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Globalive accuses TELUS of “Game Playing”

By on July 27, 2009 at 5:29pm in Globalive News, Mobile News, Telus Mobility News, Various News

tonyOf all the new entrants coming into the Canadian wireless market the most feared by Bell, Rogers and TELUS is not Public Mobile or DAVE Wireless, but Globalive.

Spearheaded by Globalive Chaiman Tony Lacavera, he managed to bring on a titan in the wireless world, Orascom, and get them to invest $700 million over 4 years into his organization. Orascom is a major player with over 100 million wireless subsribers around the world. They know their business and mean business. So why does Globalive raise converns with the other carriers? Well, simply because they know how to succeed.

Over the past couple months TELUS has shown that they are worried. Recently they succeeded in having the CRTC to look into how Globalive Wireless is structured and how much foreign investment they actually have recieved from Orascom. To enter the Canadian wireless space a foreign investor can only hold 20% voting shares. The hearings will take place on September 23rd and 24th in Gatineau, Quebec and a decision will be released 30 days after.

The soap opera continued on Friday when TELUS went back to the CRTC and asked for a new “Directions on Procedure”. Globalive stated in a press release today that the “Directions on Procedure proposed by Telus could give it access to Globalive Wireless’ business plans and could have the effect of extending the hearing beyond the dates established by the CRTC.”

It certainly seems that TELUS wants to delay Globalive from entering as much as possible. This new competition coming in is big business, billions of dollars are at stake. If somebody came into your backyard with the muscle that Globalive does, would you not try everything in your power, from every angle to stall, postpone or even eliminate them from the game?

All Globalive (and the other new entrants) want to do is fulfill the desire from Honourable Jim Prentice, past Minister of Industry. When he announced the Wireless Auction way back in May of 2008 he said “Our government’s intentions are clear: to achieve lower prices, better service and more choice for consumers and business. We believe in relying on market forces to the maximum extent feasible because competition benefits consumers, and consumers benefit most when markets are as competitive as they can be”.

In response to the latest move by TELUS, Globalive came out swinging:

Anthony Lacavera, Chairman of Globalive Holdings said “The Government of Canada has ruled that we are fully compliant with the wireless entry requirements and we are confident that the CRTC will make the same ruling. Game-playing by the incumbents will only serve to delay our investment into the Canadian economy, the creation of new jobs and ultimately, Canadian’s already overdue access to a new competitive offering.”

Naguib Sawiris, Chairman and CEO, Orascom Telecom Holdings said “We intend to completely adhere to all legal and regulatory requirements but will not be deterred by our competitors’ attempts to prevent Canadians from receiving world class competitive services”.

Ken Campbell, CEO of Globalive Wireless said “We are well advanced in our network rollout plans and will continue to work toward our goal to provide Canadians with a more competitive offering. Canada is lagging way behind the rest of the world in terms of wireless penetration and price and our entry into the market will introduce competitive prices and advanced services to the market. With the global experience and financial support of Orascom at our disposal, Canada could quickly rise from 128th in the world in cellular penetration to the top tier.”

Related posts:

  1. Quebecor and Globalive are playing a wicked game of tennis during the Canadian Wireless Spectrum Auction as we end Round 47 at $3,497,259,218
  2. Globalive to partner with MTS?
  3. Globalive set to launch 2 wireless brands
  4. Globalive says Telus is trying to stifle wireless competition

Discussion

8 comments for “Globalive accuses TELUS of “Game Playing””

  1. The regulatory environment and complexities that come with it are part of competing in this industry. Globalive better get used to it.

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    Posted by TNSF | July 27, 2009, 12:52 pm
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  2. Unless there was some serious issues with the Government of Canada ruling, it definitely sounds redundant to have the CRTC look into it.

    "Game-playing" is definitely a good way to describe things.

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    Posted by Rich | July 27, 2009, 1:42 pm
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  3. Hey,

    just so you know, Jim Prentice is now Minister of the Environment. Harper shuffled the cabinet in late 2008 after the election. Tony Clement is currently the Minister of Industry.

    Good article though. I personally feel Telus is delaying Globalive because they are about to launch their HSPA network.

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    Posted by Will | July 27, 2009, 2:19 pm
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  4. You see, the old boys club that is Darren Entwistle & others, refuse to accept the the wireless world is changing. BELUS realizes their days are numbered. By forever putting the brakes on Globalive, it's a clear indication that they are not ready for the world of hurt they'll soon endure. The pie in this country is only so big & the clients/users who have been with the usual suspects are finally ready to switch. Sure BELUS will maybe only lose 18-20% of their clients… but they'll have to re-rate the rest of them & that's what hurts them the most.

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    Posted by Jaswinder Preet Sing | July 27, 2009, 3:05 pm
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  5. It's about time!

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    Posted by Hyder | July 27, 2009, 3:10 pm
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  6. Slight nuance here. The big issue is not that the CRTC is reviewing Globalive's corporate structure — this is pretty routine, albeit silly. The big issue, rather, is that TELUS got the CRTC to conduct its review in a way that it has never done before. This kind of review has always been bilateral and offline, where the CRTC works with the company to make sure its structure onside. For the first time in its history, though, the CRTC is now holding a highly formal public hearing, complete with public disclosure of Globalive's corporate documents. The reason for the CRTC to have changed its procedures, just for Globalive? TELUS lobbying.

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    Posted by Serge | July 27, 2009, 4:58 pm
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  7. Actually, Jaswinder, the pie is a lot smaller than it could be. Only %70 of Canadians have a cell, by far the lowest in the developed world. The incumbents gouge us so much that %30 of Canadians cannot even afford one. The incumbents would rather keep the pie small rather than share even a small slice of it.

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    Posted by kmusky | July 27, 2009, 6:24 pm
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  8. Read what I have to say on the matter. This is serious BS and hopefully Globalive will leverage this fiascal to the max. Canadians deserve better!
    http://www.jaretmanuel.com

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    Posted by Jaret | July 28, 2009, 9:23 am
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