Globalive ruled ineligible to offer mobile services

Canadian wireless operator Globalive Wireless Management Corp. saw its plans tripped up late last week as Canada’s Federal Court overruled a previous government decision that allowed Gobalive to offer mobile services despite questions about its ownership structure.
The court noted that the government was incorrect in allowing the company to offer mobile services under the “Wind” brand as the company’s is majority owned by a foreign company, in this case it’s 65%-owned by Egyptian-based mobile operator Orascom Telecommunications Holdings. Globalive is also operating in partnership with Italian-based operator Wind Telecommunications.
The latest challenge was brought against Globalive by incumbent operator Telus Corp. and recent start-up Public Mobile Inc.
“We are very disappointed with this decision,” noted Wind Chairman Anthony Lacavera, in a statement. “From the beginning, we have maintained that we are fully compliant with the rules. Industry Canada saw this clearly. Cabinet saw this clearly. This Court decision does not suggest that Cabinet got it wrong, only that Cabinet made two errors in explaining their rationale and characterizing the decision.”
Globalive noted that the decision will not take effect until the middle of March and that it was examining its options.
“We are currently examining our options but this is not over yet. We don’t intend to back down,” added Lacavera. “I am a proud Canadian and Wind Mobile, like the entire Globalive group of companies, is proudly Canadian. Since 2009, we have brought on more than 250,000 subscribers who opted for wireless choice. We won’t let this be a set-back for wireless competition in Canada and are consulting with our advisors to determine our next steps.”
Globalive was nearly shut down in late 2009 when Canada’s regulatory body initially ruled the operator’s ownership structure did not meet the country’s requirements. The carrier received a reprieve from Industry Canada, which overruled the Canadian Radio-television and Telecommunications Commissions decision.
Globalive paid approximately $442 million for an AWS license in 2008 as part of a government auction to increase competition in the country, where Rogers Communications Inc., Telus and Bell Canada Inc. dominate the telecom market.