MONTREAL -- Orascom Telecom Holding says it's withdrawing an application to acquire control of Wind Mobile Canada, one of the smaller wireless carriers that's seeking to grow into a stronger rival for the country's three main cellphone companies.
The Egyptian company announced Wednesday that it has made the decision to withdraw it application under the Investment Canada Act following discussions with Canada's federal government.
Orascom said that "it continues to be interested in consolidating its interest in Wind Mobile Canada and in working with the government of Canada to achieve this goal."
Orascom provided much of the financial backing for Wind Mobile, one of several new wireless networks that entered the Canadian market several years ago.
Since then, the government has relaxed foreign investment restrictions to allow foreign control of small carriers with 10 per cent or less of the wireless market.
Industry Minister Christian Paradis also blocked a deal that would have seen Telus Corp. (TSX:T) acquire one of the other small new carriers, Mobilicity.
Paradis also stressed that the federal government remains committed to having at least four competitors in each region of the country.
Orascom has also undergone changes since it made the Wind Mobile investment under the leadership of Egyptian businessman Naguib Sawiris.
The Dutch company VimpelCom now owns 51.7 per cent of Orascom and Sawris heads Accelero, an Egyptian company that is seeking to buy Allstream from Manitoba Telecom Services (TSX:MBT).
Wind Mobile's founding chief executive, Anthony Lacavera, issued a statement saying he's still committed to creating a "true independent" choice of wireless services for Canadians.
"Despite today's announcement, I will continue working with VimpelCom toward achieving our mutual objectives," Lacavera said.
Lacavera has said previously that Wind Mobile would like to create a fourth national wireless competitor to rival industry heavyweights -- Rogers (TSX:RCI.B), BCE's Bell (TSX:BCE) and Telus (TSX:T).
Earlier this month, following the Paradis announcement, Lacavera said he'd like to open talks to buy Mobilicity.
Shortly after that, however, another of the small upstart carriers -- Public Mobile -- said it was now positioned to be the industry consolidator with financial backing from Thomvest Seed Capital Inc. and New York's Cartesian Capital.
Public Mobile's founding CEO, Alek Krstajic, said he would like Public Mobile to buy both Mobilicity and Wind Mobile in order to create a bigger rival to the three industry leaders.