Public Mobile files appeal to the Cdn Federal Govt objecting to Wind's foreign ownership

Public Mobile has applied to the Canadian Federal court asking the court to overturn the Government's decision to allow Wind Mobile to launch despite Wind's clear violation of CRTC foreign ownership rules. I am figuring that this is a publicity stunt to:

- gain some exposure for Public Mobile
- let the public know once again that Wind Mobile is NOT a Canadian owned company and that they should buy from Public Mobile once they launch.
- let the public know that Public Mobile is clearly Canadian. Perhaps they could use this in their marketing campaign
- keep their name in the papers

I don't think this appeal will go anywhere - it could very well back fire if the general public perceives Public Mobile as being too opportunistic.

Although I applaud the federal government for allowing Wind Mobile to launch I do wonder how they were able to skirt the foreign ownership rules and what precedent the government has created moving forward. PublicMobile does have a point though.

Here is the Public Mobile press release:

 

Public Mobile is applying to the Federal Court (Canada) asking it to overturn the Government's decision allowing Globalive Wireless to operate while being backed entirely by Egyptian billionaire Naguib Sawiris. PublicMobile believes the Government has in essence thrown out the foreign ownership laws of Canada and must therefore review foreign ownership restrictions and provide all wireless providers equal access to foreign capital. The Federal Court is Canada's national trial court which hears and decides legal disputes, including claims against the Government of Canada.

Last fall, after a lengthy and thorough investigation, the CRTC provided a detailed ruling concluding that Globalive was not Canadian owned and controlled. But Industry Minister Tony Clement and the federal cabinet over-ruled the CRTC and gave Egyptian-backed Globalive the green light to operate, essentially ignoring laws that can only be changed by Parliament.

"We believe Cabinet's decision is unfair to other wireless carriers, especially new entrants like Public Mobile that have played by the rules and secured substantial Canadian investment," said Alek Krstajic, Chief Executive Officer of Public Mobile. "Furthermore, while we respect the Government's authority we believe what it has done amounts to a change in law, and only Parliament can change Canadian law."

"We agree entirely that there should be more wireless competition in Canada," Krstajic added. "And we want to be very clear that we are not opposed to Globalive's presence in the marketplace so long as the same rules are applied to everyone. But the government's decision does not create a level playing field. It has made two sets of rules - one for Globalive and its Egyptian owners and one for everyone else. We are simply asking that all wireless providers be treated equally and given the same access tocapital."

Public Mobile filed its application with the Federal Court late today. The company is in the process of building a wireless network across Ontario and Quebec that will provide unlimited talk and text for $40 month. PublicMobile is backed by numerous Canadian investors and its largest investor is the Ontario Municipal Employees Retirement System (OMERS) which represents the pensions of 400,000 firefighters, police officers, transit and hydro workers across the province.

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Written by: Jeff Wiener. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Identi.ca, or Friendfeed