Mobilicity Allegedly Transfers its Subscribers to Wind Mobile, Report Claims

by Istvan Fekete on September 5, 2013

The news that Mobilicity would transfer its 200,000 subscribers to rival Wind Mobile surfaced yesterday, courtesy of the National Post. According to their internal sources, the Toronto-area carrier, formally known as Data & Audio-Visual Enterprises (DAVE) Wireless, is that close to shutting down its business, which has been in limbo for several months now.

Two sources have hinted that the agreement — which is under negotiation — would save subscribers by transferring them to Wind Mobile. A similar scenario was whispered about by industry analysts when Verizon reportedly bid on Wind, and opened discussions with Mobilicity.

This move would allow Wind Mobile to grow its subscriber base closer to a million, and take the company one step closer to becoming the fourth national wireless player, the final aim of the carrier, according to its CEO, Anthony Lacavera.

The problem is that both companies are in limbo: Wind’s Netherlands-based backer has announced the sale of the company, and Mobilicity’s shareholders are ready to give up the company if the right buyer makes the right offer.

Lacavera has already said that Wind Mobile is interested in acquiring Mobilicity, and even Wind’s former backer, Egyptian Naguib Sawiris, said that Mobilicity will ultimately be available for sale just a couple months after the wireless startup launched.

While the Financial Post heard the agreement would see Mobilicity receive little or no financial compensation, MobileSyrup has heard details from various sources claiming the deal will close in weeks and that the amount is roughly $40 million.

Mobilicity’s CRO (Chief restructuring officer) later denied the rumours, saying that the published report about the agreement with Wind Mobile is false.

This doesn’t mean, though, that the two companies are not negotiating on this topic. A Mobilicity–Wind Mobile deal is most likely, but the timing or amount may not yet be right.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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