Industry Minister Tony Clement has published a consultation paper on foreign ownership in the telecom sector. (Adrian Wyld/Canadian Press)

Ottawa wants to hear what Canadians think about how to change the country's telecom rules.

Industry Minister Tony Clement on Friday published the government's consultation paper for how it should alter rules governing foreign ownership in the telecommunications sector.

Broadly, the minister has put three options on the table:

• Increase the limit of foreign ownership in telecom companies to 49 per cent.
• Lift restrictions on telecommunications common carriers with a 10 per cent market share or less.
• Remove telecommunications restrictions completely.

Essentially the first step in the process, the paper will be followed by public consultations on the issue before new legislation would be presented to Parliament down the line. Ordinary citizens, interest groups and companies themselves are invited to comment during this phase, which will be in effect until July 30.

"Our goal is to encourage investment, innovation and competition in the telecommunications sector for the benefit of both businesses and consumers," Clement said. "We look forward to receiving Canadians’ views on this important issue."

As it stands, Canada's Telecommunications Act caps foreign ownership at 20 per cent of a carrier's voting shares.

Critics say that allows incumbents such as Rogers Communications Inc., BCE Inc., and Telus Corp to effectively hold an oligopoly, which lowers quality while keeping prices high for consumers.

Ottawa has long wanted to spur investment in the sector, which is why it sold wireless spectrum in March 2008, hoping to encourage new entrants. The CRTC took issue with the structure of one of the new players that emerged, Globalive Communications, because it was majority backed by Egyptian telecom titan Orascom.

Clement overruled the CRTC's decision and allowed the company to launch under the Wind brand in late 2009.

That was simply a reinterpretation of the existing rules, but a wholesale change to Canada's Telecommunications Act would be much broader reaching.