Staying ahead of the pack - Contact Management

From the
editor
A typically Canadian telecommunications knot
May 18 is the date when hopefully a stubborn
knot on the Canadian telecommunications
scene starts to unravel. It’s the day the
Federal Court of Appeal has set to hear
the appeals brought by WIND Mobile and the Canadian
government following a Federal Court’s recent judgment
that a Cabinet order approving the cellular company’s
ownership and right to operate in Canada contained two
“legal errors” and should be quashed.
In early March, the Court of Appeal also granted a stay
of that Federal Court judgment until it decides whether it
should stand. It may take a year or more before the whole
matter comes to some sort of resolution and we get some
much-needed clarity of the foreign ownership conundrum.
In the meantime, the fate of WIND Mobile and other
foreign-based telecom businesses with plans to do
business in Canada hang in the balance. What’s important
is they represent jobs and potential jobs for thousands of
Canadians. WIND Mobile employs more than 2700 agents
in its Toronto call centre alone and has more than 200,000
customers.
A subsidiary of Globalive Holdings, Globalive Wireless
(operating as WIND Mobile) is positioned to become
Canada’s next, national wireless service provider. Globalive
Holdings is a telecommunications provider in Canada and
internationally to the consumer, business and hospitality
markets. Other Globalive companies include Yak
Communications, OneConnect, Canopco and Globalive
Carrier Services.
Globalive is heavily financed by Egyptian
communications giant Orascom Telecom. The Canadian
Radio-television Communications Commission (CRTC)
originally barred Globalive from launching in Canada
because it determined the company was “controlled in fact”
by the Egyptian backer. The federal cabinet overturned that
ruling, but the Federal Court found the government erred in
law by doing so.
“From the beginning, we have maintained that we are
fully compliant with the rules,” declares Globalive Chairman
Anthony Lacavera. “Cabinet saw this clearly. The Federal
Court did not say otherwise, only that two ‘legal errors’
were in the Cabinet order. We are very confident the Court
of Appeal will rule in our favour and look forward to putting
these legal roadblocks set up by our competitors behind us.”
The Federal Court’s ruling stemmed from a judicial
review sought by rival wireless company Public Mobile.
It further confuses the regulatory outlook for how much
foreign capital telecom companies can use.
The government has vowed to remove the restrictions,
but has been vague on the timelines for doing so. Under
current legislation, Canadian telecoms cannot be owned
by foreigners and there are strict limits on the amount of
foreign investment. Orascom holds about 90 percent of
WIND Mobile’s equity and debt.
Lacavera maintains he is open to striking deals with other
new entrants, but is more firmly convinced the rules need to
change, rather than him changing his company to suit rules
that seem to keep changing.
“We had the CRTC’s view,” he says. “We had the
government’s view, and now we have the court’s view. And
all three are different, which is, I guess, Canada. It’s pretty
strong evidence our control and ownership regime needs
an overhaul.”
It has all led to this telecommunications knot, the result
of a tangle of regulatory, legislative and judicial dictates.
And it is so typically Canadian.
“I’m embarrassed, as a Canadian, that we have this kind
of uncertainty for foreign investors,” comments Lacavera.
It’s more than embarrassing. It’s irresponsible. It’s a huge
waste of time and money and a real threat to present and
future businesses and jobs. At a time when so much of the
world is in the grip of a shaky economy, what other country
would dare indulge in this kind of negative wrangling?
Sears takes toll-free Japan donations
Sears Canada has announced its call centre lines are open
and ready to accept donations on behalf of the Canadian
Red Cross as a contribution to the relief efforts of the
international community. Canadians can call Sears at 1-800-
26-SEARS and make a donation using any major credit card,
including Sears Card and Sears MasterCard. All money collected
will be forwarded directly to the Canadian Red Cross
to support the Japan Earthquake and Tsunamis Relief effort.
“On behalf of our associates, Sears extends its heartfelt
sympathy to the people of Japan,” says Sears Canada
President and CEO Dene Rogers. “We have been collecting
donations for the Japan relief effort during March in stores
and are now making our toll free call centre available for
Canadians to contribute who want the convenience of dialing
from their mobile or home phones.”
Sears is accepting donations to its 1-800-26-SEARS line
and anyone who donates $10 or more on their Sears Card
or Sears MasterCard will receive a tax receipt directly from
the Canadian Red Cross. Also, donations made on Sears Card
or Sears MasterCard can earn valuable Sears Club points.
Donations can also be made at all Sears retail stores, hometown
dealer stores and catalogue agents.
“The Red Cross Movement is rapidly mobilizing to meet
the urgent humanitarian needs following a devastating
earthquake and tsunami in Japan,” says Conrad Sauve,
secretary general and CEO of the Canadian Red Cross. “We
are grateful to Sears for their generous support of Red Cross
relief and recovery operations in affected communities.”
Photo error
The photo of the man identified as Barry O’Sullivan, senior
vice-president, voice technology group, Cisco on page 20 of
the January/February 2011 issue , was not Barry O’Sullivan.
It was Tony Bates who left Cisco last year to become CEO of
Skype. We regret the error.
March/April 2011
Volume 11 Number 2
» President
Steve Lloyd
steve@contactmanagement.ca
» Publisher
Mark Henry
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» Editor
Ron Glen
ron@contactmanagement.ca
» Advertising Manager
David McGee
david@contactmanagement.ca
905-2016600 xt 227
» Creative Direction / Production
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Next issue…
May/June
Essential themes are Speech Analytics
and Outsourcing. Stories include what
to look for in outsourcing relationship,
a case study of a Canadian financial
institution use of speech analytics,
and the results of an Aberdeen contact
centre survey.
4 contact management.ca March / April 2011