As expected, Canadian Industry Minister Tony Clement has said the government is examining the CRTC's Globalive decision “very closely”, adding that the government favours more competition.

The Conservative government is playing this well. It knows that the CRTC decision is widely unpopular – despite the fact that the CRTC had no choice but to rule that Globalive was foreign-owned.

This sets the stage for the government to over-rule the CRTC, which in turn will result in a review of foreign ownership rules.

When Industry Canada gave Globalive the green light it knew we might be in this situation. Globalive is 65% owned by Orascom Telecom Holding SAE, a Cairo-based carrier owned by Egyptian billionaire Naguib Sawiris, and all of the financing for its C$442 million purchase of wireless spectrum came from Orascom.

In effect, this collision could be seen as having been allowed to happen in order to force change. The public is eager for more competition, and this ruling by the CRTC could give the Conservative government the opportunity to shift policy, and perhaps even bring in new legislation.

In fact, if the government over-rules the CRTC, the CRTC itself may request a new law, as it is a waste of time and resources for it to have hearings, and to enforce regulation, when it is to no effect.