Canadian Common Carrier Ownership and Control Requirements

Who has to complete the 9xx forms?

All Canadian carriers – Incumbent Local Exchange Carriers (ILECs), Small Incumbent Local Exchange Carriers (SILECs), Competitive Local Exchange Carriers (CLECs), Proposed CLECs, Non-Dominant Carriers and Wireless Carriers – are annually required to file a report indicating that they meet Canadian ownership and control criteria.

A Canadian carrier is defined as a “telecommunication common carrier ”, in turn defined as “a person who owns or operates a transmission facility used by that person or another person to provide telecommunications services to the public for compensation”.

The specific requirement that carriers file an annual report is contained in Section 16(4) of the Regulations.

What ownership and control restrictions are in place?

Section 16 of the Telecommunications Act requires that a Canadian carrier, in order to be eligible to operate, be a Canadian-owned and controlled corporation incorporated or continued under the laws of Canada or a province. Additionally, 80% of the members of the board of directors of the carrier must be Canadians and at least 80% of the voting shares of the carrier must be beneficially owned by Canadians. Finally, the corporation cannot be otherwise controlled by non-Canadians.

The Canadian Telecommunications Common Carrier Ownership and Control Regulations also provide further definition of what types of entities qualify as Canadian for the purposes of holding shares in a carrier.

When are the 9xx forms due?

The due date for the 9xx forms is no later than 90 days after the earlier of a) the entity's annual general meeting or b) the issuance of annual financial statements.

In 2010, all carriers selected a due date on their 911 form. This due date will be used for annual filings going forward unless the Commission is notified of a change.

Why was I issued the 9xx forms?

The 9xx forms are issued to Canadian carriers at the time of the Commission's annual data collection, commencing at the beginning of each year.

Within that calendar year, on or before the due date that they have selected, each Canadian carrier must complete and submit the 9xx forms. This information must be submitted to ensure compliance at all times with the Regulations.

Who is issued forms 916-918?

Whether forms 916-918 are assigned is determined by the response to question 2 entered in the 911 form. Where there are holding entities (usually corporations, but also partnerships or other qualified entities), forms 916-918 collect details about these entities. In other words, companies owned entirely by individuals are not required to complete forms 916-918.

What will happen if I don't submit the 9xx forms?

Completing an annual filing is a statutory requirement contained in the Regulations. Failure to comply with this requirement could jeopardize a carrier’s eligibility to operate .

What is a “ holding entity”?

A holding entity is any non-individual forming part of the ownership structure of a carrier. Holding entities that qualify as Canadian are defined in subsections 2(1) and 2(2) of the Canadian Telecommunications Common Carrier Ownership and Control Regulations.

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