Global Trade Alert

The Government of Canada is considering changes to its investment regime that may loosen some restrictions on foreign investment in the telecommunications sector. In the Throne Speech on March 3, 2010, the Government of Canada stated that it 'will open Canada's doors further to venture capital and to foreign investment in key sectors, including the satellite and telecommunications industries.'
At the same time, one specific case is being litigated within the existing regime. At issue is the licensing of Egyptian-owned mobile carrier Globalive Communications to provide services in Canada. The main developments to date are as follows:

• On October 29, 2009 the Canadian Radio-Television and Telecommunications Commission ruled that Globalive did not comply with Canadian ownership and control requirements under the Telecommunications Act.
• The Governor in Council varied the decision on November 10, 2009, thus allowing the company to offer telecommunications services in Canada.
• On February 4, 2010, the Federal Court reversed the previous ruling of Governor in Council, stating that Globalive (or WIND Mobile as it was known since Fall 2009) is not Canadian owned. 45 days were given to file an appeal. 
• On June 8, 2011, the Canadian Federal Court of Appeal ruled in favor of Globalive and allowed it to continue operations.

The Canadian Federal Court of Appeal ruling permitting Globalive (WIND Mobile) to continue its operations in Canada prevented protectionism to flourish.