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)