Originally published: February 4, 2011
Last updated: February 4, 2011 - 9:35pm
A Canadian court struck down a federal government move to allow Globalive, a company with substantial foreign control, to operate a wireless service in Canada. The Federal Court judgment said the government's decision to overturn a federal telecoms regulator's ruling, which sought to prevent Globalive from operating, was "null and void in that it was determined on a basis in law not provided for in the Telecommunications Act."
The court decision will not go into effect for 45 days, leaving room for an appeal or changes to be made to privately held Globalive's ownership or management structures.
Globalive launched wireless services in Canada under the Wind Mobile brand in December 2009, and has since signed up more than 250,000 subscribers to its low-cost, no-contract and unlimited calling plans. The regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), had blocked Wind Mobile from operating, ruling it was not sufficiently Canadian-owned due to its financial backing from Egypt's Orascom Telecom.
Canadian law restricts foreign ownership to 20 percent of a telecom company's voting shares. Direct and indirect foreign control is limited to 46.7 percent.
- Canada telecoms say rule changes must apply to all
- Sprint, T-Mobile join Verizon in snub of Canada airwaves
- Analysis: Canada veto complicates BlackBerry, telecom deal making
- Telecom investors may have dialed wrong number
- Canada May Relax Foreign-Investor Limits on BCE, Rogers
- Canada competition watchdog probing Apple mobile carrier deals
- Canada to Lift Foreign-Ownership Limits for Small Telecoms
- Netflix tells Canada regulator it shouldn't subsidize 'old media'
- Canada unveils major wireless spectrum plan
- AT&T and Verizon got government data requests once every 60 seconds last year. And that’s probably lowballing it.
- BlackBerry out at U.S. climate agency, iPhone in
- In Canada, phones poised to challenge credit cards
- Canada’s Competition Bureau plans investigation into Google Canada
- Verizon in Talks to Buy Into Canadian Telecoms
- CSEC used airport Wi-Fi to track Canadian travelers: Edward Snowden documents