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July 23rd, 2009Bell and Telus stall Globalive with CRTC foreign-ownership hearing hijinks

Posted by Editor in Carriers, competition, globalive, spectrum

In what can only be described as a game of high-stakes legal douchebaggery, Bell and Telus have forced Globalive to review their foreign ownership before a public CRTC hearing. Telus in particular has been throwing every legal means they can at Globalive to try and hold up the upstart’s launch date. Needless to say, Globaliver are eating their livers over this latest development. And probably you should be too. There’s little in this antiquated idea of nationalistic telecom protectionism that helps Canadians in this context. In fact, one could probably point to the long coddling of Canada’s domestic telco industry for our current oligopolic-ish sort of situation.

From Today’s NationalPost:

Globalive Wireless has been racing to bring its offering to market as quickly as possible. By next summer, without the delays occasioned by the CRTC review, Globalive Wireless would have launched its services in many Canadian markets, employed an estimated 2,000 people and spent over $1 billion building its network.

The incumbents responded to the threat of new competition in predictable ways: they cut prices and suggested they would provide better customer service. Fair enough although one wonders whether that would have happened without the threat of more competition. Somewhat more cynically, they sought to game the regulatory system in a way that could delay and seriously complicate the introduction of wireless competition.

LINK: Wireless Wars: Barriers to new providers -Ken Campbell CEO Globalive Wireless
Funny that Rogers doth not protest. It’s almost like they know that as the one carrier selling out iphones, blackberries, and rocket sticks faster than they can back up the trucks, that they are the least of whose lunch will be eaten by the upstarts.

  • bsharwood
    Seems like Rogers entered the fray today with a protest against the ownership structure. But as I wrote a couple weeks ago here, (http://think-forward.ca/2009/09/the-canwestglobalive-ownership-dilemma/) the CRTC has now backed itself into a corner.
    But then again, the CRTC might not hold itself to legal principles like precedent.
  • caddman
    The reason why Rogers isn't protesting like Telus & Bell is that Globalive will NOT be initally operating on their own wireless network but will be roaming on the Rogers wireless network until such time that Globalive is able to get their own network on the air. Needless to say this will provide a great income stream to Rogers that neither Bell or Telus can tap into, regardless of whether they're switching to HSPA or not because the new Bell/Telus networks won't be mature enough to provide reliable roaming to any new provider in Canada, or even to any international provider who's customers visit Canada.
  • jaretmanuel
    I couldn't agree more and I commented on it as my first post. This is the first time I read Ken Campbell's comment in the post article so thank you for that. Canada is good at being innovation killers and it is movements like the people in Startup North that I aspire to be a part of. Startup North people/contributors get it, they are the new breed, and they are hungry to bring innovative change to the masses. Globalive should start a movement in itself and leverage this ridiculous protest to the max and get a healthy protest going on their wireless soapbox site.
  • Serge
    The key bits: "In a pair of decisions announced earlier this week, the CRTC decided for the first time in its history to hold a multi-party public hearing on whether a telecom carrier is complying with the Canadian ownership and control rules. It announced that it would subject Globalive Wireless to the first such public review.... Led by TELUS, the incumbents asked the CRTC to hold a ‘multi-party’ public hearing process to review the legitimacy of new cellular entrants under section 16 of the Telecommunications Act. On Monday, the CRTC granted them their wish. After having spent several months holding public consultations on the issue of whether there ought to be a public review of Globalive’s ownership structure, the CRTC announced that going forward – but with retroactive application to the new entrants – it would use a “framework” based on the complexity of the applicable ownership structure to determine the level of public scrutiny to bring to the ownership review. First up, Globalive Wireless."
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