Mobilicity, one of Canada’s smaller carriers, is quickly running out of options. Having put itself up to an auction sale in December, its creditor protection is set to run out in mid-February. It has already been extended several times but that’s no guarantee that it will be again. With the prospect of being unable to find a buyer and simply shutting down, Canada’s government today reiterated its position that it does not want to see it acquired by TELUS.
The five-year ban on the transfer of its spectrum set up as part of the 2008 spectrum auction is set to expire in days. This may open the door to TELUS trying again to acquire the beleaguered carrier, but the Canadian government does not appear inclined to support this move, even if it is the only one left. “The minister has made his position clear already on spectrum transfers,” said Jake Enwright, a spokesman for Industry Minister James Moore. “We’ve been clear that we will not approve any spectrum transfer that results in undue concentration.”
TELUS has tried twice already to buy Mobilicity and appears undaunted by these past failures.
Should Bell or Rogers, the other two major Canadian carriers, choose to bid for Mobilicity, they are unlikely to find a warmer reception. Both Quebecor, Videotron’s parent company, and WIND Mobile are also reportedly interested in acquiring Mobilicity but their bids are unlikely to be as rich as one from TELUS.
Many Canadian carriers are also currently participating in the 700MHz spectrum auction. A decision by one to acquire Mobilicity could affect strategies and pocketbooks.
Source : Reuters