Incumbent Telus has been told by the Canadian regulator to prove it is abiding by the country’s foreign ownership laws.
The Canadian Radio-television and Telecommunications Commission (CRTC) has sent a letter to Telus asking for clarification of its…
Incumbent Telus has been told by the Canadian regulator to prove it is abiding by the country’s foreign ownership laws.
The Canadian Radio-television and Telecommunications Commission (CRTC) has sent a letter to Telus asking for clarification of its ownership levels, with a deadline of 24 August for the operator to respond.
Canadian telcos with market share by revenue of more than 10%, like Telus, can be no more than 33.3%-owned by non-Canadians. Globalive, the parent of challenger operator Wind Mobile, recently alleged that Telus could be up to 48% foreign-owned.
In a filing with the CRTC in June Globalive suggested, with reference to data from financial services firm Broadridge, that almost half of the voting shares in Telus were registered to addresses outside Canada. Globalive’s chief regulatory officer Simon Lockie called for the CRTC to carry out a review.
Telus disputes the Broadridge report and argues the 48% figure was distorted by short-selling of Telus shares by activist investor Mason Capital, based in New York.
A Telus spokesperson said today that the CRTC’s request was standard procedure in response to Globalive’s claims.
Telus maintains its foreign-ownership is below the 33.3% threshold. It said in July that it was 32.59% foreign owned.
This is the latest episode in a long-running feud between the companies. It started in 2009 when Telus questioned Globalive’s foreign ownership levels after it had entered Canada backed by Egypt’s Orascom. The CRTC decided against Globalive but the government overruled the regulator, thereby paving the way for a new player into the market.
