CANADA: Amendments to Canada Telecommunications Act approved

Monday July 9 2012

The Canadian Parliament has passed amendments to the Canada Telecommunications Act, removing foreign ownership requirements for all Canadian telecommunications carriers, except the dominant ones.

The amendments state that Canadian ownership rules will no longer apply to a telecommunications common carrier if the carrier and all its affiliates have total annual telecommunications revenues that represent less than 10% of total Canadian telecommunications revenues, as determined by the Canadian Radio-Television Telecommunications Commission (CRTC).

Current rules limit Canada foreign ownership in telecommunications carriers to an effective maximum of 46.7%, reflecting combined maximum allowable interests at the operating and holding company levels. These rules remain in place for larger carriers. Similar rules also continue to apply to broadcasting undertakings licensed under the Broadcasting Act.

The amendments came into force on the 29 June, 2012.