Mobilicity reportedly lost spectrum auction financing minutes before start

The besieged and under-capitalized new entrant telco, Mobilicity, reportedly lost the funding necessary to bid in the current AWS-3 spectrum auction, which began on Tuesday.

According to sources close to the Financial Post, Mobilicity lost its funding minutes before the start of the auction. Mobilicity managed to obtain $65 million for a deposit towards bidding, but despite the relative ease at which it could purchase set-aside spectrum in the regions it already operates — Ontario, British Columbia and Alberta — it could not close the deal.

In January, Mobilicity was approved for up to $200 million in financing from an Ontario court, a move made necessary by its protection from its numerous creditors, who have been looking to obtain returns on their investment.

Due to Industry Canada rules around collusion and public comment during a spectrum, Mobilicity won’t be able to comment for at least a few more days, but it appears like WIND Mobile may be the big winner during this short auction.

A list of provisional winners will be posted on Friday, March 6th.

[source]Financial Post[/source]

MobileSyrup may earn a commission from purchases made via our links, which helps fund the journalism we provide free on our website. These links do not influence our editorial content. Support us here.

Related Articles