Wind Mobile considering buying Mobilicity should Verizon fail to act

by Andrew Roach on August 16, 2013

The fate of many of the new independent carriers has been the subject of numerous rumours throughout the year with several different parties having already shown interest in them.

It had looked increasingly likely that US telecom firm Verizon were about to purchase either Wind Mobile or Mobilicity but now the backers behind Wind are saying that they themselves are looking to buy their struggling rival.

With Verizon shelving their interest until at least early 2014, Wind Mobile CEO Anthony Lacavera revealed that his AAL Group would still be open to purchasing the struggling Mobilicity.

Both companies have had a difficult year as the two continue to lose ground to many of their bigger rivals and continue to post financial losses.

Despite struggling themselves in 2013 so far, Wind bosses have felt that merging themselves with another independent carrier could them give a much bigger say on the national front.

As they would both share the resources and spectrum that they currently own, it would not only double their current network coverage but give them much more power in the 700MHz auction on January 14.

Realistically, the future of both Wind Mobile and Mobilicity will be decided by how much spectrum they acquire in the auction with their very survival becoming doubtful should they fail to get a significant share.

Indeed, the auction is one of the reasons why Verizon has eased off their pursuit in buying either firm as they look to evaluate the best approach to getting involved in the auction.

Having initially entered Canada with purchasing one or if not both firms, the US telecom giant is thought that they don’t want to be tied down in the auction with one of the smaller independent firms.

Instead, the company could choose to launch a new subsidiary especially for the Canadian market which would be open to accessing some of the exclusive resources that have been set aside for new entrants into the market.

Entries for the auction need to be submitted to the federal government by September 17 so it won’t be long before Verizon’s plans become visible to the world.

Once they do, it means that smaller carriers such as Wind Mobile and Mobilicity will be much clearer on their fate and see whether their mooted merger will become a possibility or a necessity.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube

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