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Globalive launch delayed, CRTC looking into foreign ownership
Fresh of the heels of Globalive signing a multi-million dollar deal to have Nokia Seimens roll-out their 3G network, the CRTC has decided to move forward to “conduct a lengthy public hearing process” on Globalive’s ownership structure… which means the targeted Q4 launch plans are now officially delayed.
During the Wireless Spectrum Auction last year Globalive shelled out $442 million, a portion of the funds were from Eygptian based Orascom. Industry Canada allows a maximum of 20% foreign ownership and it was back in March that the CRTC actually issued Globalive their licenses. Anthony Lacavera, Chairman and CEO of Globalive himself said “We worked closely with Industry Canada throughout their detailed review and are pleased to be moving forward with this exciting project. Having been issued our licenses, we are one huge step closer to improving the wireless experience for Canadians by giving them a wireless company that listens, responds and collaborates with its customers. Today we are thrilled to welcome Canadians to a long-awaited brand new day in the Canadian wireless market.”
Things started to heat up in April when Michael Hennessy, VP of wireless, broadband and content policy for TELUS asked the CRTC to look into how the Globalive/Orascom relationship is structured and exactly how much foreign capital is actually invested. He stated “In Telus’s view, a more fulsome and transparent review is required in order to ensure that all similarly situated carriers are being treated equally and fairly”.
With TELUS requesting this process Lacavera stated “My response is brief: Telus is trying to stifle much needed wireless competition in Canada. Since we launched this website (WirelessSoapbox) thousands of Canadians have written to me, telling me about the need for more mobile competition and yet one of Canada’s largest wireless provides is turning their back on their own customers. For the record – Globalive has met all foreign ownership requirements as outlined by Industry Canada. To Telus I ask: why don’t we actually listen to our customer concerns instead of trying to destroy domestic competition? Let’s move on to more pressing concerns, shall we?”
With all this friendly wireless competition happening, and many Canadians looking forward to another wireless option, Lacavera was outspoken about today’s decision and said “Canadians have waited too long for more wireless choice 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. Industry Canada has already made a clear decision that we have effectively met all ownership and structural requirements. 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.”
More soon!
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Definitely unfortunate since it really benefits everyone (minus the big 3) and would have likely lead to better rates.
On the other hand, we still have Public Mobile and Dave Wireless coming through, which are -something- I guess.
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I'm glad the CRTC is moving on this.. It's obvious to me that Canadian consumers will be harmed by increased competition in the wireless market.
Sigh.
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I think ownership issue will only delay the start of Globalive Wireless by a few months and nothing else will happen. I would be surprised if ORASCAM has more than 20% ownership in Globalive. It would be so stupid from both companies to spend time and money into canadian wirless space knowing that sooner or later CRTC will find out about ownership issue and will stop them from doing business. We all know CRTC is con…. by …3
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The CRTC has been trying to undo a tranished reputation after denying Al Jazeera to appease a tiny cell of lobbyists. Does it look like they're finally removing the stain from their shirt? Hmmm.
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whats "Eric G" talkin about? lol damn pawn! more competition will bring prices down, and only benifit wereless customers.. we have allready seen data prices drop by over 100% in tha last year
And i And allmost Every cell phone Subscriber paying inflated monthly bills and geting roped into long term contracts for nothing but a dig Shaft from the providers will be more then happy wen changes are made for tha better.. as we need changes to our wireless indistry in canada
I meen were a joke compaired to anyware else in tha world wen it comes to prices, options, hardware & contracts we get stuck with here in canada..
Bring on more options for customers in canada, it will only benifit us all including tha providers
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Well Telus got their wish from complaining about this. I guess they wanted to get a head start on finally offering GSM so they could be the second after Rogers. A real shame this is.
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@CRIMINALOGIC: Eric G. was being sarcastic. I think everyone agrees the CRTC is acting like the big 3's lapdog.
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