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<span style="font-weight: bold"> Consumers may be big winners as cabinet dials up new cellphone service provider
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<span style="font-weight: bold"> it is about freakin time the CRTC got over-ruled.</span>
<span style="text-decoration: underline">OTTAWA — Consumers who love to hate Canada's big three cellphone providers now have a new suitor.</span>
Industry Minister Tony Clement on Friday announced he was overruling the federal telecommunications regulator to allow Globalive Wireless Management Corp., to offer cellphone service in Canada. The decision is effective immediately, he said.
<span style="font-weight: bold">The chairman of Globalive was quick to declare that greater wireless competition has arrived in Canada with the launch of the new brand, WIND Mobile.</span>
"We're going to launch as early as next week," Anthony Lacavera told reporters in Toronto.
Clement's much-anticipated announcement giving Globalive the go-ahead comes six weeks after the Canadian Radio-television and Telecommunications Commission denied the company's bid to be the country's fourth-biggest wireless operator.
The CRTC said Globalive's corporate structure violated foreign-ownership rules because Egypt's Orascom Telecom Holding SAE held too much control through debt financing.
<span style="font-weight: bold">Now, Globalive is setting out to lure disgruntled customers away from Rogers Communications Inc., BCE Inc., and Telus Corp. — which all fought to keep Globalive out of the Canadian market. Experts say the fight for customers will mean lower consumer prices.</span>
"Now the hard work actually starts. We've got to now prove to Canadians that we are a carrier they can trust, a service provider they can rely on," said Lacavera.
The startup company has already built networks in Toronto, Ottawa, Calgary, Edmonton and Vancouver, with launch cities in Toronto and Calgary.
Ken Campbell, chief executive officer of subsidiary WIND Mobile, said customers won't be charged system access or 911 fees. Meanwhile, they'll be impressed by data speeds and capacity on a next-generation wireless network, he said.
"We're about the customer experience, so the worst thing we could do is pull the trigger too quickly and not ensure that all the little details are taken care of," said Campbell.
Earlier this year, the Organization for Economic Co-operation and Development <span style="font-weight: bold">released an international study that found the average Canadian cellphone user is paying among the highest bills in the developed world, behind the United States and Spain.</span>
The expected competition is sure to benefit consumers, experts say.
David Lambert, a telecommunications analyst with Canaccord Capital, said Globalive is expected to offer a flat-rate plan for cellphone users that, depending on usage, could cost as little as $30 a month.
"Canadians are always afraid of the surprise bill. One thing you're gonna know with Globalive is that you're less likely to get a surprise bill because everything's going to be a flat rate plan, and there should be less fine print."
Lambert said the three incumbents, Rogers, Telus and Bell, could have little choice but to duplicate Globalive's pricing plan.
"There's going to be some price adjustment," said Lambert. "I wouldn't be surprised to see some matching."
With the entry of smaller players, the three established telecom giants have already dropped prices on some services and eliminated consumer irritants on select plans, including monthly system access and 911 fees.
Rogers wireless customer Bhupesh Shah of Richmond Hill, Ont., doesn't plan to stick around to find out if Rogers comes up with a better plan.
Shah, a marketing consultant, has been waiting for another player in the wireless field ever since the federal government held the auction last year for Advanced Wireless Services spectrum; of the available 105 megahertz (MHz) of spectrum, 40 MHz was set aside exclusively for new entrants to bid on.
That's why Shah declined to sign another long-term contract with Rogers when his contract expired last year.
"I'm totally dissatisfied with my provider. Every month, there's a billing issue," he said Friday.
Shah also feels like he's "getting nickelled and dimed on certain things." He pointed to increased rates to offset the newly eliminated system access fee.
"Really, you had no choice. There's been only three options for us Canadians and it totally sucks because all three options, it's the exact same price," said Shah.
"I'm glad the CRTC got overruled because, from a competitive standpoint, consumers aren't offered a real choice."
Under the federal Telecommunications Act, the federal cabinet has the power to vary CRTC decisions.
Clement said he is satisfied the debt financing provided by Orascom does not constitute foreign control and no changes would be required to the company's organization.
He also said the decision was based on legal facts of the ownership structure — and should not be interpreted as a signal of pending changes to the country's rules governing foreign investment.
Canadian foreign-ownership legislation for telecoms restricts the number of voting shares that can be held by non-Canadians — 20 per cent at the operating company level and 33.3 per cent at the holding company level. The CRTC also must be satisfied that foreigners do not exercise "control in fact" over the company.
Clement said Ottawa is satisfied with Globalive's structure, as Canadians will own at least 80 per cent of the voting shares and 66.66 per cent of Globalive's holding company. The board is dominated by Canadians, he added.
</span>
<span style="font-weight: bold"> it is about freakin time the CRTC got over-ruled.</span>
<span style="text-decoration: underline">OTTAWA — Consumers who love to hate Canada's big three cellphone providers now have a new suitor.</span>
Industry Minister Tony Clement on Friday announced he was overruling the federal telecommunications regulator to allow Globalive Wireless Management Corp., to offer cellphone service in Canada. The decision is effective immediately, he said.
<span style="font-weight: bold">The chairman of Globalive was quick to declare that greater wireless competition has arrived in Canada with the launch of the new brand, WIND Mobile.</span>
"We're going to launch as early as next week," Anthony Lacavera told reporters in Toronto.
Clement's much-anticipated announcement giving Globalive the go-ahead comes six weeks after the Canadian Radio-television and Telecommunications Commission denied the company's bid to be the country's fourth-biggest wireless operator.
The CRTC said Globalive's corporate structure violated foreign-ownership rules because Egypt's Orascom Telecom Holding SAE held too much control through debt financing.
<span style="font-weight: bold">Now, Globalive is setting out to lure disgruntled customers away from Rogers Communications Inc., BCE Inc., and Telus Corp. — which all fought to keep Globalive out of the Canadian market. Experts say the fight for customers will mean lower consumer prices.</span>
"Now the hard work actually starts. We've got to now prove to Canadians that we are a carrier they can trust, a service provider they can rely on," said Lacavera.
The startup company has already built networks in Toronto, Ottawa, Calgary, Edmonton and Vancouver, with launch cities in Toronto and Calgary.
Ken Campbell, chief executive officer of subsidiary WIND Mobile, said customers won't be charged system access or 911 fees. Meanwhile, they'll be impressed by data speeds and capacity on a next-generation wireless network, he said.
"We're about the customer experience, so the worst thing we could do is pull the trigger too quickly and not ensure that all the little details are taken care of," said Campbell.
Earlier this year, the Organization for Economic Co-operation and Development <span style="font-weight: bold">released an international study that found the average Canadian cellphone user is paying among the highest bills in the developed world, behind the United States and Spain.</span>
The expected competition is sure to benefit consumers, experts say.
David Lambert, a telecommunications analyst with Canaccord Capital, said Globalive is expected to offer a flat-rate plan for cellphone users that, depending on usage, could cost as little as $30 a month.
"Canadians are always afraid of the surprise bill. One thing you're gonna know with Globalive is that you're less likely to get a surprise bill because everything's going to be a flat rate plan, and there should be less fine print."
Lambert said the three incumbents, Rogers, Telus and Bell, could have little choice but to duplicate Globalive's pricing plan.
"There's going to be some price adjustment," said Lambert. "I wouldn't be surprised to see some matching."
With the entry of smaller players, the three established telecom giants have already dropped prices on some services and eliminated consumer irritants on select plans, including monthly system access and 911 fees.
Rogers wireless customer Bhupesh Shah of Richmond Hill, Ont., doesn't plan to stick around to find out if Rogers comes up with a better plan.
Shah, a marketing consultant, has been waiting for another player in the wireless field ever since the federal government held the auction last year for Advanced Wireless Services spectrum; of the available 105 megahertz (MHz) of spectrum, 40 MHz was set aside exclusively for new entrants to bid on.
That's why Shah declined to sign another long-term contract with Rogers when his contract expired last year.
"I'm totally dissatisfied with my provider. Every month, there's a billing issue," he said Friday.
Shah also feels like he's "getting nickelled and dimed on certain things." He pointed to increased rates to offset the newly eliminated system access fee.
"Really, you had no choice. There's been only three options for us Canadians and it totally sucks because all three options, it's the exact same price," said Shah.
"I'm glad the CRTC got overruled because, from a competitive standpoint, consumers aren't offered a real choice."
Under the federal Telecommunications Act, the federal cabinet has the power to vary CRTC decisions.
Clement said he is satisfied the debt financing provided by Orascom does not constitute foreign control and no changes would be required to the company's organization.
He also said the decision was based on legal facts of the ownership structure — and should not be interpreted as a signal of pending changes to the country's rules governing foreign investment.
Canadian foreign-ownership legislation for telecoms restricts the number of voting shares that can be held by non-Canadians — 20 per cent at the operating company level and 33.3 per cent at the holding company level. The CRTC also must be satisfied that foreigners do not exercise "control in fact" over the company.
Clement said Ottawa is satisfied with Globalive's structure, as Canadians will own at least 80 per cent of the voting shares and 66.66 per cent of Globalive's holding company. The board is dominated by Canadians, he added.
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