Verizon looking to get double dose of Canadian market

by Andrew Roach on June 28, 2013

Verizon’s interest in the Canadian wireless market has sparked up a lot of debate about how the US telecom giant will enter into the industry should they look to get involved on the other side of the border.

It seems though that the carrier is reportedly looking to get involved with at least two different companies after Verizon entered into talks with both Wind Mobile and Mobilicity.

The New York based firm has made a $700million bid for Wind Mobile while they are also reportedly in talks with Mobilicity in a bid to end the provider’s financial troubles.

With Verizon keen to get involved in the Canadian market, it could finally provide a fourth carrier who could be strong enough to challenge the big three networks of Rogers, Bell and Telus.

It’s no secret that several of the new independent carriers have struggled to survive in the telecom market since their formation back in 2008.

But Verizon’s entry has could certainly give the likes of Wind Mobile and Mobilicity a much needed boost in their bid for survival against the bigger carriers.

Following Orascom’s decision to withdraw their takeover bid, Wind Mobile was facing a very bleak future before the $700m bid was made by the U.S carrier.

Even though negotiations are still ongoing between the two carriers, the talks have given Wind customers a bit less of a worry to talk about.

But Verizon’s interest doesn’t just end with Wind Mobile though as the owners behind Mobilicity are looking to also get Verizon involved to help solve the carriers financial woes.

Catalyst Capital, who own the majority shares in Mobilicity, have been in a dispute with both the mobile firm and the courts over the financial state of the company and its long term future.

But leading figures behind the investment company have stated their intrigue and desire to get Verizon on board to help secure the long term future of the carrier.

If Mobilicity were to become part of Verizon’s Canadian operations, it would mean that the two companies could possibly merge together to form one large carrier.

This would spell bad news for the larger carriers who could potentially face losing nearly 1.5 million subscribers if everything was to go through and be signed off.

At the moment, Verizon’s interest is still in its early stages and any final deals are going to be a long way off but the American provider’s entry could be the catalyst needed to guarantee the success of a 4th national wireless carrier across Canada.

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