Industry Minister Tony Clement unveiled further details on Monday of his government's plans for changes to ownership in the communications industry during a keynote speech at the Canadian Telecom Summit in Toronto.

Saying that the Telecom Act was primarily an economic piece of legislation, as opposed to the cultural focus of the Broadcast Act, Minister Clement hinted that, after a period of consultation, his government is committed to opening markets to foreign capital.

“We believe that markets do and should determine outcomes, not governments,” he said. “We know that access to capital – especially venture capital – is critical in this economy. Encouraging foreign investment in the telecommunications sector is therefore and important next step.”

He noted during the keynote that his government had already taken action to open access for the satellite industry – necessary as unregulated foreign competitors were already active in the Canadian market. He also referenced the public consultation process for Canada’s digital economy “action plan”, which ends on July 9.

“It is critical that we have the right regulatory framework in place.”

Clement faces conflicting interests from industry, regulators and critics – all of whom have different views as to how to go about easing restrictions. The minister said the government will be seeking the opinions of Canadians after it releases a consultation paper on the issue, expected within a week or two.

“How do we boost telecom to the next level?” he asked. “How do we unleash its full potential? And how do we leverage [the industry’s] ability to drive productivity throughout the entire economy?”

The government has said previously that it wants to alter foreign ownership rules while maintaining the non-voting stake rule. During the keynote Clement said that any future policy changes would have to address three key areas: the allowance of direct foreign investment for incumbents, the concerns of smaller players, and the process to ensure that competing needs are met.

Addressing these areas is complicated by the fact that some companies like Rogers Communications are both content providers and distributors. CRTC chairman Konrad von Finckenstein has said this would make it very difficult to separate their functions through regulation.

Clement did not comment on the possibility of large global players coming in solo and setting up shop.

Clearly, however, the Minister was signalling that the government would soon be ready to act, and that movement would come with regard to the Telecommunications Act, and not the Broadcasting Act.

“The OECD ranks Canada as one of the most restrictive countries when it comes to telecommunications investment,” he said in his opening remarks. “We need to make sure that Canadian companies have access to capital so that they can grow. And we have to facilitate competition.”