Government overrules CRTC, declares Globalive Canadian

Industry Minister Tony Clement announced today that he was overruling the Canadian Radio-television and Telecommunications Commission (CRTC) and allowing Globalive Wireless Management Corporation (Globalive) to become the fourth national wireless carrier in Canada. The CRTC had previously declared that Globalive was not eligible to operate as a telecommunications carrier in Canada because it was not Canadian-controlled, relying on the fact that almost all of Globalive’s financing had come from an Egyptian company. Clement acknowledged a foreign influence over Globalive, but found that control was in Canada. The majority of Globalive’s voting shares are held by Canadians, and its board is not foreign-controlled. Clement later said that this decision did not indicate an intention to change Canada’s foreign ownership rules for wireless carriers.

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