Surprise: Globalive not a Canadian Company

By: 
Tim Wilson

In our last Regulation and Policy post we said "Telemanagement would not be at all surprised to find that the CRTC sends Mr. Lacavera back to the drawing board."

So, no surprises here.

The CRTC has ruled that Globalive Wireless Management doesn’t meet the Canada’s ownership rules. As a result, it won’t be able to roll out is Wind brand.

The facts are clear: an Egyptian company, Orascom Telecom Holding SAE, owns 65% of Globalive. In previous hearings Orascom’s owner, Egyptian billionaire Naguib Sawiris, seemed to think that the C$442 million Globalive spent on spectrum – all of it financed by Orascom – would be enough to make the CRTC roll over.

No such luck. The rules are the rules, and Canadian bureaucrats are very good at following – and enforcing – the rules.

Globalive, which had planned a new call-centre in Peterborough, Ontario, and has a staff of 800, intended to begin operations in the next few weeks.

Now we have to wait and see if Globalive can reorganize its ownership and financing to meet the regulator’s rules, or if it will ask the government to overturn the decision. If the latter, then this may turn into a political football, with the conservatives seizing on the opportunity to weaken the CRTC.
 

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