Mobilicity is expecting to end 2013 with 175,000 subscribers

Ian Hardy

December 16, 2013 2:11pm

Those interested in bidding for Mobilicity’s spectrum and subscriber were required to submit their intentions today by noon. An updated court document was posted by Ernst & Young today that gives a bit of insight into the struggling carriers current drama.

First, Mobilicity has extended the stay period to February 18th, 2014 (basically extending creditor protection). From a numbers perspective, Mobilicity is expecting to end 2013 with 175,000 active subscribers, seeing a customer churn rate of 5.1%. The court doc states that Mobilicity has also “maintained stability” and implemented some cost reductions, including moving their head office out of Vaughan and into a “smaller premises” in Woodbridge, plus “terminated certain employees who’s services were no longer required.”

It’ll be interesting to see who comes forward to bid on Mobilicity’s assets. The upcoming 700 MHz spectrum auction, which starts on January 14th, is by far top of mind for most carriers.

Source: EY (PDF)
(Thanks Misaow!)

  • Delphus

    Can you say desperate… but nobody’s biting…

    • realitycheck

      its for sale only to groups that don’t have the money or capability to do something of the purchase.

  • Jason S

    im really tired of hearing about how mobilicity is losing money and how theyre gonna auction it and it keeps being delayed….. this is super annoying and repetitive! just get it done and over with already!

    • CADDMan71

      If you’re tired of hearing it then don’t read stories about Mobilicity because that’s all there is to report on about this company. It’s been a total failure right from the beginning.

  • Sweet

    Is there anything in the Canadian wireless industry that gets done on time ? It’s really annoying. At least in this case, we know for sure that Mobilicity is going to be out of business some time, so we’re not sitting on the fence wondering if we need to change carriers or not.

  • Sweet

    My guess is that Mobilicity figures that potential bidders are waiting to see what happens to the 700MHz auction before they bid on Mobi’s spectrum. In other words, bidders who lose in the 700MHz auction may try to bid on Mobi’s spectrum. That’s my guess.

    • Balls O’Steele

      But if wind does 700mhz lte we would all have to get new phones.

    • Sweet

      That depends on the phone. I know BB’s Z10 and Q10 phones support LTE at 700MHz. I’m willing to bet that pentaband phones that support LTE also support LTE at 700MHz.

    • Nathan

      Sweet, I have a Z10. Future proof hardware.

      I know you might laugh, but BlackBerry isn’t dying anytime in the next couple years, after which, your contract is up or you just get a new phone on your usual schedule anyhow.

      I’m sure there will be some boxing days sales or something on the Z10, but not on the Q10. 10 days left to wait :)

    • Sweet

      I have a Z10 too. So, no, I won’t laugh. :-) BTW, according to the specs, the Z30 doesn’t support LTE at 700MHz. I’m pretty sure BB can add such support with a software update.

      I agree BB will be around for many more years, but I’m not sure they’ll be in the handset business in the long run. I hope they do stay in the handset biz. Their phones really do fill a niche that the other phones don’t come close to filling.

  • nexus5user@mail.com

    it would make most sense for wind to pick up mobilicity and make them a bit bigger and better. with the merge with the limited mobilicity cell towers, signal strength and connection would be improved for wind customers.
    i went recently to a wind store to pick up an updated microsim card for my nexus5 and they mentioned that once they get into the 700mhz spectrum, wind could be able to upgrade to lte. wouldnt that be grand??

    • Martin Chan

      The thing is with Wind is that they made the almost right move by increasing the number of towers and coverage first. This came at the expense of LTE but what good is LTE without coverage. I think that’s how they hopped over Moblicity. I haven’t had a dead signal within my city yet and Moblicity’s about useless.

      I feel like WIND’s somewhere just below that line of become a really good 4th player. They’re creeping up.
      I wouldn’t mind of Moblicity merged with Wind, LTE to Wind and it’ll solve the coverage problem.

    • imota

      Speak for yourself, Sir! I am a current Mobilicity user in Toronto, and I’ve never
      had any issues with the reception. In fact, I consider Mobilicity the best option for Toronto residents at the moment. As for Wind, my previous experience was a horror story. The coverage was abysmal, and the customer service behaved like gangsters.

      Martin Chan, are you paid by WIND officials to glorified their poor services on this forum? I wouldn’t be surprised.

    • nexus5user@mail.com

      based on my own experience in vancouver, i first jumped shift from telus to mobilicity. reception was inconsistent. my apt 1 room had a couple bars, move to another room. no reception. i later moved to wind, and no reception issues anywhere i’ve been.
      2 years now with wind and saving a chunk of money vs robelus

  • Sensualpoet

    The document cited was posted last week, with court sign-off coming this Thursday. It simply allows the company to continue with court protection as it completes the sale process. Deadline for bidders to submit qualifications was noon today. That does not appear to have changed.

  • Ken

    I agree that its a waiting game until after the auction is done with. I have been a Mobi customer for 3 years and have been very happy with there service. For $44.80 a month and that’s with all the bells and whistles I think for this senior is a happy camper. I was with Telus for 6 years and my wallet was always empty. Things do change and I hope we do have a fourth carrier in Canada. Robelus needs there empires broken up but that will only happen in the twilight zone. LOL

  • Rameez Sehgal

    So whats the best option for Mobilicity customers? Switch to Wind or Kudo. Wind is offering a $39 plan and Kodo has one for $40. Since Kodo is a child of bigger Telecom, i guess its safer to go with Kodo? Any suggestions? And do you guys think that Mobilicity is in any position to offer more discounts to its customers, just to keep the subscriber numbers up till February 2014?

    • Sweet

      Wind offers you much more minutes and data per month, whereas Koodo offers greater coverage and better network quality of service. Which ever one is best for you will depend on your needs. Wind suits my needs much better than Koodo.

    • Rameez Sehgal

      Sweet. Thanks for the reply. You are right, the unlimited option from Wind is just amazing. Im just concerned about the Data speeds. Have no clue about 4G or LTE etc. Since you are using Wind, may i know how is your internet speed? Checking maps, skype etc.

    • Sweet

      Actually, I’m not using Wind yet. I’m still with Mobilicity. But I will be moving to Wind before the end of the month. From what I’ve read, the speed with Wind is somewhere between 3-8Mbps during the day (peak hours) in Toronto. So I’ll probably get the similar speeds here in Vancouver.

    • Rameez Sehgal

      3mbps is good enough for me. By the way, if you stay with mobilicity, let’s say if they offer you great discounts just to keep their subscriber number around 175k till Feb 2014, do you think its a smart choice? Considering that in Jan or Feb, who ever takes it, Wind/Telus, mobilicity customers will be automatically switched to new Carrier’s network (i.e. faster network+more coverage area) at Mobilicty’s price? Or you think the price tag will change even for existing customers, after the company is sold?

    • D Kup

      If you are in GTA, Wind is very good for the money that you are paying. However, it depends on which area of GTA you are in. For me, downtown and Scarborough are good but a few dead spots.

      For your data speed question, it generally acceptable but during peak hours at downtown, it could be slow. For me, I streamed about 5 videos a month and speed is not a big concern for me. I use my phone mostly for stock quotes, facebook, whatsapp and other gaming apps.

    • Rameez Sehgal

      Thanks Kup. I live in west end of M’sauga area. I mostly need to check maps/traffic and sometimes skype voice calls. If you could get 5 videos a month, i guess Wind will be perfectly ok for my usage.

    • D Kup

      Oh… One more thing…. For as long as you don’t live in a basement, you should be fine.

    • deltatux

      WIND is aggressively expanding the west side of the GTA, while leaving us on the east side a bit worse off. They’ve been building lots of towers in Mississauga so I’d be surprised if you don’t get good signal (unless you have lots of walls in between you and the tower).

    • Rameez Sehgal

      That’s awesome! Thanks Deltalux, one more strong reason to switch to Wind asap :)

    • imota

      Hello deltatux! How come you are not telling the real story about your company (Wind Mobile)? I used to be your customer, man. And guess what?
      Just after three days of using your supposedly unlimited services in the so called Wind-home area in southern Ontario, I was abruptly disconnected and charged $1000 dollars for roaming. Creepy, isn’t it?

      As for my current provider (Mobilicity), I’ve never had any problems with them. Mobilicity provides better services than your company – Wind Mobile, and there aren’t any nasty surprises. In short, I will stay with Mobilicity to the very end. As for WIND, I wish you slow and painful death. I am so damn angry!

    • Sweet

      I don’t expect Mobi to offer service any lower than they are now. I’m on the $45/month plan for $35/month for “life” right now and I don’t see how they can make that any cheaper.

      Also, you are not locked into Mobi with a contract. So Mobi’s buyer has no obligation to keep charging you the same price as Mobi is. Which means, if they switch you over to their buyer’s network, the buyer is going to convert you over to one of their plans. Not being locked into a contract also means that Mobi’s customers don’t have to sign up with the buyer and can leave the buyer any time they want, which makes buying Mobi’s customer base a waste of money. That’s why I don’t see why any business would want to buy Mobilicity’s customer base.

    • Rameez Sehgal

      Thanks Sweet, really appreciate your detailed response. It makes it easier for me to change to Wind. I was thinking of staying with M’city & upgrading to $30 plan in hopes that the new buyer will continue on the same price. So i will get great price and great coverage too. But you are right, since we are not on contract, why would the new buyer not increase the price. So i better switch to Wind while their $39 plan is on.

    • Martini

      Keep in mind that Wind’s $39 plan is only available if you get one of their devices. If you plan to bring your own, you’re not eligible.

    • Ramzay

      This is not true. The “bring your own phone” deal means that you’ll get credits on your bill each month for up to 20 months if you use your own phone rather than buying one from them. Their $39 promo won’t allow this. Meaning that if you do bring your own phone, you will not be eligible for those monthly credits.

      You can, however, bring your own phone and get the $39 promotional plan.

    • Martini

      Thank you for clarifying.

  • HelloCDN

    If you still haven’t switched from Mobilicity to at least Wind, then you are either international student or don’t know how to handle your money.

    • Rameez Sehgal

      Really? Im still paying lot less than Wind’s $39 plan. Even if i wait till Jan or Feb, still I wont end up over paying. Wind or Kodo will still have a $40plan, who knows Kodo’s might even introduce a lower plan to get more subscribers from Wind, once M’city is out of the picture.

      Perhaps you need to learn how to calculate or at least ask before passing your judgements.

    • Ramzay

      While HelloCDN’s comments were harsh and not worded very well, the underlying sentiment is that Mobilicity’s deals and promotions aren’t very good if you consider the fact they won’t be around much longer (the company that is).

      While WIND’s current $39 promo isn’t as good as Mobilicity’s, at least the WIND promo will be valid for the forseeable future (in the sense that the company will be around). In a few months, there’s a good chance your Mobilicity account will be shut down.

      So, in that sense, staying with Mobilicity means you’re really only thinking about the short term. In the long-term, you’ll do better to sign up with WIND right now. Maybe you’ll save $10-$20 by staying with Mobi for the next few months, but after that they’ll shut down and then the best you’ll be able to get is WIND’s normal $40 plan.

    • Rameez Sehgal

      Thank you Ramzay. Your response was very informative. Do you have any info regarding Koodo’s network strength and data speed compared to Wind. Wind users have been telling that its weak in basements. I just know that Koodo’s coverage is larger than Wind, but have no clue about data speeds and strength. Thanks.

    • imota

      To HelloCDN: You are obviously a WIND employee, paid to write on this forum and trying to win over as many customers as possible.

      How about all Wind customers switching to Mobilicity. Why not? Mobilicity’s services are better and cheaper and there is a real possibility it stays that way in the future, even after Mobilicity is purchesed by another company. You get better services with the lowest price.

  • Delphus

    Agreed, should have said “nobody that can do anything is biting” because there is nobody that can do anything out there…Thanks to Harper!

  • Scott Harkness

    If I have one wish this holidays, it is that Mobilesyrup aquires a different stock photo to use for Mobilicity stories..!