Share:

CRTC Sends Globalive To The Wind

Share:

Globalive (WIND Mobile), was going to be the Canadian saviour of the wireless landscape in Canada. Today they were rejected by the CRTC.

I’m going to go cry now. Grab a tissue and read the release below:

OTTAWA-GATINEAU, October 29, 2009 —The Canadian Radio-television and Telecommunications Commission today determined that Globalive Wireless Management (Globalive) does not meet the Canadian ownership requirements set out in the Telecommunications Act. Under the legislation, a telecommunications company is only eligible to operate in Canada if it is not at any time owned and controlled, in law and in fact, by non-Canadians.

During its proceeding, the Commission examined the influence of Orascom Telecom Holding (Orascom) over Globalive’s business decisions and day-to-day operations. Despite the fact that Globalive made significant structural changes to reduce its dependence on Orascom, there were other factors that, taken together, led the Commission to conclude that Globalive does not meet the statutory test.

The Commission found it particularly important that Orascom owns 65.1 per cent of the equity, has entered into a strategic technical arrangement with Globalive, controls and holds the “Wind” brand under which Globalive will operate, and holds the overwhelming majority of the outstanding debt.

Globalive is a new company seeking to enter the Canadian wireless market. The Commission focused on the set up and operations of Globalive in the context of a company rolling out a national wireless network. In its decision, the Commission identified the areas that need to be addressed in order for Globalive to meet the Telecommunications Act’s Canadian ownership requirements.

Today’s decision follows a public process that included a public hearing, which was held on September 23, September 24 and October 1, 2009.

I guess you could say, in part, the TELUS, Bell, and Rogers lobbying worked.

Share:

  • ikris

    This shouldn't come as a surprise. I'm sure people will want to blame Rogers, Telus and Bell – but the rules are laid out clearly by the CRTC, and obviously Globalive didn't meet the requirements.

  • It's been obvious that Orascom has been behind Globalive, it's been reported often enough in the media. I think basically Globalive is going to have to find another source of funding that's not so obviously foreign if they're going to get off the ground.

  • Sad Rogers Prisoner

    It just makes the whole Cdn govt promise to open up competition in the Cdn telecommunications market that much more laughable.
    First they sell off most of the available space to the big three, and then they kill off one of the only possible challengers to the government's propped up telecommunications oligopoly. Laughable and shameful!
    Ironically, they are the same companies that the government is trying to give the internet to.
    So sad…

  • Kai

    I'm not a huge fan of any of the big three but the whining about them is getting annoying. These are multi-million dollar Canadian corporations that are doing business. If people are going to pay $40 a month for a cell phone then they should charge that much! It makes no sense to lower the price on increasing demand and limited supply. These companies are not government owned and they are in business to do business.

  • Anonymous

    Wow I wish I could pay $40 a month for my cell phone bill to bad the Big 3 rape everyone in this country with rates that are the highest in the world.

    Fortunately this decision doesn’t mean “everything”. Globalive can appeal to the government who can overturn the CRTC’s decision.

    Here’s another way to look at this situation for those that say the pockets of foreign owners should not be lined from Canadian profits. Take a look at a Telus, a company that over the past few years has been subsidizing work out to foreign countries to cut costs. They currently have a call center in the Philippines that employs over 1000 people and are in the works to expand that call center to over 2000 people. Telus has also outsourced many jobs to Tech support workers in India.
    Or you have a company like Bell owned by BCE who has a huge call center in India.

    The CRTC would rather companies like this stay afloat, outsourcing work to other countries while at the same time providing no competition in the wireless market therefore higher prices to Canadians. In the end if Globalive goes bye bye it will mean another 800 Canadians will lose their jobs not to mention the many future jobs that would be provided as others were hired in additional launch cities.

    As Canadians we need to start standing up for what is in OUR best interest. Write your local MP and tell them what you think http://www2.parl.gc.ca/Parlinfo/Compilations/HouseOfCommons/MemberByPostalCode.aspx?Menu=HOC

    Also visit http://dissolvethecrtc.ca/

  • Anonymous

    Wow I wish I could pay $40 a month for my cell phone bill to bad the Big 3 rape everyone in this country with rates that are the highest in the world.

    Fortunately this decision doesn’t mean “everything”. Globalive can appeal to the government who can overturn the CRTC’s decision.

    Here’s another way to look at this situation for those that say the pockets of foreign owners should not be lined from Canadian profits. Take a look at a Telus, a company that over the past few years has been subsidizing work out to foreign countries to cut costs. They currently have a call center in the Philippines that employs over 1000 people and are in the works to expand that call center to over 2000 people. Telus has also outsourced many jobs to Tech support workers in India.
    Or you have a company like Bell owned by BCE who has a huge call center in India.

    The CRTC would rather companies like this stay afloat, outsourcing work to other countries while at the same time providing no competition in the wireless market therefore higher prices to Canadians. In the end if Globalive goes bye bye it will mean another 800 Canadians will lose their jobs not to mention the many future jobs that would be provided as others were hired in additional launch cities.

    As Canadians we need to start standing up for what is in OUR best interest. Write your local MP and tell them what you think http://www2.parl.gc.ca/Parlinfo/Compilations/HouseOfCommons/MemberByPostalCode.aspx?Menu=HOC

    Also visit http://dissolvethecrtc.ca/

  • John

    Those “rules” were put into place by government cronies who are essentially owned by big corporations. That's how politics works. It is ridiculous that we even have a rule that says that a corporation must be mostly Canadian owned in order to operate in Canada. That rule benefits nobody but companies like Rogers, and should be struck down immediately. Canadian citizens are best served by having more competition, not by creating an oligopoly that is owed by a few rich folk with Canadian passports. Not that any of this is surprising, just the way that it is.

  • lars68689

    Funny, after Globalive paid $455 million for the spectrum, their review by the government was good, good enough for them to take the money. Now all of a sudden, it isn't?

    3 words..Disband the CRTC!

  • Justin

    Come on – give your head a bit of a shake. You can't disband the CRTC. They're just going by the rules laid out by our Canadian laws. Canadian laws need to be changed – not the CRTC.

  • Flaxx

    so…. umm… Globalive wants to be a new carrier in Canada. They need to build the infrastructure because they don't want go into agreement with current cellphone providers… everyone agrees this is a good thing. The CRTC is suppose to be FOR THE PEOPLE and NOT for the businesses. Now, it's pretty obvious that the infrastructure would cost millions and millions… otherwise the people in this blog would probably make a new cellphone company from the pocket change (who am I kidding, if we had pocket change, we wouldn't be whining about system access fee's).

    So where does this money come from? How is Globalive supported? Who sponsors them? You can't exactly walk into a CIBC and expect to get a loan of that kind of value. You need support from a company. Will a maple syrup factory wanna give millions to telecommunications? Not likely. You'll need to get it from a company interested/involved in telecommunications… like say Orascom.
    Oh but wait, now they're not Canadian owned and operated… well who the $%^& is Globalive suppose to be sponsored by? Rogers? Bell? Telus? Oh wait.. that's already happened… they're called Fido, Kudo, Solo respectively and they all have their big-brother-company's willy up their @ss which is why whenever Rogers decides to screw us, Fido HAS to follow. Same thing for Kudo because of Telus and Solo because of Bell.

    Thanks CRTC. Thanks for everything, least of all the new TV tax.

  • Donald Mann

    I guess the CRTC is pimping for Rogers, Bell and Telus!

  • The bottom line is we need more
    competition in Canada when it comes to wireless and telecommunications. Unless you're not tired of being gouged by the Big 3!

  • Love your username, btw!

    Totally agree. WIND spent a helluva amount of money on bidding for the
    spectrum. It's basically the Big 3 spitting in the face of any newcomer.
    Good luck to anyone else trying to infiltrate the Old Boys' Club.

  • lars68689

    Fair enough, but then replace the CRTC with something that is in the interests of Canadians, not big business.

  • scott987

    Telus does not employ any tech support workers in India. Please ensure you are posting valid facts.

    Each company employs outsourced work at some level. They are still CANADIAN founded companies.

    Yes I agree we need more players in the market, but only Canadian owned and operated ones.

    As far as Canada having the highest cell rates in the world? You've obviously never been outside North America.

  • Flaxx

    so…. umm… Globalive wants to be a new carrier in Canada. They need to build the infrastructure because they don't want go into agreement with current cellphone providers… everyone agrees this is a good thing. The CRTC is suppose to be FOR THE PEOPLE and NOT for the businesses. Now, it's pretty obvious that the infrastructure would cost millions and millions… otherwise the people in this blog would probably make a new cellphone company from the pocket change (who am I kidding, if we had pocket change, we wouldn't be whining about system access fee's).

    So where does this money come from? How is Globalive supported? Who sponsors them? You can't exactly walk into a CIBC and expect to get a loan of that kind of value. You need support from a company. Will a maple syrup factory wanna give millions to telecommunications? Not likely. You'll need to get it from a company interested/involved in telecommunications… like say Orascom.
    Oh but wait, now they're not Canadian owned and operated… well who the $%^& is Globalive suppose to be sponsored by? Rogers? Bell? Telus? Oh wait.. that's already happened… they're called Fido, Kudo, Solo respectively and they all have their big-brother-company's willy up their @ss which is why whenever Rogers decides to screw us, Fido HAS to follow. Same thing for Kudo because of Telus and Solo because of Bell.

    Thanks CRTC. Thanks for everything, least of all the new TV tax.

  • Donald Mann

    I guess the CRTC is pimping for Rogers, Bell and Telus!

  • The bottom line is we need more
    competition in Canada when it comes to wireless and telecommunications. Unless you're not tired of being gouged by the Big 3!

  • Love your username, btw!

    Totally agree. WIND spent a helluva amount of money on bidding for the
    spectrum. It's basically the Big 3 spitting in the face of any newcomer.
    Good luck to anyone else trying to infiltrate the Old Boys' Club.

  • lars68689

    Fair enough, but then replace the CRTC with something that is in the interests of Canadians, not big business.

  • scott987

    Telus does not employ any tech support workers in India. Please ensure you are posting valid facts.

    Each company employs outsourced work at some level. They are still CANADIAN founded companies.

    Yes I agree we need more players in the market, but only Canadian owned and operated ones.

    As far as Canada having the highest cell rates in the world? You've obviously never been outside North America.

  • Pingback: Rogers, Bell want WIND wireless spectrum licenses | iPhone in Canada Blog - Tips, Tricks, News, and Tutorials for Canadian iPhone Users()

  • Pingback: WIND Mobile Stores, The Apple Store Of Wireless Carriers | iPhone in Canada Blog - Tips, Tricks, News, and Tutorials for Canadian iPhone Users()

  • Pingback: BREAKING: Globalive Given Green Light To Launch WIND Mobile In Canada! | iPhone in Canada Blog - Tips, Tricks, News, and Tutorials for Canadian iPhone Users()

  • Pingback: Confirmed: WIND Mobile Launching This Wednesday | iPhone in Canada Blog - Tips, Tricks, News, and Tutorials for Canadian iPhone Users()

Deals