Mobilicity Lenders Ready To Continue Partnership Talks with Wind Mobile

by Istvan Fekete on March 16, 2015

Mobilicity was forced to withdraw from the federal government’s AWS-3 wireless spectrum auction last week and lost any slight chance it may have had of becoming an attractive purchase for wireless carriers in the country (or companies eyeing the Canadian wireless market).

As a result, Mobilicity continues to be under creditor protection, but nobody can stop its bleeding. Interestingly, its rival Wind Mobile, which ultimately won the AWS-3 spectrum licences at a bargain price due to Mobilicity’s forced withdrawal, isn’t in the best position right now. At least, this is what the Financial Post suggests.

While it increased spectrum holdings by 180%, it needs serious investment to build out its holdings. And let’s not forget that it also wants to participate in the 2500 MHz auction. When that closes, Wind Mobile will have one goal ahead under the terms of licencing deals: It had better stop building out its network; otherwise, it may lose the right to use those airwaves.

Earlier this month, we reported that Mobilicity and Wind were in talks about a possible takeover. Now, as it turns out, Catalyst, Mobilicity’s first-lien holders, and other creditors had a message for Wind with their 11th-hour step of forcing the carrier out of the auction: They have access to funds at any time, and they could form a great partnership with Wind.

Catalyst, at least, appears to be angling that way: The firm has been publicly stating for months that it would like to spur consolidation among smaller Canadian carriers.

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

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