The federal government will appeal a court ruling that found wireless provider Globalive–operator of the Wind Mobile brand cellphone service–doesn’t have sufficient Canadian ownership to operate in this country.
“We are convinced that Globalive is a Canadian company and meets the Canadian ownership and control requirements under the Telecommunications Act,” Industry Minister Tony Clement said today.
“Globalive should therefore be able to continue to offer service in the wireless telecommunications market.”
Clement said the government’s motive is to defend consumer choice and increase competition, and ensuring Globalive’s survival is part of that strategy. In court, the government plans to rely on legal arguments based on its interpretations that Globalive is Canadian enough, because it is managed by Canadians and its board of directors and share structure meet the Act’s requirements.
A Federal Court ruling earlier this month quashed Clement’s 2009 decision to overrule a Canadian Radio-television and Telecommunications Commission assessment that Globalive, largely financed by Egypt-based Orascom, wasn’t Canadian-owned and controlled. The court gave Globalive 45 days to deal with the issue.
Clement said the government challenge defends and encourages consumer choice and competition in wireless and internet markets.
Globalive’s Wind Mobile service has more than 250,000 cellphone customers in Canada.
Clement said Tuesday that Ottawa has not rejected the idea of opening the entire industry up to foreign investment, but added the government wasn’t yet ready to outline its plans on relaxing or lifting foreign ownership limits for the industry.
He announced consultations on foreign ownership in May, outlining three options–removing all restrictions; increasing the limit of foreign investment from the current 20% to 49% or lifting restrictions for carriers with less than 10% market share.
