OTTAWA-GATINEAU – Globalive does not meet the Canadian ownership requirements set out in the Telecommunications Act, the CRTC ruled late Thursday.
Under the legislation, a telecommunications company is only eligible to operate in Canada if it is not at any time owned and controlled, in law and in fact, by non-Canadians. Egypt-based operator Orascom Telecom, which has about 78 million subs world-wide, is providing much of the funding and the Wind brand name for Globalive.
During its proceeding, the Commission examined the influence of Orascom over Globalive’s business decisions and day-to-day operations. Despite the fact that Globalive made structural changes to reduce its dependence on Orascom, the CRTC said in a news release that “there were other factors that, taken together, led the Commission to conclude that Globalive does not meet the statutory test”.
The CRTC said that is was “particularly important” that Orascom owns 65.1% of the equity, has entered into a strategic technical arrangement with Globalive, controls and holds the Wind brand under which Globalive will operate, and holds the overwhelming majority of the outstanding debt.
The decision follows a public process that included a three day hearing.
Click here for the full decision.
