[subordinate]

This is B.S. if it happens. Mobilicity has some great plans, and we all know what will happen when acquired. Fees go up and plans changed for the worse to increase profits.


Telus mum on reports it (http://www.vancouversun.com/sports/Telus+reports+talks+acquire+Mobilicity/8236043/story.html)

VANCOUVER — Telus is not commenting on reports that is in talks to acquire the independent Canadian cell phone provider Mobilicity.

Mobilicity is among the three independent small Canadian wireless companies that announced earlier this week that they are withdrawing from the Canadian Wireless Telecommunications Association over what they termed as their “mounting frustration with the CWTA’s consistent bias in favour of Rogers, Bell and TELUS on a wide variety of issues.”

If the current rumour of a pending sale of Mobilicity is true, that would mean all three of those independent carriers could be up for sale. The smallest of the three, Public Mobile, which offers service in Ontario and Quebec, has reportedly hired bankers to find a buyer. And Wind Mobile is known to be seeking buyers, with Fongo Inc. making public its acquisition bid, a bid that was ridiculed on Twitter by Wind’s chief regulatory officer Simon Lockie.

I hereby publicly offer to buy Fongo for $1 and half my sandwich.Hopefully the story gets picked up before I get too hungry to deliver.

— Simon Lockie (@LockieSimon) March 27, 2013

The report of the potential sale of Mobilicity, in a Globe and Mail story that quotes what reporters Rita Trichur and Boyd Erman identify as a letter from Telus vice-president of corporate development Stephen Lewis to Mobilicity president Stewart Lyons and Michael Levin, managing director of investment banking at Canaccord Genuity, has already generated criticism among consumer advocates.

“The choice in Canada’s cell phone market is going to be reduced even further from what is already a dismal state,” said Lindsay Pinto, spokesperson for the Vancouver-based OpenMedia.ca, which has collected more than 30,000 signatures on an online petition to Canada’s Industry Minister Christian Paradis demanding more choice of carriers in the wireless market.

“Canadians have made it very clear that they want choice in the cell phone market,” said Pinto.

Telus spokesman Shawn Hall said his company has no comment on the report about Mobilicity.

Citing an unnamed source, the Globe and Mail story said Mobilicity would be valued from $350 million to $450 million.

[FerrariEnzo]

lol telus couldnt afford to go after Wind, so they go after Mobi.. haha

[Szeto]

doubt such acquisition would be allowed by the government

[FerrariEnzo]

not until 2014 at least... then its free for all for the incumbents..

[Mr.HappySilp]

lol Blame the CRTC for not allowing non-Canadian companies to operate wirless and TV/Internet service in Canada in order to protect Canadians.

[BurnoutBinLaden]

Oh, the big carriers!

They have given my family much grief over the years. The lack of choice in the Canadian wireless industry is almost a human rights violation.

[Coren]

non-Canadian companies are allowed to operate wireless now

[CRS]

Oh, the big carriers!

They have given my family much grief over the years. The lack of choice in the Canadian wireless industry is almost a human rights violation.

You're an idiot.

[bcrdukes]

You're an idiot.

#:derp: No man, wutchu talkin' bout. It is up to private corporations and both federal and provincial governments to provide us wireless service. We're entitled to it all, unlimited minutes, data and fucking roaming - free.

:derp: x 1000

[FerrariEnzo]

lol if robelus gets approved for the buyout of the new entrants, its all over where they dominate the wireless industry... so all this time that the government said they will make changes will be nothing but a joke and waste of tax payers dollars..

[Neva]

If this goes down it'll be, yet another, slap in the face for all of us. I still cannot get over how their cartel actions go uninterrupted and how much our tax payer dollars go to supporting the guys that make it legal for these crooks to operate like they do.

How can the government expect our country to become further developed and successful when they directly contribute to the restriction and access to information and communications. Not to mention the 'protection' of Canadian companies from foreign-based competition that keeps them sitting around with shit-eating grins. Such a joke. The unfortunate part is most of us are forced to buy into it.


Until then just buy some stock in Telus and watch it constantly rise :troll:

[dasani604]

In other news, Catalyst Capital Group wants to merge WIND and Mobilicity (http://mobilesyrup.com/2013/04/13/catalyst-capital-group-wants-to-merge-wind-mobile-and-mobilicity/)

The article also states that Rogers and Telus are interested in acquiring WIND.

[FerrariEnzo]

I doubt Rogers would interested in Wind if they got the go ahead to take Shaw's AWS....

Bell/Telus would love to take both Wind and Mobi.. I highly doubt they would get both... Tony Lacavara would have higher chance to retake Wind, IF the government really steps in and stop robelus from the buyout...

[GLOW]

The lack of choice in the Canadian wireless industry is almost a human rights violation.

http://images.yuku.com.s3.amazonaws.com/image/gif/38e25f0e5e81ce657703703cf58b9b0bc1d093a.gif

[Mr.HappySilp]

non-Canadian companies are allowed to operate wireless now

Right and you know how hard it is for them to operate? Basically they have to piggy back on the big 3. Do you think the big 3 is going ot give these small guys the best network (currently their own customer is using) to these small guys? Most likely no. I am not sure what provider you use but have molbi celluar network is bad that people constanlty have drop calls their 3d,4d doens't work for hours at a time.

Not to mention there are the phones you get with each provider. As a phone maker (IE Samsung). will mot likely provider their newest phone to the big 3 becasue it helps the phone provider with sales and the big 3 buys them in bulk (we are talking maybe millions of unit) while the small guys will be lucky to even order a million. Chances are companies like Samsung will most likely want to deal with the big 3 frist before dealing with the small guys.

[shenmecar]

TELUS to acquire Mobilicity and its 250,000 subs for $380 million | MobileSyrup.com (http://mobilesyrup.com/2013/05/16/telus-to-acquire-mobilicity-and-its-250000-subs-for-380-million/)

Telus just bought Mobilicity, just awaiting approval before the purchase can be finalized.

[CRS]

TELUS to acquire Mobilicity and its 250,000 subs for $380 million | MobileSyrup.com (http://mobilesyrup.com/2013/05/16/telus-to-acquire-mobilicity-and-its-250000-subs-for-380-million/)

Telus just bought Mobilicity, just awaiting approval before the purchase can be finalized.

Well, shit.

[Tapioca]

We're a small market and have a huge landmass. Only big companies can operate here. We have a market that 1/10th the size of the US. And virtually all other developed countries have a landmass that is much much smaller than ours.

Having no choice sucks, but let's face the facts. If only people cared about politics as much as they care about saving a few bucks on their wireless service, perhaps we'd be better off as a country? Priorities people.
Posted via RS Mobile

[GLOW]

what does this mean for current mobilicity users and their current phone plans?

[willystyle]

TELUS to acquire Mobilicity and its 250,000 subs for $380 million | MobileSyrup.com (http://mobilesyrup.com/2013/05/16/telus-to-acquire-mobilicity-and-its-250000-subs-for-380-million/)

Telus just bought Mobilicity, just awaiting approval before the purchase can be finalized.
The incumbents CANNOT buy any of the three new wireless carriers until 2014, at the earliest. This transaction will not be approved.

[FerrariEnzo]

The incumbents CANNOT buy any of the three new wireless carriers until 2014, at the earliest. This transaction will not be approved.
its already been writting that this is true on the face, only new players who wants to enter the canadian market can buy them before that...... but behind the curtains/ under the table, it will be Telus operating.... and you can be sure that Mobi will have money now to scope up some of the 700mhz spectrum... damn.. telus will have LOTS of this spectrum at the beginning of 2014 and officially announce the takeover

[willystyle]

I don't know if Telus will be injecting money into Mobilicity under the table for LTE spectrum acquisition; however, I can see that this mess will drag out for another 6-8 months until early next year, the federal government and its regulators will then approve this buyout. Telus will re-farm all of the 1700MHz spectrum from Mobilicity for LTE, so that they can be in a better position to compete with Bell and Rogers for network supremacy. All of the Mobi plans will then hopefully be grandfathered, the existing Mobi users will be offered 2-3 year agreements to get a new handset with Telus to use their HSPA 1900/LTE 700/1700 network. 1700 will be used primarily to offload the 700Mhz spectrum in case it gets too congested.

At the end of the day, the only losers here will be consumers.

[bcrdukes]

250,000 subs - lol. Low paying subs rarely generating any revenue.

Telus is more interested in the spectrum. It's far more valuable.

[Liquid_o2]

Well doesn't this just suck. I have had an amazing time with Mobilicity these past two years. Absolutely no complaints. This really really sucks.

[dachinesedude]

The incumbents CANNOT buy any of the three new wireless carriers until 2014, at the earliest. This transaction will not be approved.

sorry to burst your bubble, but you really think telus didnt get govnt's blessing before going forward with this acquisition? its going to be approved

i dont get why you guys are talking about less competition after this, didnt you read the article? mobilicity was losing money and would've declare bankruptcy, would've lost them as a competitor anyways

[shenmecar]

what does this mean for current mobilicity users and their current phone plans?

Telus has said that they will take all of Mobilicity's customers and employees. Current plans will be grandfathered.

the *hope* is that Telus will be able to grant mobilicity users with better coverage while still paying $25 for an unlimited everything plan. that would be wicked.

[willystyle]

sorry to burst your bubble, but you really think telus didnt get govnt's blessing before going forward with this acquisition? its going to be approved

i dont get why you guys are talking about less competition after this, didnt you read the article? mobilicity was losing money and would've declare bankruptcy, would've lost them as a competitor anyways
There's a clause written specifically in the agreement at the time when the new entrants arrived that NO INCUMBENTS can acquire them BEFORE FEBRURARY 2014.

Just because Mobilicity is losing money and on the verge of declaring bankruptcy, that doesn't make it right for an oligopoly to come in and acquire it. There's a reason that the government opened up its industry in 2008 and why the Competition Bureau (of Canada) EXIST.

I am NOT suggesting that Mobilicity shouldn't be merged or acquired, but NOT to the fucking INCUMBENTS.

If you think all this is just a conspiracy between Telus and Industry Canada, Look no further than the AT&T vs T-Mobile merger fiasco in the States. The FCC is just as "corrupt" as Industry Canada.

https://en.wikipedia.org/wiki/Attempted_purchase_of_T-Mobile_USA_by_AT%26T

[-vancityguy-]

so if this goes thru is anyone going to grab a mobi plan in hopes it gets grandfathered?

[Tapioca]

There's a clause written specifically in the agreement at the time when the new entrants arrived that NO INCUMBENTS can acquire them BEFORE FEBRURARY 2014.

Just because Mobilicity is losing money and on the verge of declaring bankruptcy, that doesn't make it right for an oligopoly to come in and acquire it. There's a reason that the government opened up its industry in 2008 and why the Competition Bureau (of Canada) EXIST.

I am NOT suggesting that Mobilicity shouldn't be merged or acquired, but NOT to the fucking INCUMBENTS.

If you think all this is just a conspiracy between Telus and Industry Canada, Look no further than the AT&T vs T-Mobile merger fiasco in the States. The FCC is just as "corrupt" as Industry Canada.

https://en.wikipedia.org/wiki/Attempted_purchase_of_T-Mobile_USA_by_AT%26T

Whenever government intervenes in the market, or whatever, people complain. And then when the government lets the market do its thing, people complain. Why should wireless communications be treated differently than other markets? Just so you can access YouTube while on the go? Should my tax dollars be used to bail out a wireless company? (because essentially, that is what would need to happen to Mobilicity if you don't allow one of the existing companies to acquire them.)

And honestly, quit thinking that Industry Canada is in some conspiracy with Telus and Rogers. Give me a break.

Oh, government should get the heck out of way and let us do we want.

...But wait, I want the government to save me and my cheap wireless communications company that is losing money because I'm entitled to cheap wireless service!

[Neva]

We got the internal telus memo at work about the acquisition once finalized and they definitely wouldn't send that around unless it was going down.

[bcrdukes]

...But wait, I want the government to save me and my cheap wireless communications company that is losing money because I'm entitled to cheap wireless service!

Bingo.

Wireless telecommunications is not a human right. People need to drop that mentality of self entitlement.

I honestly wished that mobile phone services cost double, if not, triple what we already pay. It would weed out those who actually need it and those who don't.

[ScizzMoney]

Bingo.

Wireless telecommunications is not a human right. People need to drop that mentality of self entitlement.

I honestly wished that mobile phone services cost double, if not, triple what we already pay. It would weed out those who actually need it and those who don't.

Off topic but I think the same thing about University. People think that getting a degree is a right. People say education should be free. It's pretty fucking close. Considering you can go to a library and learn anything you want, as long as you want, and almost when you want.

I also see flights and airlines in the same light. Don't want to pay high costs to fly across Canada? Fucking drive.

On Topic: I'm interested to see how other smaller carriers are doing in the Canadian market? Most of my family sticks with the 'big 3' because they feel more secure with an established presence.

[dachinesedude]

There's a clause written specifically in the agreement at the time when the new entrants arrived that NO INCUMBENTS can acquire them BEFORE FEBRURARY 2014.

Just because Mobilicity is losing money and on the verge of declaring bankruptcy, that doesn't make it right for an oligopoly to come in and acquire it. There's a reason that the government opened up its industry in 2008 and why the Competition Bureau (of Canada) EXIST.

I am NOT suggesting that Mobilicity shouldn't be merged or acquired, but NOT to the fucking INCUMBENTS.

If you think all this is just a conspiracy between Telus and Industry Canada, Look no further than the AT&T vs T-Mobile merger fiasco in the States. The FCC is just as "corrupt" as Industry Canada.

https://en.wikipedia.org/wiki/Attempted_purchase_of_T-Mobile_USA_by_AT%26T

ok lets go with your idea and let a non big 3 tele company acquire them, what happens then? they will still need to piggyback telus/rogers/bell, they will continue to lose money, and you think the govt doesnt know that? its a non-profitable company by itself

you really gotta stop thinking about yourself (consumer) and think about how the industry works, we're in canada, go read up canada's population/km and the big asian cities, and then you'll see why its much more expensive for tele companies to operate here, esp if you dont have the network towers set up already like the big 3 do

[Marshall Placid]

Firstly, interesting and interesting post OP.

Just thinking because I am very interested in business events:

1-
Wow. $380 million for 250,000 subscribers.

This is a substantial price to pay.

That is $1,520 per subscriber.

2-
This means that, at the forefront, the acquisition cost per customer, according to Telus is $1,520.

I had a hunch, from reading past articles a LONG time ago, that customer acquisition costs for mobile networks are around $300 to $400.

And, a quick search shows that that is true (bottom of the new page):
https://wirelessintelligence.com/analysis/2011/04/high-cost-smartphone-subsidies-impacting-operator-margins/275/

So, why would Telus pay such a high price for the small operator?

3-
When I first read this article, I thought Mobilicity was a virtual network operator, without any of the infrastructure (ex. cell phone towers, etc.) of the large network operators. But, I since found out that Mobilicity is NOT a virtual operator. It in fact owns and operates its own infrastructure, hence that is why it is bleeding money ( negative $30 million for quarter ended December 31, 2012), because it has to upgrade current infrastructure, pay high-cost engineers, upgrade software, etc.

Mobilicity reportedly can't find a buyer | MobileSyrup.com (http://mobilesyrup.com/2013/05/09/mobilicity-reportedly-cant-locate-a-buyer/)

4-
So, I think that Telus is buying Mobilicity because of the infrastructure it owns. I am unsure how much Mobilicity spent on infrastructure build-outs but it would seem Telus think it is at least $380 million worth of infrastructure.

5-
Also, Telus and Bell are neck-and-neck in the #2 and #3 spot in subscriber base.
TELUS to acquire Mobilicity and its 250,000 subs for $380 million | MobileSyrup.com (http://mobilesyrup.com/2013/05/16/telus-to-acquire-mobilicity-and-its-250000-subs-for-380-million/)
Perhaps, Telus wants to solidify its # 2 spot AND acquire some expensive infrastructure on the cheap.

6-
And, as another poster mentioned, there is the dangling hook of spectrum Mobilicity owns (because Mobilicity is NOT a virtual operator, thus it needs to buy spectrum previously) which is very expensive. As the years go by, spectrum becomes increasingly expensive.

This hunch, after a quick search, sounds intriguing:
Mobilicity - Wikipedia, the free encyclopedia
Quoting wiki: "DAVE [holding company of Mobilicity] spent $243 million on 10 MHz of AWS spectrum" and that was in 2008.

7-
Why would Telus buy now when Mobilicity is most likely going to go bankrupt anyway?

I think that Telus wants to acquire now, so that other competitors don't scoop up the assets (infrastructure, employees, customer base, spectrum) in bankruptcy proceedings, in a bidding war. The spectrum cost will be very appealing, especially in bankruptcy court.

The number crunchers felt it the return-on-assets and ROI and future net value was worth it

[FerrariEnzo]

Telus has said that they will take all of Mobilicity's customers and employees. Current plans will be grandfathered.

the *hope* is that Telus will be able to grant mobilicity users with better coverage while still paying $25 for an unlimited everything plan. that would be wicked.
THIS will never happen.. they will keep mobi's customer on the same shitty and do nothing to the network until they all leave... Telus will still be honoring the unlimited plan and everything.. they just dont upgrade the network or even cripple it even more..

Otherwise all exisiting telus customer will migrate to Mobi instead for cheaper and so-so coverage... telus will never let this happen


Firstly, interesting and interesting post OP.

Just thinking because I am very interested in business events:

1-
Wow. $380 million for 250,000 subscribers.

This is a substantial price to pay.

That is $1,520 per subscriber.

2-
This means that, at the forefront, the acquisition cost per customer, according to Telus is $1,520.

I had a hunch, from reading past articles a LONG time ago, that customer acquisition costs for mobile networks are around $300 to $400.

And, a quick search shows that that is true (bottom of the new page):
https://wirelessintelligence.com/analysis/2011/04/high-cost-smartphone-subsidies-impacting-operator-margins/275/

So, why would Telus pay such a high price for the small operator?

3-
When I first read this article, I thought Mobilicity was a virtual network operator, without any of the infrastructure (ex. cell phone towers, etc.) of the large network operators. But, I since found out that Mobilicity is NOT a virtual operator. It in fact owns and operates its own infrastructure, hence that is why it is bleeding money ( negative $30 million for quarter ended December 31, 2012), because it has to upgrade current infrastructure, pay high-cost engineers, upgrade software, etc.

Mobilicity reportedly can't find a buyer | MobileSyrup.com (http://mobilesyrup.com/2013/05/09/mobilicity-reportedly-cant-locate-a-buyer/)

4-
So, I think that Telus is buying Mobilicity because of the infrastructure it owns. I am unsure how much Mobilicity spent on infrastructure build-outs but it would seem Telus think it is at least $380 million worth of infrastructure.

5-
Also, Telus and Bell are neck-and-neck in the #2 and #3 spot in subscriber base.
TELUS to acquire Mobilicity and its 250,000 subs for $380 million | MobileSyrup.com (http://mobilesyrup.com/2013/05/16/telus-to-acquire-mobilicity-and-its-250000-subs-for-380-million/)
Perhaps, Telus wants to solidify its # 2 spot AND acquire some expensive infrastructure on the cheap.

6-
And, as another poster mentioned, there is the dangling hook of spectrum Mobilicity owns (because Mobilicity is NOT a virtual operator, thus it needs to buy spectrum previously) which is very expensive. As the years go by, spectrum becomes increasingly expensive.

This hunch, after a quick search, sounds intriguing:
Mobilicity - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Mobilicity)
Quoting wiki: "DAVE [holding company of Mobilicity] spent $243 million on 10 MHz of AWS spectrum" and that was in 2008.

7-
Why would Telus buy now when Mobilicity is most likely going to go bankrupt anyway?

I think that Telus wants to acquire now, so that other competitors don't scoop up the assets (infrastructure, employees, customer base, spectrum) in bankruptcy proceedings, in a bidding war. The spectrum cost will be very appealing, especially in bankruptcy court.

The number crunchers felt it the return-on-assets and ROI and future net value was worth it
Telus doesnt want Mobi for its customer base primarily... its for the AWS Spectrum first and foremost.. Mobi's infrastructure would the last thing telus wants from mobi...

IF telus/bell wants to compete with rogers, THEY need all the spectrum they can get.. Once the shaw-rogers goes through.. belus is in worse shape, spectrum wise as rogers already HAS more then both combined together...

[willystyle]

Whenever government intervenes in the market, or whatever, people complain. And then when the government lets the market do its thing, people complain. Why should wireless communications be treated differently than other markets? Just so you can access YouTube while on the go? Should my tax dollars be used to bail out a wireless company? (because essentially, that is what would need to happen to Mobilicity if you don't allow one of the existing companies to acquire them.)

And honestly, quit thinking that Industry Canada is in some conspiracy with Telus and Rogers. Give me a break.

Oh, government should get the heck out of way and let us do we want.

...But wait, I want the government to save me and my cheap wireless communications company that is losing money because I'm entitled to cheap wireless service!Government of Canada treats the wireless industry like an essential service where it's heavily governed. Let go of that grip and allow the wireless industry to run like a free market. I guarantee you that the Big 3 will NOT have us by the balls and we will not be paying as much as we do now.

What conspiracy? It wasn't me that suggested that there's a conspiracy. dachinese dude mentioned it. I was trying to prove a point that he's talking shit out of his ass.

I want the government to relax its grip and allow a more even playing field. That's all. Let the market dictate itself. Most of the funding issues would've been resolved if they allowed foreign investment back in 2008, and not let it drag out until 2012. A little too late now.

ok lets go with your idea and let a non big 3 tele company acquire them, what happens then? they will still need to piggyback telus/rogers/bell, they will continue to lose money, and you think the govt doesnt know that? its a non-profitable company by itself

you really gotta stop thinking about yourself (consumer) and think about how the industry works, we're in canada, go read up canada's population/km and the big asian cities, and then you'll see why its much more expensive for tele companies to operate here, esp if you dont have the network towers set up already like the big 3 do
When I read the highlighted statement, I know that you have completely no clue about what you're saying.

How is Mobilicity piggybacking off the big 3?
How will you know that the new merger/investor will allow the company to lose money in the long-run (particularly when you have absolutely NO CLUE who the new acquirer/merger is)?

Wireless telecommunication companies, on average, don't expect a ROI for AT LEAST 8 years.

All your words are based on speculation. None of it is factual.

[bcrdukes]

Mobilicity has no real assets aside from it's 250,000 subscribers and AWS spectrum. They have no "infrastructure." They're a marketing and sales company.

Ericsson was hired to build and run their network. Go pay them a visit on Still Creek. Their sites are co-located along with the Big 3 if and when necessary. These are facts. They're publicly available on Industry Canada's website. Look at what happened to Fido/Microcell. And the investment money of $23 million dollars that "disappeared?" History will repeat itself.

[willystyle]

Look, I'm not against Mobilicity being bought-out. Many, including myself, saw Mobilicity as being the odd-man out from the get-go. My only problem with this transaction is that it's one of the big 3 buying it. Hell, I'd be fine if China Telecom came in and scooped it up. That's all I'm saying and will leave it at that.

[bcrdukes]

The reality of it is that the returns for any investor in the wireless business is a dangerous gamble, one that will likely end up in shambles.

If we take the theoretical 8 years for any provider to see gains, given the economic situation and outlook, that's a lot of time to see any kind of return. This isn't the heyday of telecom anymore. That was back in the 70s, 80s, and 90s. If you look at the financials and stock prices of any telecom provider, gains are minimal and only for a long term basis. 8 years to see gains is a hell of a long ass time.

Mobility was a business plan with the end result to be bought out.

[bloodmack]

Bingo.

Wireless telecommunications is not a human right. People need to drop that mentality of self entitlement.

I honestly wished that mobile phone services cost double, if not, triple what we already pay. It would weed out those who actually need it and those who don't.

What? Weed out those who actually need it? Its a phone service everyone needs a phone, it's a key part of this thing called communication. Also, compared other parts of the world it is completely overpriced. I'm not asking for a hand me out, I'm asking for a reasonable price.

[Tapioca]

What? Weed out those who actually need it? Its a phone service everyone needs a phone, it's a key part of this thing called communication. Also, compared other parts of the world it is completely overpriced. I'm not asking for a hand me out, I'm asking for a reasonable price.

People need a phone. You don't need mobile data. Guess where all of the infrastructure is invested? To meet people's need for mobile data so that they can watch YouTube, etc. on the go.

[Tapioca]

Government of Canada treats the wireless industry like an essential service where it's heavily governed. Let go of that grip and allow the wireless industry to run like a free market. I guarantee you that the Big 3 will NOT have us by the balls and we will not be paying as much as we do now.


So even if we were to open our market to foreign competition, who is ready to make significant investments to serve our market? AT&T? T-Mobile? Sprint? Some company in Europe? Such companies would bleed money for years while they build towers and the infrastructure to serve a potential market of maybe 15 million city dwellers. (It makes no sense to go after the rural population.)

If you were a CEO of a major telelcommunications company, would you make that decision? Canadians are generally cheap (myself included) and aren't willing to pay much for wireless services.

[GLOW]

Telus has said that they will take all of Mobilicity's customers and employees. Current plans will be grandfathered.

the *hope* is that Telus will be able to grant mobilicity users with better coverage while still paying $25 for an unlimited everything plan. that would be wicked.

wouldn't that be messed up for existing telus users who have similar plans but are paying double or more for a similar mobilicity plan? i wonder if they'll implement a catch to force users out of these plans if they do get grandfathered.

[bcrdukes]

TELUS Corporation | Court approves TELUS acquisition of Mobilicity (http://www.newswire.ca/en/story/1173207/court-approves-telus-acquisition-of-mobilicity)

[GLOW]

what would be the timeline before us mobilicity users have to bow down to our new telus overlords?

[FerrariEnzo]

^look behind you :troll:

[bcrdukes]

what would be the timeline before us mobilicity users have to bow down to our new telus overlords?

You can call and ask :troll:

For further information:
TELUS:
Shawn Hall
TELUS Social and Media Relations
604-695-6500
shawn.hall@telus.com

In all seriousness, it would be at least a minimum of 6 months to a year before they start migrating their users. Just keep in mind, Mobilicity uses an Ericsson network and Bellus a Huawei network. They would need to work out the business side of things with Ericsson first and go from there. There's a lot of paperwork and money involved that needs to be settled before they can announce how/when this will affect the existing userbase.

[GLOW]

^look behind you :troll:

http://24.media.tumblr.com/tumblr_loqidn2G3p1qmfoslo1_500.gif

[bcrdukes]

You can sleep a little easier now and wait until a new and different overlord is going to bend you over with no lube.

Ottawa blocks Telus takeover of Mobilicity - Business - CBC News (http://www.cbc.ca/news/business/story/2013/06/04/business-telecom-wireless.html?cmp=rss)

[Traum]

I am not necessarily for or against the Telus buyout, but now that the purchase is blocked, it makes me wonder if Mobilicity will survive.

Perhaps when the bankruptcy protection papers are filed, Ottawa will change its mind.

[avinayyar]

Telus now wants to help Canadian Health system.

TELUS boasts about their healthcare initiatives, slam government for its slow pace of innovation and adoption | MobileSyrup.com (http://mobilesyrup.com/2013/06/04/telus-boasts-about-their-healthcare-initiatives-slams-the-government-for-its-slow-pace-of-adoption-and-innovation/)

[willystyle]

Ottawa blocks Telus takeover of Mobilicity - Business - CBC News (http://www.cbc.ca/news/business/story/2013/06/04/business-telecom-wireless.html?cmp=rss)
Exactly what I predicted.

Telus now wants to help Canadian Health system.

TELUS boasts about their healthcare initiatives, slam government for its slow pace of innovation and adoption | MobileSyrup.com (http://mobilesyrup.com/2013/06/04/telus-boasts-about-their-healthcare-initiatives-slams-the-government-for-its-slow-pace-of-adoption-and-innovation/)
They should take care of their own products and service offerings first before critiquing the government.

[rexsomnii]

SO what should mobilicity subscribers do now if they do plan to go bankrupt ?

[GLOW]

SO what should mobilicity subscribers do now if they do plan to go bankrupt ?

i guess only one option
http://static.guim.co.uk/sys-images/Guardian/Pix/GU_front_gifs/2013/4/22/1366643469808/The-band-plays-on-as-the--010.jpg

on a serious note i hope they do it sooner than later tbh

[StylinRed]

It was suggested that WIND would gobble them up



Oh the man himself speaks http://mobilesyrup.com/2013/06/04/lacavera-theres-a-renewed-opportunity-for-discussion-to-purchase-mobilicity/

[FerrariEnzo]

well.. since the auction is pushed back again.. Wind can use this time and some money to make their network better... This could be good news...

[GLOW]

forgive my ignorance, but why would the gov't stop the purchase by telus but possibly approve a purchase by wind?

[subordinate]

forgive my ignorance, but why would the gov't stop the purchase by telus but possibly approve a purchase by wind?

No idea, maybe because it's not part of the big 3?
Thereby, it would help competition and the market place? If WIND has an additional spectrum, making it more competitive?

[Coren]

Because the rules before the auction clearly stated that new entrants can't sell to incumbents before 5 years.
However, it looks like they are changing the rules so the new entrants can't sell to the incumbents ever so that they can create a 4th national player for competition.

[willystyle]

However, it looks like they are changing the rules so the new entrants can't sell to the incumbents ever so that they can create a 4th national player for competition.
I agree, if you read between the lines, it does sound like the government really wants create a 4th national carrier.

Industry Minister Christian Paradis: "Our government has been clear that spectrum set aside for new entrants was not intended to be transferred to incumbents. We will not waive this condition of licence and will not approve this, or any other, transfer of set-aside spectrum to an incumbent ahead of the five-year limit. Our government will continue to allow wireless providers access to the spectrum they need to compete and improve services to Canadians… I will not hesitate to use any and every tool at my disposal to support greater competition in the market."

[604778]

TORONTO (NEWS1130) – Mobilicity says Telus Corp. (TSX:T) is calling off its plan to buy the small wireless provider.

The move follows an announcement by Ottawa that it will not allow Telus to acquire the wireless spectrum held by Mobilicity.

Regulatory approval had been a key condition of the deal.

Mobilicity, which has about 250,000 customers, says it will now go ahead with a recapitalization plan, which will be voted on by debtholders June 25.

Telus had offered to pay $380 million for Mobilicity, but its deal required an exception from the federal government to allow the transfer of the wireless spectrum.

Industry Minister Christian Paradis said last week that the government would use all tools at its disposal to ensure there are at least four wireless competitors in every region of Canada.



Mobilicity says Telus has called off company takeover deal | News1130 (http://www.news1130.com/2013/06/10/mobilicity-says-telus-has-called-off-company-takeover-deal/?cid=dlvr.it)

[Gucci Mane]

well it happened.
TORONTO – Mobilicity says it has agreed to be purchased by Telus Corp. for $350 million.

Mobilicity says the proposed sale is subject to approval by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.

Telus has twice tried to buy struggling Mobilicity, but both times the deal was rejected by Industry Canada.

This time, however, Mobilicity says it believes the deal will satisfy the federal agency’s criteria and will not affect competition in the Canadian wireless sector.

The company also says the “vast majority” of its 165,000 active subscribers would be able to seamlessly migrate

onto Telus’ network after the transition.

Mobilicity also says it there are “no foreseen changes to employee staffing levels” under the proposed transaction.

Telus approved to buy Mobilicity for $350 million | Globalnews.ca (http://globalnews.ca/news/1278840/telus-to-buy-mobilicity-for-350-million/)

[GLOW]

are they going to absorb mobilicity's current customers and tell them they have x time to switch over to a telus plan before shutting their plans down like they did with the company they bought out east? i think the name of that one was Public something.

[FerrariEnzo]

lol Telus buying everything!

[bcrdukes]

well it happened.

Not quite.

Still pending approval from the government.

[Traum]

Hmm... Time to start shopping again?

[FerrariEnzo]

TELUS get denied... STRIKE 3, Your Out! (http://www.theglobeandmail.com/report-on-business/ottawa-threatens-to-cut-telus-out-of-wireless-auction/article18202648/)

Globe and Mail article says that the Feds will deny the incumbents from ever bidding on upcoming frequency auctions if they keep insisting on buying out the competition.. LMAO

[GLOW]

i guess no means no :lol

[Alatar]

There are some funny things with regards to this.

1) Telus has the least spectrum of all the Big 3.
2) It's past the 5 year moratorium for spectrum set-aside. According to rules set by the government, should be fair game.
3) Shaw purchased AWS spectrum during that same auction. Guess what? Rogers made a deal with Shaw to purchase/use that spectrum. Someone correct me if I'm wrong, here.
4) Telus is the only one of the Big 3 that is actually, currently allowed to participate in the 2500mhz auction. The government fucks things up royally, by threatening (and following through on) to bar Telus from that auction in 2015. Bye bye big money.

These are just some of the comical nuances I've noted, during all this. I really don't have a preference one way or another with regards to what happens, honestly.

[mr.wonderful]

Mobilicity is pretty bad. I think if WIND could buy there spectrum, that can increase comeptition for the big 3 and we can finally see some lowe prices.

[shenmecar]

So if Mobilicity goes under, what happens to their spectrum licenses? Can they sell it to the Big Three?

[nabs]

So if Mobilicity goes under, what happens to their spectrum licenses? Can they sell it to the Big Three?

It's not up to Mobilicity. Their spectrum would be given back to the government, and the CRTC will then auction it off to whomever they choose. CRTC is still looking for another big competitor to come up. So they may just reserve it for that. But its not like another company can just come and lease the spectrum.

I was really looking forward to the whole Verizon coming to Canada rumor thing, would have been great for the marketplace.

[bcrdukes]

Telus drops bid for struggling Mobilicity - The Globe and Mail (http://www.theglobeandmail.com/report-on-business/telus-abandons-bid-to-take-over-mobilicity/article18773519/)

[underscore]

wouldn't that be messed up for existing telus users who have similar plans but are paying double or more for a similar mobilicity plan? i wonder if they'll implement a catch to force users out of these plans if they do get grandfathered.

They'll probably do what Bell did with Solo when they started shutting it down, provide a bunch of B/S policies and absolute shit customer service so people get frustrated and leave.

[speediandy]

Ive been with Mobilicity for a few years now and its been pretty good for me. I want choice, no contracts, lots of data for a good price. I hate to think how Telus will mess everything up if they buy out mobilicity.