Globalive receives support from Canadian government

Canadian telecommunications provider Globalive Wireless Management Corp. found some high-level support from the government in its attempts to offer mobile services as Industry Canada said it would appeal a recent court decision that would prevent Globalive from operating due to ownership concerns.
Canada’s Minister of Industry Tony Clement, and Steven Blaney, a member of Canada’s Parliament, noted in a statement announcing the government’s plans to appeal Canada’s Federal Court ruling that overturned a previous government decision.
“We believe that our decision was the right one for Canadian consumers and we will vigorously defend it. Globalive is a Canadian company and meets the Canadian ownership and control requirements under the Telecommunications Act. Globalive should therefore be able to continue to offer service in the wireless telecommunications market.”
The Federal Court ruled earlier this month 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 court decision was in response to a challenge brought against Globalive by incumbent operator Telus Corp. and recent start-up Public Mobile Inc.
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.
“The policy of our government is to encourage choice and competition in wireless and Internet markets,” Clement and Blaney added. “Ours was the government that set aside spectrum during the 2008 auction to allow new entrants to compete. New entrants mean more competition, lower prices and better quality services for Canadians.”
Globalive reacted positively to the government challenge.
“We are pleased that the government has decided to appeal the Federal Court’s decision,” said Anthony Lacavera, Chairman of Wing Mobile. “From the beginning, Industry Canada and then Cabinet maintained, with a full knowledge and understanding of the facts of our structure, that we are fully compliant with the Telecom Act rules, and we are pleased that the government is vigorously defending its decision.
Lacavera added: “We are still considering our options but at this point, we hope our competitors will finally stop trying to game the regulatory system and allow everyone to focus on competing for customers!”