Wirelessnorth.ca

This changes everything

Canada will be joining the ranks of nearly every other country on the planet (save Cuba, any others?) to allow foreign ownership of Canadian telecom companies. Even North Korea recently allowed foreigners to build out a mobile network there. Coincidentally, that was Orascom, the same wolf-in-Wind’s clothing that effectively broke through the regulation here in Canada.

The good news is that the Government is belatedly doing the right thing. They’ve recognized that their policy aims for stimulating industry competition are at odds with the facts on the ground, and at odds with Canada’s antiquated (pre-internet, pre-mobile phone industry) Telecom Act.

One might argue they should have done this before the 2008 spectrum auction. Thereby the feds could have given all the new entrants as well as the incumbents a more fair and level playing field for raising capital. Boy are some still bitter about that.

But not to worry, there’s still the big 700Mhz spectrum auction to come. That’s the real good stuff. And wouldn’t you know it, there’s also a yawning government deficit for which some of that foreign capital may slot in just nicely.

By the way, if you think that all this extracting billions from the telco industry by spectrum auctions will ultimately lower your wireless bill, you may in fact be dreaming.

But whatever, bring on the foreigners. Giddy-up, this business is gonna get interesting.

Tony’s stock options just went way up. So did Dave’s. Those next capital calls are looking much easier now.

On the other side, look for Vodaphone or t-mobile to buy Bell/Telus by sometime tomorrow.

LINK: Canada may consider foreign control of telecoms