Fremeth

Case Solution for The Canadian Telecommunications: Industry Regulation and Policy

Complete Case details are given below :
Case Name :      The Canadian Telecommunications: Industry Regulation and Policy
Authors :           Adam Fremeth, Ken Mark
Source :             Ivey Publishing
Case ID :            W11013
Discipline :        General Management
Case Length :    15 pages
Solution Sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
This case study is based on a high profile issue facing the Canadian Federal Government – still ongoing as of December 2010 – that had begun in 2008. Industry Canada, working from a set of policy objectives crafted over the period of three years, decided that, in the auction sale of wireless spectrum set for 2008, it would set aside 40 per cent of the spectrum for new entrants. This decision had come about because research indicated that Canadian usage of wireless services had lagged behind that of other developed countries and that this was primarily due to the high relative cost of wireless services. This was in contrast to only a decade earlier when Canada was seen as a global leader in the implementation of wireless technology. It is well understood that telecommunication adoption rates have a direct implication to the productivity of the Canadian economy. One of the new entrants was Globalive Communications Corporation (Globalive), a startup which was funded by Orascom Telecom Holding S.A.E. (Orascom), an Egyptian company. Despite the fact that Canada has well defined foreign ownership restrictions for the telecommunications sector, Globalive was allowed to bid. It won, and paid $442 million for its spectrum, began to hire hundreds of staff, and committed another $300 million to investing in wireless infrastructure.<br><br>From the time Globalive applied to participate in the spectrum auction to the period prior to its official launch, the firm met several times with Industry Canada, the Canadian Radio-television and Telecommunications Commission (CRTC), and the Prime Minister’s Office (PMO) to ensure that its ownership was structured so as to fit within the foreign ownership restrictions.
 
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