# Why aren't foreign telecoms allowed to compete in general?



## hypo (Aug 11, 2010)

One of the recent policy solutions proposed for the recent CRTC UBB decision was to allow foreign telecoms to compete. 

I was wondering why most countries in general (I think) do not allow any kind of foreign competition in their telecom sector (its the same with banking I think). Is it for some sort of national security reason or something like that?


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## K-133 (Apr 30, 2010)

hypo said:


> One of the recent policy solutions proposed for the recent CRTC UBB decision was to allow foreign telecoms to compete.
> 
> I was wondering why most countries in general (I think) do not allow any kind of foreign competition in their telecom sector (its the same with banking I think). Is it for some sort of national security reason or something like that?


I'm not really sure. It probably has to do with the worry that the Canadian ownership would get beaten to extinction. Then, a very important piece of national infrastructure is suddenly owned and controlled by a foreign power.

I think we get all caught up in the issue of UBB and how it affects us, but forget what the real issue is; competition. I watched Tony Clement's interview and he laid that out there pretty clearly.

I also think the CRTCs mandate needs to be adjusted to reflect consumer protection. There's nothing wrong with keeping things internal, but if you are going to do so, you have to protect the consumers from the natural monopolies which form. The CRTC is actually fulfilling its mandate by upholding the Telecommunications Act. The term 'consumer' is mentioned only once in that act.

Sorry to hijack - thought it was on topic.


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## OhGreatGuru (May 24, 2009)

hypo said:


> One of the recent policy solutions proposed for the recent CRTC UBB decision was to allow foreign telecoms to compete.
> 
> I was wondering why most countries in general (I think) do not allow any kind of foreign competition in their telecom sector (its the same with banking I think). Is it for some sort of national security reason or something like that?


Would you like all the Canadian telecommunications to be owned by the likes of Fox TV and ATT? Or the Chinese government, the way their state agencies are buying up international assets?
Do you want your telecommunications company to be regulated by the US Patriot Act?
Telecommunications is an essential public service. Sovereign governments are rightly concerned about foreign ownership because it implies foreign control. Sure Bell, Rogers, et al form an oligarchy, but at least they are a Canadian oligarchy that our governments can exercise some control over.


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## t956 (Jan 4, 2011)

Too strong foreign competition.


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