Regional player Vidéotron may be the only buyer that could acquire the struggling startups Mobilicity and Wind Mobile. Although the latter has posted an incredible quarter, its Amsterdam-based parent company VimpelCom is still seeking to sell its Canadian business. And Quebecor could take its chance to reach a deal with the foreign company.
You may recall that VimpelCom welcomed Wind Mobile’s positive results, but it didn’t exclude sale. This means Quebecor remains the only possible party that could acquire the wireless startup, believes Cannacord Genuity analyst Dvai Ghose.
In a note issued to investors and obtained by Canoe.ca, he pointed to the government’s position of set-aside wireless spectrum transfers: the Telus–Mobilicity deal was rejected twice. Now that the transfer moratorium is officially over, we have heard about of a third bid, but that awaits moderation and a ruling.
Ghose, however, sees Quebecor in talks with VimpelCom, although the Canadian company refused to comment on the matter.
We have seen Quebecor bid on 700 MHz spectrum in key areas of the country and spend $233 million on them. But its future expansion plans are not clear and mostly allegedly depend on the meeting with the federal government.
On paper, Quebecor could become the fourth national player – something we have heard the government repeating often lately. In practice, the company has the potential, but lots of questions need to be answered.