Mobilicity has been in dire shape for some time now. It has been hoping that a buyer would stop in and save it but luck has not been on its side: A deal with TELUS was blocked by the Canadian government and potential suitor, Verizon Wireless, has now decided not to expand to Canada. With its debt now over CA$500 million, time may have run out for the smaller carrier. According to The Financial Post, Mobilicity is looking to close operations down by the end of the month.
Mobilicity’s subscribers could soon have a saviour. WIND Mobile, which had been looking to merge with the beleaguered carrier, is currently negotiating with Mobilicity to pick up its 200,000 subscribers for “little-to-no financial compensation.” Full details of the deal are still being negotiated so there is still a chance that it could fall through.
As for Mobilicity’s investors, the company would be left with its spectrum licenses and tax losses. A separate buyer could buy those assets, allowing them to recoup some of their losses.
Mobilicity launched its wireless service in 2010. At its peak, it had about 250,000 subscribers in Toronto, Ottawa, Calgary, Edmonton and Vancouver.
Source : The Financial Post