Globalive brings on investment banks to expand WIND Mobile

MobileSyrup

February 2, 2010 1:49 pm

Remember a few weeks ago when Globalive stated they were talking with a number of investment banks to raise “several hundred” million dollars for expanding their business. Well I guess it’s a done deal.

Globalive today has “announced its intention to enter into a private debt financing for the purposes of continuing to expand the WIND Mobile network, create new distribution partnerships and for general working capital purposes”. Although no names are mentioned about who is helping with the funding or specifically how much was raised, Globalive did say that it’s both Canadian and international investment banks and also stated that “the financing will not impact the ownership and control structure of WIND Mobile”.

Globalive Chairman Tony Lacavera previously said “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.”

WIND currently has signed up well over 10,000 subscribers and will be launching in Edmonton and Ottawa later this month. Within 3 years they hope to bring on 1.5 million subscribers.

  • J

    WIND Mobile is going to seek and destroy the competition, Call Of Duty Style!!!

    Wind Really needs to accelerate there network coverage in there current home zones

    Im happy with my coverage in Mississauga, i have full bars all the time :)

  • J.Soul

    Interesting – I guess the question is whether people will be able to live without a cell phone if another great recession hits harder…

  • DaveR

    Nice! At 10K customers every three months (assuming zero churn), they should achieve 1.5M subs in 150 years! Keep on trucking!

  • Scott Semple

    Yeah because they’re not going to keep expanding or anything. Ignorant much?

  • J

    “Nice! At 10K customers every three months”

    -I think every company starts off slow whether its wireless or not! Why dont u try starting a business from scratch, u will probably notice that its slow at the beginning, and if things are done it will accelerate in time!

  • J

    *done right” for the above comment

  • TNSF

    @Scott Semple

    Your logic doesn’t make any more sense than DaveR’s.

    Lets consider a target of 1.5 million customers in 3 years. Thats 125,000 net adds per quarter. However, since they are currently below that they must accelerate and achieve greater than 125,000 at some point in their growth curve.

    So how realistic is this? Well, it basically means that Wind will eventually add as many or more customers per quarter than any one of Rogers, Bell or Telus.

    How realistic is that? Not very.

  • Koolaid drinker

    And I could be wrong but didn’t wind say they had activated over 5000 in the first week?

  • yhbae

    I think it can be done. If their plans continue to be more attractive than other carriers and their coverage becomes more complete, I don’t see why more people will not switch from their existing carriers to Wind. I for one, will do this once their coverage is more complete and my current contract expires with both FIDO and Bell for my existing phones.

  • steve

    They have activated 10 thousand but customers have returned 11 thousand. So they are actually at negative 1 thousand customers.

    How can I invest?

  • rocco stiffreddi

    So whats the news about the banks? Oh.. yeah it fell through.. pitty