Industry Minister Tony Clement gave parties until today to submit comments on the CRTC’s finding last month that Globalive does not comply with Canadian ownership requirements under the Telecom Act.
Why do I keep thinking of Calvinball when I read about the continuing twists and turns regarding the rules for the licensees from our last mobile spectrum auction?
Here is how Wikipedia describes the game, which was introduced about 20 years ago in the comic strip Calvin and Hobbes:
The only consistent rule is that Calvinball may never be played with the same rules twice. Scoring is also arbitrary, with Hobbes reporting scores of “Q to 12” and “oogy to boogy.” The only recognizable sports Calvinball is similar to are the ones that it emulates (i.e., a cross between croquet, polo, badminton, capture the flag, and volleyball.) Equipment includes a volleyball (the eponymous “Calvinball”), a soccer ball, a croquet set, a badminton set, assorted flags, bags, signs, and a hobby horse. Other things are included as needed, such as a bucket of ice-cold water, a water balloon, and various songs and poetry. Players also wear masks that resemble blindfolds with holes for the eyes. When Rosalyn asked Calvin what the reason for the requirement was, Calvin responded, “Sorry, no one’s allowed to question the masks.”
When asked how to play, creator Bill Watterson said, “It’s pretty simple: you make up the rules as you go.”
Calvinball is not the kind of game that the investment community will want to play. The government agencies (CRTC and Industry Canada) can’t be seen making up the rules as we go. That is why I told the Canadian Press that I don’t think the CRTC decision will be overturned.
Still, there is one aspect that the CRTC left a door open for policy guidance in its decision, as I suggested last month. There was an ambiguity in Paragraph 118 of the Decision in respect of the allowable amount of debt that could be held by a non-Canadian company.
The Industry Minister might pronounce on this particular point – providing clarity and flexibility – without tearing apart the integrity of foreign ownership restrictions.
Globalive is one of a number of new mobile spectrum license holders. Industry Canada needs to ensure that the rules are clear for all of the industry participants so that we can get on with the game.
IMHO, that ship has sailed. The federal government, via IC, ruled that Globalive was Canadian enough to buy spectrum. Then the federal government, via the CRTC, ruled that Globalive was not Canadian enough to use said purchased spectrum. When the federal government can't even agree with itself on such fundamental issues affecting hundreds of millions of private investor dollars, that doesn't exactly create an climate conducive to investment.