Globalive to enter wireless market
Jane Taber
RTGAM

Ottawa - Ottawa has rejected a regulatory decision and allowed Globalive Wireless Management Corp. to enter Canada's wireless market, adding a fourth major service in an industry now dominated by three players.

Industry Minister Tony Clement said Friday the federal cabinet decided to "vary" an October ruling by the Canadian Radio-television and Telecommunications Commission that Globalive could not enter Canada because it violated ownership rules, finding the majority of its equity almost all of its debt is owned by an Egyptian company, Orascom Telecom Holding.

Ottawa is keen to spark more competition in the telecommunications business and reviewed the CRTC ruling with input from the industry, although Mr. Clement said his decision was based firmly on legal ownership requirements.

"The decision to vary the CRTC Globalive decision, let me emphasize, was based on the legal facts and not on the government's position that there needs to be more competition in the marketplace," Mr. Clement said. "That said, I firmly believe, that Globalive entry into the market to provide near national service will enhance competition for the benefit of Canadian consumers. A competitive marketplace assists consumers by giving more choice, at better prices and higher quality."

Mr. Clement said 80 per cent of Globalive's voting shares are controlled by Canadians, and just four its board members are those nominated by foreign interests.

"I think it sends a signal to the world that we are place where the rule of law triumphs, where you can have two branches of government that can reasonably differ on an interpretation of the facts of a particular case but that there can be a resolution of this and that the government has the ability to resolve this issue," Mr. Clement said.

He stressed there is no change to Canadian ownership rules.

"All we have done, is we believe, interpreted the law in the appropriate and proper, correct, way, that Globalive, when you look at the facts on the ground, Globalive meets those Canadian ownership and control requirements," he said.

Globalive enters a market now dominated by Rogers Communications Inc. , BCE Inc . and Telus Corp.

More to come

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