LICENSING CONDITIONS IN THE TELECOMMUNICATIONS SECTOR

UNCLAS OTTAWA 001917

SIPDIS

STATE FOR EB/CIP, EB/BTA/DCT AND WHA/CAN

STATE PASS USTR FOR J.MCHALE AND S.CHANDLER

FCC FOR INTERNATIONAL - D.ABELSON, J.MANN AND P.COOPER

USDOC FOR 4310/IEP/OOC/WH/J.BENDER

USDOC ALSO FOR NTIA - BURR

GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ECPS ETRD CA
SUBJECT: LICENSING CONDITIONS IN THE TELECOMMUNICATIONS SECTOR

REF: STATE 114687


1. Fees paid by telecommunications carriers in Canada
are based on the cost of the regulators'
telecommunications-related activities, multiplied by
the carrier's share of industry operating revenue (see
Telecommunications Fees Regulations, SOR/95-157).
Telecoms firms have not complained to us about such
costs. Nor are we aware of any capitalization or
bonding requirement.


2. The main market access barrier is the restriction
on foreign ownership. Because non-Canadians may own
no more than 46.7 percent of a "facilities-based"
telecommunication carrier, U.S. and other foreign
telecom players can only enter the Canadian market in
partnership with Canadian firms.

DICKSON