It goes without saying that the CRTC has certainly created a bit of a mess in the wireless market. To deny Globalive approval to launch at this critical stage, at the cusp of the biggest buying occassion of the season (Christmas) is a bit counterproductive. On one hand they want to foster competition on the other they want to curtail foreign ownership creeping in to the telecom sector.
Delaying Globalive from launching does seem like a bit of a compromise for the encumbents to satisfy them.
Its been said a few times that there are insufficient investors in Canada that can provide the type of capital required to build large scale infrastructure businesses like wireless. As creative as we want to be there just isn’t that many options.
So how is it that the CRTC can accept almost half a billion dollars from Orascom/Globalive and then turn them down for approval? Perhaps they could have made it a requirement to satisfy the business ownership guidelines before they accept the funds. I bit of foresight could have avoided this mess.