TELUS cover letter to Minister Clement re Globalive

November 18, 2009
The Honourable Tony Clement
Minister of Industry
C.D. Howe Building
235 Queen Street
Ottawa, ON K1A 0H5

Dear Minister,

Subject: TELUS’ Further Comments In Respect of Globalive – Telecom Notice of Consultation 2009-429

In reply to your correspondence dated November 6, 2009, please find attached TELUS’ further comments in respect of Globalive’s non-compliance with the Canadian ownership and control requirements. There are many compelling reasons why you should not intervene as you are being urged to do by Globalive and Orascom. These reasons are fully discussed in TELUS’ submission, but include the following:
•There is no reason that would justify intervention by the Governor in Council in a legal finding of fact, by an independent tribunal, in an open and public process

•To intervene, as Orascom is urging, would render meaningless Canada’s ownership and control regime governing the Canadian wireless, telecom, cable and broadcasting industries

•Allowing foreign interests to control our telecommunications and broadcasting sectors through the back door is not in the public interest and would create major uncertainty and confusion for all communications companies currently complying with the law

•There is no way to intervene that would not trigger most favoured nation provisions of the North American Free Trade Agreement and the General Agreement on Trade in Services

•Bidders including all new entrants, were put on notice as to the rules for eligibility and bid over $4 billion in the AWS auction and, as you have been advised by other new entrants, it would be patently unfair to now change the rules of the game after the fact

•It is a matter of public record that the CRTC offered to hold its review process at the same time as that of Industry Canada, but Globalive refused that offer. The effect of that refusal lies clearly with Globalive and Orascom

•The CRTC had no choice under the law to find Globalive in non-compliance given 82% of the capital of Globalive is owned by Orascom, in addition to other levers of control unearthed by the CRTC

•Globalive and Orascom were provided a roadmap by the CRTC to comply, but have chosen instead to ask the Governor in Council to exempt them from the laws that govern all other competitors to advantage itself

•Regardless of the choice Globalive makes, the Government’s objective of more competition has been achieved with the licensing of compliant Canadian competitors like Public Mobile, Shaw, Eastlink, Videotron and Dave Wireless

•Globalive is the master of its own destiny and can enter as soon as it meets the same threshold as other new entrants have done.

I trust that these comments are of assistance to you in your review of this matter.
Yours truly,
Michael Hennessy
Senior Vice President
Regulatory & Government Affairs