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Rogers to back investment firm in bid to acquire WIND, report says

Verizon-Wireless
The Canadian wireless soap opera continues today. Two important reports about various plans involving Verizon entering the $19 billion Canadian wireless space.

First, the Financial Post is reporting that Verizon’s board will meet next week to engage in deeper talks about preparing formal papers to buyout WIND Mobile for $700 million. In addition, VimpelCom, Wind Mobile’s foreign owner, is also setting up board meetings next week “to be considering offers to buy the Canadian company.” Of course, both Verizon and VimpelCom declined to comment on the rumoured meetings.

Next, probably more important, is a stunning report by the Globe. According to their “five sources familiar with the matter,” Rogers is orchestrating a plan “to fend off foreign wireless rival Verizon” and is going to financially back Birch Hill Equity Partners to take take controlling ownership in Wind. Yes – Rogers will provide a portion of the money for this to happen, but apparently they wouldn’t receive equity, but “would gain a network-sharing agreement with Wind.” Birch Hill, with cash from Rogers, is also considering acquiring struggling carrier Mobilicity. The finer details of each potential deal are reportedly still being negotiated.

“[Birch Hill] needs a network sharing partner to make the deal happen and they’ve approached Rogers,” said one of the Globe’s sources. “For Rogers it’s all about network sharing. Data demand is growing rapidly and they’re focused on making sure they can meet future data demands.”

In the end, it comes down to spectrum and if any of these situations were to happen we would need the usual government regulatory approvals, plus we’ll also see immediate concerns from the other wireless players, namely Bell and TELUS.

WIND Mobile currently has over 600,000 wireless subscribers, while competing carrier Mobilicity has 250,000 wireless subscribers.

  • Thomas C. Riddell

    Please Don’t Let Rogers get any of Winds Network no matter How they do it

    I don’t want Verizon
    I’d Rather have them then some company that would allow rogers a Piggy pack on Winds network for a small investment

    I want T-Moblie to buy Wind

    • Guest

      Agree that Rogers shouldn’t get a hand on Wind however…..
      Your want is more of a dream. Ain’t gonna happen

    • pwrd

      Currently Wind piggy backs off Rogers network for their “wind away service”…..

    • Thomas C. Riddell

      I don’t use that When I am Away I turn my phone off
      Unless I am going to USA then Put in my T-Mobile Sim .

    • Jamie Maunder

      Get a Samsung Galaxy S4 (rogers, bell, telus). Load in the modem unlock (337_AWS.qcn), doesn’t need to be rooted or otherwise modified, then you can use a sim from any provider, on any network/frequency. It also lets you use your rogers/bell/telus phone on Wind :) Yay for $6.67/mo cell phone bill! And great flexibility when traveling all over the world (haven’t figured out how to get 900mhz working in Mexico yet, but hopefully soon).

    • E. Tasche

      Asking for T-Mobile is like asking for cancer.

    • Thomas C. Riddell

      Well Asking for Verizon is asking for For Both Cancer and heart Attack
      I’ve use T-Mobile in the USA When I am away and like it

    • E. Tasche

      So have I and while Verizon is expensive and as they all are, a bit douche-like, T-mobile just loves (I mean takes personal pride in it and actually enjoys it) to screw over customers.

    • Josh Brown

      How they are cheap. Coverage can suck sometimes but I have prepaid with them because ATT screwed me with a $100 prepaid card then they decided not to offer prepaid data anymore. No notice.

    • Don Chard

      I prefer not to have the NSA gaining access to my phone records via Verizon!

    • Thomas C. Riddell

      They leagal can’t Cause this is not the USA
      The Canadian Goverment would have to step in

    • Don Chard

      Is it legal for them to do it in the states? Prolly not.

    • MSined

      Why do people keep bringing up T-Mobile USA? They are not in a position to buy anyone. They have they own ship to right before looking outside of the US.

    • AlphaEdge

      Because their phones would work on Wind’s network. They share the same spectrum, so there is cost savings to them, that any phone they release, they can do a minor re-brand, and offer it on Wind mobile. They can also get more roaming revenue from either Americans or Canadians crossing into each other’s network.

    • JTon

      All good reasons. But I can’t help but feel the only reason people keep bringing up T-Mob is because they like the prices of their plans. People want more for less. Can ya blame em tho

    • RoboBonobo

      Those are all good reasons to want T-Mobile to buy them… but the fact still remains that T-Mobile is in no position to buy anyone. They have the same ‘low rates, poor coverage’ business model as Wind/Mobilicity and they’re in a similar situation; looking for someone to buy them because it isn’t working for them.

    • magesnz

      t-mobile is in position to buy small players in canada yes, they just merged with metro pcs and will continue to grow, also yes they refarmed part of their network from aws to 1900 pcs but they will continue to support phone compatible only to the aws network, so i personnaly think they could buy wind, but if verizon set foot in canada, there are good and bad thing from verizon but they are the no2 us provider so maybe they could buy some 1900 pcs band to be able to compete properly in the country

  • canuck07

    Rogers would make a great street gangster. They know all the back alleys to run from the cops.

    • jackjiarocks

      Run from cops? Please.

    • Me Ted

      Look up ‘analogy’. I know. It hurts your head.

    • jackjiarocks

      Sarcasm, can you not understand?

    • Me Ted

      You weren’t being sarcastic. Nice try Skippy.

    • jackjiarocks

      Oh…I am sorry..you are trying to tell me what MY emotion feedback is? Or perhaps go through my history as clearly i am anti-rogers before making such accusations

    • Me Ted

      Emotional feedback? teeheeheehee

    • jackjiarocks

      No its fine. You can interpret what ever way you like.

  • OldEnough to know better

    Obviously, the RBT group of companies are scared shirtless.
    They will go to any length to absorb the newcomers for themselves.
    I just hope and trust the government will see through these ruses, and continue to do what it good for the consumers.

    • kkritsilas

      The Big 3 are scared to death of having to compete for people’s business. Verizon knows all about that, they compete in the US against AT&T, Sprint, and T-Mobile. There is NO collusion in the US, unlike here. And this is what really scares the Big 3: a fourth carrier that can afford to stay in the game long term, which is financially strong enough to stand up to any of the “games” the Big 3 come up with (“flanker brands”, CWTA, PR campaigns, lawsuits, etc.), as well as being able to price match or beat any plan pricing the Big 3 come up with.

      The Big 3 don’t seem to understand that the government, and people in general, have had it with their constant whining and colluding on plan prices. The Feds WANT A 4TH CARRIER. PERIOD. GAME OVER. They can play these little boardroom games all they want, it isn’t going to get them anywhere. They have had 30 years to start competing in a meaningful way, and haven’t. If they won’t compete on their own, the Feds will create a condition in which they HAVE TO COMPETE. And the Big 3 don’t want to compete, at any cost, including the “back door” approaches.

      Kostas

    • JTon

      Of course there is collusion in the states… holy smokes people. AT&T and Verizon collude on prices all the the time. It’s pretty much a duopoly down there. Sprint and T-Mob are small. Maybe not Wind small, but still. Get your heads out of the sand

    • Me Ted

      You sir, have won the internets today! Well done.

    • ScooterinAB

      No. The Big 3 are scared to death that the federal government will destroy the wireless industry in Canada by selling Canadians out to a foreign market. The CRTC is trying so hard to force a new entrant into the market that they are bankrupting companies to do it. They are also trying so hard that they would allow a foreign company to enter the Canadian market and basically strip mine it without any return into the Canadian economy.

      The CRTC can piss and moan about forcing a fourth carrier into the market all they want. But until a company can enter the market without theft and deceit, and be able to stand on their own, it’s just not going to happen.

      The problem is that the Big 3 actually want their to be competition. They have no problem with a company like Verizon entering the market. What they have a problem with is the CRTC kissing their asses and laying out a red carpet specifically meant to screw the 98-some-% of Canadians who are subscribed to the Big 3.

      This has nothing to do with competition. This is about unfair and illegal practices by a foreign power, who is using their size and the political-economic climate to bully their way into the market.

      Rogers funding the purchase of Wind is probably the best case scenario. At least there is the slightest chance that all of those Wind employees wouldn’t lose their jobs, which would happen if Verizon gets in. And don’t say Verizon won’t terminate those jobs. Target and every other company that has entered Canadian markets via buy-outs did.

    • Stephen B Morris

      Tell your employer that we don’t believe them.

    • ScooterinAB

      I can’t, because I left Wind some time ago and haven’t worked for Rogers in over a decade. Just because I’m informed about how this industry works and know the ramifications of poor policy development doesn’t mean I’m pushing anyone’s corporate agenda.

    • Stephen B Morris

      I’m kidding. However the post did sound like it. Or read like it rather. I do agree with your point about jobs being lost. Honestly no matter who acquires WIND and Mobilicity the employees are going to be the ones who lose the most.

    • kkritsilas

      Rogers, Telus, and Bell are only scared of one thing: not being able to dictate the pricing of cell phone plans unfettered by competition, the way they have for 30 years. As has previously been stated, and I will state it again, Wind is foreign owned. The problem with Wind is not that they cannot compete, but that they are starved for the investment cash needed to complete their network roll out due to lack of investment by Vimpelcom. Vimpelcom has decided to not invest in Canada; evidently Verizon does. Why is Verizon investing in Canada any different than Vimpelcom investing in Canada? Both are foriegn owned companies. .

      I see no theft or deceit on the part of Wind, Mobilicty, Vimpelcom, or Verizon. Please point out an example. I can point out to the questionable ethics of the Big 3, of which there are numerous examples (see my original post).

      As for “This is about unfair and illegal practices by a foreign power, who is using their size and the political-economic climate to bully their way into the market”, as far as I know, Verizon is not a foreign power, they are a private company looking to make an investment that will hopefully result in profits at some point. As for size, they have none in Canada, and even if they were to buy both Wind and Mobilicity, they would still have less than 10% market share. It is funny how companies that own >90% of a market are screaming about he sky falling down, and how they are all about to go bankrupt if the big bad Verizon shows up. Its sort of Exxon-Moblie complaining about Petro-Canada entering the US gasoline market.

      To continue: “The problem is that the Big 3 actually want their to be competition. They have no problem with a company like Verizon entering the market. What they have a problem with is the CRTC kissing their asses and laying out a red carpet specifically meant to screw the 98-some-% of Canadians
      who are subscribed to the Big 3.”

      The big 3 have been colluding for years. All of their plans are priced within a couple of dollars of each other. When one raises the prices of the plans, the others so so as well. Verizon entering the market will help put an end to this, and the BIg 3 don’t want this to end. The only time that plan prices have gone down is when Wind really began to pick up customers. Now that Wind looks financially shaky, plan prices have gone up. You may want to point out that this is due to hardware now being on a 2 year subsidy pay out vs. 3 years, but the plan prices, especially for data, have greatly exceed the increase in hardware subsidy payouts. Data used to be as low as $30 for 6 GB,l now it is closer to $100. Strange that this is true for ALL of the Big 3 isn’t it. For a group that is so dedicated to competing, you would have thought that one of them would have increased the 6 GB data plan price to only $50-60-75 to gain a competitive advantage, considering that they already were making money at $30/6GB. Competition is not something that they welcome, far from it. Their reactions, maneuvering and “dirty tricks” over the years are the clearest indications of what they think of competition.

      As well, you may need to have a word with your fact checkers, I don’t know which of the Big 3 you work for, but if you are going to come on here and try and refute some of my points with misinformation, as the Big 3 are prone to doing, you may gain a lot more credibility if you were to keep in mind that the spectrum auction rules, and the desire for a 4th carrier are from tndustry Canada, and the Industry Canada Minister In Charge (James Moore, used to be Christian Paradis), not the CRTC. But then again, your CEOs don’t do much better. They haven’t exactly had their facts straight, either; more like publicly humiliated themselves.

      Kostas

    • Me Ted

      Why don’t you tell me more about those support jobs that have already been shipped overseas. Pure bs and FUD.

  • vn33

    Noooooooo … Not Rogers !!
    For that matter .. not Bell, or Telus either, PLEASE !!

  • Josh Brown

    You know Rogers is scared when they are willing to make wind better so it doesn’t get bought out by Verizon.

  • Ken K.

    Verizon is no angel, but compared to the Big 3, it looks like a Saint.

    • Matt Z10

      I would wager thats because we haven’t been able to be screwed over by them. Businesses make money, which in turn tend to screw people over

    • Chrome262

      It doesn’t matter, if they have the money to drop prices to beat out the other three, then they will. Which the others will drop their prices as well. If you look every where else in the world its a fight for consumers dollars, and so much so, that everyone else gets better deals then we do. Besides which, think of it this way, if Verizon comes in then potentially there will be no long-distance in north america any more, no roaming

    • Matt Z10

      agreed on the roaming charges. Verizons pockets go way deeper than the big 3′s they can afford to wait them out and still be financially sound. Our short term gain for a company that will (and they most certainly will) own our entire country. now go look at places where only one or two wireless providers exist and find out what they feel of it. Dynamic gone and prices are whatever they want them to be because no one will challenge them!

    • Chrome262

      I still don’t get why we don’t force these companies to compete, we have three of them already. Where are the anti-trust laws, and price fixing, sheesh

    • Matt Z10

      totally cited you down below somewhere. I agree with that and that thought it buried somewhere in my long post mixed in with metaphors somewhere as well.

    • Robert Day

      Oh your delusional ideals are refreshing. Completely false, but that doesn’t seem to matter to the sheep on the internet. Currently, Verizon offers services which are slightly MORE expensive than other offerings in the USA. They are also more expensive than three same plans in Canada. They have the money to lower prices as you say, yet they have not. An american company not giving Americans a break on their bills, why do you vehemently believe they will do any different in Canada?
      They will come in, target major markets (they’ve already said they are not interested in rural markets and only plan on looking at the major markets – Toronto, Montreal, Ottawa), and consume spectrum effectively killing any smaller startup competition or regional carrier. They will price slightly above market with creative advertising to lure the gullible public into signing up, and there will not be any price relief.

    • Chrome262

      Even if prices stay the same, all they would have to do its offer no roaming or long distance in the US and they will draw tons of customers. And Verizon doesn’t need to compete in the US, although know with T-Mobile causing them issues they are starting to, but here they will have to.

    • Alvin Avanzado

      Agree to that…this is similar to comparing presidents. Obama is no saint but he is the lesser evil.

      Anyway, I just want verizon to create more competition and hopefully drives down the prices of the big three.

  • Alvin Avanzado

    Rogers will do everything in its power to make sure Verizon won’t come to Canada and will acquire everything that it can afford. It happened once when it bought Fido. Everything after that…became crap.

    • wildspin

      It all comes down to Verizon’s judgement and determination … they can even buy Rogers if they want. ;-)

    • Alvin Avanzado

      That should happen!

  • skullan

    This will get rejected. Too much controlling debt. What should happen is that Industry Canada should start fining every incumbent trying to circumvent the spirit of the new entrant blocks.

    • Matt Z10

      I’m not sure who would reject this? They aren’t buying. They’re funding a company who is buying. that one spot removal form the system just seems like a standard business dealing where everyone can benefit and it doesn’t create a giant corporation that has monopoly

    • skullan

      Wow. Matt, do you really think that Rogers is doing this from the good of their patriotic heart?

      There are no benefits from having a company who has little to no experience running a cellular company take over a possible fourth competitor.

      If the rumours are true, this is just to delay or even just outright prevent someone who is not part of the Old Canadian Club of cellular companies from being able to actually make the companies do what they have been scoffing at with the littler new entrants, and that is compete.

    • Matt Z10

      absolutely not, its money and market control plain and simple. from what i’ve read (here and on an actual news site) they just plan on being a known hand with money but little to no hand on the controls. Puppetting is a concern but seriously, the ownus is on the person trying to prove it. I suspect this is far enough removed for it to pass most of the regulations.

      If the Conservatives want to deny this one, have them buy the damned companies and fund them into a 4th national carrier. It seems to be their way or no way right now

    • skullan

      Seriously? You truly don’t think that Corporation A assisting a smaller Corporation B, who is not currently owned by Corporation A, doesn’t have an ulterior motive?

      Corporation B. Limited to no experience in running a cellular network company in Canada.

      Corporation B. Likely has less revenue generating ability than Corporation A. This means, we go back to struggling.

      All Corporation A needs to do is feed Corp B enough peanuts to keep them alive long enough to allow regulations to cool down and they could purchase that part of the company outright.

    • Matt Z10

      thats exactly it. And where is it said that it can’t happen. They can’t directly buy them so they float cash to keep them afloat for a time when they can. Not saying its not gonna happen, what i’m saying is its not against the current rules that were set in place. BTW Crop B should be viewed solely as a backer, the actual company will remain in place i’m sure, and probably for the very reason you cite at corp B

    • Stephen B Morris

      Which is the exactly why this should and will get rejected. Its just a roundabout way of doing what Telus was going to do with Mobilicity. But you are right in that the government should run the 4th carrier to ensure fairness. As least the provincial government anyway. However that’s just a pipe dream.

    • Chrome262

      Any purchase has to be approved by the government, so they will just deny Birchhill’s bid

    • skullan

      We assume they will. Hopefully the Government will sit there and recognize where the real power of money will come from and shut it down.

      You never know.

    • shinek

      One thing every one seems to forget is Rogers applied to be a bank and got their license…… This could be simply presented as a Financing deal for them a good lawyer can put up that fight

    • Matt Z10

      holy f*cking sh*t if it goes through that way I’ll be in awe of either their luck or superior business like mind. unreal thought man

    • shinek

      Im sorry i just actually looked it up… They havent got approved yet they are Pre-Approved lol kind of like a mortgage lol they have a year to meet all the requirements

    • Matt Z10

      I’m kind of okay with that lol

    • kroms

      So ROGERS BANK, ROGERS CABLE , ROGERS INTERNET, ROGERS HOME and MOBILE CELL , ….. Whats next ?

      ROGERS GROCERS ? ROGERS HOSPITAL ?

    • Stephen B Morris

      I did forget that. Great insight. Jumping the gun a bit but I guess they don’t have the luxury of waiting. I’m sure they didn’t file for the licence for that sole purpose but I’ll give credit where its due. Genius.

    • Ren596

      Rogers intent is to STOP Verizon

  • Martini

    So, I guess the loophole is that Rogers themselves can’t make a bid for Wind, or Mobilicity. But they can pump money into a 3rd party to purchase either company.

  • Devin

    Somehow I don’t think the Government would allow Rogers to financially back this deal.

  • protaginets

    No. This will get shut down like Telus got shut down. Didn’t like the idea of Verizon coming in, but it’s better than Rogers.

    • Chrome262

      What would you rather have someone else. The rest of the world has open markets Canada is just behind the times.

    • kroms

      Agreed, Id rather pay Verizon just so Rogers gets it through there THICK head that when you continuously damage your trust and you take advantage of your customers for years then eventually people will leave and hate you for it.

  • Canadaboy

    To the core. Rotten to the total core.

  • Sky

    I think I just blue myself :( bad news

  • roman129

    They’re not really after network sharing, Wind’s network has trouble supporting its’ own load.

    • Diderot

      I’m going to call BS on your claim that Wind’s network can’t support their own. With 600k subscribers, there is no way their new network can be overloaded.

    • Scott Palmer

      They want to share part of the 700Mhz spectrum. Not their AWS spectrum.

  • Ronell  I.T. Man

    If Wind got Network sharing of rogers…. that would be a blessing in disguise. All the current users of wind with grandfathered plans would be set for life

    But that would hits Roger ARPU big time….. i smell a shake up no matter which way this drama goes. But as a Canadian consumer im expecting positive results ** for some, and bad for others

    • Matt Z10

      with the new 2 year contract price points I would seriously doubt that happening

    • Chrome262

      Yes, it will help Wind, and in fact allow them to have other phones models that they didn’t have access to. But at a cost to competition and overall higher pricing.

    • skullan

      If Wind got Network sharing of rogers, do you really think there would be a Wind for very long?

    • Ronell  I.T. Man

      Yeah, it would have to stay a sub-brand, but as i said the grandfathered Plans of users would be great for them.

    • kroms

      Not a chance. U are DREAMING.

  • QQ

    Just shows how f**king scared Robelus are of Verizon…………. Verizon must be laughing looking at these kids getting scared, even before they formally announce anything…………….

    • Anonymous501

      Which is weird. Verizon isn’t exactly the cheapest cell phone provider in the US. I would imagine they want to enter the Canadian market because of the high ARPU’s, not because they want to play Robin Hood and offer a low priced alternative.

    • EvanKrosney

      But clearly if they enter the market they’re not going to be gouging customers with $40 for 500mb plus an additional $40 smartphone subsidy fee like they do south of the border. The reason that people pay those fees is because of Vz’s reliable and fast network, along with their extensive coverage. Until they’ve built up an extensive network here in Canada, chances are they will be that lower priced alternative until they gain a customer base and build their network to a Robelus level.

  • Average Consumer

    So the robbers will do everything but lower their prices which would actually sway the customers in their favor. I don’t like Verizon, but I hate rogers that much more, shameless corporation.

    • kroms

      Exactly…. Matt Z10 seems to think otherwise , or he/she just doenst get it.
      OR they are an EMPLOYEE of the company. Stock Holder ?

  • wildspin

    I don’t see why the federal government would allow incumbents’ direct or indirect involvement.

    Rogers is probably just having a play to jack up the price Verizon eventually has to pay. They should be banned from participate in the first place.

    • Matt Z10

      rogers or verizon?

    • wildspin

      Who on earth would post here to support Rogers, dude? LOL

    • Matt Z10

      I feel we have others ways of sorting out our wireless industry. Without Verizon. Anthropologists call idolizing a culture or way of life we don’t full understand the ‘golden savage concept’. I’m just tired of selling out Canadian industries to foreign powers for short term gain. If the Government actually wanted competition they would create the price fixing and public trust rules to show us to us they can still support domestic business and not gouge consumers at the same time.

    • EvanKrosney

      My friend works for Rogers and even he has no problem bad mouthing them.

    • kroms

      Dude. Please. Get off the ROGERS bandwagon. You continuously try to make it seem like Rogers is not so bad of an Idea.

      Please , let it go.
      WE ” the majority ” are not happy with Rogers not matter what you might think.

    • Ren596

      ROGERS

    • shinek

      If it went to court Rogers stands a good chance as long as they can prove they have no intention of buying Wind in the few years from Birch Hill, that being said its a messy situation

  • shinek

    This is very interesting… The way Rogers wants to do it is smart Pay for the purchase once the limitation on the buy out period is done they will turn around and buy wind from Birch Hill and it wont cost them much because they are financing the deal to start with… that being said i m hoping for Verizon because it will at least create much more jobs then a rogers purchase

  • Matt Z10

    I’m probably going to get torn apart for this but lets consider the options. We’ve had the big 3 here for a while. Consumers complained about everything! 3 yr contracts (admittedly sucked until device balance came into play, now i consider them very fair) somehow everyone thought the monthly prices were high, now we have 2 yr contracts and its even higher…so ya, that worked out well for us.

    So now everyone is pretty much on equal footing, even Telus completely obliterated there small market offerings in the Manitoba and Saskatchewan. Wind and Mobilicity work in the major cities where they have high population density which can be supported on the lowest amount of towers. They don’t need to charge urban users more to balance the cost of low density area’s like the Big 3 do. In return you roam when you leave their coverage area.

    IF Verizon comes in they have almost triple the total population of Canada on their network. They can easily afford to buy wind and mobilicity and snatch up all the spectrum. I’m honestly with the Carriers on this one. Its not fair, defeats the purpose of the rules the government made years ago. I can see this resembling you owning a house and your grownup children come back, buy the house from you for way less than its worth and kick you out with no recourse on your end. you’re screwed, kids got a free ride and then bought it out for cheap and proceed to expand it into a mansion. Big3 represent the parents here.

    My story aside I kinda think that giving them incumbents the spectrum to be a good thing IF they can manage something fair out of it (honestly not hopeful). They have the network, let them make it better to reach more people and cut costs. Those savings would have to be relayed to the customer (here’s the problem as many of you probably see). If that can be done I think we have a winner for the Canadian market.

    I know where my money goes for this service. We don’t pay for the cost of running the network but the cost of expanding it, purchasing new devices and ya, paying some ridiculously high salaries to get it all done. Happens everywhere guys.

    Okay i’m done. Thoughts or pitch forks and torches?

    • skullan

      I’d say split the Big 3 up, separate their content provider from their Internet and Telephone services. Then they could purchase all the spectrum they want.

      Perhaps it’s time to go Ma Bell on them.

    • shinek

      they cant legally justify that no one has a monopoly in the industry

    • Chrome262

      Never got how all three have not been charged with price fixing, they really don’t compete with each other. And then to fool everyone they offer slightly better deals with Fido, and Kodoo, or other small companies that they bought out.

    • shinek

      I get where you coming from what people don’t understand is that i dont think verizon has any interest coming into Canada as a low cost provider. They will need to recover their cost from the purchase and make sure they have high enough revenue to make this purchase be worth the Share holders worth. Verizon will offer sale pricing as the big 3 but most likely offer more value for your money. The good side of verizon coming into the Canadian Market is more jobs for people like my that have been working in telecommunication for years. It will also create tons of retail jobs. I dont see Rogers or any of the big 3 keeping the brand alive if they purchase them. They will kill of the leases lay of employees and just use the spectrum.

    • Chrome262

      One of the things that is drawing Verizon, is that Canadian’s are willing to pay more for services, and they see the revenue that the big three are making. So much so that Bell and Rogers, both with significant infrastructure for internet and tv, now make most of their money from wireless services. Crazy, in fact they could easily make back their investment in only a few years.

    • Matt Z10

      heard loud and clear! I mentioned their ability to purchase the AWS spectrum to reduce costs and reach more consumers. again if those savings could be brought down to us then I would be okay with it. Reaching more people and paying less is exactly what has made the US market so profitable for their wireless companies

    • Matt Z10

      point taken, but with a mature network elsewhere, they could easily move to canada for a cool billion and not sweat it. They would still be using the rented network from the big 3 (i think its mostly rogers EDGE right now) and then explode with towers. Thats mostly what the big 3 are upset about. If verizon wants to enter the market they should do it on their own. thats my thought on this. I tried to visualize in the house metaphor

    • kkritsilas

      Lets start with a basis in reality:

      1. The Big 3 carriers have had what, 30 years to bring cell service to low density areas, and they have done squat, for the most part. The only real low density area that has decent coverae is rural Alberta, and that is by Telus/Bell, due to the oil and gas industry business and subsidy. Rogers, outside of Southern Ontario, is completely concentrated in the urban centers. So keeping Verizon out and hoping they improve their networks is not realistic.

      2. keeping Verizon out, and allowing the Big 3 to carry on their current business practices will NOT “lower costs”. They have had a chance to “lower costs” for 20+ years, and they haven’t done it yet. What makes you think that keeping Verizon out will change that? All they have done is colluded to keep plan pricing high, and the only time we saw any pricing drops was when Wind and Mobilicity started to gain customers.

      3. It is pretty close to impossible for Verizon to take advantage of an existing network, when the Big 3 won’t let them onto the towers. Even though there was a tower sharing clause in the AWS spectrum auction, the reality is that Wind or Mobilicity really never got onto any of the Big 3 carriers. If they had, their coverage would have been much better. I don’t honestly believe that Verizon will have any more success than Wind or Mobilicity did with regards to tower sharing. So this is posturing by the Big 3. Let us point out that the networks that currently exist weren’t even paid for by the Big 3, they were paid for by 20+ years of “system access fees”, so technically, the carriers didn’t even pay for the networks that currently exist.

      4. If it does come about that Verizon does show up, they will build out the existing Wind (and Mobilicity, if they decide to buy Mobilicity as well) networks as quickly as they can. It isn’t good business practice to leave your service delivery in the hands of your competitors, nor is it a good idea to pay your competitors to carry your service.

      5. Quite bluntly, Roger’s certainly doesn’t need Wind’s (or Mobilicity’s) spectrum. Rogers in Canada has more spectrum than AT&T, Verizon, and Sprint do, COMBINED, do in the US. Considering the population density, and total population in Canada, Roger’s attempt to get even more bandwidth is not to address a real need, but to limit competition, and I sincerely hope that the Roger’s back door approach to buying out Wind is not permitted by the Government. Rogers, and the other Big 3 members have more than enough spectrum for a population 15X that of Canada’s, and would still not face any limitations due to spectrum.

      6. I don’t understand the whole ” Its not fair, defeats the purpose of the rules the government made years ago” idea being spouted off by many people. Wind is owned by Vimpelcom, a company that is again, much bigger than Rogers, Bell, or Telus. Vimpelcom doesn’t want to invest in Canada; Verizon looks like they do. So, is it any less fair to have Wind owned by Verizon than Vimpelcom? What if Vimpelcom comes to a decision that they want to become a major presence in Canada, and decide to pour 5-10 Billion into Wind. Does this not fall under the “rules”? I think it does, and whether it is Vimpelcom or Verizon, reality is, Wind is foreign owned, and in Verizon’s case, seems to be willing to make the investment to make Wind (or Wind/Mobilicity) a viable fourth carreir in Canada. Why is this unfair.

      7. Bell & Telus share a network. They should only be allowed to bid on one block, not two (as is currently set up, Telus could get one block, and Bell could get one as well, but their network would be able to use 2 blocks, not one). In this case, Verizon being able to bid on 2 blocks is a non-issue. But in any case, I don’t see that Verizon even has any interest in any blocks of spectrum taht don’t match up with their spectrum licenses in the US. I see them bidding huge amounts on the block that they want, and not bothering to spend the money on the blocks that they don’t. The money that they don’t spend on buying up the other blocks will be used to expand the Wind (Wind/Mobilicity) network coverage, not employing the anti-competitive spectrum hoarding of the Big 3.

      8. Unless something happens to shake the Big 3 out of their colluding ways, plans will continue to go up in price, as they just did in the last month. I know that the contract terms have been reduced to 2 years from 3, but the prices for data have gone up far more than could be justified by the repayment of the hardware cost over 2 years vs. 3. A 6 GB data plan is now close to $100, where it used to be as low as $30.

      9. I sincerely hope the government extends the review period regarding buy outs of new entrants to the point that the spectrum licenses from people like Shaw end up reverting to the government as they have nto deployed any ceel service in the 5 year period. I also hope that Birch Hill will NOT be allowed to buy Wind due to the Roger’s presence.

      Kostas

    • Tim3Tripp3r

      +10 IMO You hit every point with a bulls eye dart.

    • kroms

      Your insane. Cost will continue to rise if the status Quo is what we have to live with. An industry needs to continuously change to grow and there has been nor will there EVER be a change in the Telecommunications Industry

    • Scott Palmer

      There are bandwidth limitations based on how much “spectrum” you are allowed to use. Regardless of how big Verizon would like to get, without enough spectrum, they couldn’t support the high user count.

      Since Rogers, Bell and Telus will all be competing against each other in the upcoming auction, and the amount they can buy is limited.. To get some more 700MHz through one of the small carriers is the only way to get an upper hand. RBT will have to compete for 700MHz.

      Rogers, Bell and Telus all want that 700MHz spectrum for their LTE offering. The more of that spectrum you have, the more load (users) you can handle on LTE.

      AWS bands are among the worst due to poor concrete penetration properties. That’s why the big 3 aren’t using it.

  • Kenny G

    I’m surprised Wind has so many subscribers. I wonder how many will leave Wind if Rogers takes over.

    • kroms

      Im a subscriber and I will Leave.

  • Chrome262

    You know if the government really wanted to insure competition, besdies doing what they are already doing, is charging each company with not competing. I mean if the problem is them then bust their a*s. Its three big companies they should be offering deals left and right.

    • shinek

      its really hard to prove… Traditionally one does something others match it, In theory that is competition lol Legally there isnt much the government can do, and yes they have their discount brand and that again is technically competition. I m not trying to take the side of the big 3 but that is unfortunately reality

    • Matt Z10

      I’m going to say that when they upped the price and then they all match it, Its not competition. the recent ‘promo plans’ of $100 for 5gb and nationwide were ridiculous. and they all went to the same price scheme.

      looking for input on this one

    • shinek

      I agree but with out real competition from outside of Canada this will continue to happen, They all have their fare share of the pie they arent going to go after each other because its just not a smart business decision to do so… if verizon does come in they have the deep pockets required to do something

    • Matt Z10

      point taken, they just shouldn’t be allowed to use the up starts as a launch pad

  • BB BB

    Bell has commercials on the radio saying how unfair it is if Verizon were to come here and we should all sign a petition. Lol. Rogers Bell Telus are all pooping their pants. Since when do they care about fair? This just shows how Rogers will do anything in their power to try and prevent Verizon from entering Canada. Let the fire works begin. I will switch to Verizon. Can you hear me now?

    • kroms

      YES Lets ALL sign a petition AGAINST ….. BELL , ROGERS , TELUS.
      It is THEM that should NOT be allowed to Continue to monopolize the telecommunications industry in Canada.

  • justin L

    For all these telecom companies that have been outsourcing jobs for years their commericals about saving jobs is a joke. Just go to manila you will see one of the tallest towers has a telus logo on it.

  • rgl168

    Funny how Robelus are running these ads on the radio along with creating the fairforcanda website, crying chicken little, when Verizon haven’t even announced anything.

    I’d say bring on the Verizon’s, T-Mo’s, Orange’s and Three’s to Canada and show Canadians how far behind the times we are compared to the rest of the world in the cell phone market.

  • Ryan Young

    This article reminded me of Batman Begins lol
    Bruce Wayne: [seated in the back of his car; he answers the phone] Bruce Wayne.
    Earle: What makes you think *you* can decide who’s running Wayne Enterprises?
    Bruce Wayne: Well, the fact that I’m the owner.
    Earle: What are you talking about? The company went public a week ago.
    Bruce Wayne: And I bought most of the shares – through various charitable foundations, and trusts, and so forth. Look, it’s all a bit technical, but the important thing is that *my* company’s future is secure.
    [speaks slightly louder]
    Bruce Wayne: Right, Mister Fox?
    Lucius Fox: Right you are, Mister Wayne.
    [turns to Earle, takes off his glasses, and relishly says]
    Lucius Fox: Didn’t you get the memo?

  • Anonymous501

    I think Rogers is missing the “Spirit” of what the CRTC/Canadian Government has been saying. I think the CRTC/Government wants competition in Canada. I don’t think they want one of the big 3 to permanantly block competition. All this does is allows Rogers to own wind by proxy. I would hope the CRTC/Government wouldn’t allow that either.

  • tyresmoke

    Those ads on the radio are SO misleading they make me want to flip tables in rage.

    They funded by the “Canadian Wireless Telecom Association”, the average consumer is to believe they represent the opinion of everyone in the industry. Well shocker, they do not. It mainly represents the interests of the Robellus cartel.

    The price study they are quoting looks at the top two carriers in the USA. It’s gives the false impression that Canada has more carriers than America. The US has four national networks, some regional services, and many MVNOs.

    Secondly, the “top two” American carriers the most expensive ones, so it wouldn’t be fair to compare their high averages to our entire market.

    I guess I’m not allowed to be surprised, their entire business is built in misleading people.

  • kroms

    I hope there is a petition against this…NO WAY I want Rogers buying up WIND.
    Absolutely NO WAY.

    This should not be allowed under No circumstances.

  • JTon

    Business as usual. Settle down buddy. You sound like they’ve taken you’re first born away

    • JTon

      Oh come on. Three exclamation marks in the quote. “Idiots.” A single sentence word with a period. If that’s not dramatic I don’t know what is

  • David

    Looks like if Rogers gets there way we might end up with 2 networks (Rogers/Wind, Bell/Telus) split across four cell companies. It might be that Rogers is finally realizing that it is better to share networks and lose a small number of customers to Wind than have to compete with another large independent network and lose a lot of customers to a Verizon owned Wind.

  • ScooterinAB

    Rogers funding the purchase of Wind is probably the best of a bad situation. In a perfect world, both Wind and Moblicity would double the cost of their rate plans so as to bring in enough revenue to ensure long term operations. That’s a fact, and those on the other side of the fence need to face it. Moblicity is reporting $30 million in losses per month. If they had a revenue, that wouldn’t be the case. Wind isn’t too far behind, but their main problem is about network growth. Without revenue, they can’t grow their network, and cannot bring in more customers. It’s basic economics.

    This mess with Verizon is that the CRTC hasn’t developed clear and thoughtful rules about handling the wireless industry. If they want a fourth carrier in every market, they need to develop a proper strategy for advocating for, funding, and supporting one. Handing the the keys to a foreign company without requiring any investment into the Canadian economy isn’t the answer. That is exactly what Bell and Telus has said. They aren’t trying to keep Verizon out of the market just because. They are trying to protect it from an abuse of rule and policies that are at the same time preventing Canadian companies from making similar moves (ie. Telus’ blocked move to buy Moblicity).

  • William Worlde

    This should be deemed anti-competitive by the CRTC or CWTC, or whomsoever is in charge of keeping the Triopoly in check!

  • Prashanna Kandiah

    The Big 3 have plenty of spectrum already.
    This is not tilting the playing field. This is giving a new entrant (Verizon) a fighting chance to have a business plan that actually offers a return on investment, and a reason to invest in Canada.

    The Big 3 want nothing more than the status quo, which means that they’ll swallow up Wind and Mobilicity in due course that monopoly not competition , just like they do any new entrants eventually (remember Clearnet and Microcell AKA FIDO?).

    WIND & Mobilicity are all ready on board discussions with Verizon in close doors

    one of investor said on CNBC

    If Verizon purchases Wind Mobile and Mobilicity it could use its ample
    cash to build a cutting edge 4G LTE network similar to the one it
    operates in the U.S., and give Canada’s big three wireless providers the
    competition Canadian consumers are looking for. Verizon currently
    offers the biggest 4G LTE network in the U.S. and has 119 million
    customers. The company could use its cash and know-how to create a
    similarly fast network for Canadian customers, and offer discounts on
    high-end smartphone models. like the iPhone U.S AND CANADA roaming free

    WIND & Mobilicity are all ready on board discussions with Verizon in close doors

    one of investor said on CNBC

    If Verizon purchases Wind Mobile and Mobilicity it could use its ample
    cash to build a cutting edge 4G LTE network similar to the one it
    operates in the U.S., and give Canada’s big three wireless providers the
    competition Canadian consumers are looking for. Verizon currently
    offers the biggest 4G LTE network in the U.S. and has 119 million
    customers. The company could use its cash and know-how to create a
    similarly fast network for Canadian customers, and offer discounts on
    high-end smartphone models. like the iPhone U.S AND CANADA roaming free

    VERZION has $20 BILLION

    - Verizon Could Unify the North American Wireless Market

    - Bidding for auction for up coming blocks of spectrum cost ($1 Billion to $2 Billion)

    - Merging WIND & Mobilicity as VERIZON WIRELESS CANADA ($2 Billion)

    TOTAL COST for Verzion ($4 billion + Capital Costs of Replacing WIND Mobile Infrastructure Estimated at $100 Million)
    WIND & Mobilicity and VERIZON IS READY AND SET waiting til the board of directors

    Verizon’s plans to change WIND Mobile AND Mobility ’s Huawei equipment with its own could cost up to $100 million dollars; the latter has been accused of having its equipment compromised by the Chinese government: from globe and mail
    Verizon will attack first Rogers home turf there can only be one RED color in Ontario bye bye Rogers DONT LET BOOT KICK YEA OH WAIT IT DID
    than Telus B.C
    last the empire BELL Québec

    in Canada

    AT&T (FAILED)

    SPRINT (FAILED)

    VERIZON (DROP OUT 2004/BACK IN 2013)

    this time there here to stay
    WELCOME BACK TO CANADA VERIZON :)

  • kroms

    GO Verizon! To you people who think this this will mean less JOBs like the BELL Add is trying to scam on us , think again. A Verizon operations in Canada will be manned by Canadians. What do they think? Verizon is going to hire US citizens to come work the Kiosks or stores in Canada ? LOL Give me a break. Besides every time a a Company cuts cost it’s ALWAYS the Employees that get let go first. This is World wide the de facto standard no matter where you live. Just ask BB.

  • ScooterinAB

    Still don’t know what you’re talking about. I recall calling Ontario the last time I called either. Some companies outsource, but that’s another topic entirely, and still has nothing to do with what’s being talked about. What’s being talked about is how “poor Wind” has no revenue and failed in the market, and how how the unlawful and unscrupulous entry of foreign powers isn’t good for this market.

  • Kenny G

    Anywhere but Rogers…

  • disqus_FqJrvM2zAR

    Smart move on Rogers end. This is one thing i like about Rogers. MAKE THINGS WORK. instead of Bell and Telus just sitting there waiting and crying. They’ve did it once with Chat’r they’re doing it again.

  • zephyre23

    The best way to end the 3 Big Douchebags of the north is by migrating from their services as fast as you can. The mass leave from all 3 services would make stocks plummet, investors pull out and they have to file for bankruptcy(which they hopefully don’t get). They need to be taught a lesson and talking is not gonna change anything. If even the population of toronto switched to wind or mobilicity, the big 3 would immediately be scared. They will be forced to change tactics right on the spot. I hate the 3 and always will (f$%k fido[subsidy]) and we need to teach them. Just leave them and go to another service other than the 3 and their subsidies, and they will learn. Lets teach the big guys a lesson from the little people :)

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