Wow, can this day get even more interesting? Over the past couple years there has been so much competition in Canadian wireless, usually between the Big 3 (Rogers, Bell, TELUS), and the new entrants. The newer players have made an impact, possibly not as strong as they initially thought, but certainly have helped drop handset prices and monthly rate plans – specifically for those located in Toronto, Calgary, Edmonton, Vancouver, Montreal and Ottawa. In addition, what they have really managed to do is make consumers intensely aware of the high cost of owning a wireless device in Canada.
With all this being said, the price of entering wireless, and competing with the incumbents, might have taken its toll on some carriers. Millions of dollars have been spent into network build outs, acquiring cell sites and ensuring customers are happy. From a subscriber level, WIND is itching towards 400,000 subs, Mobility has “attracted” a total of 250,000, Videotron racked up 253,900, and Public Mobile has 150,000.
Earlier today Bloomberg reported that WIND Mobile is “in talks to buy Mobilicity”, both companies declined to comment on the rumour. Now, coming out of left field is another possible strategy for Mobilicity. The Globe has come forward and stated their sources say that Mobilicity is tinkering with the idea of an initial public offering. If the sources are correct, then we could see an IPO early Q1 2012, coming in between “$15 to $20 per share with an eye to raising $50-million to $100-million”.
The bottom line here, if true, is that Mobilicity, legally named Dave Wireless, is looking at several options. One merging with a competitor, or the other is reaching out to the investor community/public to potentially fund future success (possibly for the upcoming 700-megahertz spectrum auction).
Stewart Lyons, President and CEO of Mobilicity, declined to comment on this rumour as well, stating that “It is business as usual”.
Source: Globe
