As Canadian telcos Rogers and Telus vie for Mobilicity, the bankrupt wireless carrier’s founder and employees have proposed converting it into an MVNO.
Toronto-based Obelysk, the holding company of founder John Bitove, stated that it has made an…
As Canadian telcos Rogers and Telus vie for Mobilicity, the bankrupt wireless carrier’s founder and employees have proposed converting it into an MVNO.
Toronto-based Obelysk, the holding company of founder John Bitove, stated that it has made an offer to the federal government and Industry Canada to acquire the subscribers, dealers and partial infrastructure of Mobilicity by setting up an MVNO relationship with any acquirer. Obelysk would provide capital funding for the transaction.
Both Rogers and Telus – which, together with Bell, form Canada’s trio of dominant mobile players – have filed proposals to acquire Mobilicity with the government for preliminary review, The Globe & Mail reported. Industry Canada has reportedly sent letters in response indicating that either deal would be approved, subject to a final review. The suitors have reportedly offered more than C$300m for the target.
Obelysk stressed that the group is not blocking the sale or the acquisition of spectrum, but rather “feels it is important to continue to provide pricing competition in an industry that does not have enough low-priced customer alternatives”.
The group said that, as an MVNO, Mobilicity would retain its 155,000 active customers, its dealer network, call centre operators and other core contractors.
It would also maintain its brand presence in existing markets, including Toronto, Vancouver, Edmonton, Calgary and Ottawa.
The MVNO would adopt a roaming rate structure and use the network infrastructure of the acquirer, Obelysk noted, adding that this would allow service to continue uninterrupted, dealers to continue to benefit from their investments in Mobilicity, employees to keep their jobs and competition to remain healthy in the five major markets in which it operates.
“The Big Three telecoms want Mobilicity spectrum and this group is not objecting to that sale,” it stated. “Continuing to bring competition and multiple options to wireless … consumers going forward is our collective goal.”
Mobilicty has been under creditor protection since September 2013 and, in May this year, obtained a further extension of the stay of proceedings until 31 August.
According to the Globe & Mail report, Telus’ and Rogers’ proposals to acquire Mobilicity includes the transfer of some spectrum to fourth player Wind Mobile. Talks are reportedly continuing.
Mobilicity, Rogers, Telus and Industry Canada all declined to comment on Obelysk’s proposal.
