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Wind Mobile Still Wants to Buy Mobilicity

This has the rumor that has been bouncing its way around the Internet pretty much since Wind Mobile and Mobilcity came into existence as potential contender’s against Canada’s big three telecom companies. The negotiations have been on-again, off-again a long while, not to mention the occasional rumor about acquisitions by outside sources like Verizon. Well, it looks like the talks are on again with Wind Mobile looking to merge with Mobilicity.

The added impetus now is that Industry Canada is set to host another spectrum auction and it had a January 30th deadline for applications. Apparently, Wind Mobile and Mobilicity had been “in talks” for months leading up to this deadline in hopes of having some sort of framework in place so they could participated in the AWS-3 auction for wireless spectrum. Remember that “new carriers” are being given preferential treatment over incumbents Telus, Bell and Rogers.

Of course, it all boils down to money. The folks at Mobilicity are reportedly asking for more than Wind Mobile is willing to pay. Remember that Wind Mobile, with its over 800,000 subscribers, is decidedly larger than the 150,000 user base of Mobilicity. It’s said that the latter is valued at around $130 million. In the meantime, Mobilicity is rumored to be exploring other options, like rekindling the acquisition deal with Telus or working to sell its licenses to one of the other big three.

Whatever they decide, they’ll need to make a decision soon. Mobilicity is still being hounded by creditors and, as far as we can gather, its days are numbered. Perhaps a merger with Wind Mobile is the best bet, hopefully offering Canadians a solid fourth choice in an increasingly anti-competitive market.

Via FP

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