The CRTC announced today the outcome of its hearings into Globalive’s ownership structure.
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.
At the heart of the CRTC’s decision is the fact that Orascom Telecom Holding (Orascom)owns about 65 percent of Globalive’s equity and majority of the outstanding debt. Not only can this give it significant influence over business decisions and day-to-day operations but Orascom also owns the “Wind” brand name.
The CRTC has identified the areas that need to be addressed for Globalive to meet its requirements. It remains to be seen how Globalive will deal with this setback and address the CRTC’s concerns.