Ottawa Rumoured to Be Pressuring Telus to Drop Mobilicity Bid

After rejecting two Telus bids for struggling Mobilicity, Ottawa is ready to go much further if Canada’s No. 2 wireless player doesn’t abandon plans to acquire spectrum that was set aside for new entrants, government sources speaking with the Globe and Mail have whispered.

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You may recall that Mobilicity announced that it is ready to accept Telus’ second $350 million takeover bid. The announcement came with the wireless startup already in the seventh month of creditor protection and running out of cash.

It is worth noting here that the five-year moratorium on spectrum license transfer ended in February, so a takeover could make sense, unless the government has other plans. Let the struggling wireless startup close its doors, for example, in an effort to foster wireless competition. It doesn’t have to wait too long, though, because Mobilicity will run out of cash in just a couple months.

To “encourage” Telus to drop its bid for Mobilicity, Ottawa is ready to redesign the rules of the 2500 MHz spectrum auction, which will take place next year, and Telus has a great chance of winning premium spectrum this time, because Bell and Rogers are nearing their spectrum cap.

While this may be just a rumour, Industry Canada will soon share publicly what it has to say on the Telus–Mobilicity deal, the Industry Minister told Reuters yesterday.

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

  • thewinnipegger

    It’s sad how much crap treatment the three new companies got when they launched within canada. Mobilicity is dying and WIND isn’t that far off and Public mobile is well… dead.

    If Canada wanted those companies to succeed rules should have been changed to allow more foreign freedom within canada in the mobile space