CRTC begins DAVE Wireless ownership and control review

The federal telecommunications regulator has started a second foreign ownership and control review of a start-up wireless company, a step needed before it can start business.

The Canadian Radio-television and Telecommunications Commission (CRTC) released a letter that it sent l to the management of Toronto-based Data and Audio-visual Enterprises Wireless Inc. (DAVE Wireless), saying it has started a review of the company’s structure. If given the green light, the company will go to market under the name Mobilicity.

After a preliminary look at its documents, the commission has decided things are in order enough to hold a closed-door review of the corporate structure rather than a public hearing, as Globalive Wireless Management Corp. had to undergo last fall. Unlike the ordeal Globalive went through, the closed-door review doesn’t require testimony.

“With regard to control in fact, the commission notes inter alia (a Latin term meaning ‘among other things’) that on a fully diluted basis, 67 per cent of the [DAVE Wireless] voting interest will be held by the largest Canadian investors and that the largest non-Canadian investor has provided less than 55 per cent of the total capital of the company.”

The commission also noted in the letter that a “significant debt facility has been provided through an export credit arrangement with a foreign bank for the purchase of telecommunications equipment.” Ericsson LM is designing and building the company’s HSPA+ network.The company has said DAVE Wireless’ biggest shareholder is Toronto entrepreneur John Bitove through his Obelysk holding company. Bitove also has a U.S. partner, Quadrangle Capital Partners of New York. In December a group led by National Bank Financial Inc. and GMP Securities L.P. also put in a combination of debt and equity.

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Jim Love, Chief Content Officer, IT World Canada

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Howard Solomon
Howard Solomon
Currently a freelance writer, I'm the former editor of ITWorldCanada.com and Computing Canada. An IT journalist since 1997, I've written for several of ITWC's sister publications including ITBusiness.ca and Computer Dealer News. Before that I was a staff reporter at the Calgary Herald and the Brampton (Ont.) Daily Times. I can be reached at hsolomon [@] soloreporter.com

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