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WIND “in talks to buy Mobilicity”, says Bloomberg
A report today quoted Anthony Lacavera, WIND Mobile Chairman and CEO, that “There’s going to be new entrant shakeout in 2012.” That is a bold statement in itself and one that has been echoed throughout 2011. Lacavera said that “We obviously want to lead that” and it seems he might have been speaking about aquiring new entrant rival Mobilicity. Bloomberg reports that “according to a person familiar with the discussions” Globalive, WIND Mobile parent company, is “in talks to buy Mobilicity”. The terms of the deal has been revealed, but might may close as early as Q1 2012. Apparently the reason for considering Mobilicity is because “it uses compatible wireless frequencies”, plus it would increase their subscriber base by 50%.
It’s known that WIND currently has about 400,000 subscribers and Mobilicity has “attracted” 250,000 subscribers. Both carriers offer similar handsets, similar plans and operate in similar locations: Toronto, Calgary, Vancouver, Ottawa and Edmonton.
Both companies declined to comment on the rumour. Stewart Lyons, newly appointed Mobilicity President, stated that “We have never commented on speculation like this before and aren’t about to start now.”
Grabbing hold of Mobilicity would still not make WIND Mobile Canada’s 4th national wireless carrier, something they have strived to be from day one, as they still lack service in Quebec… what it will do is increase their distribution, which is key.
Thoughts?
Source: Bloomberg
Discussion
72 comments for “WIND “in talks to buy Mobilicity”, says Bloomberg”
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WINDicity isn’t just a clever name anymore. :O
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I like the way justin imbecile just rolls off the tongue.. so you have been fired from all the carrier and yet wind keeps a spud like you? speaks volumes loser.
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They’d better let us keep our plans.
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who’s going to stop WIND from raising prices and becoming horribly similar to the incumbents? Mobi was the best thing to keep WIND in check.
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WIND already started by charging $30 to activate their fancy new plans…. if you are already a customer.
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WIND are in no position to gouge customers Big Three style. Their network is no where near good enough.
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It would be brilliant. Tower saturation for Toronto with Wind and Mobilicity operating under one entity would probably exceed the big 3.
I don’t know why they weren’t in talks sooner but having two very small AWS players in metro regions building their own networks just seems very stupid to me. Combining would be a big thorn into the big 3′s back and would make the existing customer base receive better network service with the two combined.
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OR, just sign a network sharing agreement like Bell and Telus did, Wind and mobilicity can expand their coverage quicker with pooling resources.
It’s a win-win situation.
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Telus and Bell did not merely sign a network sharing agreement, it was a joint venture. They invested and built it together. They did it save costs and cut market entry time to (then) future technologies like LTE. In other words, it wasn’t just a matter of signing on the dotted line so that you can roam from network-to-network.
If WIND acquires Mobilicity, then maybe it’ll give them an injection of cash in the short-term to spend on items like network expansions and upgrades (e.g. Montreal).
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@JNBG There is a network sharing agreement between them for CDMA network. You can’t deny that.
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Wow…. Wind is turning into something you might not like. Always remember your holiday miracle plan… Always…
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Lmaoooo i knew this was going to happen? Where is everyone that was riding on mobilicty???
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we’re all here, just quietly watching the Windys go off about an anonymous call from (oh i don’t know, someone at Wind maybe) trying to stir up some sh*t……
yes ladies and gents, that is EXACTLY what this was based from.
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oh no, that would be a bad move for customers. Cause as soon as Wind buys Mobilicity prices are going to increase tremendously cause there won’t be competition anymore. And Big 3 will also start to increase prices again cause there won’t be any more competition anymore either. Cause Wind will just turn into big 4 and all the companies will all have the same high prices by next year, I guarantee this will happen. Since Wind launched a couple of years ago they are slowly turning into like big 3 and slowly getting into the big 4 name. You just watch as soon as wind buys Mobilicity and have over a million customers unlimited plans won’t exist anymore and prices will increase like what Bell, Rogers, and Telus has it just a matter of time.
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Wind will never and can never turn into big-4. They simply don’t have the spectrum to be a national carrier. Too many gaps between their areas, and they won’t be able to buy enough 700 to fill those either. They’ll continue to be a smaller regional carrier, much like they are now, and if they acquire MObi, they’ll be stronger in town, but still the roaming issue when you leave. And if/when Rogers disables their GSM network, that will pose as an issue for them.
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No one who spends $600+ for a phone wants CDMA. However the 95%(not an actual number since your all so “OMG SHOW ME THE LINK”) that dont need to text or data because we can talk on the phone and we can use the internet at home dont mind. Specially older crowd they just need a phone like their home phone. Dial a number click…Beeep…beeep….answer….talk. there is a reason why Public mobile isnt after people that spend 95%(once again its not a actual number hypothetically speaking…there is NO link that proves this.) of their time on mobilesyrup.com. Which btw is like for enthusias of cellphones…or as they call it on the street BUCKETS or crack addicts ur just addicted to phones…ur still a junkie :p
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Mergers means less competition and Wind will become more like the Big 3.
Instead of merger they should tie-up to share the network.
That would make more sense for both businesses to compete againts Big 3′s strong coverage.
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How would a tower sharing agreement benefit Wind? we already have more coverage.
The only thing Globalive is interested in is the AWS spectrum Mobi holds, which with they can launch LTE in all their current markets. FTR, LTE needs 20 MHz spectrum (which Wind only has in Toronto, and the north)
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If it means we get the expanded network, while keeping the $360/year unlimited everything plan, I’m all for it.
Mobilicity has been quite slow, compared to Wind with its expansion initiatives lately.
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As for Public Mobile…. they are CDMA only.. they wont survive and we all know it…I think theyre a joke.. honestly.. who wants to go back to CDMA?? Not I…
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That’s big news if true. With Mobilicity’s CEO leaving and the upcoming spectrum auction, I guess it makes sense.
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This would probably mean better coverage for everyone in the areas served by both companies, so yay on that front. Could also mean Wind’s promo plans won’t be as aggressive in the future. Lucky for me I’m on the HMP. (That last statement is probably gonna get me some thumbs down for being selfish, hehe)
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We knew this was going to happen from the time these new entrants started to appear. The only part we didn’t know was who would be buying who. Wind took a lot of criticism for their shaky start out the gate but it’s obvious that quick start is what got them ahead of Mobilicity.
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We need more competitors, not less. Plus, not a fan of WIND, I like Mobilicity as they are right now. Though the only outstanding complaint is lack of towers, other than that I love Mobilicity, great plan, great service.
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Personally, I would prefer Wind have some tower sharing agreement with Videotron in Quebec and focus on being a national brand.
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Wind would still be behind, and would still have to offer competitive pricing against the big 3 in order to stay alive. Prices may increase, but I don’t see them moving away from the ‘unlimited’ model that both companies have been using. Whether or not ‘unlimited’ can be used to its full potential for many subscribers however, is a different story.
While I wouldn’t mind if Wind bought Mobilicity, I would much rather Shaw do it instead to make things more interesting.
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The “unlimited” model is unsustainable. It works when you have a tiny userbase, but if they ever get into the 3-5 mil sub area, it’s unusable. Look at sprint, unlimited data, but it’s slow as hell due to congestion. Same with Wind, their speeds aren’t that fast as it is, add in congestion, people tethering as their home connection, really trying to push that unlimited aspect, and the network will become even worse. Sprint won’t be having unlimited plans forever, neither will Wind.
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Apparently national means including PQ but not NF, NS, PE, NB, MB, SK….
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I for one am all for it. I think it would only make Wind stronger and able to get more handsets.
As for the response about Apparently national means including PQ but not NF, NS, PE, NB, MB, SK.. Wind has bought spectrum in all provinces but Quebec. Quebec was not an option due to Videotron. As for the other provinces.. well its coming… Wind is only 2 years old give them time to expand and build towers.. Remember the Big 3 have had 30+ years to do this so I say Wind is doing pretty amazing for 2 years… be patient people.. lol
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I don’t know why people see it that bad that Wind buy Mobilicity. Remember there will be a big selling of the 700MHz Spectrum and without this merger it’s not sure that any of them would have joined in. If this happens (the merger) WINDicity would have enough power to be competitive on LTE. Remember if entrants are not merging… they will be bought by one of the Big Three.
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This Effing sucks!, I have both Wind and Mobilicity and I find that Winds network to not be as clear as Mobilicity and I find their customer support to be one of the worst I have ever encountered I’m not happy, this is not good. You hear Me Tony Lacavara you need to fix your crapy customer service first, then your network, then consider buying spectrum. doing all these will get you more than 50% of customers you want!
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There is no way that Wind and Mobilicity would have the resources to buy 700mhz spectrum and roll out LTE without combining. In order to access the capital financing they need to become a true competitor, they will need a larger subscriber base and more cash-flow(in order to issue debt to build out infrastructure).
Size is required to COMPETE with the BIG 3, as opposed to just catching the low-hanging fruit the Big 3 don’t care about. Also don’t forget the improved purchasing power when it comes to better phones…
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combining both companies may mean that wind may have more canadian content rather than it being a company from egypt. this should solve their lawsuits
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They should. Call the new company Winicity. They already have very simliar plans, seems to be a natural fit.
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This is not surprising by any means. Mobi’s investment partners were in it for a quick buck from jump. Public will soon do the same. Globalive/Wind were the only ones who took the auction seriously. Good luck keeping those fire sale plans Mobi was offering.
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I’m probably going to get a lot of thumbs down for this idea but I was thinking that Wind could keep both companies afloat if they buy Mobilicity out. Wind would be premium brand like Rogers, Bell and Telus and Mobilicity would be the discount brand like Fido and Virgin. Here’s the controversial part. Wind would offer phones on 12,18 and 24 month contracts, while Mobilicity will remain prepaid. Wind will have a larger selection of higher end phones still with competitive plans, while Mobilicity will have a more low to mid-range devices with great plans also.
There are a lot of people that don’t mind going on contracts, but 3 years is way too long. 2 year contracts are reasonable.
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Oh ok, now I have Wind/Mobilicity lines one each.
It’ll be 2 Wind lines. No problem.
But seriously? That’s why Mobi is doing so much discounts on their plans while they aren’t adding towers not much recently?
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Exactly. Desperate attempt to grab subs to make a more attractive sale.
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i doubt that this can happen not sure vimpelcom has any interest for this market, ask bankers in New York about that
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So much for competition, if a Wind customer is unhappy they go to Mobilicity and visa versa, so if they merge where do you they go now? Public Mobile?!?!?!?!?!
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They’ll just keep both brands. WIND moves up market and Mobilciity is the Fido/Koodo/Virgin of the Globalive family.
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the last thing I want to see is one more “separate-but-not-really” brand (i.e. koodo, virgin, solo, fido, chatr, etc etc). It isn’t to the company’s benefit to try to maintain two separate and somewhat competing brands (both offer unlimited) and it would confuse potential customers. For so few subs, the best thing (if it is going to happen) is to consolidate under one banner.
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Of course companies make more money by enticing various market segments with difference pricing structures. This works brilliantly in the auto industry. If this strategy doesn’t work, do you think companies would invest upwards of $500 million to create a new brand?
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As long as Wind doesn’t have nationwide coverage like Bell/Telus/Rogers do they won’t be able to get away with charging outrageous prices like they do. If Wind and Mobilicity merge they will have more towers in Toronto/Ottawa/Calgary/Edmonton/Vancouver but it will still take time to put up towers up in rural areas. Plus until Wind wins 700MHz spectrum or it buys Videotron it will have no coverage in Quebec outside Gatineau. I expect that we won’t be seeing $40 unlimited voice and data anymore but they won’t be able to get away with $65 for 1 GB of data and limited voice minutes, extra fee for long distance, extra fee for caller ID etc. Plus the Big 3 will be forced to lower their prices somewhat.
I expect that Wind 5 years from now will look like T-Mobile does in the states (thank god the AT&T merger is dead). Good coverage in major cities, decent coverage along the main highways like 401 and communities along there, but no Wind Home coverage in northern Ontario, rural Alberta, etc. It will be a similar situation to the US where Verizon has better coverage and higher prices, T-Mobile has less coverage and lower prices.
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If you’re on the fence about switching carriers from the big 3, get in on these plans now. Even if coverage is close to u but not great…
These promo plans won’t be here next year.
Not at these prices from Mobilicity and WIND.
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Not going to happen. Licence terms preclude Wind/Mobilicity merger or selling spectrum in 2012, except for Public Mobile which has said for over a year it’s prepared to sell. MobileSyrup is in deep w Wind – sorta unofficial spokesman – so I think this is just Wind stirring the pot in hopes of stifling Mobilicity signups over the holidays. Winds financial backers have pulled out so where’s Wind going to get the money even if it were allowed to buy Mobi? If anyone gets bought it will be PM
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Mobilicity can sell to anyone that is not named Bell, Telus or Rogers.
that was the deal made in 2008.
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I just met a technical manager from Wind and he says that Truly there is only 4 careers in Canada, with the fourth one being Wind. Mobilicity has a tower sharing agreement with Bell and it is basically a small company started to fool the public into thinking that they have a choice, like Rogers did with Fido.
and after research, it is true Mobilicity has a tower sharing agreement with Bell which is why they are not adding.
I am still confused about this Relationship of Mobilicity with Bell.
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Wind’s customer service sucks and their mobile internet blocks certain apps and radio streams. Mobilicity was a breath of fresh air, as their stuff actually works and their representatives aren’t completely clueless.
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This happens over and over. Remember Clearnet? Mike was founded in 1984. They were going to bring rates down in Canada, improve customer service, blah, blah. They were bought by Telus in 2000. The monopoly rolls on…
Watch for more mergers in about 2015.
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Mobilicity was setup to be bought. I’m just surprised that Rogers didn’t get them.
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Does anyone know if the WIND Holiday Miracle Plan has an “expiry” date? As in, does the promotional rate end at some point or can you continue with that $40 rate for however long you want?
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The current HMP has an expiry date of the 24th or 25th I believe. As long as you pay your account on time and don’t allow it to go into arrears, your HMP stays with you on Wind. This is the same thing Mobi did with the Friends and Family plan (that stays with you as long as you don’t miss payments).
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This makes perfect sense. As soon as Dave Dobbin was shown the door, and the new CEO who had previously worked with the guys from WIND was put into place, I was saying this was a possiblity. Coupled with the lack of expansion from Mobi, I expected this announcement sooner. I was thinking of jumping to WIND’s HMP this week but maybe I’ll just stay put.
People here are talking about what’s gonna happen to all of these $35 unlimited plans — they’re grandfathered. I can be that once the merger happens that we won’t see such a plan offered for less than $45 if not $50 (which is STILL a bargain). I’m also willing to bet that all people who have the original $35 HMP, F+F, etc (with discounts) will be allowed to keep them under the terms of the merger being allowed to happen. This would be in line with what transpired with Fido back in the day.
@Rich: Rogers wouldn’t have been allowed to buy Mobi in the first three years (there were conditions in place that prevented any of them from being bought by the Big Three). I’m surprised Shaw didn’t show interest (but again, they might not have been allowed to). Regardless, I think this will be a strong thing for all people who pledged their faith and trust in these new carriers.
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I am disappointed as I just went to Mobilicity from Rogers. Howevever it might mean tower sharing and better reception. Then again it means less competition and higher prices again. I feel that it is now upto Shaw and there soon to be release wifi network that will save all of us.
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I wonder if there is any legal reason why Wind would have to honor Mobi guaranty for life plans such as the $25 one ? I know when fido was swallowed up by Rogers the existing fido customers were allowed to keep there plans as long as they stuck with that plan.
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Yes. If a merger is allowed, the CRTC would have to approve it (first and foremost). The Competition Bureau would insist that for the merger to work in favour of its customers on both sides that they would need to grandfather all old plans under the terms and conditions as original enabled under the original two companies. This prevents the customer from getting scr*wed at the end of the day.
It would likely mean that all new plans moving forward would would considerably more expensive.
I know there has been talk of the Initial Public Offering as well, however, standard business practices of ANY company are to DENY, DENY and DENY until something happens one way or the other. Bloomberg News wouldn’t have reported a single thing if they didn’t get information from someone that PROVED this was likely to happen (they’re not just gonna quote an unnamed analyst and run with it).
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If Wind, Mobilicity or a combined WINDilicity want to ever be taken seriously, they need to start putting up towers along the Montreal-Toronto (or better, Quebec City-Windsor) corridor. And as another commenter said, WTH will they do if/when Rogers pulls the plug on GSM?
And yes, a tower-sharing agreement with V-Tron is a no-brainer…if PKP doesn’t close the door.
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http://www.theglobeandmail.com/report-on-business/wireless-carrier-mobilicity-weighs-going-public/article2278613/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2278613
Wireless newcomer Mobilicity is planning to launch an initial public offering early in the new year with the goal of raising up to $100-million.
Sources say the company plans to go public as early as the first quarter of 2012, provided that equity markets are less volatile. A number of IPOs have been ready to launch since late summer, but they were put on hold because markets were too choppy as the European debt crisis unfolded.
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You know, that could make a merger easier…
That said, meh. I’ll believe it when I see it.
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I told you all! I told ya!
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We will own mobli.. then Public then videotron!
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If Wind + Mobi came to a reasonable agreement on network sharing customers would get bigger zones + much better quality service… meanwhile it probably wouldn’t cost either company anything… make a big deal about how many towers they have combined… Now With X% MORE Tower Coverage… surely that would help both attract new subs.
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Switched from Wind to Mobilicity due to poor quality half duplex calls with my gf who was on Telus. Also was getting messages from Wind after every call made/received telling me the number i talked to,duration of call and the time the call occured. Made 3 phone calls to Wind to stop the messages to no avail. I had a cross Canada plan at the time so there was no value to any of these messages. No interest in going back to Winds network/support again.
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Troll…..these text messages don’t exist the “half duplex” issue (which was caused by high packet loss) has been eliminated since the spring
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Well, somebody better buy out Mobilicity – I am a disgruntled ex employee that would love to see the Aholes that run that place in the gutter, where they belong. They’re a horrible company to work for and they hire horrible people. Karma’s a b***h isn’t it?????
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i just wannna keep my 25 BTS.
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what happens to the people with the older mobilicity plans do those stay the same after a merge or buy out ???
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