Comments on: Government of Canada to Comment on Wireless Providers

By: Jason

Jason — Tue, 17 Nov 2009 20:03:48 +0000

Some great insights…I have to say for anyone considering investing in this asset class right now, be cautious. Increasing competition in a market where, at least within the wireless sector, Canada has some of the highest rates is tricky business.

By: Smac20

Smac20 — Tue, 17 Nov 2009 15:39:16 +0000

Thanks for your comment Sebastien.

Although the CRTC said Globalive should not be allowed to operate due to it’s majority foreign ownership, the Goverment of Canada that held the auction approved the sale. If this was such an issue I think Globalive should have been disallowed before they purchased the wireless contracts. Further, I believe Canadian Foreign Ownership Rules are outdated compared to other countries.

Globalive is the only real potential for a nation-wide wireless competitor agianst Bell, Rogers, and Telus. These foreign ownership rules have not be looked at any nearly as closely for many of China’s recent purchases in the Canadian Oil Fields for example.

I main issue is with Rogers saying that they will purchase Globalives wireless contracts however. This is because the contracts were meant to be sold to new competition only! Allowing any of the big 3 wirelss carriers to even think about purchasing Globalives contracts is outrageous.

By: Sebastien LeCunt

Sebastien LeCunt — Tue, 17 Nov 2009 13:29:17 +0000

I think it’s unfair for Globalive to break the rules that every other player has to follow in the market and get away with it. The sale of the Wireless Spectrum will have many players emerging in the market. They have spend billions by following the rules, yet here comes Globalive which hasn’t and we should just bow to them in the name of “competition”?

I have nothing with players wanting to play the game. But you come on my field in my country, you better play by the rules.