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Thursday, 2 June 2011 - Globalive urges Canada to open up telecom sector |
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    Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Europe E.coli is toxic new strain, trade row grows 11:27am EDT Romney charges that Obama has "failed America" 10:17am EDT Google reveals Gmail hacking, says likely from China | 8:08am EDT Jobless claims fall as labor costs tepid 10:43am EDT Blake Lively "nude" pictures fake, publicist says | 01 Jun 2011 Discussed 64 150 economists back U.S. Republicans in debt fight 53 Speculation grows over Sarah Palin’s 2012 plans 52 Air France jet crashed nose-up after 4 minute ordeal Watched Tornado hits Springfield, Massachusetts 2:43am EDT Massive Australian waterspout caught on film Mon, May 30 2011 Scientists revive ancient spider in stunning 3D detail Tue, May 24 2011 Globalive urges Canada to open up telecom sector Tweet Share this Email Print Related News LSE confident in TMX tussle as Maple goes hostile Thu, May 26 2011 UPDATE 1-Globalive's Canadian roots at issue in appeals court Wed, May 18 2011 Vodafone's upbeat tone surprises after sector woe Tue, May 17 2011 Nasdaq, ICE withdraw NYSE bid, cite regulators Mon, May 16 2011 D.Boerse set for NYSE deal; Nasdaq left scrambling Mon, May 16 2011 Analysis & Opinion AT&T risks Faustian regulator bargain in T-Mobile China reduces local government debt Related Topics Technology » Media » TORONTO | Thu Jun 2, 2011 10:41am EDT TORONTO (Reuters) - Globalive had no choice but to seek foreign funds for its Wind Mobile service and wants Canada to loosen restrictions on outside influence quickly, its chairman said on Thursday. "It is time for competition to work in this country," Anthony Lacavera told industry executives at the Canadian Telecom Summit in Toronto. "The existing telecommunications foreign control restrictions are, in our view, an overly broad and inefficient regulatory tool," he said. The company's fate as a contender in Canada's wireless industry rests with the courts, after the government overturned a regulator ruling that said funding from Egypt's Orascom Telecom gave the foreign company too much influence. "The reality is that in order to form an effective, lasting, competitive alternative, we must access an extraordinary amount of capital," Lacavera said. "Unlike mining and resources, the Canadian capital markets for telecommunications are very small. More importantly, the business interests of our Canadian banks with the incumbents make it virtually impossible to access Canadian capital to the scale that is required." Canada's Telecommunications Act restricts foreign ownership to 20 percent of a telecom company's voting shares and limits direct and indirect foreign control to 46.7 percent. The Conservative government, reelected in May with a majority, has long championed the idea of greater competition in the sector, but new industry minister Christian Paradis has declined to say how he expects to rule. Lacavera said Canadians should be more concerned by increasing concentration of broadcasting assets in the hands of network owners. "Where we once had a variety of voices; we are increasingly living in a Canada where our content distributors own our content." Rogers Communications owns CityTV, Shaw Communications purchased CanWest last year and BCE Inc's Bell Canada recently closed a deal for CTV, Canada's largest private broadcaster. "Those same content distributors will find ways to use their distribution pipelines to steer customers toward content they control and away from content controlled by their competitors," he warned. Canada's broadcast and telecom regulator is studying this convergence in a closely watched regulatory process. Globalive was able to enter the wireless market after a 2008 spectrum auction in which some airwaves were set aside for new entrants to foster competition. The government plans another auction, of valuable 700 MHz spectrum that travel long distances and penetrates obstacles, due late next year. Globalive has asked for incumbents to be completely blocked from the sale. "The government should create rules allowing the new entrants a chance to bid for access to spectrum in upcoming auctions and ensure incumbents do not acquire it at any price to stave off further competition," he said. (Reporting by Alastair Sharp; editing by Janet Guttsman) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback   Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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