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Globalive Now Deemed 'Canadian Enough' To Compete In Canada
Canadian Industry Minister overturns ruling, doesn't explain why
by Karl Bode 09:30AM Friday Dec 11 2009
Earlier this year Canadian regulators the CRTC, who frequently fail to protect smaller Canadian ISPs from mega-carrier anti-competitive behavior, protected those same mega-carriers by blocking a new competitor named Globalive from entering the Canadian Wireless market. According to the CRTC, Globalive simply wasn't Canadian enough to do business in Canada and an old and sometimes enforced law, lobbied for by Canada's incumbent companies, that prevents any company from doing business in Canada that wasn't majority-owned by Canadians.

Such faux-patriotism laws are used by incumbent companies in numerous markets to game the regulatory system (the same one they profess to hate) in order to protect themselves from competition. Globalive is 61% owned by Orascom, a telecom company that does ample business in the Middle East, Africa, Europe and South Asia. The CRTC's ruling was obnoxious -- not only because the added competition would be good for consumers, but because Globalive had already received permission to buy Canadian spectrum and was already in the process of hiring staff and building a network.

Luckily for the carrier, Canadian Industry Minister Tony Clement has reversed the regulatory decision and says that Globalive has suddenly become "Canadian enough" to do business against the nation's entrenched incumbent carriers:
quote:
Canadian Industry Minister Tony Clement said on Friday the government will allow wireless start-up Globalive to operate in Canada, overturning an earlier regulatory ruling that denied the company a license. Clement said that Globalive meets Canadian ownership and control requirements, and can enter the market without delay. Globalive plans to launch national wireless service in Canada to challenge the market dominance of incumbents Rogers Communications Inc, BCE Inc and Telus Corp.
Clement gave no additional information as to why the ruling was being reversed, but you can assume that negative public attention played a role. The CRTCs seemingly arbitrary decision to impose restrictions on Globalive after they'd already passed an ownership test to buy spectrum doesn't help the CRTC's growing reputation as a regulatory agency that exists primarily to serve the whims of Canada's incumbent carriers.

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aheintz
Premium
join:2007-06-24
Plattsville, ON

Finally

It's nice to see new people coming to the market that understand competition. Check out thier adds that take aim at the BIG 3 »www.youtube.com/user/WindMobileCAN

cpsycho

join:2008-06-03
HarperLand

Re: Finally

Bell, Rogers and telus are gonna cry like a bunch of babys now.
vintagewino

join:2003-07-22
Grimsby, ON
kudos:2
Reviews:
·TekSavvy DSL

1 edit

Re: Finally

Wonderful news, albeit a bit of a bittersweet victory.

Sadly, the big 3 did get a very good consolation prize - they got Globalive's entry delayed long enough to screw Globalive out of a decent entry into the market at Christmas.

Now let's see what happens to rates!!

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Finally

In the words of the former president, its 'strategery'

NOVA_Guy
ObamaCare Kills Americans
Premium
join:2002-03-05

Re: Finally

Eh, they were just "hoping" for a little less "change" in the marketplace, so they could continue collecting a little more "change" from their customers.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
A delay is just that, a delay. They miss this Christmas, but not the next one. This won't affect Wind's eventual marketshare, it will just mean a few more dollars in the pocket of the big 3.
Cloneman

join:2002-08-29
Montreal
kudos:4

Re: Finally

Globalive should be compensated for the time they have lost for no reason.
CorDawg

join:2009-04-15
Belleville, ON

Re: Finally

Compensated by who? The government(aka tax payers)? because you can really say that's it was rogers/Bell/Telus who blocked them, It was the CRTC.

NOVA_Guy
ObamaCare Kills Americans
Premium
join:2002-03-05
It doesn't appear that anything illegal was done, so it would be hard to prove that they have been wronged in any way. This wouldn't be as clear, cut, and dry as a wrongful death or vehicle accident when determining damages.

Besides, nobody ever said that life was fair... and it's not the job of government to enforce fairness and good behavior in competitive markets.
--
To all liberals: I am NOT one of your parents, so get the heck out of my wallet. It's time for you to grow up and take some personal responsibility for taking care of yourselves, which means not relying on the government to give it all to you.

nt300

@dsl.bell.ca
LOL, good for them, they've already ripped us all off by price fixing for years now. We need more competitors in the Canadian market so Rogers, Bell and Telus can't rip people off anymore for overpriced junk.

LazMan
Premium
join:2003-03-26
canada

Rules are rules... Or at least they should be.

TELUS, at least, has a right to protest this ruling... It was only a few years ago, that the CRTC slapped TELUS around about the % of Verizon ownership, and forced the stake to be reduced.

The CRTC ruled on this matter, Industry Canada shouldn't over-rule it, without grounds... And "Negative Press" isn't grounds enough.

Not that I love the CRTC - if Industry Canada disbanded them tomorrow, I'd be very happy - all I'm saying is that IC and the CRTC can't choose which rulings to enforce, and which to ignore... It opens the whole process up to debate and doubt.

But then again, maybe that's not such a bad thing, after all?

Laz

sbrook
Premium,Mod
join:2001-12-14
Ottawa
kudos:13

Re: Rules are rules... Or at least they should be.

LazMan, the difference here is the matter of control, not just ownership.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
The law says nothing about ownership. Globalive fully met the requirements of the law. The problem came when the CRTC tried to apply the subjective part of the law, how much *influence* does Orascom have. The CRTC thought it was too much, IC thought it wasn't. Because there was a disagreement, it was bumped up to the government to decide who was right. The government decided that IC was right, and the CRTC was wrong. They couldn't both be right.

So, you're pretty far off-base; IC had already ruled on this (they were the first ones). The CRTC tried to overrule them, and now the government has basically said to the CRTC "You can't overrule them"

sbrook
Premium,Mod
join:2001-12-14
Ottawa
kudos:13

Re: Rules are rules... Or at least they should be.

This is the first intelligent thing related to Telecoms that has come out of IC in years in terms of the CRTC behaviour!

EUS
Kill cancer
Premium
join:2002-09-10
canada

Still no pricing plans

What a "happy" looking website they have.
Where are the pricing plans that let me see the competition that is to come?

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Still no pricing plans

said by EUS:

What a "happy" looking website they have.
Where are the pricing plans that let me see the competition that is to come?
Nothing on their web site yet on prices that justifies all the excitement. Once they publish rates, then people can decide whether this is a good thing or maybe a really good thing.
--
My BLOG .. .. Internet News .. .. My Web Page


Chuck Carlso

@teksavvy.com

Globalive Now Deemed 'Canadian Enough' To Compete In Canada

Telus's share price will take the biggest hit of the three even with the recent run up in Rogers. Shaw which tacked on about 10 percent recently will be the biggest winner.

LaZ3R
Premium
join:2003-01-17

Press Conference at 11am

Globalive chief executive officer Anthony Lacavera has called a press conference for 11 a.m. ET.
--
Life is a game of blackjack. You keep playing until you bust.

andyb
Premium
join:2003-05-29
SW Ontario
kudos:1

Re: Press Conference at 11am

Hopefully its to announce stores open next week and a price list

LaZ3R
Premium
join:2003-01-17
Reviews:
·Start Communicat..

1 edit

Re: Press Conference at 11am

source: »www.itworldcanada.com/news/go-fo···c/139572

To the surprise of some telecom industry analysts, Ottawa has overruled the federal telecommunications regulator by finding that Globalive Wireless Management Corp. meets Canadian ownership and control requirements under law.

In a press conference Friday, Globalive chairman Anthony Lacavera said the carrier will launch service in Toronto and Calgary "as early as next week."

The Cabinet decision paves the way for Globalive's Wind Mobile brand, backed by billionaire Egyptian telecom mogul Naguib Sawris' Orascom Telecom S.A.E., to go up against the nation's big three incumbent wireless carriers.
--
Life is a game of blackjack. You keep playing until you bust.

Thane_Bitter
Inquire within
Premium
join:2005-01-20
Reviews:
·Bell Sympatico

Tony!

Nice to see someone else recognise that the CRTC does little but hinder competition in Canada.

Hopefully in time (and sooner rather then later), foreign investors will seek to improve internet access in urban and rule areas, Robbers and Bellus seem too content on doing little.

cpsycho

join:2008-06-03
HarperLand

1 recommendation

HAHAHA

B(H)ell, Ro(bb)gers and Telus lost 3% of there stock prices today. Great news.

DR_JAY

join:2002-04-23
Verdun, QC

AWESOME!

AWESOME!

Now they have to overturn the CRTC ruling of Bell's stupid throttling/UBB practices...
--
"Whos Vod Kanockers that you speak of?" - Jake Harper
munky99999
Munky

join:2004-04-10
canada

Loans =! control

Orascom has loaned 60% of the company their ownership. This is where they come into "owning so much"

Sorry but if start up a business and am pretty much 100% in debt to loans to my bank. They dont exactly control my business.

Know what this means. Especially when globalive's commercials are going to be shoving all their bullshit back in the face of bell/rogers/telus

Just maybe bell/rogers/telus will suddenly stop doing the stupid crap like 600$ cancellation fees. Entering roaming; NOT using your phone while roaming but simply bringing the phone into roaming; fees. Activation fees; sorry but I have to pay to become your customer? What craziness is this?

What is one of the responses from this?

"There's no question in my mind that Canada cannot support more then three national facilities-based players. It's inconceivable to me."

Wait a second. broadband is terrible because there's soooo much space in canada. So space isnt an issue. There's TONS of people who are calling now to find out pricing and already want to cancel their phones. What exactly cant Canada support?

Oh that's right. It cant support competition. Bell and company are losing their oligopoly position. Their profit margins are going to die horribly if they dont do something. Oh that's right. That means drop prices; drop these activation fees and other stupid crap.

guess what pretty much also means. Those bell employees are goin to be getting laid off. Sucks to be them.
33358088
Premium
join:2008-09-23
kudos:2

to above bell employee

the margin of profits is so hiiiiiii
that well
i'll say waaaaaaaaaaaaa to you

predictor

@telus.net

Bellus

The government just paved the way for Telus and Bell to merge. Telus and Bell will argue that well capitalized, foreign entities can now run telecom companies in Canada and compete with them, so they should be able to merge.

oxymoron69

join:2004-11-10
Corbyville, ON
kudos:1

Re: Bellus

»Oh hell... the evil empire looks to be growing

You're damn right!
dpkform

join:2003-04-13
Toronto, ON
you mean the two telcos that have been living together common-law for years might be granted the right to officially marry?

whooaaa - won't that be a big change......umm.... not....

said by predictor :

The government just paved the way for Telus and Bell to merge. Telus and Bell will argue that well capitalized, foreign entities can now run telecom companies in Canada and compete with them, so they should be able to merge.

predictor

@telus.net

Re: Bellus

said by dpkform:

whooaaa - won't that be a big change......umm.... not....

It means one less wireless provider (hmm...a new provider allowed, but one less from a merger), less competition in the enterprise segment, and a bunch of people out of work.

BeginSarcasm
Right, that doesn't sound like much change.
EndSarcasm

Gixxer

join:2008-08-27
St Catharines, ON
kudos:3
Reviews:
·Start Communicat..
·voip.ms
·Bell Fibe
·Cogeco Cable

1 edit

Leaked Prices

Some plans have been leaked online, not sure if they're legit or not but... They aren't that much better than the big 3's, some are worse.

Actually, their data plans are really bad when compared against Bell/Telus.
--
I love fish sticks. I love putting fish sticks in my mouth.

cpsycho

join:2008-06-03
HarperLand

Re: Leaked Prices

How is unlimited data worse then rogers 6gb data plan?

Gixxer

join:2008-08-27
St Catharines, ON
kudos:3

Re: Leaked Prices

Re-read what I wrote. Did I even once mention Rogers?

TigerLord
UEE Citizen
Premium,Mod
join:2002-06-09
Canada
kudos:8

Re: Leaked Prices

said by Gixxer:

Re-read what I wrote. Did I even once mention Rogers?
The leaked prices are no where close to what even Bell or Telus has.

for 80$ you can get unlimited text, data, voice and voicemail.

This has never been seen as far as I know in our country.

EveryName
Premium
join:2001-12-05
Montreal
kudos:2
Chat: $15 per month
Unlimited WIND to WIND calling (Canada wide)
Unlimited incoming text
100 province-wide voice minutes
50 text messages

Always Talk: $35 per month
Unlimited WIND to WIND calling (Canada wide)
Unlimited province-wide calling
Unlimited incoming text
50 outgoing text messages

Always Shout: $45 per month
Unlimited Canada-wide calling
Unlimited incoming /outgoing text messages
Voicemail

Data Plans
Infinite Mobile: $35 per month (used with any voice plan)
Unlimited internet for phones (tethering too)

Infinite Laptop: $45 per month
Unlimited internet for USB data sticks

Possibly there will be a web on your phone only type data plan for $10/mn.

BlackBerry data plans
Social BlackBerry: $10 per month
Unlimited instant messaging, Facebook and MySpace.

Infinite BlackBerry: $35 per month (used with any voice plan)
Unlimited internet for BlackBerry

Addons:
Voice: 10c Per Minute with the $15 plan
SMS: 10c each
MMS: 20c each
Voicemail: $5

Long Distance:
$20 for unlimited North America
I don't have a lot of other details on long distance, there is going to be a number of different plans.

----------

I would say that the pricing is considerably better than the big 3.
munky99999
Munky

join:2004-04-10
canada

Re: Leaked Prices

The reality though is. I expect on par or slightly more expensive then the big3 on the surface. Except there wont be any bullshit hidden costs. Which makes it intensely cheaper. Assuming you actually use the phone.

I've tracked down the source of this post also.

»www.howardforums.com/showthread.···=1599655

I really dont know if it's credible or not.
Tristan

join:2006-09-10
Nepean, ON

Yay!

More competition is always good.

Being a former Rogers Wireless, Telus and Bell Mobility customer, I can only hope the service, tech support, and price is better.

Now if we could only get some competition for high-speed internet.
munky99999
Munky

join:2004-04-10
canada

Re: Yay!

said by Tristan:

Now if we could only get some competition for high-speed internet.
Keep on dreaming.

rustydusty

join:2009-09-29
Red Deer, AB

Pricing

EveryName, where did you get those prices from? If they are indeed accurate, I can't wait to switch over .
ogog

join:2010-01-21

Big Three Not Good Corporate Citizen due Layoff Practice

A lot of companies now are not being good Corporate Citizens, ie being responsible for the good of the community. By laying off people, even though the company is not in dire financial strain, companies are contributing more in more to the great financial woes of the world. It is a domino effect. It is understandable to layoff people when the company is heading towards bankcruptcy. But, more and more companies are taking advantage of the current economic situation by hiding their corrupt and unfair practices under the guise of layoff due to financial reasons. Companies should struggle to keep as many of their present employees in the payroll to boost the economy of the country. By laying off people, more and more people will be unemployed, less and less money will circulate in the country, forcing other companies to layoff more in more people. Left uncontrolled the country and the world will head to deeper and deeper recession and eventually to worldwide depression. Governments should encourage companies to hold on to their employees and be good corporate citizens. Even better by hiring more people.