Globalive’s launch of its new wireless service has been pushed back due to an upcoming CRTC review. A public hearing is now scheduled for late September. A decision on the issues raised will then follow within the following 120 days. As a result, Globalive will be unable to launch in Q4 2009 as originally planned.
“While we respect the CRTC’s right to conduct this review, we are concerned that a lengthy public hearing process will delay Canadians’ overdue access to a new competitive offering,” said Anthony Lacavera, chairman of Globalive Holdings.
It’s likely that the CRTC’s decision comes as a result of a request by TELUS Mobility to look at Globalive’s ownership structure. The CRTC will consider whether Globalive is domestically owned or whether the 65 percent stake owned by Orascom Telecom Holding SAE breaks the foreign ownership rules issued by the CRTC. While Orascom owns a 65 percent share, it only owns a third of the voting shares with the other two thirds being owned by Lacavera. Essentially, the arrangement dilutes Orascom’s stake to below the regulatory threshold. The commission, on the other hand, calls this a novel ownership and governance structure.
Unfortunately, this means that consumers will now likely have to wait until 2010 for Globalive to launch its wireless service.