Rogers Communications have recently stated that they would be interested in purchasing WIND spectrum from Globalive after reports were raised that telecom setup may not be possible after regulatory ruling found that WIND does not meet Canadian ownership.

In August of this year, Globalive announced that it would soon be launching its network under the WIND brand in order to shake up the wireless industry in Canada. However, in order for this to happen, it must meet the Canadian ownership rules. These rules being that the sum of 80 percent must be owned and controlled by Canadians. This however is not possible, considering Orascom; an Egyptian company currently owns 65.1 percent of WIND equity, plus the WIND brand rights in Canada.

As a result, Canadian Radio-television and Telecommunications Commission (CRTC) stated that major changes needed to be implemented to the ownership structure before WIND could launch its network.

If Globalive does not launch there will be less competition entering the market. CEO Nadir Mohamed of Rogers Communications who are the country’s largest wireless service provider as well as Telus Corp and BCE Inc, two other large carries in Canada, would be provided with great benefits due to the unsuccessful launch of Globalive.

In 2008, WIND’s spectrum was purchased from Industry Canada for a total of $442.1 million Canadian with plans to offer mobile phone service later this year or in early 2010. Now, there is talk that the Big Three may buy the company in parcels if the launch does not happen.

While the launch of Globalive hangs in the balance, Rogers Communications, BCE and Telus Inc, will continue to look on in order to learn whether they have a new contender amid the field or if they will split WIND into three, thus sharing it among themselves.

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