CRTC says Globalive fails Canadian ownership test

by Rob Lewis | Technology

Canada's telecom regulator has determined that Globalive does not meet Canadian ownership rules. Globalive is hoping to enter Canada's wireless industry as a new cellphone startup, however it is mostly funded by Egyptian telecom company Orascom - which is a problem for the Canadian Radio-television and Telecommunications Commission (CRTC).

Over the last few weeks, Globalive tried to change the structure of its operations to meet ownership standards in Canada but the CRTC determined today that the changes weren't enough.

Globalive chairman Anthony Lacavera issued a written statement on the decision, calling it “a bad day for Canadians and wireless competition in Canada.” Lacavera suggested the company, which proposes to operate under the brand name Wind Mobile, is only delayed in starting up and noted that Industry Canada had given its approval to Globalive.

Orascom owns 65.1% of the equity in Globalive. Under CRTC rules, a Canadian carrier is eligible to operate as long as it is a Canadian-owned and controlled corporation. To meet this test, at least 80 per cent of the members of the board of directors must be Canadian, at least 80 per cent of the voting shares must be owned by Canadians, and the company can't be indirectly controlled by non-Canadians, through other methods such as holding companies.

In recent weeks, Lacavera had been reworking the arrangement with Orascom in an effort to appease the CRTC. Globalive's board structure was changed, and the company raised the threshold for Orascom using any veto over company decisions. Apparently the changes weren't enough.

Let's hope Globalive gets approved soon as I'm looking forward to more Wind Mobile commercials.


Globalive Communications Corp.
Toronto, Ontario, Canada

Now celebrating ten years of success, Globalive Communications Corp., based in Toronto, Ontario, Canada, has grown rapidly to become a leading provider of next generation telecommunications solutions globally. Globalive develops and delivers innovative applications and first-rate tailored telecommunications services to a wide range of clients in the consumer, enterprise and hospitality segments... more

Canadian Radio-television and Telecommunications Commission (CRTC)
Ottawa, Ontario, Canada

The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent public organization that regulates and supervises the Canadian broadcasting and telecommunications systems. The CRTC does not regulate newspapers, magazines, cell phone rates, the quality of service and business practices of cell phone companies, or the quality and content of TV and radio programs. As an... more

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Rob Lewis

Rob Lewis

Rob is the President of Techvibes Media and Editor-in-Chief of  His diverse background includes stints in International Trade Finance, Web Development, and Enterprise Software and he is a graduate of the University of British Columbia, British Columbia Institute of Technology, and Simon Fraser University. When not running Canada's leading technology media property, Rob can be... more

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