Cheering as Globalive Promises to Change Canadian Wireless Industry

Globalive Gets Go-Ahead
They’ve spent millions. They’ve had fierce fights with government, industry regulators and big corporate competitors.
Now, Globalive Wireless has won its cellphone prize.
The Government of Canada has changed a previous Canadian Radio-television and Telecommunications Commission (CRTC) decision regarding Globalive Wireless Management Corp., saying the company’s Canadian ownership and control is enough.
The change is effective immediately, and Globalive can enter the Canadian wireless telecommunications market without delay.
At a somewhat rowdy press conference confirming the news on Friday morning, Globalive head Anthony Lacavera said his company “will change the structure of the wireless industry in Canada.”
His remarks were greeted by loud cheers and applause, mostly from the assembled staff at the company’s office at Harbourfront in Toronto.
But no doubt there are cell phone consumers who will greet the news with similar enthusiasm.
The first of what is expected to be several new players, both national or regional, will start its service by Christmas, noted company CEO Ken Campbell – adding “you won’t have to go shipping on the 24th.”
Few specifics of the new service — to be called ‘Wind’ — were available.
Lacavera said that handsets carried, packages offered and other details would be available online very soon. At the conference, Blackberry, HTC and Samsung handsets were being shown around, but not confirmed as offerings. The iPhone will not be offered by Globalive.
Store locations are still to be announced, although it’s pretty clear at least one will be at Harbourfront Centre.
He did say that “system access fees” would not be charged, nor would calls to 911.
Roaming outside the Globalive coverage area will be supported through other networks, in Canada, the U. S. and internationally, it was noted.

Cellphone Company Calling Canadians
But it was not until a significant decision from government that such descriptions could be given at all.
“Globalive is a Canadian company, and meets Canadian ownership and control requirements under the Telecommunications Act,” said the Honourable Tony Clement, Minister of Industry, in a release that really made the press conference and new service launch possible. “We take this decision very seriously. It is based on the application of these requirements to the facts in this case.”
In changing or varying the previous CRTC decision, the Government says it is not removing, reducing, bending or creating an exception to Canadian ownership and control requirements in the telecommunications and broadcasting industries. The Government says its decision to vary is specific to the facts of this case.
The test for Canadian ownership and control under the Telecommunications Act is comprised of both legal requirements and a factual requirement.
The Government and the CRTC agree that Globalive meets the requirements. In particular, Canadians own at least 80 percent of the voting shares of Globalive and 66 2/3 percent of the voting shares of Globalive’s holding company. Also, at least 80 percent of Globalive’s board of directors is Canadians.
The factual requirement involves assessing whether a foreign entity controls “in fact” the company. Control in fact is the ongoing ability to determine the strategic decision-making or to manage the day-to-day operations of a company.
The three main rival companies – Rogers Wireless, Telus and Bell – opposed the company’s plans, arguing that the company’s ownership structure – which includes a 65% shareholder stake for Orascom – violated the Telecom Act and rules prohibiting foreign control of Canadian telecos.
Billions of dollars were raised by the federal government through a wireless spectrum auction in which Globalive was awarded the space to operate its service – along with other bidders. Nevertheless, Bell, Telus and Rogers say the CRTC should rule against its counterpoint, Industry Canada, which had approved the company ownership structure prior to letting it bid on the offered wireless spectrum.
Toronto-based Globalive had appeared before the CRTC to address concerns and criticism over its corporate structure, and it went there with a list of changes and concessions in hand.
“We have done all we realistically can to address the commission’s concerns,” Lacavera said at the time.
Globalive altered its board structure, increased the threshold at which international telco and major investor Orascom could use veto rights on company matters, extended the terms of a $442-million bridge loan from the Egyptian firm, and inserted a clause that gives Globalive the right to terminate its technical agreement with Orascom.
CRTC chair Konrad von Finckenstein called the corporate changes “extensive,” but they were seemingly not enough to satisfy some critics and regulators.
Not until today.
