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CRTC finds that Globalive does not meet Canadian ownership rules

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.

Telecom Decision CRTC 2009-678

 [October 30, 2009]


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