Investment banking firm Genuity Capital Markets has suggested that a partnership between Globalive and MTS Allstream would provide both companies with advantages in building out their wireless networks. Globalive could gain an alternative source of financing while MTS would be able to sell Globalive Wireless services to its enterprise customer base. An investment in Globalive would also protect MTS from a hostile takeover bid from one of the established national players.
Globalive plans to start offering mobile phone services in the second half of 2009. A partnership with MTS would still live Globalive with a hole in Quebec. A partnership with Quebecor-owned Videotron could cover that gap to turn Globalive into a national carrier.
Globalive also recently secured non-recourse vendor financing from Orascom Telecom. While specific amounts were not revealed, they are estimated to be at least USD$350 million.