For the second time in a week, new mobile phone player Globalive Holdings is complaining that incumbent wireless carriers are throwing up obstacles as it seeks approval from federal regulators to operate in Canada.
Globalive accused Telus Corp. of "impeding its entry into the wireless market" prior to CRTC public hearings on Globalive's ownership structure and financing arrangements, which are scheduled for Sept. 23 and 24.
In a statement, Globalive - which is seeking to launch a new wireless service in most of the country that would compete with Telus, Rogers Communications Inc. and BCE Inc's Bell Canada unit - said that Telus has asked the CRTC for new "directions on procedure," which it claims could slow the process of regulatory approval.
"The Directions on Procedure proposed by Telus could give it access to Globalive Wireless' business plans and could have the effect of extending the hearing beyond the dates established by the CRTC."
In an interview, Globalive chairman Anthony Lacavera called the Telus requests "overreaching and highly irregular."
But Telus says it's not impeding anything. "We haven't filed an application to the CRTC. All we did was send a letter...We didn't propose a delay in the proceeding," said Michael Hennessy, senior vice-president at Telus.
Globalive has drawn the scrutiny of regulators and competitors because of the involvement of Orascom Telecom Holding SAE. The Egyptian wireless operator has taken a 65-per-cent ownership stake and pledged up to $700-million (U.S.) for Globalive's launch.
Federal rules state that at least 80 per cent of the directors and two-thirds of voting control must be in the hands of Canadians for a telecommunications company to operate in this country. It also has a more subjective test to determine Canadian "control in fact".
Mr. Lacavera owns one-third of the venture, controls two-thirds of the votes, and operates the service, a set-up he believes will satisfy the CRTC.
"I'm pleased that they're conducting the review in a public forum. It will put the issue to rest," Mr. Lacavera said. "But I don't think the CRTC will be impressed with Telus meddling in a standard ownership review protocol."
Telus believes that Globalive fails to meet the CRTC's foreign ownership criteria.
"Our deep and ongoing concern is that when a large undertaking like Orascom has publicly stated it owns 65 per cent of the company, that in investor presentations they say they like to call the shots - we think that is strong evidence of control in fact," Mr. Hennessy said.
© The Globe and Mail
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