Anthony Lacavera, chairman and chief executive of Globalive, in Montreal Monday, Sept. 15, 2008. THE CANADIAN PRESS/ Ryan Remiorz

MONTREAL - Globalive is still hoping to be a new national cellphone player even though its launch was put in doubt Thursday after the CRTC ruled the company isn't Canadian enough.

The Toronto-based company, which plans to operate under the WIND Mobile banner, wants to be Canada's fourth major wireless carrier and compete with Rogers, (TSX:RCI.B), Bell (TSX:BCE) and Telus (TSX:T). "With this decision, the CRTC has put new competition at risk," Lacavera said in an interview Thursday from Toronto.

"We know Canadians want a new choice in wireless."

Globalive said WIND Mobile's launch will be "delayed."

Ken Campbell, CEO of WIND Mobile added, "We will be evaluating our options on how to proceed."

Lacavera said he couldn't be specific on how the decision will affect the launch, which was planned for the coming weeks.

The CRTC said that Globalive currently doesn't meet the Canadian ownership and control requirements to operate as a telecommunications carrier.

Egyptian telecom company Orascom owns 65 per cent of Globalive, a structure accepted by Industry Canada when its licence was granted last March.

Orascom also holds much of Globalive's debt, a big sticking point for the CRTC.

"The commission finds that Globalive is controlled in fact by Orascom, a non-Canadian," the CRTC said in a written decision.

"Given Orascom's equity interest in Globalive, such a high level of debt in the hands of a non-Canadian is unacceptable."

Telecom analyst Eamon Hoey said Globalive will have to restructure itself to get into the cellphone business.

"It all comes down to that they have too much debt," said Hoey of Hoey Associates Management Consultants Inc.

He called the CRTC's decision "anachronistic."

New cellphone player DAVE Wireless supported the CRTC decision.

"We take Canadian control and ownership rules very, very seriously," said CEO Dave Dobbin. "We have fully complied with all of those rules."

DAVE Wireless plans to launch early next year in Toronto, Vancouver, Calgary, Edmonton and Ottawa. Dobbin said the cellphone industry will still be competitive because consumers will have new choices from his company.

Telus also applauded the decision and said it upholds Canadian regulations on foreign ownership and control.

"We don't think the CRTC had any choice or latitude under the laws of Canada to make any other decision," said Michael Hennessy, senior vice-president of regulatory and government affairs.

Telus noted the decision doesn't shut out Globalive from the cellphone market.

"It merely means they must abide by Canada's laws," Hennessy said.

The CRTC said Orascom has the ongoing ability to determine Globalive's strategic decision-making activities.

"The commission finds that it cannot conclude that Globalive is not controlled in fact by a non-Canadian, to wit Orascom," the CRTC said.

"The concentration of debt and equity in the hands of a single entity can create an opportunity for influence."

While the CRTC said Globalive has made changes to its corporate structure and documents to address concerns, more changes are still necessary to reduce Orascom's influence.

"These changes related to the composition of the boards of directors, liquidity rights and the threshold for veto rights."

The CRTC also said an ability to obtain financing from other parties may also be relevant to the issue of who's controlling Globalive.