TORONTO – New wireless entrant Public Mobile has filed a suit against Industry Canada’s decision to allow rival Globalive Wireless to launch, citing concerns over foreign ownership.
Public Mobile said that the decision has essentially “thrown out” Canadian foreign ownership laws, and that the Government must undertake a review of foreign ownership restrictions in order to provide all wireless providers equal access to foreign capital.
“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 CEO Alek Krstajic, in a statement. “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.”
Krstajic said that Public Mobile is not opposed to Globalive’s presence in the marketplace, “so long as the same rules are applied to everyone”.
Public Mobile is backed by Canadian investors such as the Ontario Municipal Employees Retirement System (OMERS) which represents the pensions of 400,000 firefighters, police officers, transit and hydro workers across the province, and Thomvest Seed Capital.
Public Mobile filed its application with the Federal Court late Friday. The Federal Court is Canada’s national trial court which hears and decides legal disputes, including claims against the Government of Canada.
