Law Commons^™

Foreign Investment Restrictions As Industrial Policy: The Case Of Canadian Telecommunications, Robert Crandall, Hal Singer

Canadian Journal of Law and Technology

We assess the economic harms that would accrue if Canada were to adopt asymmetric rules of foreign ownership for incumbent carriers and entrants. We explain the current Canadian regulatory climate surrounding foreign investment in Canadian telecommunications. Competition in the telecommunications industry is generally robust, which suggests that rules aimed at favouring entrants are not necessary. Moreover, Canadian entrants are equally capable of attracting foreign capital as Canadian incumbents, which suggests that foreign investment rules aimed at favouring entrants are especially unwise.

Next, we review the U.S. attempt to stimulate competition in local telecommunications markets through an analogous form of asymmetrical …