A report today quoted Anthony Lacavera, WIND Mobile Chairman and CEO, that “There’s going to be new entrant shakeout in 2012.” That is a bold statement in itself and one that has been echoed throughout 2011. Lacavera said that “We obviously want to lead that” and it seems he might have been speaking about aquiring new entrant rival Mobilicity. Bloomberg reports that “according to a person familiar with the discussions” Globalive, WIND Mobile parent company, is “in talks to buy Mobilicity”. The terms of the deal has been revealed, but might may close as early as Q1 2012. Apparently the reason for considering Mobilicity is because “it uses compatible wireless frequencies”, plus it would increase their subscriber base by 50%.
It’s known that WIND currently has about 400,000 subscribers and Mobilicity has “attracted” 250,000 subscribers. Both carriers offer similar handsets, similar plans and operate in similar locations: Toronto, Calgary, Vancouver, Ottawa and Edmonton.
Both companies declined to comment on the rumour. Stewart Lyons, newly appointed Mobilicity President, stated that “We have never commented on speculation like this before and aren’t about to start now.”
Grabbing hold of Mobilicity would still not make WIND Mobile Canada’s 4th national wireless carrier, something they have strived to be from day one, as they still lack service in Quebec… what it will do is increase their distribution, which is key.
Thoughts?
Source: Bloomberg
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