digital economy with a strong telecommunication sector. Foreign investors concentrate primarily on penetrating the local market and thus, give strong emphasis on market growth and market size. Telecommunication market in Canada is a strong market and in terms of size, can offer several benefits to foreign investors. The liberalization of foreign ownership in Canadian Telecommunication sector would allow the country to become the next global leader in the digital economy. With foreign investments, the Canadian telecommunication sector can successfully create new products and services.


Former restrictions in the telecommunication sector ensured that Canadian companies remained in competition and earth stations, submarines cables and satellites had to be owned by Canadians and not by any foreigner. The recent amendments in the Telecommunication Act had been lifted in order to increase competition in the Canadian telecommunication sector. Furthermore, the goal of lifting these restrictions on foreign owned carriers was to ensure that investments were being made in the sector. The governing telecommunication entity in Canada is Canadian Radio-Television and Telecommunications. During the twentieth century, the Canadian telecommunication sector was not a liberal market for foreign investors. In order to deal with this issue, Telecommunication Act was modified and amended to allow foreign investors to penetrate the Canadian telecommunication sector. The Canadian telecommunication industry is an important part of the economy and growth. It has been successful in generating revenues and increasing employment opportunities in Canada.


Beaudry, P. (2010). Wireline deregulation: The Canadian experience. Telecommunications Policy, 34(10), 606-615

Iacobucci, J., & Trebilcock, M.J. (2012). The design of regulatory institutions for the Canadian

Telecommunications sector. Canadian Public Policy, 33(2), 127 -146

Laffont, J., & Tirole, J. (2012). Competition in telecommunication. Cambridge, MA: The MIT Press.

Laffont, J., & Tirole, J. (2012). A theory of incentives in… [END OF PREVIEW]

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Cite This Essay:

APA Format

Canadian Telecommunication Act.  (2013, February 12).  Retrieved May 23, 2019, from

MLA Format

"Canadian Telecommunication Act."  12 February 2013.  Web.  23 May 2019. <>.

Chicago Format

"Canadian Telecommunication Act."  February 12, 2013.  Accessed May 23, 2019.