Mobilicity proposes TELUS acquire its assets for $350 million

Ian Hardy

April 18, 2014 3:10 am

Looks like those rumours of TELUS attempting to once again acquire Mobilicity for $350 million were true.

Mobilicity is currently under court protection from its creditors and has been seeking a buyer since last September. The struggling carrier recently auctioned off its spectrum and subscriber base and according to a press release a total of “six organizations submitted participating materials and five bids were received.” Mobilicity and its Chief Restructuring Officer William Aziz declared that after looking through potential bids, TELUS’ offer was the only one “determined to be an acceptable transaction.”

The total proposed price is $350 million, which is $30 million lower than TELUS’ first offer last June. Mobilicity currently has 165,000 active subscribers and the proposal suggests customers “will be able to seamlessly migrate onto TELUS’ advanced HSPA network after the transition.” TELUS and Mobilicity note that there are “no foreseen changes to employee staffing levels” and “all of Mobilicity’s retail landlords and licensors will have their contracts honoured.” TELUS is currently going through a similar structure with the newly acquired Public Mobile brand.

“The Transaction is a good outcome from Mobilicity’s restructuring efforts and extensive Sales Process. I am confident the Transaction will serve the best interests of Mobilicity’s customers and employees,” said Aziz.

This deal just might get the green light and needs approvals by the Ontario Superior Court of Justice, the Competition Bureau, Industry Canada, and Mobilicity’s debtholders.

During the 2008 spectrum auction, Mobilicity invested $243.1-million for 10 licenses in Toronto, Vancouver, Calgary, Edmonton and Ottawa. In the meantime, Mobilicity said “it continues to be business as usual” and they “want to thank our valued customers for continuing to stand by us as we progress through this process… We have found them a good home with TELUS.”

Source: CNW

  • JB

    Will. Not. Be. Approved.

    • E-mann

      Really Mobilicity!? No means no!

    • alphs22

      Of course they’re not going to back down and sell their assets at half price. Would you?

      The government no longer have no solid ground to deny the deal since the 5-year no transfer clause is now expired. This will end up going through.

    • Savbers

      Affects competition…..

    • thisiscjay

      It will go through now.

    • E-mann

      Why? No difference now. Mobilicity had buyers who were able to buy them but they declined. (EX. Wind Mobile) Mobilicity is greedy and Telus is power hungry. This will not go through.

      Plus after what happened with Public Mobile. This is not going to be about the customers who are on Mobilicity. They will all leave to due to new higher plans.

    • E-mann

      So? The government does not care about the 5-year deal. They stated no means no.

    • mastjaso

      Ha given this government you really believe that? They cant even follow the letter of the law let alone the spirit.

    • someguy

      The CRTC will that’s for sure….We all know Telus doesn’t care about Mobilicity’s customers, just the spectrum.

  • DefinitelyAbsolute

    I wonder if the plans that consumers have will be affected if this deal goes through for eg someone have unlimited everything with Mobilicity, can Telus change their monthly plan, not sure if licensors
    means consumers.

    • fenrrito

      Ask the ppl from Public, they were acquired by Telus a few months ago, look it up on Google, then u’ll have ur answer…

    • DefinitelyAbsolute

      I’ll call Mobilicity, if not satisfied ill do as you mentioned but prob use Bing instead if Google or both.

    • nekkidtruth

      The search engine doesn’t matter. Neither will Mobilicity’s answer if asked directly. Right here on MobileSyrup there are a few stories. Bottom line: TELUS has done the equivalent of your parent telling you they’ll pick you up after school. So you wait. You wait some more, then decide to just walk home because they never showed up. When you get home, you realize no one’s there and the house has been cleared out. That’s right, they’ve moved on. Also, if you want a key to their new house, you’ll have to pay for it.

    • TrOuBLeDbOy

      haha excellent analogy

    • Dano B.

      Public operated on a CDMA network that was already set to be shut down – apples and oranges.

    • someguy

      Some of the plans were changed and that unlimited data feature they had has been reduced to just 1GB.

    • alphs22

      You’re not going to be able to keep your ridiculously priced plans. After all those prices ended up dragging Mobi down the hole they’re in.

      Besides if Telus does by them out, your coverage area suddenly becomes nation-wide. You can’t expect them to honour prices for a plan that was very limited in coverage.

    • neodoru

      Since there’s no long term contract, they can modify it at their discretion.

    • someguy

      Every agreement from every single company, in the fine print states that “plans can be changed without notice”. But no ever reads the fine print

  • Matt

    If Telus does buy Mobilicity. None of Mobilicity’s customers will migrate over to Telus after Telus closes Mobilicity. They signed up for good value prices. And Telus prices are to expensive. They will all just go over to Wind Mobile for the same Value as Mobilicity. And Mobilicity thinking this is good competition to sell to Telus is a joke. There is no competition in Canada. The only good alternative when Mobilicity closes its door will only be Wind Mobile. The only good thing Mobilicity could of done is sell to Wind mobile cause their customers will be moving over to Wind Mobile anyway after the deal. I’d love for the Federal Government to change the Foreign ownership rules for Telecom industry. Let in Any company that wants to come to Canada. Let’s have some real competition in Canada. Love to see some European companies come to Canada and prices would be very low. I think the Government is being paid off by Big 3 to stop competition .

    • Paul

      I am surprised people are always complaining about cell phone bills but not about high gas prices or insurance rates.. we are getting ripped off their too. Has the government addressed those issues?

    • ReGenesis

      I think you are on the wrong website if you want to complain about high gas prices or insurance rates.

    • Paul

      Actually I am on the right website. I am saying people are looking a a very small issue when it comes to cellphones. We are being led to believe the government really cares about better prices. When this is a small issue. Europe has different prices because they pay full price for their device.

    • ToniCipriani

      Hole in the logic is, the carriers are artificially making it impossible to pay full price for the phone to actually get a deal on the plan, or even a shorter contract. It got a little better with BYOD discounts but not by much.

      And since you brought up subsidies on European carriers, they do have them, and is MUCH better laid out showing the actual cost going into the phone and plan. Go ahead and take a look at Vodafone UK’s website.

    • Paul

      Not sure when you said better laid out what you mean. I checked out the website and it is clear just as the local carriers. They now have 24 months as we do now. They have options to trade phones as we do. They also have a huge pay as you go market just as Latin America and the Caribbean. We have a different market in North America so we rely heavily on month plans. Also take in to account the prices that you see are on pounds. Also for Canadians we have a smaller population with a wider vast of land to cover. I will also say this don’t let the government fool you they make a very good penny of the wireless carriers.

    • Eli_Vance

      Same old excuses for the Canadian telco industry.

      Just wake up and accept the fact that we are getting ripped off by the 3 crooks.

    • ScooterinAB

      Same old excuses by people who always think the grass is greener elsewhere or think they know how business works from their arm chair.

      Just wake up and accept the fact that no on wants to drop $700-1000 every time they turn around for a phone, and that the majority of Canadians honestly prefer a service provider that can actually provider service to one that promises sunshine, rainbows, and unicorns.

    • Eli_Vance

      $700-1000 each time they want a phone? Many carriers in Europe and UK give away phones for peanuts to new subscribers or as party of loyalty programs. That is especially the case for phones over a year old, while phones that old in Canada still retail for their original price.

    • ScooterinAB

      Phones cost $700-1000. Age does not change the fact that companies still have resources tied up in inventory. Econ 101. The reason why they are selling off phones for a song in the UK is obviously as a clearance item in hopes of making back some of those resources and make room for new stock. Again, Econ 101.

      Take any Business or Economics course, or watch any children’s cartoon that talks about business (Looney Tunes has some good ones) and this will become crystal clear. Just because you don’t want it to cost $700-1000 doesn’t change the fact that companies have that money tied up in each and every phone.

    • Eli_Vance

      Nice to see you have been brainwashed by greedy North American corporations that keep making excuses to rip people off while turning in record profits.

      Many of us have experienced life in Europe with lower mobile plans, lower cost of living, better social programs etc. But yeah keep beating that patriotic drum and hope that nothing ever changes for the better in this country.

    • What?

      You are out of your mind if you think that life in Europe is so much better. The socialists are going to drive us all into poverty.

    • arahman21

      What SHOULD be done, is separating the monthly cost of the phone from the plans, so Robellus can’t pretend that they have to hike prices to recoup the cost of the phone.

    • arahman21

      Well, I don’t drive a car, so there’s that- TTC serves me just fine.

    • ScooterinAB

      While I agree that transit is valid option where available, I could no longer continue living without a car. Props for being able to use it.

    • hardy83

      Uhh, people complain about those a lot too.
      Do you expect those topics to come up on a wireless industry focused website though?

    • Wufai

      I only complain about wireless bills becuase it is expensive in comparsion to international standards. Europe pays double the gas price we do. And although insurance rate is expensive internationally, other countries pays through the roof for their annual car license. However Canada has the highest wireless bills out of all the developed countries in the world, and hence I complain. (Check out the little 3 offering 50MB data from their LTE service? doesn’t make much sense to me.)

    • Columbo

      You think people don’t complain about gas prices? What planet are you living on?

    • Disparishun

      If European companies want to come over and compete in Canada, what’s stopping them from doing so?

    • Matt

      What’s stopping them. The Federal Government is stopping them with Foreign Ownership rules and Regulations.

    • StatelyAutomaton

      They have and they aren’t making any money out of it. Vimpelcom is a Dutch/Russian company, after all.

    • ScooterinAB

      Geography and a business model that would fail here are what is stopping them. While government regulation is complicating things, if a single, valid company seriously approached Canada with a functioning business model and an open wallet (instead of someone with dollar signs in their eyes looking at this as a cash grab), they’d be let in without a thought. The problem lies in what that business model looks like (which is why every company that has expressed interest has pulled out). We have to remember that Canada is much larger than any other region on Earth (save for Russia) with a much smaller population density. It is simply too unprofitable for any outside company to come here, lay the infrastructure, and then try and make their nickels and dimes back. Canadian wireless simply doesn’t work the same way that wireless in other countries works. What works in Europe, Asia, and the US simply isn’t sustainable nor profitable here.

    • Eli_Vance

      People keep spewing the excuse that Canada is a vary large land mass and thus hard to build a network on. The reality is that much of the population is actually located in small pockets all over the country and close to the US border.

    • ScooterinAB

      While partially true, the truth is that Canada’s population is largely spread out and lightly populated along those areas. Perfect example is the prairies. Alberta is populated from border to border on all four sides. While most of the population is in one or two cities, huge numbers of Canadians live outside of those areas. It costs a fortune to lay towers in that province, but you are shooting yourself in the foot if you dare spit on oil money and cut Fort Mac out of the equation. Saskatchewan is much smaller but no less spread out. While Ontario and Quebec are largely metro-populated, you simply cannot ignore the rest of the lightly populated Canada. Canada is not Europe. Canada is not the US. Canada is not Asia. We simple do not has the critical mass of population needed to make their business models work here. So no, this isn’t a “spewed excuse,” but scientific fact. And the sooner people learn it and deal with it, the better off we will be.

      If you don’t believe me, grab a Sociology or stats textbook. You’d be surprised how many Canadians DO NOT live in Toronto.

    • Benny X

      many Canadians may not live in Toronto, but take a look at how many people live in the ‘Golden Horseshoe’ area of Ontario. That right there represents over a quarter of Canada’s population.

      There are 4 regions of the country that if combined represent 30 million people: the Golden Horseshoe area, and the Greater Vancouver, Edmonton, and Calgary areas.

      Now throw in Montreal and Quebec City’s metropolitan area population as well as Ottawa-Gatineau’s. That’s over 6 million people.

      The argument that Canada’s population is spread out and the economics for cellphone companies don’t work is simply BS.

    • Steve Lee

      again, building a national network involves actually building across the country, and not just along the southern line.

    • Benny X

      Correct, but if one is just starting out and wants to start making money from the outset, it’s a good idea to start building in the most populous areas first. Was I speaking Greek in my post or something? I believe I listed the most populous areas of the country, and they were spread out across 4 provinces. I don’t think any communications company has ever *not* built out their network starting with the most populated areas of a country. It’s common sense. They worry about reaching the rest of the country later.

    • ScooterinAB

      All I have to say is grab a Sociology or Stats textbook and prepare to be proven wrong. Not everyone lives in Toronto, and the second you understand what I mean by those five words, you will understand what I am saying.

    • Benny X

      What part of my post did you find confusing? Where did I say everyone lives in Toronto? I merely pointed out the most populous areas of the country, the most populous area being in Ontario. I don’t need a textbook to tell me what the facts are.

    • ScooterinAB

      You’re ignoring em, so I’m just going to ignore you. Not everyone lives in a small handful of cities along the US border. Any Sociology or Statistics text will clearly point this out to you. But if you had read what I wrote instead of ignoring it and becoming angry with me, you’d know that.

    • Benny X

      ok so not only am I saying that everyone lives along the US border, now I’m angry too?

      Are you drunk? lol

    • Richard Wangly

      Sounds like you’re saying new entrants would only need to build out like Wind and Mobilicity have done… Except that doesn’t seem to be working all that well.

    • Steve Lee

      to build a national network, you unfortunately can’t avoid building out in areas where there is little population. Everything needs to link together.

    • Benny X

      Eventually, it does all link together. But not *at first*. You build where the easy money is, first, then you expand.

    • What?

      That’s not how is works. Sure, you pick the low hanging fruit first but the business case for the low density areas for a new entrant will never look good. The last one into the market has to fight really hard and actually building network is expensive. Maybe they could go in as a wholesaler if the rules are changed. But, as a shareholder I would be furious if the government robbed me of the value of my asset. If the government wants to lower prices they can buy my corporation at a fair price and then run the company into the ground.

    • Reagan Podelec

      Drop your cell phone if its too expensive for you. These retailers are charging with what the market will bear. If you have a problem with it discontinue your service. If your with a cheaper provider quit your bitching a deal with your limited coverage.

      Everyone fails to see the government has made the rules provided the guidelines and sold the spectrum at outlandish prices to compete in this industry. Can you really blame these guys for wanting to charge for getting some of their capital back and shelling out $500 million for air frequencies? The big three pay the goverment off not under the table but in taxes, operations costs, spectrum over charges and crtc penalties and licenses to keep the doors open. Why do you think mobilicity is out of business? The government is just as much to blame as the industry.

      Winds prices remain low because of three reasons. Low subscriber base, small infrastructure, limited spectrum. Now don’t you think for one second that they wouldn’t be charging the same rates if they had Bell, Rogers or Telus’s network? Your naive if you don’t.

      The only voice you people have is to drop the phones and data and show them that your fed up. No political movement can force companies to logically price themselves down…

    • Guest

      You’re*

    • What?

      douche

    • wildspin

      I totally agree. People need to vote with their wallets – not their keyboards.

      I have used Wind’s service and I think their service in GTA core is actually more than good enough for most average users yet a lot of people still flock to sign on with Robellus. To me, there are only 2 reasons which can explain:

      1. Wind is too bad and totally unusable – which is NOT the case
      2. Most people really don’t care how much they burn through their pockets – which is actually quite possibly true. ;-)

    • HeyYoWL

      No I don’t believe it’s either one if you’re in the core GTA. It’s more that the Big 3 have always been here. It’s a familiar face if you will, and so there’s a belief in the quality of service. Whereas Wind is relatively new in the grand scheme of things and there’s always a bit of mistrust for the new guys.

      The second part of the problem is that most people are i****s. They see “(insert the newest shiny smartphone) for $199!” and think “I can afford that!” and blindly sign up for a $70 plan, not really thinking about he long term costs of staying with the Big 3. Whereas I pay $30 a month with Wind and in 2 years time could afford to pay for the new phone outright with my savings, those same i****s will continue thinking they’re getting a great deal when in fact they’re really paying to drop their pants.

    • RoboBonobo

      It’d actually cost me a lot more, over the long term, to go with WIND than I pay for nationwide data coverage with Bell.
      It’s not because we’re stupid. It’s because we’re smart enough not to sign up for $1/MB data roaming.

    • Anon-e-mouse

      This may be true for you, but a good portion of the urban population rarley ever leave the city, and even if they do it’s not for very long.

    • RoboBonobo

      LOL BS

    • Anon-e-mouse

      Well at least in Vancouver for example, basically all the surrounding cities are covered by Mobilicty. I know many people who rarely go beyond the coverage limits unless they’re going vacation.

    • Guest

      Anyways, the point is that many people who would be well served by Wind/Mobilicity’s coverage are blindly shelling out money to the Big 3 instead.

    • RoboBonobo

      That’s still not a valid point. As long as it costs $1024/GB for data roaming, it doesn’t matter if you frequently leave the coverage or not. Most people leave the city at some point, and you can blow more than your yearly savings over a weekend out of town.

    • HeyYoWL

      I leave the coverage area very rarely. And when I do its usually in an out of the way area where I don’t need data anyways. I would never blow through 1gb of data over a weekend, though it sounds like you would. Again, I don’t see your usage as the majority. I rarely use more than 3gb a month. But I hear of others who max out 6gb easily month to month, but those are usually not the average user.

    • RoboBonobo

      You’d only need to use about 400MB of roaming data over a year to lose all your savings. That’s super easy to go through. That’s how much data you’d use if you downloaded the facebook app. One app. It’d take less than a minute to lose all your savings for the year.

    • WiZZLa

      “You’d only need to use about 400MB of roaming data over a year to lose
      all your savings. That’s super easy to go through. That’s how much data
      you’d use if you downloaded the facebook app. One app. It’d take less
      than a minute to lose all your savings for the year.”

      The Facebook app is 400MB? Geez, these mobile apps are getting quite large, especially if you are ignorant and uninformed.

      I’m also surprised at how it would take 1 minute to download 400MB, I thought WIND was slow, even when you’re roaming.

    • RoboBonobo

      Ah, you’re right. I was definitely exaggerating.. Downloading and logging into facebook would actually only cost about $100… Still not really helping the case for WIND.

    • WiZZLa

      $100 = 100 MB of non-U.S. roaming data, correct? Are you still exaggerating or are you being serious now?

    • jlouren

      Try using your robelus phone across the usa. When you get home you’ll have to take out a second mortgage .Ha ha

    • Anon-e-mouse

      Anyways, the point is that many people who would be well served by Wind/Mobilicity’s coverage are blindly shelling out money to the Big 3 instead. To each their own I guess.

    • HeyYoWL

      In what way? I’m truly curious. How is it possible that you would be paying more long term? Are you constantly roaming? Because most people I know aren’t roaming constantly.

    • RoboBonobo

      I go out of the coverage for less than a week, about 1 to 3 times per year, sometimes more… Let’s say I only go out of the coverage for about 4 days per year, and I use average 100mb per day while roaming (the same as what you say you sometimes use, if you say you used about 3GB per month / 100MB per day) poof, all savings gone. No, I’m not roaming constantly. The point is that WIND is bad if you might ever leave the coverage at all.. Do most people you know *ever* leave the coverage area? Would they be comfortable with a $200 (or higher) bill if they go out of town for a long weekend? That’s the real question.
      I think most people might possibly leave the coverage area at some point during a typical year and they don’t want to pay hundreds of dollars for a phone they’ll sometimes not be able to afford to use.
      But hey, if you’re fine with paying hundreds of dollars for something that’s not always economical to use, and that works for you, great! Good for you man. My point is that it’s a lot more complicated than “most people are i****s who shell out money to the big 3.”

    • HeyYoWL

      Yes but that’s you when you choose to use roaming. That’s fine if you choose to do that. I never bother with roaming because of the high prices (and I just get local SIMs on my phone so I never pay these high prices). I understand that you choose to use your carrier’s roaming. Most people I know, whether it’s friends or family, don’t. I rarely use Facebook myself and if I use data it’s more likely I’m browsing stuff online or using Whatsapp, which may or may not use a lot of data depending on the website. But again, I don’t roam, so this is a moot point. I’m not saying it’s for everyone, but the people who aren’t like you (who don’t roam), stick with the Big 3 too for the reasons I stated above (I believe).

    • RoboBonobo

      BS man, yeah. If it works for you, fine. Like I said, good for you. It doesn’t work for most people. Most people do leave the coverage at some point or other, or they at least like to have the option available. I already explained 2 different ways how you can lose all your savings by going out of the coverage just one time. It’s not because they’re “i****s”. Obviously you’re missing the point.

    • HeyYoWL

      So the idea that not everyone has your usage patterns is BS? Right.. For someone like you, cool, you need the roaming. For someone like you who HAS to roam that much then yes, I’d stick with the Big 3, you’re not the type of person I’m talking about.

      I’m referring to the people who don’t have a need to roam annually (and there are lots who don’t), who still stick with them. There are people who are that dumb. If you personally didn’t have need to roam annually (I never do) would you not go for Wind? Of course, savings are worth it. But many who don’t roam still choose to stick with the Big 3 for one of my hypothesized reasons.

    • RoboBonobo

      This isn’t about my specific usage patterns. You don’t have to leave the area annually for it to make sense to stick with the big 3.. WIND charges so much money for data roaming that it makes no sense to go with them if you think you *might* *ever*, *at any point*, want your device to be fully functional outside of WIND’s coverage. People are smarter than you’re giving them credit for. They don’t want what you want; that doesn’t make them dumb.

    • HeyYoWL

      This isn’t about me being smarter than anyone. You think this is about me being high and mighty, but it’s not. There isn’t the slightest chance I’ll ever want to use roaming data period. Minutes, sure, but not data. This is totally based off your own usage patterns. And I have a feeling the average person doesn’t bother roaming with their data, certainly not enough to pay double, triple a month what I pay. That just sounds ridiculous, pay $60-90 a month just in case there’s a chance I might need roaming data? That’s just a waste of money.

      Do you really think absolutely everyone who uses data or a smart phone has done their research? I know of many people who don’t do the proper research and go by what’s the promotion of the month so that they can get with their shiny new phone. There are plenty of dumb people who don’t really consider the true cost of their phone discount versus what they pay for monthly on their bill. It’d pretty naive to think that these people don’t exist, or that many are simply afraid to try a smaller company because of the reasons I’ve stated already. I didn’t say that stupidity was the only reason after all, I also said that some people are simply afraid to give the little guys a try.

      I’m not saying it’s not possible that there aren’t people who would benefit from the extra stuff the Big 3 offer, but I have an extremely hard time believing that a big chunk of those customers wouldn’t be perfectly fine with Wind’s coverage because they themselves rarely leave the coverage areas. Between the areas I’m in within the GTA I’ve never not been in a Wind zone.

    • RoboBonobo

      You say this not about you being high and mighty, but you’re calling people dumb just because they don’t want what you want.
      And you’re totally missing the point. This has nothing to do with me or my usage patterns. I’ve given you reasons why people might stick with the big 3 even if they don’t have plans to leave the coverage. I’ve explained multiple times how using your data outside the coverage, even just a little, will result in receiving a bill for hundreds of dollars and possibly destroy all your savings. You keep saying how dumb people are, but if you’re only saving $30/mo and spending that money on a phone upgrade, you’re no farther ahead than someone who pays less for their phone and $30 more per month for their plan. So it costs you the same over the long run, but you have to have your data turned off if you ever, by chance, might leave the coverage area. That’s not a very good deal for most people. That’s why they stay with the big 3. It’s not because they’re dumb. I don’t know how many more ways I can explain this for you to still not get the point.

    • What?

      It will not result in a bill unless you choose to roam. Take some responsibility for yourself and stop whining.

    • What?

      No it isn’t more complicated. The fact that you are too lazy to save yourself five hundred dollars per year really says it all. Fat dumb and happy Canadians can and will pay what the industry wants. The idea that you HAVE to have connectivity through your Canadian provider when you leave the country or local area is laughable. The fact is that you will pay for the convenience, which is your right.

    • RoboBonobo

      You save that money on your bill, and then when you need a new phone it costs you 5x as much, so you’re not really coming out that far ahead. Certainly not enough to justify not being able to use data when I leave the local calling area. What it comes down to is a choice: do you want to maybe save a very little amount of money, dependent upon your choice of phone? or do you want your phone to always have its service turned on?
      Making a different choice than the one you made doesn’t make anyone dumb, lazy, or fat. What it comes down to is what people value: most people will usually pay a little bit more for something that will always work, versus paying slightly less for something that doesn’t always work.

    • Anon-e-mouse

      I couldn’t have said it better myself. Thank you for speaking what was on my mind as well!!!!

    • Benny X

      Wind’s prices remain low because they need to look like they are competing. Instead, they are losing money hand over fist and the parent company isn’t likely to accept that ‘strategy’ forever. Wind will be bought out just as Public Mobile has and Mobilicity will soon be.

  • Daniel Hewett

    What would people prefer….TELUS buying Mobilicity or Mobilicity just going out of business?

    • scunty

      Oh wow, you must be a business analyst with insider knowledge? Please enlighten us about how to came to know about Mobilicity’s business plan.

    • Anon-e-mouse

      Well said scunty. Although I do agree with Daniel’s point about Mobilicity being mis-manged.

    • RoboBonobo

      lol, it’s called observation

    • Steve Lee

      yeah, duh… This really speaks to how we’ve become blind cattle. Even someone with no knowledge on financial matters would come to a logical conclusion there.. Hmm, they have the lowest plans, hmm, they are all in financial difficulty or bought out.
      If we are to have true, lasting competition in Canada, we need someone who has the intent and follow through to establish and last in Canada’s wireless industry. It will cost them up front so it’s really an appetite for long term investment. We’ve seen clearly that the shotgun approach does not work at all..

    • Matt

      I’d prefer Wind Mobile to buy Mobilicity than a evil company like Telus. Telus only want to buy them to shut down competition not to help competition that’s their only motive.

    • Daniel Hewett

      But that wasn’t an option. Wind clearly doesn’t want to buy mobilicity or can’t afford it. So in the real world it’s 2 options at this point. Telus or out of business. Are you seriously telling me that you would prefer that all those subs just lose service and all those employees lose their jobs?

    • Steve Lee

      how long do you think Wind can keep things up? (they are also losing their financing from their big parent, who do not want to spend a penny more in investing in Canadian operations). So that doesn’t really help competition either does it?

    • Anaron

      “Their plan all along was to pump up their numbers with unsustainable plans and then sell to one of the big three.”

      It’s sad that even for a moment, you thought you knew what their business plan was. Care to share any other “insider” knowledge?

  • Thomas Ramsay

    Why can’t Wind Mobile and Mobilicity merge

    • Todd Clayton

      Because Mobilicity and WIND are far apart on what a fair offer is. They seem to think their 150,000 customers paying $15 each a month is somehow very valuable.

    • Dylan Arbour

      Incorrect. The spectrum is what is valuable, and what Telus wants, not the customer base. Wind has no money to buy Mobilicity and Mobilicity’s shareholders want to maximize their returns.

    • ScooterinAB

      Bingo. Wind wants the customers, spectrum, and the large fries and drink that go with it, all for the same $4.99 price many of their customers expect. Even though they have completely failed at it, Mobilicity is still a business and is choosing the best offer on the table for them. Telus can actually pay them for the spectrum, while Wind cannot. Where the customers go is simple a matter of logistics, since many will or will not go to Wind (the next cheapest option), regardless of how the transaction pans out and if they can every have service again with Wind (a variable in the equation).

      At the end of the day, Wind and Mibilicity can’t merge because Wind offers Mobilicity nothing to do so, while Telus is actually making a sound business offer. Whether it gets blocked for a fourth (fifth, sixth?) time remains to be seen.

    • dorbit

      The tax losses also hold substantial value to Telus. They have little value to Wind.

    • Guest

      You obviously didn’t understand Todd Clayton’s point. He was being sarcastic.

  • Henry Huynh

    Well I guess wind is going to make another push to get mobilicity’s customers… It’s not like there is incentives for the big 3 to attempt to get mobilicity’s customers anyways

  • Tom

    “will be able to seamlessly migrate onto TELUS’ advanced HSPA network after the transition.”
    Yes and no. Customers using older handsets that only support AWS and 2100 Mhz for HSPA won’t be able to migrate. Newer AWS-supporting handsets are generally quad/pentaband (i.e. all Nexuses since the Galaxy Nexus) so those will be able to transition to the Telus HSPA frequencies.

  • AllanVS

    Eng.: No, Mobilicity Owners, you can NOT be bought by Telus. Stop asking. Sincerely, The Government of Canada
    Rus.: Нет, Mobilicity Владельцы, вы не можете быть куплен Telus. Хватит задавать. С уважением, Правительство Канады
    Heb.: לא, Mobilicity בעלים, אתה לא יכול להיות נרכש על ידי Telus. תפסיק לשאול. בכבוד רב,
    ממשלת קנדה

    MAYBE now they’ll understand what we’re saying.

  • pc1234

    In the best interest for their customers? going from $30 dollar plans to $80. Who’s interest is this for … Telus does not offer an unlimited plan that mobility does but 5 gb would cost $80 dollars on Telus just for 4 gb of data.

    • E-mann

      This is why it will not go through. They F****** over Public Mobile and Moore will not let this happen again.

    • Anon-e-mouse

      Quit the whining. Mobilicity is bankrupt and needs to pay back everyone they owe. They need as much $$ as they can get and Telus is offering the most. If you owed $500 million, would you rather get bought out for $350 mill. or for $190 mill. I’m sure that the companies that Mobilicity owes are praying that Telus is successful in buying them out.Seems like a no brainer to me. Besides, I think most of Mobilicity’s customers will be just as happy if they moved to Wind. It wil also help Wind gain a little market share. It’s a win win for everyone.

    • E-mann

      If Telus buys the company then the debt comes with it too. The $350 mill will go to the owners and shareholders. So no they don’t need as much money to pay back everyone.

    • Steve Lee

      guys, I want nothing more than to have unlimited plans, but this was one of the stakes that was Mobilicity’s undoing. It was a grab for marketshare and subs from the very beginning with the ‘business model’ to turn a profit at some point by selling off to one of the big three.

  • Sweet

    I take it this latest attempt has to do with Moore’s change of mind to allow the marketplace to determine the number of carriers per region. Otherwise, I don’t see why they would propose this deal again (the $30M reduction in price certainly wouldn’t address the issues that prevented the previous deal from being rejected.)

  • Kyle Burton

    Was bound to happen with their pricing it would have been impossible to stay afloat. The best option for consumers now is to migrate over to Telus and negotiate a retention plan.

  • Bret Jarvis

    WOW, that pic is so empty.

  • Fight Back Fight Back

    To have real change Is to complain to The Minister’s Office Industry Canada for more competition Or to the competition Bureau the more people complain the better chances Canada will have competition Canada need to dregulate spectrum from the big 3 and to make it open for all company to succeed take a look at your home phone where in the 60’s 70’s and 80’s and 90’s where there was no competition long distance call were very expensive after deregulation there is now more competition take a look at Internet where there were hundreds of companies competing in the 90’s then in the 2000’s Came hi speed cable internet the competition started dying Rogers had unlimited high speed internet in the 2000’s but their greed got To them and started to charge for data there was no real competition after that tell people started complaining industry Canada and To the Competition Bureau Canada Now has about 50 to 60 Internet And Homephone companies out there let’s all take part and call and send letters to Industry Canada And to Competition Bureau and let our voices be heard.

    • Who Needs Facts

      Longest. Sentence. Ever.

    • What?

      Ummmmm…….Maybe there is a teeny weeny little difference in the capital investment costs of these scenarios?

  • Glen

    If lessons can be learned from the Public Mobile sale. It is that this is a BAD deal!

    • Who Needs Facts

      I don’t understand your comment. Cannot every single one of Mobilicity’s (or Public’s) customers move to Wind?

  • Guest

    The big three are going to get this spectrum. There are not too many choices. The only question is – who do they cut the cheque to?

    1.) One of them buys Mobilicity and returns at least some money to investors and saving the employees jobs.

    2.) Industry Canada continues to block the sale, the company fails and the government seizes the spectrum and the big three buy it at auction again.

    The question is what message gets sent to investors in Canada.?

    Even in industries not related to telecom, is Industry Canada sending out a message saying that Canada is a good place to do business?

    This does not even address the random regulation changes (that may well end up in court now that the 5 year “moratorium” has ended) that the government decrees depending on the political climate.

    Strange way to do business.

  • Thomas C. Riddell

    NO NO NO NOT Approved.

  • Paulo99

    I still think Verizon is still in play for Wind Mobile.

  • TrOuBLeDbOy

    What will happen if this goes through? Will i still have my $25 plan? will i still be able to use my Nexus 5? :S