INST Committee Report

APPENDIX 3
QUESTIONS ON THE IMPACT OF FOREIGN INVESTMENT RESTRICTIONS

Question 1

Do current Canadian foreign investment restrictions significantly affect the amount of capital available in Canada to invest in the telecommunications industry?

Question 2

Should Canada’s relative per-capita investment performance in this sector be a source of concern, or has there simply been ‘over-investment’ in the U.S.?

Question 3

To what extent, if any, can differences in investment levels be attributed to foreign investment restrictions?

Question 4

Are there foreign companies that would like to establish operations in Canada and, if so, would their entrance likely affect the provision of new or improved services to Canadians, and stimulate a more competitive Canadian market structure?

Question 5

Could altering Canada’s foreign investment restrictions materially affect the ability of new competitive providers to establish and maintain financial stability, and to what extent can one link any relaxation of foreign investment restrictions with the creation of a more competitive Canadian telecommunications industry?

Question 6

Would altering the foreign investment restrictions assist the deployment of broadband infrastructure in rural and remote communities?

Question 7

Should Canada adopt the approach of other countries by placing restrictions only on the existing traditional telecommunications service providers?

Question 8

If this approach were adopted in Canada, which companies would be required to continue to be Canadian owned and controlled? All incumbent providers? Just large incumbent providers?

Question 9

Should the current ownership and control limitations be maintained for these companies, or should the voting limitation be raised from the current 20 per cent limit for operating companies to some other level, while retaining the majority Canadian ownership and control? What would be an appropriate level?

Question 10

Should the U.S. approach of licensing be applied in Canada? Would all telecommunications carriers need to be licensed?

Question 11

The government could review all applications for licence transfers and ensure the continued Canadian ownership and control of ‘major’ companies in the context of merger and acquisition proposals. If this approach were taken, how should a ‘major’ company be defined?

Question 12

In cases in which mergers and acquisitions are approved, what conditions would be appropriate to ensure the achievement of other public policy objectives?

Question 13

Were the government to make any changes to these foreign investment restrictions, would it be appropriate to introduce some form of delay between when the changes would be announced and when they would take effect?

Source:      Industry Canada, Foreign Investment Restrictions Applicable to Telecommunications Common Carriers, Discussion Paper, p. 7-8.