Public Mobile’s Alex Krstajic appears on USA’s Fox News complaining about Globalive’s foreign investment

by Jeff Wiener on January 14, 2010

The cellular rules in Canada should, or could be changing if Alex Krstajic, President of Public Mobile has any say in the matter. He appeared on the US’s Fox News complaining about the Canadian Government’s allowing Globalive to launch with foreign investment dollars.

Some of his comments:
“We’ve asked the federal court to rule on this.  What we’re hoping is that the Federal court will say in fact that this is a change in the law.   Our good friends south of the border, the Americans can invest in the Canadian Telecom market and that’s what we want to see.

We’re asking the courts to look at this and say “if we’re going to allow Egytpian money surely we should allow US money as well.

We would like to see the US capital classified in the same way.  Surely our governments intent is not to put Egyptian capital ahead of US capital.”

The Canadian Federal government has been silent about this matter since ruling that Globalive can skirt foreign investment rules and allow them to launch. Are there two sets of rules ? What are the rules, and what rules should Public Mobile, or any other Telecom / cellular company be allowed to use when launching ? It’s great that they have allowed Wind Mobile to launch. We absolutely need the competition, but, does that also mean that Public Mobile can now seek greater foreign investment without breaking the rules ?

These are questions that the Canadian government clearly has to answer because they are precedent changing.

My thoughts on Alex Krstajic appearing on US news complaining about this matter is an entirely different story. What is he really after ? More US or foreign capital ? Or, is he grandstanding in anticipation of Public Mobile’s launch to proclaim that “WE”RE CANADIAN OWNED. BUY FROM US”. My suggestion would be to take the moral high ground and go after your competitors by offering superior service, quality, and pricing … All of the business elements that strike a positive chord with consumers. Negative sales will, in the long run, hurt Public Mobile’s credibility. Focus instead on the positive business attributes you will bring to market in anticipation of your launch. When, what, how … Get the consumer excited about Public Mobile’s offering and focus on your company’s strengths.

With respect to the Canadian Government, I also wonder when they will make a public announcement about the new rules that the other companies can use as a guide for Canadian business practice.

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Mark January 15, 2010 at 2:54 pm

Thanks for posting Jeff. Alex didn’t go on Fox News to drum up sales. He went to inform the US investment community that there could be a landscape change in Canada. This is critical as more investment means a drop in the cost of capital (like lower interest rates on loans for Public Mobile). The Canadian government has got themselves into a nice bind as they’ve prevented the other telcos from doing what they allowed Wind Mobile to do. Legal clarity is now required. More US-based investment doesn’t neccessarily mean small companies would benefit but rather the larger ones. We know BCE tried to sell itself before and may be apt to do so again. That would be embarrassing for the government as it attempts to have competition only to have US funded consolidation.

Mike November 20, 2010 at 11:13 am

He didn’t tell the American viewers that a few years back he was president of Bell Mobility who ran an “unregulated” duopoly with Rogers Wireless and won the distinction of being one of Canada’s worst loved companies.

cheapcalls December 17, 2010 at 5:58 am

It’s great that they have allowed Wind Mobile to launch.

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