The federal Telecommunications Act identifies the significance of telecommunications in maintaining Canada’s identity and sovereignty. It defines telecommunications as "the emission, transmission or reception of intelligence by any wire, cable, radio, optical or other electromagnetic system, or by any similar technical system."

The Act identifies various tools to ensure a strong national telecommunications system: policy objectives, Canadian ownership controls, and regulatory procedures. Policy objectives range from stimulating research and development, to enhancing the competitiveness of the telecommunications system — with the goal that it will "safeguard, enrich and strengthen the social and economic fabric of Canada."

The Act also specifies the need for national ownership and control of Canadian carriers; and encourages the development of the radio and television industries in Canada. According to the Telecommunications Act, the Canadian Radio-television and Telecommunications Commission (CRTC) will make rules, orders and regulations with a view to implementing the Canadian telecommunications policy objectives.

In the case of the Internet, however, the CRTC’s Report on New Media states that the Commission prefers to leave the Canadian Internet presence to market forces. The CRTC did agree, though, to regulate high-speed access rates between cable or telephone companies, and Internet Service providers.

Full Text: Telecommunications Act