US telco Verizon Communications will reportedly not pursue the acquisitions of two small Canadian wireless operators until after an auction of 700 MHz spectrum scheduled for January, if at all.
The New-York-based giant made a US$700m preliminary bid for…
US telco Verizon Communications will reportedly not pursue the acquisitions of two small Canadian wireless operators until after an auction of 700 MHz spectrum scheduled for January, if at all.
The New-York-based giant made a US$700m preliminary bid for Wind Mobile and signed a non-disclosure agreement with Mobilicity but has now shelved those transactions, The Globe and Mail reported citing two people familiar with the situation.
Instead Verizon has turned its attentions to Canada’s 700 MHz auction to be held at the start of next year and is deciding whether or not to participate. If it wins spectrum licences in the tender, it may revisit acquisitions of Wind and Mobilicity sometime next year, the report said citing sources.
The application deadline to participate in the auction is 17 September. After this point, the rules of the process dictate that prospective bidders cannot negotiate with other bidders. Whether Wind and Mobilicity, both struggling to differing extents, have the capital to compete for the 700 MHz frequencies remains to be seen.
Verizon’s apparent decision will likely buoy Canada’s three main wireless network operators – Bell, Rogers and Telus – which have been lobbying against Verizon’s potential entrance to the country.
This week recently-appointed industry minister James Moore called some of the incumbents’ campaigning “dishonest” and reiterated his commitment to encouraging more competition in wireless services to lower prices for consumers.
The Conservative government has restricted the transfer of spectrum to incumbents and set the rules of the upcoming auction so that a new entrant is allowed to buy two of the four licences, which could leave one or more incumbents without high-quality 700 MHz frequencies. The three big operators would also be obliged to share towers and allow roaming on their networks to a new player.
