Egyptian-funded Globalive Not Canadian Enough

TORONTO (AP) — Canada's telecom regulator said Thursday that startup wireless carrier Globalive does not comply with Canada's ownership standards because it is majority funded and controlled by Orascom, an Egyptian telecom company.

Egyptian billionaire Naguib Sawiris and Canadian entrepreneur Anthony Lacavera, founder and chairman of Globalive, are behind the Toronto-based upstart, which will now have to delay the launch of its mobile phone service due to the ruling.

Orascom owns 65 percent of Globalive, a structure that was accepted by Industry Canada when its license was granted last March. Orascom also holds much of Globalive's debt.

However, the Canadian Radio-television and Telecommunications Commission said Thursday that Orascom, a non-Canadian company, has the ongoing ability to determine Globalive's strategic decision-making activities.

"Given Orascom's equity interest in Globalive, such a high level of debt in the hands of a non-Canadian is unacceptable."

Under Canadian regulations, telecom carriers must be majority-owned and controlled by Canadians.

Lacavera had maintained the company was "fully compliant" with foreign ownership and control regulations after making changes to its structure that restricts Orascom's influence on its operations.