Telus 2009 Annual Report Download - page 11

broadcasting licences under the Broadcasting Act, provisions substantially similar to the
foregoing have been incorporated into TELUS’ Articles permitting the directors to make
determinations to effect any of the foregoing actions.
The Federal Government Throne Speech on March 3, 2010 and the Federal Budget on
March 4, 2010 signalled an intention to consider opening the telecommunications
services sector to further foreign investment. At present, this contemplated relaxation of
the ownership and control regime appears to be confined to satellite providers and would
require the enactment of legislation. It is not clear what, if any, further changes to the
ownership and control regime might occur. There is a risk that government may consider
a phased in approach to liberalization that would allow increased flexibility for carriers
with less than 10% national market share or allow for more access to foreign capital in
upcoming spectrum auctions expected in 2011-2012.
It is also possible the government may be considering changes to the Investment
Canada and Telecommunications Acts to provide it more flexibility in determining when
to allow ownership arrangements deemed to be in the public interest. There is no
assurance that resolution of uncertainty over interpretation of existing laws and
regulations concerning foreign ownership restrictions that TELUS is subject to, or the
manner in which they may be changed, will be beneficial to TELUS. TELUS does not
oppose the removal of the foreign ownership restrictions, provided that liberalization is
implemented on a fair and symmetrical basis for all telecommunications carriers,
including broadcast distribution undertakings.
The risk factor related to foreign ownership restrictions described in MD&A Section 10.3
Regulatory is hereby incorporated by reference.
REGULATION
General
The provision of telecommunications services and broadcasting services in Canada is
regulated by the Canadian Radio-television and Telecommunications Commission (the
CRTC) pursuant to the Telecommunications Act and the Broadcasting Act, respectively.
In addition, the provision of cellular and other wireless services using radio spectrum is
also subject to regulation and licensing by Industry Canada pursuant to the
Radiocommunication Act.
The Telecommunications Act gives the CRTC the power to regulate the provision of
telecommunications services, and to forbear from regulating (i.e. not subject to rate
regulation) certain services or classes of services if they are subject to a degree of
competition which is sufficient to protect the interests of customers. However, even
when the CRTC forbears from price regulation in respect of a service, it can continue to
regulate these services for certain other matters such as network access and
interconnection.
See MD&A Section 10.3 Regulatory for further details related to regulation generally and
specifically in relation to regulatory developments that could have a material impact on
TELUS’ operating procedures, costs and revenues.
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