The agreement still needs to be approved by all regulatory bodies — the Competition Bureau and Industry Canada — and Mobilicity’s debtholders. Industry Minister Christian Paradis acknowledged the potential transaction, but stated “The government will take the time required to review the proposal carefully.”

Jeff Fan, analyst from Scotiabank, communicated a note to his clients that several situations might occur, such as the government delaying the upcoming 700 MHz spectrum auction. However, his clear message was that, “in our opinion, the situation is getting messier for the government. The bottom line is this makes it less likely that a strategic investor will step up to consolidate the new entrants and participate in the auction to create a stronger fourth operator.”

In 2008 when the spectrum auction closed – which saw WIND Mobile, Public Mobile and Mobilicity all enter the wireless space – the Industry Minister declared, “Our government’s intentions are clear: to achieve lower prices, better service and more choice for consumers and business. We believe in relying on market forces to the maximum extent feasible because competition benefits consumers, and consumers benefit most when markets are as competitive as they can be.”

Fan also said that “The government may not approve the transaction but, in our view, it does not matter. We believe the best deal for Mobilicity (and Wind) stakeholders is a sale to one of the incumbents. If the government turns down the TELUS/Mobilicity transaction, Mobilicity will likely either fail or receive a lower offer from a strategic investor.”

TELUS posted a note on their corporate blog that said “we don’t believe this transaction will have a significant impact on competition in our industry… If approved, our agreement to acquire Mobilicity would be good news for their 250,000 customers. Importantly, their wireless service would continue without the risk of disruption. Moblicity’s customers would also join Canada’s most satisfied and loyal customers at TELUS and Koodo.”

We’ll have to wait and see how this all shakes out. An email to us from TELUS PR stated “TELUS will continue with the Mobility brand, customer rate plans and network.” So this gives hope that current Mobilicity subscribers will have their low-cost monthly plans grandfathered if/when the deal is finalized.

Via: TELUS

In a press release today TELUS announced that they’ve entered into an agreement to acquire Mobilicity for $380 million. Of course, the deal is pending the “required approvals” from authorities (Competition Bureau, Industry Canada, and Mobilicity’s debtholders). “The purchase price received would be applied to repay all of the outstanding first and second lien debt of Mobilicity, with the remainder being used to repay certain outstanding unsecured debt securities issued by Mobilicity.”

With this news it was revealed that the new entrant, which is a private company, had amassed 250,000 subscribers. As for Mobilicity employees, “If this transaction is approved, TELUS will retain all 150 Mobilicity employees as it integrates the Mobilicity operation into TELUS over the coming months.”

TELUS and Mobilicity both stated that they “anticipate an expeditious legal and regulatory review in view of the current circumstances Mobilicity is facing.” Basically they are quickly bleeding money. In the court filings the TELUS/Mobilicity acquisition looks to be heading for a closing date by June 10, 2013. If the agreement has not been completed by this date, TELUS must pay Mobilicity a deposit of $10,000,000. This reason for this date is so that Mobilicity can still participate in the upcoming 700Mhz spectrum auction. June 11th is the last date the carriers can drop down their deposits to secure their bidding spot.

Mobilicity launched their wireless service in 2010 and currently operates in Vancouver, Toronto, Ottawa, Edmonton and Calgary.

Update: If keeping track of subscriber numbers is your thing. TELUS reported Q1 2013 results of 7.7 million subs, Bell reported 7,672,075 (include Bell Aliant into the numbers and you reach 7,815,475). If/when the TELUS/Mobilicity deal closes this will add 250,000 subscribers to TELUS’ base, securely placing them as the 2nd largest Canadian carrier, just behind Rogers at 9,376,000 wireless subscribers.

Source: CNW
Via: Mobilicty (PDF)

However, finding one might be initially difficult as they noted on Twitter that “A limited number of the new Samsung Galaxy S4 phones are now available at select locations. Contact your local store for availability!” We’ve reached out to Mobilicity for specific locations and will update you when we hear back – but if you know a location that has one, please leave it in the comments below.

Also, if you’re considering the GS4 make sure you check out our in-depth hands-on here.

Source: Mobilicity

According to the Globe and Mail, new court documents about Mobilicity have them heavily bleeding money and scurrying to close a deal. Mobilicity has apparently embarked on “extensive marketing efforts” that has seen them reach out to “more than 30” potential buyers that range from competing carriers (Big 3 and other new entrant WIND Mobile) to international carriers, and U.S. private-equity firms, but nobody is biting.

William Aziz, President of Blue Tree Advisors II Inc., has been appointed as Mobilicity’s chief restructuring officer, and he states that “given its current financial circumstances, the Mobilicity Group needs to either reach agreement with a willing buyer for its business who can finance the operations going forward, or it needs to restructure its capital and secure additional funding in order to advance its business.” This is not too shocking and there’s a scheduled meeting with the debt holders May 21st that will decide its restructuring plan and direction.

Probably the most revealing is a peek into their financials. Apparently “for the quarter ended December 31, 2012, the cost of maintaining the Mobilicity Group’s network, paying distributors and other service partners exceeded revenue and financing proceeds by approximately $12-million prior to financing costs, or $30-million in total.”

Mobilicity has been offering their low-cost wireless service to Canadians in Vancouver, Toronto, Ottawa, Edmonton and Calgary since 2010. The company is currently valued between $350 – $400 million.

Source: Globe

Source: Mobilicity, WIND
(Thanks to everyone who sent this in!)

Source: Mobilicity

The Samsung Galaxy S 4 is launching in a couple weeks, but this deal over at Mobilicity is certainly something to consider. The “Now That’s Smart” carrier has cut the outright price of the GS III in Pebble Blue by a couple hundred bucks to a low $399.99 outright. This is a good deal, especially since some of the features of the GS 4 will eventually make their way onto the GSIII.

Check it here at Mobilicity
(Thanks TP!)

Update: Mobilicity has posted the stores that will have the Z10 available on the 10th. Currently 15 locations and the price is set at $599.99 outright.

Update #2: Mobilicity has now posted the date of Thursday, April 11th on their site as the launch date.

Source: Mobilicity
Via: Twitter
(Thanks Dave!)

Check out our 8S review here.
Source: Mobilicity

If you have the Samsung Galaxy Note 2 on either Wind Mobile, Mobilicity or Videotron you might have received a notification today that an upgrade it available to you. Android OS 4.1.2 Jelly Bean is finally arrived (226.93MB in size). This brings Multi Window & Chinese language support. Check your device: Menu >> Settings >> About device >> Software update >> Update.

(Thanks Francis and to everyone who sent this in!)