Cultural groups argue in court that Globalive decision did not meet objectives of Telecom Act

OTTAWA—A coalition of cultural groups has won intervener status in the Federal Court challenge of the government’s Globalive decision, arguing the government did not consider the “essential role” telecom companies play in the “maintenance of Canada’s identity and sovereignty.” On June 9, a cultural group coalition comprised of the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA), the Friends of Canadian Broadcasting, and the Communications, Energy and Paperworkers Union of Canada (CEP), filed its memorandum with the court. The court filing establishes the cultural groups’ support for Public Mobile and Telus Corp. in the Federal Court challenge. In January new wireless entrant Public Mobile filed an application for judicial review of the Conservative government’s decision that had allowed new wireless entrant Globalive Wireless Management Corp. to operate in Canada. The decision overturned an earlier CRTC ruling that found the company did not meet foreign ownership requirements. Public Mobile is arguing the Globalive decision effectively changed the foreign ownership rules and unfairly denied the company access to foreign capital. The cultural group coalition is arguing that when the government overturned the CRTC decision—according to Section 12 of the Telecommunications Act—it did not weigh cultural and sovereignty questions. “There is no indication in its decision that the turned its mind to the importance of telecommunications in maintaining Canadian sovereignty and identity and facilitating Canadian culture in purporting to exercise its authority under s.12 of the Act,” the memorandum said. “Rather, its decision is primarily focused on the perceived need to encourage access to foreign capital, technology and experience, and increasing competition in the telecommunications market.” Steven Shrybman, a lawyer at Sack Goldblatt Mithchell LLP who is acting for the cultural coalition, said it is important for the group to intervene so that the case does not become simply a question of whether the rules were applied fairly. “Foreign ownership restrictions are important to preserving Canadian culture and Canadian cultural sovereignty, and without our participation, those questions wouldn’t be raised,” Shrybman said in an interview. On March 19, 2010, the cultural coalition served a motion with the court, seeking intervener status. The groups received intervener status on June 3, despite opposition from parties involved in the case. Globalive argued in a response to the motion that the presence of the cultural groups is not necessary and that they will not add to the arguments being made by Public Mobile and Telus. The groups will now appear at the court hearing, where it is expected they will argue the government did not apply the law in a manner consistent with the Telecom Act—particularly the act’s objectives outlined in Section 7. No hearing dates have been scheduled. Industry Minister Tony Clement has said the Globalive decision was made on the facts specific to the case and that it was based on a “rigorous application” of Canadian ownership and control requirements under the act. The Conservative government launched consultations this month toward opening up the telecom sector to more foreign investment. news@thewirereport.ca

Cultural groups argue in court that Globalive decision did not meet objectives of Telecom Act

News | June 16, 2010

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