WIND Mobile “is not currently engaged in any active merger discussion”

Ian Hardy

October 22, 2012 2:07pm


WIND Mobile made news late yesterday as it was reported that their major financial backer Orascom, who’s now owned by VimpelCom Group, declared they’d be asking shareholders to approve a proposal that would see them take control of the WIND Mobile brand in Canada. This, in accordance with the new foreign ownership investment rules, started the rumours of a possible merger with other newer carrier Mobilicity.

At one time it was also Public Mobile who was possibly uniting with WIND, but the rumour of a WIND/Mobilicity partnership has been circling for about a year. However, to douse any confusion in the marketplace, Tony Lacavera, Chairman and CEO of WIND Mobile, has declared that “VimpelCom Group and WIND Mobile remain committed to the Canadian marketplace and becoming Canada’s fourth-largest carrier. Contrary to certain preliminary stories in the media this morning, while we’re always considering our strategic options, the company is not currently engaged in any active merger discussion.”

The press release also noted that “The decision has no impact on how WIND Mobile operates in Canada – the shareholders’ agreement remains in place and unchanged.”

At last count WIND has over 500,000 subscribers. Rumours are that they have set an internal target to hit 600,000 by the end of the year. New devices that we can expect in their lineup are the Samsung Galaxy Note II (October 30th) and the Sony Xperia ion.

Source: CNW

  • iphoneee

    so they are not merging with apple maps… disappointing

  • m82a1

    Thats good news, essentially, if they merge, people / customers could get screwed. Depends how they’d merge i guess…but they’re not… :)

  • Acco

    It’d be nice if Wind did merge with Mobi. But I think there’s too much hostility between the two companies, so.

    • jonny

      no way!

      mobi keeps wind cheap!
      if mobi goes away, wind would raise prices

  • Nathaniel James

    Listen whoever keeps posting apple s**t please stop. As for WIND hurray for not merging with another company. they should be individual and keep up the good work :)

  • lengend

    I kinda hope they merge with Mobi, better data/signal in certain locations

    • STY

      Yeah, but only for Mobi customers.

      Wind, just buy Mobi at their bankruptcy sale.

  • Obstacle-Man

    Merging with Mobilicity would be a smart thing to do. They could migrate all mobi users to the wind spectrum for HSPA+ and use the mobilicity spectrum for LTE.

    They would still want to grab some spectrum in the upcoming auction for LTE due to the building penetration power of 700mhz. But having 2 pairs of AWS frequency in all their existing markets would help them out. This would be similar to what T-Mobile is doing by re-allocating some AWS spectrum for LTE use.

    • whocares

      But if there is no added value to merge before the 700 sepctrum bid. Thus may be after the bid one can get down and look into the merging thing. In that fashion, they can captalize on both spectrums to move forward. Also merging with a. Little guy will do no good, it is acquiring one big guy would really create the impact on the industry and the market. Some meetings already in place with T-mobile, what that means getting bigger and stronger is the name of the next phase.

  • OGOD

    If merge mean they only sharing the towers to each other, then that fine. Don’t be “Winbilicity”…-___-“

  • Ryan

    If Wind gets a Lumia 820, I’ll be all over it. I don’t that 920 would ever make it to Wind, unfortunately, but we’ll see!

    • Ryan

      think*

  • hoo dat

    The key word here is “actively”. Talks have taken place and as recently as this past summer and now WIND finds themselves in a stronger financial and managerial position. It would be nuts if they didn’t at least continue investigating the possibility of a merger or buyout of Mobilicity.

    • vader

      Don’t fool yourself, this is strickly a financial move to write off over $450 millions…off the books…. To eventually sale the business at a premium price and show share holders some value. Vimpelcom will sale if the price is right within a year or so, there is no profit in sort to mid term. Exit is the only way to get a fair ROI without putting more $$$ in this sinking ship.

  • allidoiswind@hotmail.com

    Wind is about to do what it said it would, become the 4th major carrier in Canada!

  • 2c

    go wind go and blow the faces of r/b/t for once and all.

  • Rob

    From the time I worked at Mobi I always thought Bitove was setting the company up to be sold to an American or European company, but never a merger – and never with Wind. This is why (I suspect) precedence was on improving the network over expanding. The big mistake all three entrants made was not partnering up on developing their own network seperate from the one the Big 3 have built.

  • w00t

    Way to go WIND!

  • aregularonhofo

    Obviously Wind Mobile is doing great and at the rate they’re expanding/growing they don’t need to merge/buy a failing company like Mobilicity, Wind can wait it out as the desperation sale will be cheaper later and the differences between the 2 providers is too vast to make any sense in placing them together…Wind is going after the Big Boys and Mobilicity has been stalling for over a year by lying to customers and surviving on false promises. The simple fact is Mobilicity is trying to sell to someone else and it won’t until the price comes down. Mobi still has roaming in the home zone, throttling, slow data, massive tower breathing, no expansion, lack of public interest, a clown of a CEO who makes a fool out of himself on twitter and a network that is horrendous where rates have to be dropped…this is not a sign of growth and best thing people can do is join Wind to back the leader against the incumbents.

  • joeshmo

    Remember the new rules dictate that a foreign owned company cannot have more than 10% market share.

    • Lesli

      Yes it can. If it grows organically, it can have 100% market share (not that it is possible, but I am using it as an example).

      What a foreign company can not do is buy or merge with other companies, if that foreign company has more than 10% market share. If it has under 10%, then it is all a fair game.

      Right now wind can easily purchase mobilicity. This may not be the case 2-3 years from now once wind gets bigger, but I do not see mobilicity lasting that long anyway.

      Prediciton – Q1 2013, wind and mobilicity will be one.

    • Lesli

      Sorry. I shouldn’t say “purchase”. Replace that with “merge with”.

  • skullan

    I never trust public statements regarding mergers. I’ve seen it where that was said, 4 days later, bam… announcement of intent to sell/buy.

  • T1MB1T

    IT IS ALL A LIKE.. WIND IS NOT BEING BOUGHT, IT IS ALL FEAR TACTICS FROM THE BIG 3! NO MERGER BECAUSE WE ARE THE BEST!!!!

  • Sweet

    What Obstacle-Man said was the first thing that came to my mind when I first heard of the two companies merging a while ago. By implementing LTE they’d be able to get iPhone customers, which would help them better compete with BRT (Bell, Rogers, Telus). The question is, would they then jack up their prices too ? I hope not, but I suspect they might, though probably not as high as BRT. We’ll see.

    Also, keep in mind that while WIND and Mobilicity both use the AWS spectrum, they don’t run the same kind of network. WIND uses an all-IP network (a.k.a NGN — Next Generation Network) whereas, the last I heard, Mobilicity uses a more traditional network like BRT.

    • OgtheDim

      Until T-Mobile gets Iphone, Wind won’t.

  • Mobilicity is BROKEn

    WIND should let Mobilicity die rather than buying it out or merging. There is no new markets to gain by doing so since Mobilicity is only in 5 cities, WIND already has coverage there.

    Mobilicity customers obviously want WIND to buy their company because it’s easy for them and painless, however, precedence says that isn’t going to happen. Likely when Mobilicity declares bankruptcy, one of the Big 3 will buy it out.

    Mobilicity made their big mistake by not expanding quickly. They have saturated their 5 cities and keep churning useless promotions to gain a few subscribers.

    Mobilicity sales promos are getting so confusing, it used to be every few months there’s a promotion, NOW, it’s every week!

    Not good signs for Mobilicity or its customers in the horizon.

    • Rob

      I can tell you that this is not the case. They will not be going bankrupt anytime soon. When I last worked there they had quite the stash of cash and their focus was on improving their network. As for the constant promos, all I can chalk it up to is the pressure they put on themselves to build business and gain customers – for better or worse.

      I would ask you this – if you started up a telecom company tomorrow is it not better to build a solid network and then expand or expand and then fill in the network later? You seem to be of the latter opinion, but I suspect if it was your own money you would go with the former. I would also tell you it’s probably wiser in the long run to build first then expand. I understand the rush for comparison between the two and how Mobi may seem inferior but the rush to expand is fraught with peril. Companies do it at their own risk. It’s the one thing I give Mobi credit for – not rushing into expansion. There’s plenty of time to do that when you’re sitting on a pile of cash and improving the network.

  • Mobilicity is so slow like a dropped child

    Nah…not true at all. They are hurting financially so much they are pushing all promos just to KEEP the customers they have. Their network is congested due to too many customers on the few towers they have.
    They made the mistake last two years of not expanding, and now promo after promo after promo shows this.
    They have less than 200k subs and it can’t grow anymore.
    They do a good job of smoke screening the truth.

  • aregularonhofo

    You got that right buddy, dead on like always and the smoke is getting thicker…worse Data in Canada, throttling, no expansion, CS in SA, a reduction in Corporate stores, lousy dealers, untrained monkies as employees, fake coverage areas, roaming in the Home Zone, tower breathing and a CEO that tries to fool the public on Twitter. Great company…FOR LOSERS.

  • aregularonhofo

    That should have been monkeys…I was laughing too hard because of what ” Mobilicity is so slow like a dropped child” stated…too funny.

  • STY

    Don’t forget Mobilicity’s “traffic shaping” data (oops, browsing, typo) that is crippling and why anyone who wants real data goes with Wind.

    • STY

      You know, the browsing some still get for $7 month from Bell.