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TELUS In Talks With Mobilicity Over Potential Purchase; Public Mobile Looking For Suitors

Posted In News, Reviews - By AndroidPress on Friday, April 12th, 2013 With No Comments »

mobilicity-logoJust two days after withdrawing from the CWTA it is being reported that Mobilicity and Public Mobile are looking for prospective buyers. In Mobilicity’s case that prospective buyer would be TELUS. In 2008 we saw the beginning of a new era in mobile telecommunications when the Canadian Government auctioned of wireless spectrum that saw the launch of WIND Mobile, Mobilicity, Public Mobile and various other new carriers. This was a relatively successful attempt by the government to encourage competition, lower prices and over all improve the wireless market for Canadians.

It has been reported in the Globe and Mail that TELUS is seeking to purchase Mobilicity for a price between $350- $400 Million dollars. TELUS is also reportedly  “working expeditiously to negotiate and execute definitive agreements in respect of the Acquisition Transaction on an accelerated timeline.” Suggesting that there is pressure to get the sale done as soon as possible for as yet unknown reasons.

Public Mobile, who operates in Ontario and Quebec with an estimated 200,000 subscribers, has “hired bankers to find a buyer”. Apparently one of the main backers in the company, OMERS Private Equity, wants out of the business. This suggests that it isn’t looking for a complete sale of all stakes in the company like what is being reported in the potential sale of Mobilicity.

The sale of these two carriers is somewhat concerning as it would have a direct impact on the competitiveness of the mobile market in Canada. It is also a little strange to see this news so soon after a very public act of solidarity on April 10 when these two carriers along with WIND withdrew from the CWTA in protest. We will have to wait and see how event unfold, and hope that there is little to no negative impact for consumers in Canada.

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