Canada May Relax Foreign-Investor Limits on BCE, Rogers

On June 7, the Canadian government said that the country's large telephone companies such as Bell Canada and Rogers Communications may be covered by new rules that will make it easier for foreigners to invest in Canada.

"Having it as closed as it is now is starting to impede the ability of the players to compete, to innovate, to sustain the capital investment that is required for a modern, digital economy," Industry Minister Tony Clement said. Clement said he plans to introduce legislation to liberalize Canada's C$40 billion ($37.9 billion) telecommunications industry. That would move the country a step closer to allowing foreign investors to acquire companies like BCE, the country's largest phone company with a market value of about C$24 billion, and the biggest wireless carrier, Rogers. Clement said that he will offer three options for reducing restrictions on foreign ownership. BCE, Rogers and other large phone companies may have to change their corporate structures to tap foreign capital, because the government doesn't plan to change broadcasting rules that prevent foreign control of a Canadian company, Clement said.