Michael Sabia, CEO of BCE, Canada’s largest communications company, called on Canadian regulatory authorities to raise foreign ownership restrictions from the current 33% to 49%. In a presentation to Canada’s Standing Committee on Industry, Science and Technology, Sabia said greater flow of capital is always a positive move and the complete removal of ownership restrictions is likely inevitable given the globalization of the world’s economies. He noted the regulatory focus on facilities-based competition has been instrumental in making Canada one of the few countries in the world which is “successfully managing the transition from a monopoly environment to a competitive one.” BCE is against licensing and tiering proposals on the grounds that they are arbitrary, discriminatory and would diminish further investments in networks.
http://www.bce.ca/en/news/
- Notes from Michael Sabia’s Presentation
- Canada has 5 national wireline networks and four national wireless networks
- Canada has residential rates that are 25% lower than the U.S.; business rates are almost half
- Canada has the second highest broadband penetration rate in the world; double the penetration rate in the U.S.
- BCE, Canada’s largest communications company, encompasses wireline, wireless, data/Internet and satellite network interests as well as content creation businesses, including CTV (Canada’s leading private broadcaster), The Globe and Mail (newspaper), and Sympatico-Lycos (ISP/portal). In June 2002, SBC Communications agreed to sell its 20% stake in Bell Canada back to BCE Inc. for CDN$6.32 billion.