Thank you.
Monsieur Paradis, foreign entrants, the claim is made, almost as a matter of certainty will create a more competitive telecom market with supposedly more efficient pricing and choice, particularly in markets where there is largely a duopoly between the large telephone companies and the incumbent cable provider. If relaxation of foreign ownership rules leads to takeovers and mergers of existing Canadian firms, as opposed to new entrants, it's arguable that there will be no change, just different owners.
An article published in The New York Times just a few days ago about wireless consolidation around the world quotes the chief executive of Orascom, the Egyptian wireless company, which is the majority owner of Globalive, as saying: “The next few years will witness major consolidation. All small and medium-sized operators are looking for appropriate M&A. deals to be able to secure themselves a place on the new world map.”
In your view, is this what will likely happen if foreign ownership restrictions are lifted in the telecom sector: Canadian companies will simply be purchased by larger foreign wireless companies, and the supposed greater diversity in competition will simply not materialize? Is there a risk of that?