Globalive, a recent entrant and fast-growing player in Canada’s wireless telephony market, was dealt a serious blow last Friday by the Federal Court of Canada, which struck down an earlier government ruling that found Globalive’s ownership structure to be permissible under Canada’s foreign ownership law. Egypt’s Orascom Telecom holds 32% of the voting stock and 65% of the equity of Globalive, which, since December 2009, has offered wireless service in Canada under the Wind Mobile brand. Since launching service, Wind has attracted more than 250,000 customers and is believed by experts to be the driving factor behind price-cutting moves announced recently by incumbents Telus Corp., Rogers Communications, and BCE, Inc. Initially, Canada’s Radio-Television and Telecommunications Commission (CRTC) determined that Globalive’s ownership structure violated rules that cap foreign direct control of Canadian telecom operators at 20% of voting shares and indirect control at 46.7%. However, the government—which has been keen on injecting competition in Canada’s wireless sector—later overturned the CRTC upon concluding that voting and managerial control of Globalive rested with Canadians. In its ruling on Friday, the court declared the government’s decision to be “null and void in that it was determined on a basis in law not provided for in” Canada’s Telecommunications Act. Globalive will have 30 days in which to appeal and to seek a stay that would allow it to continue operations beyond the 45-day effective date of Friday’s court order.