Mobilicity inks $75 million financing deal


  • Sweet

    Good news, indeed. I wonder who the lenders are and whether they’re foreign or not. I’m also very curious to see how they will spend the money.

    • Brad F

      lender is actually rogers.

    • Big Ang

      There’s a very good chance that the lenders are from outside of Canada. Canada is only a tiny fraction of the world economy.

      But why is that an issue? Plenty of Canadian companies borrow money from both Canadian and non-Canadian lenders. I have no doubt that some of the debt that Rogers, Bell, or Telus has is owned by people and/or companies outside of Canada.

      Why even ask the question?!?!?

  • All ways write

    wow..they now have 75 Million more ways to piss off their install base!!

  • deltatux

    Hopefully the money goes into network densification and expansion :).

  • Bubbles

    So.. someone just gave them $75M based on certain undisclosed conditions. Looks like a bailout.

    Was there any equity swapped as a result of this deal? Will there be any changes in strategic direction? Any changes in management? What is long term plan? – To sell the company in 2014 or become profitable in the long run?

    • A_Person_of_Interest

      Since they’re a privately held corporation, they don’t have to say squat to any of those questions. Heck, if Brian Burke was running Mobilicity at least there’d be something to report based on what was hinted at in a press conference.

  • JC

    I switched from Mobilicity to Fido because the coverage just wasn’t there for my apartment. I sure do miss saving $30 a month.

    • Mobilicity is a joke

      I sure don’t miss NOT having a signal.

  • All ways write’s brain

    Yea.. I seemed to have lost my body. I mean that 75 million can improve their services!

  • This guy

    So, they’re getting a $35 million injection followed by an additional $75. Doesn’t that mean they’ve inked $110 million in financing, not $75 million?

  • MrMastodonFarm

    When the hell is the 700mHz wireless auction anyway?

  • Huh

    This just means the prices is about to go up for consumers. 75 million is just given to you!

    Cause and effect!

  • MobileMonkey

    Can we stop prolonging the agony?

  • hoo dat

    Sounds like they really had to jump through hoops to get the funds they so sorely need to survive. How on earth are they going to be able to afford the auction?

  • Zeake

    The BEST has just gotten better!

  • pots

    if they have to borrow to keep going theres no profit soon there will have to be bought out like microcell was.

    • deltatux

      You’re saying that as if WIND doesn’t carry a lot of debt either. Orascom owns majority of Globalive’s debt and still does. Starting any carriers will incur large amounts of debt as telecommunications equipment ain’t cheap.

    • T1MB0T

      Globalive debt is 1.5 billion and growing monthly. Looks like the talk was right and that Mobilicity is in a better position that Wind. Well wind is for sale.. and looks like rogers is the customer. so sad nuke.. But lucky for you they do not own Loblaws . You can always stock shelves somewhere else!

  • Good

    That’s good that Mobilicity is trying to survive instead of bailout and sell their company to one of the big three. Also, we need mobilicity to keep WIND in check as well.

  • gun26

    I hope they put as much of the money as it takes into the 700 MHz auction. Their present band 4/AWS spectrum just doesn’t penetrate buildings very well. I see their ability to get the financing as a positive sign – what investor would pour more money into Mobilicity if there was no hope?

  • JustMeAndMe

    in a big picture of telecom business 100mil is not such big money as it seems to us… definitely not enough to bid for 700 spectrum.

  • Stiff

    The rumors is that the first 15M is secured the other amounts come with conditions, I am told that 15M is enough to run 60 more days after that they may never get the other amounts

    • Mobilicity is going for broke

      Wow! Who facilitated this loan? or a PayDay lender?

      Mobilicity is much closer to their deathbed than previously thought.


  • nexus 4 life

    my cousins husband ahmed is one of the lenders

  • Mobilicity is a joke

    Let’s be real — Mobilicity runs a 3rd world network that is far better suited for Cuba or Sudan than Canada.

    In 2012, I was one of these huff-and-puff Angry-At-The-Big-3 so I switched to Mobilicity. Less than a year later, I left. Although their basestation was 600 feet away, my phone would lose its signal 5-7 times a day and “SOS” or “CDN Roaming” was normal. Their tech support told me the problem was that I needed to go outside to make calls.

    I speculate that the $75 million will be used to buy a backhoe. It will dig a big hole in a corn field that will be used to bury Mobilicity at its funeral.

    I’m back on the Big 3 and now only lose my signal when I drive into a deep underground parking lot.

    • You should volunteer to pay 2005 prices…

      The thing people have to realize at the end of the day, is that prices have dropped considerably over the last few years due to these new entrants. Quick complaining as you enjoy a reduced rate from the big 3 that are still gouging us – even if not as much as before.

      Mobilicity and Wind are always welcome and it takes years for any new carrier to expand / improve their networks. I’m happy to suffer a very occasional (once a month now) dropped call in exchange for an unlimited everything plan for $35/mo.

      If you need 100% reliable phone service then you should go back to getting a non-voip bell line in your house. If you need a cell phone for business, sure, go with Big 3 until Mobi/Wind network improves, but if you just use your cell for personal non urgent issues and just want to pay less, why wouldn’t you?

      Quick complaining.

  • John

    This financing is just to accommodate their debt payments. $75 million is nothing…

  • tbone

    The lender is Telus. It’s a bridge loan to acquire Mobilicity’s frequency range upon the CRTC’s conditions for a sale to an existing incumbent. That would be the five year mark to which the clock started upon Mobilicity’s spectrum purchase.

    • Robelus Wins Again

      RIP Mobilicity as you are gobbled up by the “Lender(s)” – dirty backroom move by Telus – ‘if’ Telus is the lender – buyout potential competition, then bring charges up to par with theirs – that’s what the Big 3 did/do to all the ‘new’ cell companies that have entered the Cdn markets eg, Fido, Virgin, Koodoo – get rid of competition in order to raise fees!