Globalive, a start-up mobile phone firm owned indirectly by Orascom of Egypt, was authorized to enter the Canadian wireless market after members of Canada’s federal cabinet determined that Globalive’s ownership structure does not contravene rules against foreign control of Canadian telecom firms. Announced on Friday, the decision introduces a fourth national wireless carrier in Canada that will compete against established mobile operators BCE, Telus Corp. and Rogers Communications. The cabinet’s action also reverses an October ruling by the Canadian Radio-television and Telecommunications Commission, which denied Globalive’s request for market entry on grounds that Orascom—the largest wireless carrier in the Middle East—holds effective control of Globalive. The parent of Globalive is owned 65% by Orascom, although Canadians hold voting control of Globalive’s stock. Sources also indicate that Globalive receives financial support from Orascom CEO Naguib Sawiris, who has lent most of the money that Globalive is using to deploy its Canadian network. Explaining the reversal, Industry Minister Tony Clement told reporters, “we came to the conclusion that [while] the lender had influence over the company which is perfectly acceptable under our legislation, it did not have control over the company.” While Clement stressed that the government “is not removing, reducing, bending or creating an exception to Canadian ownership and control requirements,” a spokeswoman for BCE promised that her company would be taking “a close look at the reasoning behind this decision.” Rogers, meanwhile, welcomed Globalive’s entry, asserting: “we’ve always thrived in a competitive environment, and we’re ready to meet the competition head on.”