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“Totally unacceptable.” Lacavera on the CRTC
It’s been a few days now since Globalive was stunned by the CRTC’s decision that could possibly delay their wireless launch. Today I sat down with Tony Lacavera, Chairman of Globalive, to understand his next moves and what he has planned for those Canadians who were/are looking forward to WIND Mobile launching.
In the interview, Tony states “The CRTC has put competition at risk, we represent the only new national choice for Canadians in wireless. We’ve been working hard to get the business out of the gate and we’ve got 800 people under the CEO Ken Campbell. We’re ready to launch… and now the CRTC, right as we are within weeks of launch, comes out with a decision stopping up in our tracks, stopping Canadians from getting a new choice in wireless… the CRTC must let us go forward!”.
Have a listen and give your comments below!
Discussion
43 comments for ““Totally unacceptable.” Lacavera on the CRTC”
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Pretty tough talk for what is a really delicate situation. Sounds like Tony and his crew are expecting a quick flip on the ruling by the federal cabinet.
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Wow… this guy really thinks he’s on a holy venture.
As if he were a saviour of some sort… just wow…
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I definitely sympathize with them and really want them to launch. The problem is that the law is the law, not much the CRTC can do about that. They have to follow the rules, even though the rules don’t really make sense anymore.
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Terry Reply:
November 3rd, 2009 at 3:54 pm
Yes you can. You can change the laws…Horribly horribly outdated and protectionist laws.
And it makes no sense to get approval from Industry Canada then be told no by a smaller arm of the government who is run by people who previously works at Rogers and Bell.
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CRTC definetly has links with the big corporations who currently dominate the cellphone network in Canada. Why would the mojor carriers lose customers or potential customers because of a new carrier? The low prices threaten the big carriers, therefore they do whatever they can to stop or delay Globalive launch.
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toyandme Reply:
November 3rd, 2009 at 4:40 pm
“CRTC definetly has links with the big corporations who currently dominate the cellphone network in Canada. Why would the mojor carriers lose customers or potential customers because of a new carrier? The low prices threaten the big carriers, therefore they do whatever they can to stop or delay Globalive launch.”
It’s much more than low prices. Every survey from Consumer Report to JD Power makes it clear that Canadians are getting crappy service from companies that don’t care –with the exception of Virgin Mobile, but they’re now part of Bell, so you can kiss that goodbye.
The attitude of our cellcos has always been: Screw the consumers with fine print, rip them off as much as possible with forever contracts that lock them in solid and then triple the cost of sms receive, call display, or whatever is essential but left out of the contract.
And please, cellcos, spare us the BS about “the law is the law”. You have been breaking every other law in the books whenever it was convenient, with totally illegal SAF, 911 fees, etc.
Disclosure: I have been involved in class action lawsuits including this one:
http://www.merchantlaw.com/cellular.html
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I think the law is the law. However, if somebody told you that you can go ahead and you invest hundreds of millions of dollars, that is a lot of money, then they pull the rug from under you. Your would be upset now, won’t you?
Business doesn’t operate that way. Professionals don’t do that. I think the CRTC has to follow the law. They should give a grace period for Globalive to comply. Cutting it off like that is unacceptable, regardless of what business you are in.
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Hugo Beaulieu Reply:
November 3rd, 2009 at 4:23 pm
Or… What I would consider is turn to industry canada and ask for compensation…
That being said, the law didn’t change in the last few months. Globalive’s legal team likely did a piss-poor job
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Robin Reply:
November 3rd, 2009 at 4:37 pm
I sooooo agree with this!
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Stefan Dumitrascu Reply:
November 3rd, 2009 at 5:03 pm
CRTC is a part of the government. Governments have very close links with the corporations. For their self-interest, governments can sometimes act against logic. Big corporations have a lot of financial power and a lot of power to persuade governments. So nothing is possible. Law sometimes can be bent or broken.
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He does not think of himself as a holy venture. I don’t know where you got that from.
)
He seems like a very humble guy. I respect him for keeping his composure during this tough period.
The decision was unexpected, Industry Canada already approved them, Globalive had no reason to believe they’d be turned down at the last minute.
I hope everything works out for the best. I’m sure the competition would benefit everyone.
Globalive, or more specifically Wind should be seen as the saviour, not Tony Lacavera.
From dictionary.com:
1. a person who saves, rescues, or delivers: the savior of the country.
2. (initial capital letter) a title of God, esp. of Christ.
Wind is a “saviour” because it is saving Canada’s consumers from wasting there money! (I know, corny.
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Hugo Beaulieu Reply:
November 3rd, 2009 at 4:25 pm
I would agree if wind were alone in the spectrum auctions. In reality most canadians will be see 1 or 2 additional players in the next 12-18 months. That should not be forgotten.
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TNSF Reply:
November 3rd, 2009 at 7:43 pm
The decision WAS expected. Globalive knew they would have to undergo a CRTC review because Industry Canada told them so. Also, Globalive announced a number of changes on the day the CRTC review started which is a complete admission that they were not in compliance.
They knew this was going to happen. Absolutely.
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Tony is the man, regardless of whether you support the company or not you SHOULD support more competition in the market — it’s better for everyone.
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Im mad
For me it’s about the timing.
The Timing stinks… right before launch, right before xmas?
Tell me why the CRTC decided now of all times was the best to investigate Wind?
CRTC let them buy the licience.
Let them build their network.
Let them hire 800 employees.
AND NOW they find a problem. This could have been resolved a month after the auction…..Why wait until now?
Like I said the timing stinks and us Canadians are getting screwed again by the big 3 – who in one way or another get their way at the CRTC AGAIN!!!
One thing is for sure – If Wind launched this season it would have certainly taken a lot of attention away from the new Bellus network and definetly eaten into their holiday sales!
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The truth is, of all the possible decisions the CRTC could have rendered, they chose the one that is most harmful to Wind, and most beneficial to Robelus. I doubt even the big 3 would have dreamed the CRTC would outright stop Wind from launching. At most, I’m sure they were hoping to have a strict time limit on when they might have to find alternative funding. The CRTC, whether they followed the law or not, had options besides completely going against Industry Canada and the Government of Canada. The sole purpose in this entire spectrum auction was to create more competition. The CRTC has effectively quashed any real competition and negated what the Government was trying to do and handed Canadians 3 year contracts and bogus fees for the foreseeable future.
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It is fine to say “the law is the law”, and what the CRTC says, goes.
However: Did anybody consider the fact that Industry Canada cleared Globalive as a wireless operator in Canada, that based on that a whole new business was started, and is now virtually ready to go; and now the CRTC is stopping all that?
(It could not possibly be true – the rumours that the CRTC is favouring the three incumbents?)
It you believe in what Golbalive is doing, write Industry Minister Tony Clement, + your own local MP, + Prime Minister Harper, and tell them how you feel!
DO IT NOW!
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Wind isn’t going to save you money or offer you better service… stop drinking the kool-aid they’ve going to suck too…
They’ve invested millions and they have a huge cost structure in place (800 employees, network, ad campaign, etc.), so don’t expected $10 rate plans that give you 1000 anytime minutes…
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Randy Reply:
November 3rd, 2009 at 6:47 pm
No one’s drinking kool-Aid Dave, but surely, even the most cynical among us, can’t deny a fourth national carrier would at the very least, not have driven prices UP!
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Mike Reply:
November 3rd, 2009 at 7:25 pm
It might not be $10.00 rate plans, but I am sure it won’t be #30.00 for nothing as well, like Telus or Bell or Rogers are charging……
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AngryChineseDriver Reply:
November 4th, 2009 at 1:51 am
Nobody said anything about huge discounts on plans. In fact, I don’t expect them to charge any less than Rogellus.
BUT…since they are MTM and don’t chain customers down to a three-year contract, surely they will remain competitive so that they don’t lose customers after only a month. That’s real capitalism for ya.
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Oh boo hoo. Grow up and learn how to run a real business.
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“Can’t access the latest handsets, features and services”
Between Bell, Telus and Rogers and their HSPA+ networks Canadians now have probably the best access to the latest networks, handsets and features anywhere in the world.
Where else in the world can you find such large HSPA+ 21mbps coverage with all the latest handsets? iPhones, Android phones, Blackberries. We will have it all and none of it will be coming from Globalive.
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mike Reply:
November 3rd, 2009 at 8:10 pm
latest handsets maybe but at what prices ( service prices – plans, rates)
without wind mobile prices won’t go down by much or maybe they will. only future will tell
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Monika Reply:
November 3rd, 2009 at 8:36 pm
Europe ! btw …how do you know what global has to offer ?
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TNSF Reply:
November 4th, 2009 at 1:13 am
In Europe HSPA coverage is hardly as widespread as the new Telus/Bell network is. Also, Europe doesn’t have much in the way of 21mbps service.
And because Globalive is using AWS spectrum they are very limited in which devices they will be able to carry for the next while. Nothing groundbreaking, thats for sure.
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Jon Reply:
November 3rd, 2009 at 8:48 pm
…. Australia?…. the UK?… Germany?…
Actually, Australia’s HSPA+ network is running around 44mbps if I recall hearing correctly… and down in the USA they’re starting to roll out HSPA+ for T-Mobile…
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TNSF Reply:
November 4th, 2009 at 1:15 am
USA is a poor example. They are still in the earliest stages of HSPA roll-out. Canada has shot well ahead of the USA.
Regarding Australia, UK, Germany, etc my point is now that Rogers, Bell and Telus are all using HSPA there isn’t anything in Europe that we won’t also have available here. We don’t need Globalive to bring us any fancy handsets, features or services. They have nothing special to offer.
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Monika Reply:
November 9th, 2009 at 11:33 am
No ONE cares about tech here . Trust me . When we sign up for services ..WE care about the monthly payments !!! And Customer Service . Trust me on this one . Have you ever heard people going in to Rogers or Bell asking them ..” tell me about your network system …how fast is it ..what kind is it ” … So … What is it again ????
TNSF Reply:
November 9th, 2009 at 10:30 pm
Monika, customers ask those questions all the time, but not necessarily in a direct way.
How big is your coverage? Will my phone work when I drive out here on vacation? How fast will the internet on this USB thing? Can I use my phone in Europe or Asia?
Sometimes the technological difference isn’t too important (eg most customers don’t know the difference between 1x and 1xEV-DO). However, the difference between HSPA+ and other technologies is substantial and easily explained to customers in non-technical terms.
Huge coverage, the latest devices, global roaming, etc. These are all direct benefits of the underlying technology.
But yes, customer service and monthly bills are also important.
Looks like the good old behind-the-scenes lobbying paid off for the unholy alliance of the telecoms. These three inept dinosaurs must die. Go bankrupt, split up, I don’t care. They will never get a single penny from me again.
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Here’s a history lesson for all the naysayers that think that the CRTC is only following the law.
http://watch.bnn.ca/trading-day/october-2009/trading-day-october-30-2009/#clip229737
The CRTC doesn’t even want to follow it’s own precedence in the telecommunications market. And if you want to talk about following the law don’t forget about Robelus charging us for a SAF and saying that it was required by the government.
http://dissolvethecrtc.ca/
And write your local MP!
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What about all the people just got hired ?
Hello Canada — Global is here to give us a Job —no more EI . what is wrong with you CRTC??? Another 800 people unemployed ! Thank you CRTC for the new oppurtinity.. I wonder who is paying for your cell phone bills …oh wait …i think is coming out of my pocket …it;s called TAX . CRTC –Can you please pay MY PHONE BILL TOO. Thank you …
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Wow, I know the big 3 rob us day in and day out, and us as Canadian have learned to accept it ’cause if we want a cellphone, we don’t quite have a choice.
But I don’t think any of us expected such businesses to stoop so low as to stop a new competition from coming in. There is something called business ethics, and yes, I know this doesn’t directly go against ethics, but really though…
I’m sure if someone tried to stop one of the big 3, they would go ballistic and lobby the hell out of the senate to get their way, probably even come out with their own new laws like Rober’s so called GRR. Those guys almost make it sound like the government is only charging them with the GRR and no one else.
And so we live in a capitalist society where whoever has the the money can buy out politicians to get their way. Sad but true…
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Lacavera puts the competition gun to CRTC’s head.
Lacavera knew the rule but he decided to roll the dice and force his way through. He got pass Industry Canada in a closed door meeting but not pass CRTC’s public hearing.
Lacavera made it seems they are the only one who can bring competition. Well, not true. There are others.
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Randy Reply:
November 4th, 2009 at 9:32 am
Who? The other new entrants, the 2 main ones of which Rogers/TELUS/BEll have already filed ownership structure complaints against? All the other new entrants are regional and most only in major centres. Globalive was the only one who was going to be a true national carrier.
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Remember when Canadian Airlines went under and there was an option for American ownership? Then the Canadian government stepped in and declared that through ownership rules, this could not happen so Air Canada took over Canadian? Remember? Have you flown on Air Canada vs. Westjet? Have you seen how much it costs to fly in Canada? Then look at this nonsense! It is the same thing happening over and over again. We have our leg caught in a bear trap but we’ve forgotten that the trap is there and just live with this nonsense forever and ever…it must stop.
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i think this guys got it in the bag. if he beats this hes laughing and we will finnaly get some decent phones. are cellular system is archaic at best iam sick of dropped calls and crap phones . i havnt had a cell in over a year because i was just so sick of it ex fido .
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TNSF Reply:
November 9th, 2009 at 10:31 pm
Decent phones? No, not really. Most current phones don’t work on the spectrum that Globalive licensed.
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we need new phones Reply:
November 10th, 2009 at 5:01 am
this simply isnt the case have a look around . and u will see actually . there are alot of phones ready.
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i think this guys got it in the bag. if he beats this hes laughing and we will finnaly get some decent phones. are cellular system is archaic at best iam sick of dropped calls and crap phones . i havnt had a cell in over a year because i was just so sick of it ex fido .
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More competition? yes!
From Orascom listening on our phone calls? no!
not the first time orascom gets kicked out of a country for national security reasons.
foreign ownership is not just for cultural protection…
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This man clearly is an idiot, the law is the law.
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