Saturday, 24 March 2012

FOREIGN OWNERSHIP RULES FOR TELECOM


FOREIGN OWNERSHIP RULES

Before the spectrum auctions take place in 2013/2014 the Canadian Government intends to remove all foreign ownership requirements from wireless companies that have less than a 10% share of the mobile wireless subscribers in Canada.

Since the current “new entrants” have around 4% of the subscribers (taken all together), this means that WIND Mobile is legitimized, and any other “new entrant” can seek foreign investment (or an outright sale) with a foreign investor (or wireless operator).

Also Industry Canada has not yet defined “associated” entities that may get created to simultaneously build urban and rural footprints.

The next year will seek some interesting “merger and acquisition” activities in Canada!

Perhaps some global telecom operators will seek to enter the Canadian market?

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