OTTAWA – The CRTC has decided to proceed with a review of wireless newcomer Globalive’s ownership to determine whether it is truly Canadian owned and controlled.
The Commission announced Monday that it will initiate a ‘Type 4’ review of Globealive’s ownership and control, given the complexity of Globalive’s corporate structure and financing arrangements, Telecom Notice of Consultation CRTC 2009-429 reads.
A Type 4 review consists of an oral, public, multi-party proceeding, and occurs when the CRTC finds that a company’s ownership and governance structure “is of a complex or novel nature, such that in the Commission’s view its determination would hold precedential value to industry players and the general public, where the Commission considers that the evidentiary record would be improved by third-party submissions, and where the Commission further considers that the appearance of parties would more easily allow the Commission to complete and test the evidentiary record”.
According to section 16 of the Telecommunications Act, a Canadian carrier is eligible to operate as a telecommunications common carrier only if it is a Canadian-owned and controlled corporation, subject to the exceptions contained in subsection 16(5) of the Act. The Act and the regulations establish that in addition to de jure (in principle) ownership and control, a common carrier must be Canadian-controlled, says Telecom Regulatory Policy CRTC 2009-428.
Wireless giants Rogers Communications and Telus have complained that Globealive’s ownership structure is not majority-owned by Canadians. Parent company Globalive Communications is co-owned by Orascom, a global wireless player based in Egypt with over 77 million wireless subscribers. Orascom owns 65% of the equity, but less than 50% of voting control of Globalive Communication.
The CRTC review follows Industry Canada’s earlier process and decision to grant Globalive Wireless an operating license in March 2009.
"Industry Canada has already made a clear decision that we have effectively met all ownership and structural requirements,” said Globealive chairman Anthony Lacavera in a statement released late Monday. “That decision allowed us to move forward with significant investment in Canadian technology; creating jobs and building a network. We hope the CRTC will recognize the delays to new Canadian jobs and much-anticipated new wireless offerings, and expedite the review process."
It’s unclear whether Globealive had advance notice that this review was coming, but in an interesting coincidence, the wireless company ran a full page advertisement in Monday’s The Hill’s Times newspaper, Canada’s politics and government newsweekly.
“We want to invest a billion dollars in Canada”, the company’s jumbo-sized font shouts from the page. In much smaller type at the bottom of the ad, the copy says that Globealive has “already invested hundreds of millions of dollars and employed 180 people who want to change the wireless industry.
Globealive also hinted that the public review could affect its launch plans, scheduled for this Fall.
"Canadians have waited too long for more wireless choice," Lacavera continued. "While we respect the CRTC’s right to conduct this review, we are concerned that a lengthy public hearing process will delay Canadians’ overdue access to a new competitive offering."
Parties interested in participating in the review have until August 10 to notify the CRTC. The public hearing will begin September 23, 2009 and the Commission said that it expects to issue a public decision within 30 days after the date of the hearing. (Ed note: an earlier version of this story said that the CRTC’s decision would be issued within 120 days after the date of the hearing. The Commission corrected that on Tuesday to within 30 days after the date of the hearing).
