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Update on Globalive/WIND Mobile Situation

Christine Persaud

Published: 11/16/2009 09:55:58 AM UTC in Appointments & Business

3 comments

Update on Globalive/WIND Mobile Situation

Last month, the CRTC ruled that WIND Mobile could not enter Canada as the latest wireless carrier, turning the company upside down. Two weeks later, parent company Globalive Wireless is still assessing options on how to move forward.

The media has been rife with reports that both Rogers Wireless and DAVE Wireless have their eyes on Globalive's assets, including the company's already-built high-speed network. The company had plans to launch its services in certain markets, like Toronto and Vancouver by the end of this year, followed by the remaining markets, which include all of Canada minus Quebec, by early 2010.

After the "no" decision came down, Chairman and CEO of Globalive Anthony Lacavera told Marketnews that, quite frankly, his business is at risk.

At the centre of CRTC's decision is the belief that Globalive is a foreignly-owned company, backed heavily financially (to the tune of 65% ownership) by Israeli wireless mogul Nagib Sawiris and his company Orascom Telecom. However, Globalive's original bid for wireless spectrum was approved by Industry Canada, leading many to find the decision unfair. Some believe it's simply a matter of the existing wireless carriers, Bell, Rogers, and Telus, strong-arming the CRTC to halt the new competition: after all, it was these carriers that pushed the commission to hold a public review of Globalive's ownership structure at the 11th hour. While other carriers like DAVE Wireless and Public Mobile are still set to join the wireless carrier foray in Canada next year, Globalive was really the only company that could pose a major threat to the businesses of the Big Three, having the resources to offer similar terms, incentives, and devices.

"We really do believe we're the only real competition," reinforces Lacavera.

Today, Lacavera says the company is still in the process of assessing all of its options. "We're in uncharted waters!" he says.

Meanwhile, Industry Minister Tony Clement is currently reviewing the CRTC's decision along with the country's laws on foreign business ownership. While he is, and always has been, in favour of allowing Globalive to add some much-needed competition to the Canadian wireless industry, changing policy at this point would take time, if done at all. Where does this leave WIND Mobile? Pretty much up in the air for now.

The Honourable Tony Clement, Minister of Industry, Government of Canada


Article Tags:  wireless, company, globalive, canada, industry, decision, lacavera, carriers, competition, mobile, ownership, public, really, minister, clement, options, rogers, business, assessing, carrier, believe, markets,

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Update on Globalive/WIND Mobile Situation








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3 comments »


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custom sound solutions November 19, 2009, 05:42 am

WIND should sue the CRTC for appoved them to bid on the spectrum at the first place it just dump..... it a shame

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Bryan Herlen November 17, 2009, 12:44 pm

Did nobody realize all along the ownership???

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Howyk November 16, 2009, 17:00 pm

Israeli...is spelled wrong.

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