New Details Reveal Verizon’s Serious Offers for Mobilicity, WIND Mobile

verizon

While the Verizon message was simple and clear – the company had never seriously considered to enter the Canadian wireless market – the Globe and Mail sources tell a completely different story. Verizon had real interest and elaborated two scenarios of a successful foray onto the Canadian landscape.

You may recall that the incumbents have just spent millions of ad dollars on a media campaign that targeted both Verizon and Ottawa (and its wireless policy). Unfortunately, for those who were awaiting the U.S.-based carrier’s entrance, you are stuck with the Big Three and you will be paying back those dollars to them, because Verizon decided to proceed with spending $130 billion to buy out its joint-venture partner, Vodafone, at the last minute, before submitting any paperwork for the wireless spectrum auction.

What exactly did Verizon have in mind when entering the Canadian mobile market? After long months of studying the market, the company has placed an initial $350 million offer on Mobilicity, alongside the rumoured $700 million for acquiring Wind Mobile. You may recall that Catalyst Capital Group has said that the parties have opened discussions.

Besides spending more than $1 billion in the first instance, Verizon also looked at launching a “mobile virtual network operator” (MVNO) program, which means it would have leased space on an existing carrier’s wireless network to offer a wireless service because MVNOs don’t own their spectrum or towers. I think you have already guessed this caused an uproar among incumbents.

In the end, we can “congratulate” to the Big Three because they had a very successful campaign in fending off a competitor. The “timing” of the Verizon-Vodafone deal was great, though.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • 1His_Nibs1

    This ship has sailed. I see no real point in continuing to reveal details as nothing is going to change the final outcome. As for the big 3’s “successful” campaign I don’t think it was successful at all. It created an even greater level of animosity amongst it’s clientele towards them AND Ottawa said they wouldn’t capitulate to the big 3’s demands. In the end the big 3 got what they wanted (by default IMO) but there’s going to be consequences for their dirty tactics eventually. If in the near future a viable “fourth” competitor appears on the horizon the big 3 will reap what they’ve sown. I think if Verizon had of seriously considered Canada they would have checked any and all social media, newspapers and TV news reports or even conducted a poll or two to see what the pulse of Canadian consumers was to their entry into Canada (not just the big 3’s negative ad campaign on the matter). I still wonder if the big 3 made a backroom deal with Verizon and possibly bribed Verizon not to come into the Canadian market.