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Globalive to raise “several hundred” million for expansion

WIND Mobile came into the Canadian marketplace with initial launch cities being first Toronto and Calgary,  plans to launch in Edmonton and Ottawa are scheduled for next month. We spoke with Globalive CEO Anthony Lacavera last week when they surpassed the 5,000 subscribers… they are now upwards of surpassing 10,000 with targets of signing up 1.5 million within 3 years.

According to an article by Bloomberg, parent company Globalive Communications is in talks with banks to raise “several hundred” million dollars in debt to finance expansion in Western Canada and Ontario. Lacavera stated today “We need to accelerate our business plan. We’ve got to get that network built aggressively and stick with our model across the country as fast as possible.”

In addition to this news, Lacavera said they are considering an initial public offering in the future. “We do think there is a great opportunity but we’re long- term players. We’re not looking for a quick flip.”

  • Pederson

    As I’ve posted many times before: This is exactly what they need.

    That said, low cost/no contract is something desired in the east/Atlantic provinces. The west has plenty ‘competition’, in comparison.

  • jeff

    couldnt agree more with that.

  • TNSF

    Of course they’re looking for a quick flip. Even if they manage to attract 1.5 million customers in the next three years they will still be hemorrhaging money. They’re only option is to be acquired either by a Canadian company or by a foreign company, which is so much easier to do now thanks to Minister Clement.

  • TurtleW

    Ah, domestic investment? Nice…

  • Claudiu Jernea

    This is exactly what they need. The only reason I am not subscribed to them is because of the network coverage…

  • Scott S

    TNSF exactly what do you base your claims on? Could it be the fact that Orascom (Globalive’s parent company) has over 79 million subscribers as of Sept. 2008? Do you not agree that they would want to add to that number therefore increasing their wireless presence in the world? And how can you claim they’re hemorrhaging money when they just started their business? They’ve put how many millions of dollars into a new network and you expect them to be making money instantly? And you should do a little research before you claim they’re looking for a “quick flip”, unless you consider 5 years a quick flip.

  • CRIMINALOGIC ®

    most people should be fine with limited city coverage, but I agree its holding a lot more people back from joining because of limited network, and Exterme Gauging if you avel out of there Home zone ((Thanks to rogers)) you can only praise what they have accomplished So far.. I hope they get that cash & hit canada with nation wide coverage….
    I in know way beleave there looking to sell off like PubicMobile ;) lol

  • TNSF

    @Scott S

    Anybody familiar with the wireless industry knows that a company cannot make money in Canada with only 1.5 million customers on a network spanning many large urban centres. Its just not possible. They won’t make money with 1.5 million customers nor will they make money as they grow from 0 to 1.5 million.

    They only survival option is scale. Scale is gained by selling out to a competitor OR finally admitting that they are part of Orascom and actually part of a 79 million customer company, not a 1.5 million customer company.

    Regardless, 1.5 million customers translates to roughly 90,000,000 in annual revenues. Not nearly enough to operate a wireless company and service its debt.

    This reality shouldn’t be news to anyone. We’ve seen it before with Clearnet and Fido.

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