Telecom - Secretary General Letter addressed to Keith Rose (McCarthy Tetrault)

Ottawa, 28 February 2023

Our reference: 8190-T278-202209270


Keith Rose
McCarthy Tetrault
66 Wellington Street West
Toronto ON  M5K 1E6

Subject: Application for a Basic International Telecommunications Services Licence

The Commission is in receipt of an application, dated 15 September 2022, submitted by Tesla Motors Canada ULC, seeking to obtain a licence for the provision of international telecommunications services, as provided for at section 16.3 of the Telecommunications Act (the Act). 

The Commission received two interventions in opposition to the issuance of a BITS licence to Tesla Motors Canada ULC’s BITS. These opposing interventions expressed concerns about monetary loss to Canada should the requested licence be issued, as well as concerns about the ownership structure of the licence applicant. The Commission notes that it is required to exercise its powers and perform its duties with a view to implementing the Canadian telecommunications policy objectives set out at section 7 of the Act. The Commission considers that these opposing interveners failed to substantiate their concerns. Furthermore, the Commission considers that the concerns raised bear no relevance in respect of the BITS regime. The BITS licence regime is meant to ensure that the Commission maintains oversight of entities providing international telecommunications services in Canada and to prevent potential anti-competitive behaviour. After consideration of the comments received, the Commission has approved the application and a BITS licence for a period of 10 years is enclosed.

Please note the BITS licence conditions, which can be viewed on the back of the enclosed licence, include regular filings to the Commission.

The Commission notes that a BITS licence does not by itself authorize an entity to operate as a facilities-based carrier or non-facilities-based service provider. All entities who provide services as a facilities-based carrier must at all times comply with the appropriate regulatory framework, including the ownership and control requirements of section 16 of the Act and the Canadian Telecommunications Common Carrier Ownership and Control Regulations. Entities who provide services as a non-facilities-based service provider must register as such with the Commission and comply at all times with the appropriate statutory regulatory framework.

Yours sincerely,

Claude Doucet
Secretary General

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