Orascom awaits approval to create new Canadian wireless operator

As previously reported in Comm., Egypt’s Orascom Telecom, controlled by billionaire Naguib Sawiris, yesterday announced it is part of a consortium to bring a new wireless operator to Canada, pending regulatory approval.

The consortium has provisionally won AWS (advanced wireless services) spectrum in Canada after submitting the highest bids on spectrum across every region of Canada except Quebec. The consortium is now awaiting final approval by Industry Canada.

The consortium’s bids for spectrum, which covers 79 per cent of Canada’s population, cost almost C$442 million.

Orascom will have a non-controlling interest in the venture, headed instead by Canada’s Globalive Communications, the parent of small phone and Internet services company, Yak Communications.

It was previously believed that Sawiris would make the investment through his company Weather Investments.

The consortium’s combined bids totalled almost C$442 million (US$438 million), while the spectrum will provide population coverage to almost 26 million people.

Canada’s mobile penetration stands at less that 70 per cent, with ARPU estimated at around C$55.

Sawiris said if the licence was awarded, Orascom would offer its experience in supporting new mobile ventures while Globalive would offer local operational and management experience in providing a new mobile offering.

“[Canada is] a country with a very interesting growth profile, a mobile penetration rate lower than that of a number of countries in which we operate, a very high ARPU and only one operator offering GSM services and enjoying GSM roaming revenues,” Sawiris commented.

“Developing this business is in line with our strategy of investing in high growth countries which provide superior returns to our shareholders.”

Orascom also said in a statement that according to the Telecommunications Policy Review Panel, Canadians currently pay an average of 60 per cent more than Americans for mobile wireless services, and that services such as high-tech mobile services, fast Internet connections, video and TV streaming and video-conferencing, are not being introduced in the country as fast as other parts of the world.