This week, CRTC (Canadian Radio-television and Telecommunications Commission) hearings took place to determine whether Globalive’s ownership structure meets Canadian regulations. Globalive is the company behind WIND Mobile, a new wireless carrier hoping to launch its services in Canada before the end of the year. The CRTC review was triggered by a request from TELUS. At the heart of the matter is the fact that Egyptian-based Orascom Telecom Holding SAE owns a 65 percent stake in the new venture despite owning only a third of the voting shares (the other two thirds are owned by Anthony Lacavera, chairman of Globalive Holdings).
Two days of hearing took place on September 23rd and 24th with the second day consisting of in camera sessions. In attendance and making presentations were Globalive, TELUS Communications, Rogers Communications, and Bell Canada.
Interestingly, just before the hearings kicked off, Globalive announced some changes to its shareholder agreement. Orascom has given up its right to buy out Lacavera’s share and Lacavera has agreed not to sell his stake for at least three years. Instead of co-chairing the Globalive boards with a past Orascom employee, Lacavera will chair with the other co-chair taking on the role of vice-chair instead. Finally, Lacavera waived his ability to separate the wireless business from his other Globalive telephone business (Yak and OneConnect). Whether this is enough to satisfy the CRTC remains to be seen.
With the hearings completed, the CRTC will now take one month to complete its review of the company’s ownership structure and issue its decision. We’ll know then whether WIND Mobile can begin operations this year.