TORONTO and VANCOUVER – Calling it “a bad day for Canadians and wireless competition in Canada”, Globalive may be down, but it doesn’t sound like they’re entirely out of the wireless industry in Canada.
After learning that the CRTC found it to be non-compliant with Canadian ownership and control requirements, the company said in a statement that “Wind Mobile will be delayed in becoming Canada’s newest competitive wireless operator in over a decade.”
It also expressed surprise that the Commission’s decision would be “at odds” with Industry Canada.
“Having already received approval from Industry Canada, we are extremely disappointed that the CRTC has come to a different conclusion,” said Anthony Lacavera, chair of Globalive Wireless Management, in a statement. “This is a bad day for Canadian consumers. Canadians deserve competition in wireless and this decision represents a major step backwards.”
But according to Telus, who led the charge into Globalive’s ownership review, the CRTC made “the only Globalive decision it could”.
“We don’t think the CRTC had any choice or latitude under the laws of Canada to make any other decision,” said Michael Hennessy, Telus’ SVP of regulatory and government affairs, in a statement. “It is important to note that this decision does not prevent Globalive or any other new wireless company from competing in Canada or accessing capital, as several are successfully doing. It merely means they must abide by Canada’s laws.”
Telus said that it has never been opposed to foreign ownership restrictions being lifted, but feels that it is paramount “that all wireless carriers in Canada operate under the same rules without an artificial and unfair advantage being handed to any one company by the government or the CRTC”.
“Telus will again recommend to the government that in order to avoid similar situations arising in the future, all bidders in future spectrum auctions should be pre-qualified as legitimate Canadian owned and controlled entities,” Hennessy added.
So what’s next for the nascent wireless entrant?
Ken Campbell, CEO of Wind Mobile, would only say that “we will be evaluating our options on how to proceed.”
“Globalive could appeal, but their level of foreign control is so great”, Hennessy speculated in an interview with Cartt.ca. “To have foreign ownership rules overturned is beyond the CRTC, that’s something that would have to happen at the level of Parliament.”
But while today’s CRTC decision has clearly derailed Globalive’s plans to launch in the coming weeks, it seems to be onward and upward for Telus, which is anticipating the launch of its new network next week.
“There will be a lot of noise on this issue over the next few days, but we shouldn’t forget that there are numerous competitors poised to enter the wireless market”, Hennessy said.
