Globalive wireless plans undeterred by U.S. crisis

By Wojtek Dabrowski

TORONTO (Reuters) - Privately held Globalive Communications Corp still aims to roll out wireless service in Canada next year, despite the financial crisis, and continues to target 1.5 million customers in its first three years of operation, the company's chief executive said on Friday.

"We certainly plan to launch on schedule. Our time frame has not been changed in any way," CEO Anthony Lacavera said in an interview. "We think actually that (Globalive's Yak brand) is well-positioned to service Canadians in this kind of economic climate."

Globalive, currently known for its low-cost long distance calling service, spent about C$442.1 million ($409.4 million) this summer to secure wireless spectrum licenses across Canada with the exception of the province of Quebec.

However, analysts have speculated recently that difficulties with obtaining financing given the crisis in U.S. credit markets could force Globalive and other new entrants to delay their service launches.

Globalive's backers include Weather Investments, which owns service providers in Italy and Greece, and the majority of Orascom Telecom Holdings, one of the biggest mobile phone firms in the Middle East.

That relationship is crucial to Globalive's ability to start up service to compete against the "Big Three" incumbents BCE Inc, Telus Corp and Rogers Communications, Lacavera said.

"It's definitely a big boys' game and requires an ability to sustain significant start-up investment and significant operating losses as you build the business," Lacavera said.

"I'm happy that we've got a partner that can see this through."