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Ottawa, 18 December 2009
Mr. Bob Boron
Vice President, Legal and Regulatory Affairs
130 Merton Street, Suite 600
Re: Ownership and Control review of Public Mobile Inc. – Type of Review
On March 26, 2009 Industry Canada issued spectrum licences to Public Mobile Inc., formerly 6934579 Canada Inc. (Public Mobile), following the Auction of Spectrum Licences for Advanced Wireless Services and Other Spectrum in the 2 GHz Range.
As noted by the Commission in its letter to Public Mobile dated 22 December 2008, the CRTC is responsible for ensuring that Canadian carriers comply with the Canadian ownership and control requirements of the Telecommunications Act (the Act).
In Telecom Regulatory Policy 2009-428 (the Policy), the Commission established a four-type review framework to apply to all future ownership and control reviews.
The Commission considers that based on a preliminary review of the documentation filed to date, the ownership structure of Public Mobile appears to comply with the legal control requirements of the Act. With regard to control in fact, the Commission notes inter alia, that the foreign equity is provided by a number of investors and the foreign debt is primarily vendor financing. Finally, Public Mobile’s corporate governance provisions largely follow the guidelines laid out in the BCE and Globalive decisions.
At this time, and based on the information available, the Commission considers that the ownership structure of Public Mobile is of a complex nature and could hold precedential value for the industry and the general public. The Commission does not consider, however, that the evidentiary record would be improved by third-party submissions.
Accordingly, based on the framework set out in the Policy, the Commission hereby provides public notice that it will be proceeding with a Type 2 review of the ownership and control of Public Mobile in order to determine its eligibility to operate as a Canadian telecommunications common carrier.
When reviewing the ownership and control of Public Mobile, the Commission will apply the existing jurisprudence relating to determinations of control in fact, cognizant of the fact that in varying Telecom Decision CRTC 2009-678, the Government stated that the “decision to vary is specific to the facts of this case”.
As set out in the Policy, a public decision and examination file will be released upon the conclusion of the Commission’s review.
Original signed by
Robert A. MorinSecretary General