Last month, the CRTC ruled against Globalive and their WIND Mobile brand as becoming a wireless carrier in Canada. Globalive was one of a few new wireless carrier entrants into Canada that could have shaken up the industry.
During the recent Canadian wireless spectrum auction, Globalive spent $442 million to purchase wireless spectrum licenses and aimed to deliver cellular service to five Canadian cities in 2009 and then nationally across Canada in 2010.
These plans posed a threat to all of the current wireless carriers in Canada, as the more companies that enter the industry in Canada could cause competitive pressure on the current dominating players.
Since the Globalive situation is currently on hold, Rogers Wireless and Bell Canada have expressed interest in purchasing the wireless spectrum that Globalive owns. Rogers Communications CEO Nadir Mohamed stated that Rogers would happily purchase the Globalive wireless spectrum if Globalive is unable to launch.
On the same note, Bell Canada also expressed interest in Globalive’s wireless spectrum, stating:
â€œif the spectrum is to be forfeited and returned to industry Canadaâ€¦ Industry Canada will then re-auction the returned spectrumâ€¦. Bell Canada is prepared buy up to 50% of it for up to 50% of the price payed by Globaliveâ€
It is quite clear why Rogers or Bell Canada would want this spectrum, as it would further solidify either company’s position in the Canadian wireless industry. It will be interesting to see how this develops but will definitely not be good news if Globalive has to forfeit their wireless spectrum licenses to any of the current dominating wireless carriers.