Canadian Operator Quizzed Over Egyptian Shareholding

­Canada's new mobile network license holder, Globalive Communications has updated its shareholder structure as an investigation commenced to verify that the company is majority owned by Canadian nationals. The company has been under the spotlight over its shareholder structure after claims that Egypt based Orascom Telecom had a majority stake in the firm.

Anthony Lacavera, the chairman and chief executive of Globalive, told a Canadian Radio-television Telecommunications Commission (CRTC) review that he is to assume the role of chairman of the boards for the wireless company as well as two associated holding companies. He also agreed to give up a put-option that would enable him to sell his stake in the company to Orascom Telecom.

Although Orascom holds a majority of the equity, the voting rights remain with the Canadian investors. Industry Canada has already approved the Egyptian investment in the company, but the telecoms regulator still felt it wanted to verify the details. The main concern, also expressed by the company's rivals, has been the complex nature of the financial arrangements the company has set up.

Globalive recently added fuel to the dispute when it announced that it will adopt the brandname used by Orascom Telecom in Europe, Wind Mobile.

Orascom CEO Naguib Sawiris told the CRTC via a satellite connection that he was unhappy with being the lead financial supporter of the company, but that the firm had little choice as the economic crisis had dried up the Canadian investments that had been expected.

Wind is currently aiming to launch in key markets in late 2009 and will continue to launch services across Canada in 2010. Service will operate on an all-IP HSPA network, which will pave the way to an LTE network in the future.

The CRTC is expected to hand down a decision about its investigation within 30 days.

Posted to the site on 24th September 2009