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 rules government unlawfully licensed Globalive
The Federal Court has effectively restored the foreign ownership restrictions of Canada’s Telecommunications Act by quashing the federal government’s decision to licence foreign-owned wireless telecom Globalive.
“The Federal Court has said that Cabinet is not above the law,” says the President of Canada’s largest telecommunications union, Dave Coles.
“If Stephen Harper and his Cabinet want to change the Telecommunication Act, they have to have the guts to go before Parliament,” he said, noting that “the decision says ‘Cabinet mis-drected itself in law’.”
The Communications, Energy and Paperworkers Union of Canada (CEP), ACTRA, and Friends of Canadian Broadcasting were intervenors in the case.
In December 2009, the federal government granted a wireless license to Globalive, a company backed by Egypt’s Orascom, overturning an earlier decision to block the permit by Canada’s broadcast regulator. The Canadian Radio-television Telecommunications Commission had rejected the application on the grounds it violated rules banning foreign control of the sector.
“Overturning the Cabinet decision is a victory for Canadian ownership rules and a victory for Canadian culture,” said Stephen Waddell, ACTRA’s National Executive Director. “Globalive was potentially the beginning of the end of our foreign ownership laws, we’re ecstatic that the courts have stopped the train in its tracks.”
The cultural coalition had intervened on the same side as Telus and Public Mobile in opposing the government’s decision. However, they were the only ones to bring cultural concerns to the table, asserting that telecommunication companies have a responsibility under the Telecommunications Act to strengthen and safeguard Canadian cultural sovereignty.
Increasing convergence between telecom and broadcasting has made the need to maintain Canadian-ownership of both even more acute. In the few months since the cultural groups were granted standing in this case two major telecommunications companies have converged with broadcasters – Shaw with CanWest, and BCE with CTVglobemedia.
“Foreign ownership was a looming threat to our entire communications industry, our ability to control our media and to protect our culture,” added Ian Morrison, spokesperson for the Friends of Canadian Broadcasting. “The federal court’s assertion that our foreign ownership rules matter has brought a sigh of relief across our entire industry.”
Jamaica mandates SIM Card Registration
Jamaica’s government has approved plans to mandate SIM card registration by the country’s three mobile network operators.
According to the Minister with responsibility for Information, Telecommunications and Special Projects, Daryl Vaz, the legislation is regarded by the local security forces as a tool to assist law enforcement in investigating serious crimes. Security intelligence supports the fact that criminal networks exploit the anonymity accorded by pre-paid mobile telephones to execute their nefarious dealings.
The Cabinet has approved drafting instructions to prepare for amendments to the Telecommunications Act, 2000 to require SIM card registration.
Vaz added that cabinet also stipulated that special consideration be given to the registration process to ensure that this would not be open to abuse and was not restrictive to legitimate existing and potential subscribers. The timeline for registration is still to be agreed with the mobile networks.
Cellcos win first battle over international calls
Zimbabwe’s High Court has suspended new regulations designed to give state-run fixed line operator TelOne a monopoly on international calls after wireless operators Telecel and Econet Wireless initiated legal action claiming that it would put them out of business. ‘We sought an order that the regulations be suspended,’ Telecel’s lawyer David Drury told local press, referring to a recently passed legislation which was due to come into effect last Wednesday. ‘That order has been granted. What it means is that whether the regulations are valid or not, the regulations will not apply.’ Econet Wireless lawyer Beatrice Mtetwa added that the new regulations breached the Telecommunications Act which authorises Econet and Telecel to operate their own gateways for both incoming and outgoing international traffic.
Source- telegeography Wireless Mobile Telecom
