Ottawa to appeal over Globalive court ruling (Canada)
The Canadian government is all set to appeal over a court ruling that had declared that the launch of the Globalive (Wind Mobile) network was illegal.
At the time when Globalive was set up, it had the support from Egypt’s Naguib Sawiris, but Canadian law limits the foreign shareholders to minority interests. Following complaints, the telecoms regulator investigated about the company and found out that while the shareholding was within Canadian limits, the financial and technical backing offered by Sawiris’ Orascom Telecom had pushed its effective interest above the level allowed by the law.
However, the government later overturned that decision and decided to allow the company to launch its services regardless, in a move which was seen as potentially heralding a revamp of the country’s restrictions on foreign investment.
A couple of weeks ago though, a federal court struck down that decision and the company faces a theoretical threat of being shut-down. The Court ruled that the Cabinet order contained two errors and hence that the order should be quashed. This decision does not go into effect for 45 days.
According to Canada’s Industry Minister, Tony Clement, said today that he would like to confirm that the Harper Government will be appealing the Court’s ruling. They believe that their decision was the right one for Canadian consumers and they 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.
According to Anthony Lacavera, Chairman of WIND Mobile, they are pleased that the Government has decided to appeal the Federal Court’s decision. From the beginning, Industry Canada and then Cabinet, maintained, with a full knowledge and understanding of the facts of their structure, that they are fully compliant with the Telecom Act rules, and they are pleased that the Government is vigorously defending its decision.
Federal Court of Canada overrules Globalive ownership decision
Canadian mobile operator Wind Mobile has stated that the Federal Court of Canada has ruled out the cabinet decision claiming that Wind Mobile’s ownership is fully compliant with Canada’s ownership. It further said that the control rules contained two errors and should therefore be quashed. The decision does not go into effect for 45 days.
The decision is the result of an application brought by rivals Public Mobile and Telus. According to Wind Mobile, it was very disappointed with the decision but noted that the court decision does not suggest that Cabinet got it wrong, only that it made errors in explaining their rationale and characterizing the decision.
The mobile operator is currently examining its options and is consulting with advisors to determine its next steps. Wind Mobile has attracted more than 250,000 subscribers since its 2009 launch.
Regulator CRTC initially rejected Globalive’s attempt to launch a mobile network in Canada. It ruled Globalive’s structure contravened foreign-ownership rules governing Canadian telecom companies because of its financial backing from Egypt’s Orascom Telecom.
The government subsequently overruled the CRTC decision, stating that it was satisfied that Globalive met the ownership rules since the voting control rested with Canadians and Canadians managed the company on a day-to-day basis.
According to Industry Canada Minister, Tony Clement, the government is studying the ruling and examining its options. As per reports, their government stands with consumers who want more competition.
Canada govt allows Wind telecom to start operations; overturns regulator’s decision
www.WirelessFederation.com/news: Communications regulator CRTC’s decision has been overturned by the Canadian Government which has allowed Ezyptian based mobile newcomer Globalive Wireless Management, backed by Orascom
telecom, to launch its services in Canada.
Globalive, which operates under the name Wind Mobile, acquired spectrum rights for CDN 442 million in August 2008. At present, the company has built most of its network and would launch service in Toronto and Calgary this month.
CRTC announced in October that the company was operating against telecom law requiring a minimum level of Canadian ownership. Orascom owns slightly more than 65 percent of the equity in Globalive and nearly all of its debt, which the regulator felt gave the foreign investors too much control over the company’s daily operations.
While overturning the CRTC’s decision, Industry Canada, the government ministry said that 80 percent of Globalive’s voting shares are held by Canadians. Besides, the company is based in Toronto and should be considered Canadian and allowed to start services in order to stimulate competition on the mobile market.
The decision has been welcomed by Wind but rival mobile operator Telus which said that this will give an “unique advantage†to Wind, after other companies were told they could not bid with foreign investors in the spectrum auction.
Globalive Communications to go mobile by H2’09 (Canada)
Globalive Communications, Canada, is planning to launch it’s commercial mobile service ver the newly built network by Q2’09. The company won the 30 wireless spectrum licences worth CAD442 million (USD416 million) in a national auction in July.
According to a Canadian newspaper, Weather, is also committed to invest USD700 million over four years in the Canadian start-up, which plans to roll out commercial wireless services in Toronto, Calgary, Edmonton and Vancouver in its first rollout phase in 2H09, following a trial scheduled for the Q2’09.
Globalive will have it’s focus on pre-paid voice services, rather than data services such as streaming video and TV, in contrast to the plans of it’s national competitors Rogers, Bell and Telus. It also hopes to differentiate itself from the established network operators by providing better customer service, simpler pricing plans without hidden charges, and less expensive phones. Globalive is currently tendering for network infrastructure vendors and is reportedly down to a shortlist of two.
