Telecommunications Act (S.C. 1993, c. 38)

Marginal note:Provincial consultation

13 The Minister, before making a recommendation to the Governor in Council for the purposes of any order under section 8 or 12, or before making any order under section 15, shall notify a minister designated by the government of each province of the Minister’s intention to make the recommendation or the order and shall provide an opportunity for each of them to consult with the Minister.

Marginal note:Report

14 The Governor in Council may require the Commission to make a report on any matter within the Commission’s jurisdiction under this Act or any special Act.

Marginal note:Technical standards

• 15 (1) The Minister may, where the Minister is satisfied that to do so will further the Canadian telecommunications policy objectives, by order made after consultation with the Commission, establish standards in respect of the technical aspects of telecommunications and require the Commission to give effect to them.

• Marginal note:Incorporation by reference

  (2) An order that incorporates a standard by reference may incorporate it as amended from time to time.

• Marginal note:Publication of proposed orders

  (3) Any order proposed to be made under this section shall be published in the Canada Gazette at least sixty days before its proposed effective date, and a reasonable opportunity shall be given to interested persons to make representations to the Minister with respect to the proposed order.

• Marginal note:Modification after publication

  (4) A proposed order that is modified after publication need not be published again under subsection (3).

PART IIEligibility to Operate

Canadian Ownership and Control

Marginal note:Definitions

• 16 (1) The following definitions apply in this section.

  entity

  entity means a corporation, partnership, trust or joint venture. (entité)

  joint venture

  joint venture means an association of two or more entities, if the relationship among those associated entities does not, under the laws in Canada, constitute a corporation, a partnership or a trust and if all the undivided ownership interests in the assets of the Canadian carrier or in the voting interests of the Canadian carrier are or will be owned by all the entities that are so associated. (coentreprise)

  voting interest

  voting interest, with respect to

  • (a) a corporation with share capital, means a voting share;

  • (b) a corporation without share capital, means an ownership interest in the assets of the corporation that entitles the owner to rights similar to those enjoyed by the owner of a voting share; and

  • (c) a partnership, trust or joint venture, means an ownership interest in the assets of the partnership, trust or joint venture that entitles the owner to receive a share of the profits and to share in the assets on dissolution. (intérêt avec droit de vote)

• Marginal note:Eligibility

  (2) A Canadian carrier is eligible to operate as a telecommunications common carrier if

  • (a) it is an entity incorporated, organized or continued under the laws of Canada or a province and is Canadian-owned and controlled;

  • (b) it owns or operates only a transmission facility that is referred to in subsection (5); or

  • (c) it has annual revenues from the provision of telecommunications services in Canada that represent less than 10% of the total annual revenues, as determined by the Commission, from the provision of telecommunications services in Canada.

• Marginal note:Canadian ownership and control

  (3) For the purposes of paragraph (2)(a), an entity is Canadian-owned and controlled if

  • (a) in the case of a corporation, not less than 80% of the members of the board of directors are individual Canadians;

  • (b) Canadians beneficially own, directly or indirectly, in the aggregate and otherwise than by way of security only, not less than 80% of the entity’s voting interests; and

  • (c) the entity is not otherwise controlled by persons that are not Canadians.

• Marginal note:Prohibition

  (4) No Canadian carrier shall operate as a telecommunications common carrier unless it is eligible under this section to operate as such.

• Marginal note:Exemption

  (5) Paragraph (2)(a) and subsection (4) do not apply in respect of the ownership or operation of

  • (a) international submarine cables;

  • (b) earth stations that provide telecommunications services by means of satellites; or

  • (c) satellites.

• Marginal note:Exception

  (6) A Canadian carrier that is eligible to operate under paragraph (2)(c) remains eligible to operate even if it has annual revenues from the provision of telecommunications services in Canada that represent 10% or more of the total annual revenues from the provision of telecommunications services in Canada as long as the increase in its annual revenues from the provision of telecommunications services in Canada to 10% or more of the total annual revenues from the provision of telecommunications services in Canada did not result from the acquisition of control of another Canadian carrier or from the acquisition of assets used by another Canadian carrier to provide telecommunications services.

• Marginal note:Acquisition

  (7) A Canadian carrier to which subsection (6) applies is not authorized to acquire control of a Canadian carrier or acquire assets used by another Canadian carrier to provide telecommunications services.

• Marginal note:Notice

  (8) A Canadian carrier that is eligible to operate under paragraph (2)(c) shall notify the Commission when it acquires control of another Canadian carrier or acquires assets used by another Canadian carrier to provide telecommunications services.

• Marginal note:Affiliates

  (9) For the purposes of determining annual revenues from the provision of telecommunications services in Canada under this section, the annual revenues of a Canadian carrier include the annual revenues from the provision of telecommunications services in Canada of its affiliates as defined in subsection 35(3).

International Telecommunications Services Licences

Marginal note:Licence required — classes of telecommunications service providers

• 16.1 (1) No telecommunications service provider that is of a class specified by the Commission shall provide international telecommunications services except in accordance with an international telecommunications service licence.

• Marginal note:Licence required — classes of service

  (2) No telecommunications service provider shall, except in accordance with an international telecommunications service licence, provide international telecommunications services that are within a class of telecommunications services specified by the Commission.

Marginal note:Application

16.2 An application for the issuance, renewal or amendment of an international telecommunications service licence must be made in the form and manner and with the information specified by the Commission, and be accompanied by the fee prescribed under subsection 68(1).

Marginal note:Issuance of licences

• 16.3 (1) The Commission may, on application, issue an international telecommunications service licence.

• Marginal note:Conditions

  (2) The Commission may, in respect of international telecommunications services,

  • (a) establish licence conditions in respect of classes of telecommunications service providers or classes of international telecommunications services; and

  • (b) include in a licence conditions that are related to the circumstances of the licensee and that the Commission considers appropriate.

• Marginal note:Amendment

  (3) The Commission may, on application by any interested person or on its own motion, amend any conditions of a licence.

• Marginal note:Term

  (4) The term of a licence may not exceed ten years on its issuance or renewal.

• Marginal note:Renewal

  (5) A licence may be renewed on application by the licensee.

• Marginal note:Transfer

  (6) A licence is not transferable except with the consent of the Commission.

Marginal note:Suspension and revocation of telecommunications service licences

• 16.4 (1) The Commission may suspend or revoke an international telecommunications service licence whenever the Commission believes on reasonable grounds that the licensee has contravened this Act, the regulations or any condition of the licence, but the licensee must first be given notice in writing of the reasons for the suspension or revocation and a reasonable opportunity to make representations to the Commission.

• Marginal note:Consent of licensee

  (2) The Commission may suspend or revoke a licence with the consent of, or on application by, the licensee.

International Submarine Cable Licences

Marginal note:Licence required

17 No person shall construct or operate an international submarine cable or construct or operate any works or facilities for the purpose of operating an international submarine cable except in accordance with an international submarine cable licence that has been issued to the person and that the person remains eligible under the regulations to hold.

Marginal note:Application

18 An application for the issuance, renewal or amendment of an international submarine cable licence must be made in the prescribed form and manner and be accompanied by the prescribed information and the prescribed fee or a fee calculated in the prescribed manner.

Marginal note:Issuance of licences

• 19 (1) The Minister may, on application, issue an international submarine cable licence to a person who is eligible under the regulations to hold the licence.

• Marginal note:Conditions

  (2) An international submarine cable licence may contain such conditions as the Minister considers are consistent with the Canadian telecommunications policy objectives.

• Marginal note:Term

  (3) The term of an international submarine cable licence may not exceed ten years on issuance of the licence or on renewal.

• Marginal note:Amendment, renewal and transfer

  (4) An international submarine cable licence may be amended or renewed on application by the licensee, but a licence is not transferable except with the consent of the Minister.

Marginal note:Suspension and revocation of licences

• 20 (1) The Minister may suspend or revoke an international submarine cable licence whenever the Minister believes on reasonable grounds that the licensee has ceased to be eligible under the regulations or has contravened this Act, the regulations or any condition of the licence but the licensee must first be given notice in writing of the reasons for the suspension or revocation and a reasonable opportunity to make representations to the Minister.

• Marginal note:Idem

  (2) The Minister may suspend or revoke an international submarine cable licence on application made by or with the consent of the licensee.

Documentary Evidence

Marginal note:Supporting affidavit

21 The Minister may require the furnishing of an affidavit or a solemn declaration attesting to the authenticity of any document provided under this Part or the regulations, or to the truth of any fact stated in any such document or in any application submitted under this Part.

Regulations

Marginal note:Regulations

• 22 (1) The Governor in Council may, in relation to Canadian carriers’ eligibility under section 16 to operate as telecommunications common carriers, make regulations

  • (a) respecting information that is to be provided, the persons by whom and to whom it is to be provided, the manner in which and the time within which it is to be provided and the consequences of failing to provide it;

  • (b) respecting the circumstances and the manner in which a Canadian carrier, in order to maintain its eligibility, may control the acquisition and ownership of its voting shares, restrict, suspend or refuse to recognize ownership rights in respect of those shares and require holders of those shares to dispose of them;

  • (c) authorizing the board of directors of a Canadian carrier to pay a dividend or to make any other distribution with respect to voting shares that would otherwise be prohibited because the shares were held in contravention of section 16 or any regulations made under this subsection where, in the board’s opinion, the contravention was inadvertent or of a technical nature or it would be otherwise inequitable not to pay the dividend or make the distribution;

  • (d) respecting the circumstances and the manner in which a Canadian carrier may restrict voting rights attached to shares, or suspend or void the exercise of those rights, in order to maintain its eligibility;

  • (e) respecting the circumstances and the manner in which a Canadian carrier may

    • (i) sell, redeem or purchase shares held contrary to section 16 or any regulations made under this subsection, and

    • (ii) deal with the proceeds of sale and reimburse any purchasers of the shares in good faith;

  • (f) respecting the powers of a Canadian carrier to require disclosure of the beneficial ownership of its shares, the right of the carrier and its directors, officers and employees, and its agents or mandataries, to rely on any required disclosure and the effects of their reliance;

  • (g) respecting the verification by the Commission of a Canadian carrier’s eligibility, the measures the Commission may take to maintain the carrier’s eligibility, including exercising the powers of the carrier’s board of directors and countermanding its decisions, and the circumstances and manner in which the Commission may take those measures;

  • (h) respecting the circumstances and manner in which the Commission and its members, officers or employees, or its agents or mandataries, or a Canadian carrier and its directors, officers and employees, and its agents or mandataries, may be protected from liability for actions taken by them in order to maintain the carrier’s eligibility;

  • (i) defining the words successor and Canadian for the purposes of section 16; and

  • (j) prescribing anything that is to be prescribed and generally for carrying out the purposes and provisions of section 16 and this subsection.

• Marginal note:Idem

  (2) The Governor in Council may, in relation to international submarine cable licences, make regulations

  • (a) prescribing the procedure governing applications for licences, including the form of applications, the information to accompany them and the manner of filing, processing and disposing of them;

  • (b) respecting the form of licences and the information they must include and requiring licensees to publish or otherwise make them available for public inspection;

  • (c) prescribing classes of international submarine cable licences and determining the persons eligible to hold licences of any particular class;

  • (d) prescribing fees, or the manner of calculating fees, in respect of licences and prescribing the manner in which the fees are to be paid; and

  • (e) generally for carrying out the purposes and provisions of sections 17 to 20.

• Marginal note:Liability for fees

  (3) Fees required to be paid under this Part constitute a debt due to Her Majesty in right of Canada and may be recovered in a court of competent jurisdiction.

• Marginal note:Publication of proposed regulations

  (4) Any regulations proposed to be made under this section shall be published in the Canada Gazette at least sixty days before their proposed effective date, and a reasonable opportunity shall be given to interested persons to make representations to the Minister with respect to the proposed regulations.

• Marginal note:Idem

  (5) Proposed regulations that are modified after publication need not be published again under subsection (4).