In a week where the hapless Harper government appears increasingly on the ropes, Industry Minister Tony Clement has delivered a piece of good news just in time for the Christmas break, by introducing meaningful competition into the Canadian wireless market. As the Globe's Jane Taber describes itSo this government can abide by its principles and deliver intelligent policy.Ottawa has rejected a regulatory decision and allowed Globalive Wireless Management Corp. to enter Canada's wireless market, adding a fourth major service in an industry now dominated by three players.
Industry Minister Tony Clement said Friday the federal cabinet decided to “vary” an October ruling by the Canadian Radio-television and Telecommunications Commission that Globalive could not enter Canada because it violated ownership rules, finding the majority of its equity almost all of its debt is owned by an Egyptian company, Orascom Telecom Holding.
Ottawa is keen to spark more competition in the telecommunications business and reviewed the CRTC ruling with input from the industry, although Mr. Clement said his decision was based firmly on legal ownership requirements.
“The decision to vary the CRTC Globalive decision, let me emphasize, was based on the legal facts and not on the government's position that there needs to be more competition in the marketplace,” Mr. Clement said. “That said, I firmly believe, that Globalive entry into the market to provide near national service will enhance competition for the benefit of Canadian consumers. A competitive marketplace assists consumers by giving more choice, at better prices and higher quality.”
Mr. Clement said 80 per cent of Globalive's voting shares are controlled by Canadians, and just four its board
members are those nominated by foreign interests.
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