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Public Mobile asks Court to overturn Globalive decision
Globalive’s foreign ownership is still making news and will continue to make news for years to come. They were given the go ahead to launch their wireless brand after Industry Minister Tony Clement declared they are “a Canadian company that meets Canadian ownership and control requirements”. This news was bound to make the other new entrants and other industries question the move.
Today, Public Mobile has stepped up and asked the Federal Court to overturn the decision that allowed Globalive to launch stating “we could all have the benefit of having foreign capital”. Public Mobile CEO Alek Krstajic said “I’m not looking to get Globalive to stop operating. This is not about stifling competition, this is simply us saying: me too.”
Even back on November 13th Krstajic wrote a letter to Clement and Industry Canada communicating the need to block Globalive and requested more clarity. The letter was titled “Two Wrongs Don’t Make a Right!” and stated his frustration with the ownership rules as they are “sometimes applied and sometimes not.”
Public spent $53 million during the AWS Spectrum Auction and captured a reach of 19 million people in Ontario and Quebec. When it comes to investors, it’s well known that they are backed heavily by Canadian OMERS, Columbia Capital and M/C Venture Partners (which are U.S. Investors). Public Mobile is currently being examined by the CRTC for their ownership structure. On December 18th the CRCT issued a statement saying “At this time, and based on the information available, the Commission considers that the ownership structure of Public Mobile is of a complex nature and could hold precedential value for the industry and the general public.”
In a news release today titled “Public Mobile Challenges Government Decision on Globalive… Government Urged to Treat All Wireless Providers Equally”, Krstajic said “We believe Cabinet’s decision is unfair to other wireless carriers, especially new entrants like Public Mobile that have played by the rules and secured substantial Canadian investment. Furthermore, while we respect the Government’s authority we believe what it has done amounts to a change in law, and only Parliament can change Canadian law.”
“We agree entirely that there should be more wireless competition in Canada. And we want to be very clear that we are not opposed to Globalive’s presence in the marketplace so long as the same rules are applied to everyone. But the government’s decision does not create a level playing field. It has made two sets of rules – one for Globalive and its Egyptian owners and one for everyone else. We are simply asking that all wireless providers be treated equally and given the same access to capital.”
Thoughts?
Discussion
33 comments for “Public Mobile asks Court to overturn Globalive decision”
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I suggest Public Mobile stop whining and focus on their launch.
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While true, why don’t they just go get more foreign investors? I’m sure it’s easier said than done but perhaps the rules have now changed? If they base everything on precedent, nothing will ever evolve into change, thats the point.
Everything needs to happen at some point for anything to happen. Suck it up, go get some more investor money, and expand to our fifth carrier. Stop trying to stifle competition before you even exist in that competition.
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Well, here go the conspiracy theorists that a former head of Bell Mobility is now doing the dirty work of Rogellus.
Personally I think it’s more because WIND has basically shot Public Mobile to pieces with their phones and price plans and Public is realizing they may be entering into a lost cause before they even begin.
I am certain however that the big 3 all knew of this move in advance and have privately expressed their approval.
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to me it seems public mobile is made because someone took a short cut.
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mad not made
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You’ll forgive me if I don’t take too seriously an ex Bell exec who is crying foul after he’s publicly stated his business model is to build Public Mobile into a profitable company and then sell out to one of the incumbents in five years.
What a maroon.
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I think that public should be nicer to wind so wind may offer more money when public is to be taken over. Public mobile is exactly what bell, telus and rogers want because who really would want to go with public. No competition at all. It’s like a service provider that you have to remind not to run with scissors.
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I don’t think foreign investment is going to help Public Mobile when they are a limited PCS carrier.
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It seems that Public Mobile is doing the bidding of its masters (and those who control its roaming agreements and leased network technology): Rogers and Bell.
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I can’t understand why so many people are calling praising Wind when all over the world they have such a bad reputation !
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Being the only carrier in Canada to not offer a UMTS/HSPA network is going to hurt. No iPhone, no Google Phone, etc…
Then WIND took their $40/month plan and basically killed it with their $35 offering.
When DAVE launches, it’ll just be the last nail in the coffin…
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Not sure why everyone is bashing, isnt Public saying they want no arm to Wind, they just want to have the same right, maybe if Public would have gotten Russian money they would have purchase spectrum nationally and have a better offer for consumer, everyone seems to be behind Wind, even if at this time they only proven they had a great marketing team, their plans are bad, their offering is so, so and their backer is not reknown to have a very good reputation
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A lot of these comments are totally biased. Public mobile is looking for legal clarity. Don’t bash them because the gov’t of Canada screwed up! The rules have bee changed; now the the question is: what are the rules now?
Nothing is wrong with that. Everyone thinks WIND is a godsend and the big 3 are evil and that Public Mobile are doing the Big 3’s bidding. You guys are ridiculous. Get a reality check. This is a legit legal issue that needs to be resolved by the courts.
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PUBLIC Mobile SUCKS!!!
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It’s a fair point. It’s like you studying hard for an exam to get a good grade, only to find that the guy next to you is allowed to use a cheat sheet. Not very fair.
Not that I want Wind to shut down though, cause then I’ve just spent $130+tax on a useless phone.
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wind is a new company and they made a decent offering. I don’t think anyone should expect miracles from them yet. Telus sucked (clearnet) when they first came out when it came to signal. I don’t care who backs them, we all wanted change. If you can’t get canadian backing then go foreign. Otherwise you’re a public mobile and not doing jack for the canadian consumers. I don’t understand whats the fuss about being foregin anyway, most of the stuff we buy is from other countries.
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“Nothing is wrong with that. Everyone thinks WIND is a godsend and the big 3 are evil and that Public Mobile are doing the Big 3’s bidding. You guys are ridiculous. Get a reality check. This is a legit legal issue that needs to be resolved by the courts.”
Simple answer: If the courts rule in favour of the government over Globalive, Public Mobile is dead unless they can also find massive foreign backing in a hurry.
On the other hand if the courts rule against Globalive, there will be appeals and the whole process will take months. In the meantime Globalive will come into line with the court’s wishes and Public Mobile will still be no further ahead.
The whole process seems utterly pointless other than to a) Try desperately to kill Globalive or lose your business before it starts or b) Open the field up to foreign backing and still give Globalive a massive head start when you could have been doing something more productive.
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Public Mobile is a midget that cannot even compete and i see no reason even to get bought in 4 years
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I’m gonna agree with CB here in saying that Public is not asking for WIND to be removed from the competition, they are simply asking what the new rules are, as well as if the new rules apply to them (which they really should).
I do agree in wishing that people would stop claiming that WIND is a complete godsend. I totally agree we as a country need far more competition, but the salvation is not just one particular company. It’s all the new competition that is to come.
That said, my dad currently has yak services at home… and is quite ready to get rid of them as he hasn’t had great service at all.
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well they somewhat have a point.. and tha same should apply for all if it lowers costs in canada, foreign investers should be able to invest but should be resticted to limited or no control in tha company as a whole..
Oh and I agree public mobile may a lost cause..
But as long as they offer cheap unlimited data and allow unlocked CDMA devices to be flashed to there network, i’d give them a shot “”They did state when they placed tha first call on there spectrum that allmost any CDMA device can easly be flashed to work on there spectrum”"
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why do you say public mobile sucks?
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This makes absolutely no sense. The same rules apply to everyone. Hey, Public Mobile: want to raise more foreign money? Then raise more foreign money! I’m thinking they’ll want to see a business plan, though.
Or did you already try and do that, fail, and run home to the courts as your back-up “plan”? Because otherwise your court adventures aren’t making a lot of sense.
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To all of you guys who are saying P.M. is not asking to shut Wind, but asking to get the same treatment, I would say you are wrong.
A suite overturn the gov. ruling means they want to shut it down. Plain simple.
If they want the same treatment, then they should come up with a financial structure with the foreign investment they wish, submit it to CRTC, and when the CRTC say no, then they go to Tony Clement, and when he says no, then they can sue in Court. Unfortunately, this is not the current scenario.
P.M. is being childish in the me too approach. Plus who seeks more funding few weeks before launch? Didn’t they do their math right from the beginning?
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#1 (Nadim):
Is your last name Mohammed? Are you waiting to buy out PM?
haha I kid
Also, steve37, PM is using CDMA technology that Canada is moving away from given HSPA/LTE is the new path.
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Foreign Investment doesnt necessarily = Foreign ownership. Thats the biggest misconception people seem to have with this whole issue. Public Mobile can easily go out and get foreign ownership, aslong as the company is controlled by Canadians. Globalive was and still is Canadian. Orascom is only an investor, they do not own Globalive. Globalive has been in Canada for a while now.
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I meant investment no ownership btw to my above post. TYPO
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I was waiting for who was going to posture first. You see, none of the BIG 3 can do it because they have to “look good” in the public’s eye which is a really huge hurdle for them considering everything they have been doing to the Canadian Consumer in recent years. I thought that there was a union the BIG 3 probably lobbied that would attempt to do something at first, but it looks like the one that doesn’t really care about his business decided to do the dirty work for the incumbents. I wonder what kind of back room deal he’s got with BELL or any of the other incumbents.
First of all. Krstajic is about making coin. I have no problem with that, after all that’s what business is about. My problem with him is that he used to work for BELL and said that he didn’t want to compete with the incumbents and would consider selling his business. Pay close attention to the 12 minute mark in this debate between the 3 start up’s. http://www.youtube.com/watch?v=ugJajZxtUQI (turn it up because the sound quality isn’t that good)
I mean come on, first the guy admits to selling out if given the chance and now he says he needs more money to compete or should have been given the opportunity to get more money? Now if what I am hearing is correct Public Mobile now realizes they need cash to compete? OMG! So they didn’t know what they were doing from the beginning and now they are crying the blues? Give me a break! This guy has not been in it for the long haul from the beginning and now he has changed his mind? This guy is so contradictive!
Foreign Ownership rules were not disregarded or stepped around. The CRTC’s decision was based on a subjective ruling that they relied on the incumbents to interpret for them. It is right in Mr. von Finckenstein’s decision. The government’s goals are for all Canadians to have access to telecommunications. Taxpayers helped build the big carriers and now that they are well established they have been bleeding us. They missed the point. I believe there has been a measure of collusion between the incumbents and now they are going to use Public Mobile to do their dirty work to try to stop real competition. In the debate Alex even talks about how the incumbents are going to make it very difficult for anyone to break into the market. Events in the last few months prove that. This latest move by Public Mobile simply is a further attempt to stall/paralyze the process of change.
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Screw public mobile. what a loser company , who has 1 phone on a dinosaur network , I hope the dumb canadians that fund them lose their money
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ok. calm yourself everybod,here is what i think about numerous comments posted in the last 24hours
1- If i was PM i would also ask for clarifications from gvmt, the rules have been changes by the globalive decision and maybe PM was offered foreign money and have declined.
2-Globalive cheated point, the Gvmt made an error and could’nt do anything else than overturn the CRTC call
3- PM to sale in 3-4 years, some of you are stupid to think that an egyptian gave $700M to a Canadian start up with no significant ROI in mind, since Wind has no cable, internet or other telecom product they have two options…fail or sale out at a big price….remember Clearnet anyone…
4-PM C.E.O agree that he seems to be a little different… for those shooting the guy from being ex-Bell exec, should know that the rumour is that he got fired because M George Higher ARPU Cope did not want to move on with a new division that AK wanted to launch similar to PM a few years ago
5-does PM have a chance to survive? maybe, lost cost for spectrum and different offer, maybe not for people on the go or business, but some kind of potential.
6- For all those Globalive fans, you may want to do some research on the egyptian guy that is supporting them, you may FREAK out a little on how he became rich and mostly what type of friends he has…
7- Maybe D.A.V.E will have something good to offer….
8- At the end, when all these new guys hit somekind of cap in revenue, they will need to increase rates to support incremental cost structure, its finance 101… dont fool yourselves…. happen millions of time will happen again
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RoB, why does PM need further clarifications? If it really has convinced a foreign investor to put up a bunch of money, then let the foreign investor put up a bunch of money.
What is so complicated about it The rules are the same for everyone. PM signs up an investor, goes to the CRTC, gets a lengthy hearing, sees if IC overturns it, etc. And we can be pretty sure that if PM signs up an investor on exactly the same terms as WIND, it’s going to have a real good chance at approval.
The only thing lacking for PM in all this, it seems, is an actual foreign investor to make this all relevant.
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Sometimes i feel Wind is hiring people to bash all new wireless provider.
The question is why ?
Are you not sure of your own unreliable network !
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It business for them. No more Wind one less competitor.
They want Wind out of the picture.
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@Msk12 – Isn’t that exactly what the incumbents have done? Hired people to bash their only threat, WIND MOBILE, on public forums and any who support them. I have seen them in action.
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