Nov. 2 (Bloomberg) -- Rogers Communications Inc. Chief Executive Officer Nadir Mohamed said the ruling that blocked Globalive Wireless Management from launching service in Canada is good for investors because it shows the country’s rules are enforced consistently.

Canada’s broadcast regulator, the Canadian Radio-television and Telecommunications Commission, ruled last week that Globalive doesn’t meet Canadian ownership rules because it’s controlled by Orascom, an Egyptian company. Canada doesn’t allow foreign-owned firms to compete with domestic phone providers.

Last year, the industry department ruled Globalive is a Canadian firm when it allowed Globalive to buy wireless spectrum for C$442 million ($409 million).

The regulator ruling “should be a positive: people know there’s rules and they’re actually going to stick by them,” Mohamed said in an interview after he gave a speech to the Canadian Club of Ottawa. The ruling “would not have been news to Orascom or Globalive, they knew the process. To me, it’s even worse if rules aren’t consistently applied.”

Rogers, Canada’s largest wireless carrier, will still face competition from other entrants like Public Mobile Holdings Inc. and Data & Audio-Visual Enterprises Wireless Inc., Mohamed said.

“The reality is we’ll have more competition,” Mohamed said. “We don’t base our decisions on what’s happening with Globalive, we go back to our strengths around distribution networks, customer experience and just wanting to do better.”

More Competition

BCE Inc. Chief Executive Officer George Cope also said the ruling won’t preclude more competition in the wireless market.

BCE’s Bell subsidiary, Canada’s largest telephone company, will have to compete with Quebecor Inc.’s Videotron subsidiary in Quebec and Shaw Communications Inc. in the country’s western provinces, Cope said.

“No one should be mistaken that there’s not new competition coming in the Canadian wireless industry,” Cope told reporters today after giving a speech to the Canadian Club of Montreal. “It’s just absolutely clear that we all have to live under the same rules.”

Orascom Telecom Holding SAE, a Cairo-based carrier owned by Egyptian billionaire Naguib Sawiris, holds a 65 percent stake in Globalive and the Canadian company’s founder, Anthony Lacavera, owns the remainder.

To contact the reporters on this story: Alexandre Deslongchamps in Ottawa at adeslongcham@bloomberg.net.

Last Updated: November 2, 2009 15:38 EST