Canadian wireless operator Wind announced a triumph in its running dispute with rival Public Mobile, claiming a decision by the Supreme Court of Canada stays an appeal to a Federal Court of Appeal decision that confirmed Wind’s compliance with Canada’s ownership rules for mobile operators.
Wind’s parent company Globalive has been battling challenges to its entry into the Canadian mobile phone space on grounds that its 65% ownership by Egyptian-based Orascom Telecommunications violates government regulations preventing majority foreign ownership of telecommunication providers.
“Wind is interested in fighting in the marketplace to provide Canadians with fair, transparent and competitive wireless offerings, not in fighting in courtrooms,” said Anthony Lacavera, chairman of Wind, in a statement. “We’re extremely pleased with the Supreme Court’s decision, which will allow us to tie off this loose end and continue working with the best interests of Canadians firmly in mind.”
Earlier this year current Ministry of Industry Christian Paradis unveiled an amendment to Canada’s Telecommunications Act lifting foreign investment restrictions for telecom companies that hold less than 10% market share of the total Canadian telecom market. Wind noted that it currently supports about 400,000 subscribers.
Globalive was tripped up last year when a federal court overruled a previous government decision that allowed Globalive to offer mobile services despite questions about its ownership structure. The firm found allies in then Minister of Industry Tony Clement and Steven Blaney, a member of Canada’s Parliament, who said the government would appeal to Canada’s Federal Court to overturn the ruling.
Analysts also questioned the foreign ownership provision, noting it limited competition in a market dominated by three large operators in Rogers Wireless, Bell Canada and Telus Mobility.
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