http://www.vancouversun.com/news/Ottawa+consult+foreign+telecom+investment/3145148/story.html
Summary:
In summary of this article by CanWestNewsService, Industry Canada announced consultations to reducing foreign ownership restrictions in the Canadian telecommunications industry. The Industry Minister Tony Clement said that their goal is to “encourage investment, innovation and competition in the telecommunications sector for the benefit of both businesses and consumers”. The three options the department wants to be considered: “increasing the limit for direct foreign investment in broadcasting and telecommunications carriers to 49%, lifting restrictions on common carriers with a 10% market share or less by revenue and or removing telecommunications restrictions completely. Only 3 countries have these restrictions and Canada is the most severe.
Connections:
The main connection from the article that’s been made with the textbook is obviously foreign ownership. Foreign ownership is when foreign residents invest in Canadian assets and financial securities. In the article, Industry Canada wants to reduce the foreign ownership restrictions in the telecommunications industry with the goal of increasing investments. If all goes through, then their goals will surely be met especially with the help or input of Canadians. Foreign ownership is important to help the economy going and to attract diverse investments overall.
Reflection:
In accordance to the article and what I’ve read from the textbook I’ve come to the conclusion of voting more for the option of increasing the limit for direct foreign investment in broadcasting and telecommunications carriers to 49% because it would only make sense to take a bigger leap to increasing the carriers. This gives their goal more of a chance to reach in a smaller time frame. And it’s also, an easier way for everyone else in foreign ownership to participate willingly.
