CRTC satisfied Telus complies with foreign-ownership rules

Canada’s telephone regulator said it won’t review the foreign-ownership structure of Telus Corp., the country’s third-largest wireless carrier, saying there’s no evidence the company’s shareholdings violate the rules.

“The commission is satisfied that Telus’s mechanisms for ensuring its compliance are consistent with the provisions and requirements established,” the Canadian Radio-television and Telecommunications Commission said. “The commission does not consider there to be sufficient evidence of non-compliance.”

Globalive Wireless Man- agement Corp. had requested the regulator review of Telus, claiming it was in breach of legal limits on foreign ownership. Foreign investors can’t hold more than 33.3 per cent of a telecom company’s shares under Canadian law.

Globalive — funded by Amsterdam-based VimpelCom Ltd. — offers wireless services in Canada under the WIND Mobile brand.

“While we respect the commission’s decision, we are, of course, disappointed,” said Simon Lockie, chief regulatory officer of WIND Mobile.

Telus, based in Vancouver, proposed in February to scrap its dual-share structure by converting all non-voting shares into voting stock on a one-to-one basis.

The company said in March that “approved and pending” applications to buy its common voting shares might push foreign ownership beyond the 33.3 per cent limit for phone companies.

Telus blamed the surge on “event-driven” foreign investment funds seeking to profit from changes in the prices of the two classes of shares expected under the company’s proposal.

Telus dropped the proposal on May 9. The company said Nov. 30 there had been a “material reduction” in non-Canadian ownership of its common shares to approximately 15 per cent as of Nov. 16, down from 33 per cent in July.