Ottawa – Today, New Democrat Industry Critic Brian Masse (Windsor West) demanded that the Industry Minister maintain Canadian ownership rules in the telecom sector by upholding the Canadian Radio Telecommunications Commission (CRTC) ruling on Globalive.

“The CRTC did its job by determining that Globalive did not meet the Canadian ownership rules. The other new entrants in the sector, Public Mobile and DAVE, were able to meet the standard and so should Globalive,” Masse stated. “It’s troubling that the Department of Industry and the CRTC have come to different conclusions on Globalive’s ownership structure. This raises questions about possible favouritism or carelessness in the department, and those questions need to be resolved immediately.”

On October 29, 2009, the CRTC ruled that Globalive was not controlled by Canadians, a requirement under the Telecommunications Act. The Commission found that the combined debt and equity that Globalive’s foreign backer, Egyptian carrier Orascom, had acquired gave them effective control over the company. The commission also took issue with Globalive’s board structure and shareholder agreements with Orascom. This finding contradicted an approval of Globalive’s ownership structure by Industry Canada earlier this year.

“The Minister should set a time period for Globalive to comply with the ownership rules laid out by the CRTC. While more competition is essential to lower prices for consumers, regulations which ensure a fair and level playing field will actually result in real consumer savings and better services,” said Masse. “A wireless consumers’ bill of rights, a universal access mandate, and a telecom ombudsman with real enforcement powers must be instituted to correct what is essentially a profiteer’s market.”