A Canadian government policy paper proposes that telephone companies be allowed to carry television signals on their networks: Canadian Press obtained a copy of the February paper, prepared by the Industry Department assisted by federal Heritage officials, under the Freedom of Information Act; if the federal cabinet approves the proposals this month, consultations with industry will follow: the Stentor group, led by BCE Inc’s Bell Canada unit, has long wanted this permission; a government official said the plan would allow telephone firms to hold broadcast licences and revamp the Bell Canada Act which bars Canada’s largest telephone company from entering the broadcast business; the plan would also prohibit much bigger telephone companies from engulfing cable television; the plan emphasises competition between cable companies, such as giant Rogers Communications Inc, and phone firms to cut prices and create new services.