Mobilicity auction deadline extended by one week

by Andrew Roach on December 11, 2013

Since it was revealed that there was going to be an auction for Mobilicity’s assets, there has been a lot of intrigue to see which companies would participate and what the results would mean for the domestic wireless market.

Well, it seems that everyone have to wait just a little bit longer to finding out what will happen as the deadline for bidders to announce their participation was extended by one week.

The original date had been for finalised bids to be in by December 9 however several interested bidders requested more time forcing auction hosts Ernst & Young to extend the deadline until December 16.

The auction of Mobilicity’s assets comes after the company had spent the last two months under court-ordered debt protection to prevent the firm from collapsing altogether.

By choosing to extend the deadline, it seems like there is plenty of interest in Mobilicity’s assets although most of the participants have yet to reveal what their intentions may be.

So far, only WIND Mobile have announced their participation in the auction despite their CEO failing to mention which aspects of the business they were interested in buying once the auction takes place.

With Ernst & Young receiving requests for an extension, it could suggest that some bidders are targeting Mobilicity’s spectrum licenses which were originally bought for $243m back in 2008 during the last spectrum auction.

Many networks would be keen to get their hands on this assets as it would help give them a significant boost in network coverage and could allow a wireless network to expand their 4G networks across the country.

These assets could help shake up the domestic market as it could allow for smaller network providers such as WIND to compete against the Big Three group or it could allow for the established carriers to help further their grasp on some key areas.

For the time being, Mobilicity is still in operation and providing a service to 189,000 customers across the country however the fate of their user’s coverage after the auction is still unknown.

For now, everyone will have to wait just that little bit longer to see who will be involved in the upcoming Mobilicity auction and what the potential outcome could mean for the domestic telecom market.

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

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