TELUS Bid for Mobilicity Will Give WIND Free Spectrum; Rogers Also in Running
TELUS is again looking to acquire Mobilicity (yes, again), but a new proposal would see the former transfer some of the latter’s spectrum licenses for free to WIND Mobile, to appease the federal government’s concerns of undue competition, claim sources speaking with The Financial Post.
According to a statement by TELUS spokesperson Shawn Hall to the Post, he said “We continue to be interested in acquiring Mobilicity,” following up with “We recently put forward a proposal to Industry Canada in which we committed to transferring at no cost some of that company’s spectrum to Wind, or if that company doesn’t want it the spectrum, to another new entrant or to Industry Canada for reallocation.”
Another carrier in the running to buy Mobilicity is Rogers, reports The Globe and Mail, which says both carriers are close to a $300 million deal to acquire the struggling wireless entrant, based on copies of two opinion letters obtained from Industry Canada.
Should Ottawa approve one of these deals, it would be a major change of policy that has since aimed to increase wireless competition.The Globe reports director of the spectrum management operations at Industry Canada, Peter Hill, hinted the federal government would approve the sale of Mobilicity to either TELUS or Rogers.
Mobilicity has been under creditor protection since September 2013.