17

Industry Minister knows the urgency on a Globalive decision

clementAs the drama still unfolds over the Globalive/WIND Mobile pending launch, Industry Minister Tony Clement has stated “We do have the power through an order of council in cabinet to amend or vary the decision of the CRTC… The government’s policy is designed to increase competitiveness in the wireless space, and that is important for Canadian consumers because it increases choice, it increases quality and it reduces cost”.

This news might shed some light on his upcoming and very anticipated decision. Still no date on when he’s going to announce if they’ll be given the green light to launch, Clement did say he knows there is “some urgency” to resolve this issue quickly, but again stated “We’re sifting through all of that information, and then we’ll be able to render an informed and I believe correct decision”.

We spoke Globalive Chairman Tony Lavacera last week and he was more optimistic than ever they’ll be able to launch. WIND has already hired over 800 people and have set up their stores, plus kiosk in BlockBuster locations.

Via: MSN

  • Ken Armstrong

    Even though I won’t have access to WIND, being that i live in Manitoba, i hope they are given the green light. we need more competition in Canada.

  • Mike

    good news, maybe we will see WIND before Christmas :)

  • Rich

    Good news, albeit the waiting game still goes on. I’d hope that WIND can launch before Christmas.

  • xCDN

    I think this headline might be jumping the gun. I didn’t read anything about disagreeing with the CRTC just that they can over rule it depending on what the review says.

    I have really mixed feelings on this, I really want Globablive to launch soon but understand that the rules were already met by the others launching. I think Globalive needs to do some comprismising with either the CRTC or the other carriers launching to work out a fair solution that takes into account their violation of the ownership rules. I think the ownership rules are completely outdated and needs revision immediately but the other carriers already met them.

    • Randy

      In fairness xCDN, we don’t know that the other new entrants have already met the rules of Canadian ownership. Their time in the sun with the CRTC (and the 3 amigos) has yet to happen.

      While they’re jumping on the Robelus band wagon and stating that Globalive shouldn’t be allowed to launch, they have yet to pass muster themselves. That’s not to suggest they won’t, but until the review, who knows? DAVE, after all, got $125 million from ING, a foreign bank. Not necessarily the same circumstances as Globalive/Orascom, but with the CRTC… who knows how they’ll interpret things?

    • BIG AL’S

      I wouldn’t say they are jumping the gun. I would say it makes sense. This whole mess has gotten way out of control. It’s time for the government to show real leadership and stick to what it started.

  • telussucks

    Simple solution if the will is genuinely to bring in new competion to the market: let Wing launch if they can show a clear plan leading to full compliance within 3, 6, whatever months.

  • SaveMeFromTelus

    Unfortunately, if it looks like a duck, walks like a duck and quacks like a duck …

    I find the fact the Orascom supplied the equity and debt then also controls the brand tells me this company is Canadian in name only. There is no way to divorce the company from the brand and the brand is owned externally and hence licensed at a cost. Realistically and unfortunately, Globalive is a front for Orascom.

    Don’t get me wrong, I want a new entrant to the market but the rules say the entrant must be Canadian controlled. This company may have Canadian shareholders, directors and management but the cash is controlled by Orascom and given the business Orascom is on this means Globalive is controlled by them.

    I think there would be a much stronger argument if Globalive created their own brand rather than renting a foreign brand given their financial structure.

    • Fred

      This is not true. Many international companies like Vodafone, Orange etc… operate in different markets sometimes under the same name they use in their home market. The name has nothing to do with it. also, when Bitove created DAVE Wireless with several investors, do you honestly believe that all investors are Canadians??/ Remember Rogers AT&T alliance?? The fact here is that the incumbents are really afraid of Globalive more so than other new entrants because tit will survive and not be entrenched in debt in a few years and be bought by the big guys such as fido and Clearnet. that is why they are afraid. These CRTC rules were written many years ago with the help of Ted Rogers and a few others in the industry to give them exactly that total control because they cannot compete with larger new entrants. Canada has one of the lowest penetration rate for an industrializes nation. Also the ARPU $68(average revenue per user) is one of the top highest. We are the 3rd highest paying cell phone users in the world.

  • yathink

    I don’t care who WIND is run by. Even though WIND is run by Canadians and Orascom doesn’t get to make any decisions in the running of Globalive. We’ve been talking about the three companies crewing us for years and no one did a thing about it. So Globalive comes into the picture and decides we’re gonna go all the way and not do a half as$ed job when competing against the big three. There is money to be made. So when they went to Orascom for money, it benefits them both. It also benefits us as Canadians. I wonder where all all the Canadian companies were to help a Canadian company stand out. Rogers and Bell pretty much run all that is media in this country and they do so unfairly. Globalive is what this country was built on. We’re not a bunch of communists that do whatever you tell us. Good luck globalive. Stick it to the big guy for a change!

    • Kmusky

      Actually, Orascom does have veto power over major financial decisions. It’s a part of the agreement of Orascom’s holding of Globalive’s debt. That was a major part of the CRTC’s decision to withhold operating right to Wind.

  • Carl

    Pull the plug already! Fire the person at Industry Canada that didn’t read the rule book and gave them the green light. Promote those at CRTC who actually did read the rule book and had the guts to stand up and expose the error. Wind doesn’t even remotely meet the minimum requirements. They have lawyers and they can read the writing… what did they think was going to happen?

    • yathink

      Someone’s gonna take your job at Bell or Rogers away Carl. It was an interpretation of the law and that is how the CRTC ruled. Someone should start looking at what size bed the CRTC bought to fit all three big companies and the CRTC in it.

    • Koolaid drinker

      Hopfully it was not a California king, that may be interpretated as foreign ownership……lol

    • BIG AL’S

      I say the head of the CRTC should perhaps be fired and any other member of the CRTC that supported this fiasco.

  • Mojdeh (May) Madani

    Go Mr. Tony Lavacera. All the power to you!

  • Scott S

    It’s all a waiting game for now, I just wish that we could have a date as to when Tony Clement will be making his decision.

    It’s almost time Robelus, mua ha ha. But seriously they’re screwed.

Trending News

Other Articles