Russia's VimpelCom Buys Wind Mobile In Canada 63
Posted
by
timothy
from the telephone-network-owns-you dept.
from the telephone-network-owns-you dept.
silverpig writes "Wind Mobile's CEO and Chairman Tony Lacavera announced on the Wind Mobile site that VimpelCom has decided to purchase Wind Telecom for $6 billion. The deal should go through by the middle of this year and may give Canadians cheaper international and roaming rates, as well as giving Wind some extra leverage with its suppliers and handset manufacturers. The deal is particularly interesting, as Wind is one of the new entrants into the Canadian wireless operator industry and has had to deal with issues regarding Canada's foreign ownership rules. Expect a lot of scrutiny from the CRTC, Bell, Telus, and Rogers."
Re:One thing's really been bugging me. (Score:5, Informative)
Wind? According to their adds it is pronounced the same way as moving air outdoors.
As for the topic at hand. In Canada it is illegal for a telecom company to have more than 30% foreign ownership. Wind was owned by an Egyptian company violating those rules, as such the CRTC banned them from operating in Canada, the federal government then overode the ban (but didn't change the rules) making Wind the only foreign owned telecom company allowed to operate in Canada. Recently a federal judge overturned the exemption and sent it back to the government saying that they had to make everyone play by the same rules (either ban Wind from operating in Canada, or allow other foreign companies the same leeway, and gave Wind 60 days to comply/appeal. Now the Egyptian company is solving their foreign ownership problems by becoming Russian owned instead of Egyptian... somehow I don't think that helps.
Our government really needs to make up it's mind. Either allow foreign ownership of telecoms (and open up our telecom industry to real competition) or kick Wind out. The double standard has got to go.
Re:Foreign ownership rules (Score:4, Informative)
I recently decided I was done with Fido. 3 years of terrible customer service was enough. So I went down the street to Bell, and got better service for the same money. Only one problem, I went to Bell 3 days before my contract was up with Fido. That mistake cost me a $100 early cancellation fee. I attempted to fight it and those bastards sent me to collections. I would have continued to fight it, but my mortgage is coming due in a couple of months and I don't need a black mark on my credit report.
In case anyone doesn't know, Fido is a division of Rogers.