TELUS Says Ottawa’s Decision to Cancel Mobilicity Deal “Unfortunate”

Earlier today we told you Industry Minister Christian Paradis announced the Federal government will not approve the $380 million TELUS-Mobilicity deal, citing the spectrum set aside for new entrants “was not intended to be transferred to incumbents.” This puts the lifeline of Mobilicity in jeopardy, which TELUS just reflected in their response to today’s announcement:

Today’s decision is unfortunate for Mobilicity’s 250,000 customers, 150 employees and debtholders, who now face considerable uncertainty due to the pressing financial challenges facing the company. TELUS will drive on with our proven strategy that has served us so successfully over the years. We will continue to focus on our sustained investment in wireless infrastructure, broadband data services and putting our customers first.

Ottawa has long maintained they plan to make our wireless environment more competitive but as it stands, the incumbents still control the majority of the market. What do you think? Did Ottawa make the right choice this morning?

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  • K3

    I’m not all that clear on this– by not allowing the deal to carry forward it means Telus isn’t granted the leverage in the competition between all three carriers?

    So if it had gone ahead would it mean that the competition would have no alternative but to offer better packages or pricing in order to keep there portion of the market? Then Telus would have to adjust a little more to compete with those deals? Not sure if I’ve got that right.

  • 1His_Nibs1

    Although I’m sure a lot of, if not all of the employees, customers & shareholders are none to pleased about this….I applaud Ottawa for sticking to their word in trying to make our wireless industry more competitive by preventing Telus from gobbling up another “small fish” a la Rogers/Microcell. Hopefully now Mobilicity will now try a little harder in searching for a buyer that isn’t one of the Big 3. I’m also hoping this sends a message to the other 2 (Rogers & Bell) that WIND is off limits to them as well.

  • 1His_Nibs1

    No, you definitely didn’t get that right.

  • K3

    Insightful confirmation. So it’s about who has the bigger market share or?

  • 1His_Nibs1

    It’s about monopolies & Ottawa ensuring the Big 3 don’t get even bigger. Snarky reply…here’s mine….ever hear of Google or reading other blogs on here to inform yourself instead of relying on others to do it for you?

  • Anthony W

    I really don’t think anyone will want Mobilicity except the Big 3. This hole is kind of too deep.

    All I hope for is the government not to bail Mobilicity out. The government has no money. They are all talk and in the end, we the tax payers are paying for it.

  • Flaxx

    This has everything to do with wireless spectrum. It’s a finite resource and some was set aside for new entrants. Unfortunately, Mobilicity failed but that doesn’t mean Telus should get that spectrum because then there would be none for future, better run entrants. Ottawa definitely did the right thing!