Source: Canoe.ca

Wednesday’s throne speech signalled the doors to foreign ownership of Canada's telecommunications and satellite industries could soon be opened up further, which has industry watchers sounding the alarm.

“Foreign ownership threatens Canadian culture and tilts the playing field against Canadian broadcasters,” the Friends of Canadian Broadcasting said in a statement after Gov. Gen. Michaelle Jean’s address to reopen Parliament.

In the speech, the government said it will "open Canada’s doors further to venture capital and to foreign investment in key sectors, including satellite and telecommunications industries, giving Canadian firms access to the funds and expertise they need.”

Michael Geist, a law professor and Canada Research Chair of Internet and E-commerce Law at the University of Ottawa, said he’s not surprised the telecom sector was mentioned in the speech because Canadians have been vocal about the high cost of wireless access in this country.

“Canadian competition in telecommunications is not what it should be,” he told QMI Agency.

Rogers, Bell and Telus control more than 90% of the mobile marketplace in Canada. International players would help create a more robust and competitive environment, Geist said.

“Intended or unintended, this announcement creates a slippery slope that will likely lead to the sale of Canadian broadcasters to foreign companies,” said

Friends spokesman Ian Morrison, adding telephone, broadcast, cable and satellite assets are closely intertwined in Canada’s media landscape.

If foreign owners control telecoms and satellite companies, then cable monopolies will demand equal treatment. Broadcasters will follow suit and Canadian content could suffer, the argument goes.

“Foreign companies can be expected to favour their own over Canadian programming. This would lead to a disaster for Canadians who want to see Canadian stories on TV,” Morrison said.

Charlie Angus, NDP MP for Timmins-James Bay, shared some of the concerns.

“This is basically going to allow even bigger sharks in the water to eat up what we have here,” he said, adding the best way to promote competition is to actually allow the CRTC to hold the big players to account.

Geist said Canadian-content concerns are overblown because the Conservatives didn’t mention broadcasters in the speech.

Industry Minister Tony Clement sent shock waves through the telecom industry late last year when he overturned a CTRC ruling allowing Egyptian-backed Globalive to launch discount wireless carrier Wind Mobile. Since then, the government has repeated its pledge to ensure a competitive marketplace.

Spurred along by low taxes, Canada is attracting the investment needed to turn ideas into products and services, the government said in the throne speech.

© Canoe.ca

Related Documents:

Mar 3, 2010 — News Release: Foreign ownership a threat to Canadian culture
FRIENDS says the Harper government's Throne Speech commitment to open the telecommunications and satellite industries to foreign ownership threatens Canadian culture and tilts the playing field against Canadian broadcasters.