Indebted Canadian operator Mobilicity has asked the Ontario Superior Court of Justice to extend its creditor protection for another three months to 26 September.
Mobilicity, also known as Data & Audio-Visual Enterprises Holdings, received protection…
Indebted Canadian operator Mobilicity has asked the Ontario Superior Court of Justice to extend its creditor protection for another three months to 26 September.
Mobilicity, also known as Data & Audio-Visual Enterprises Holdings, received protection under the Companies’ Creditors Arrangement Act last September after a C$380m sale to Telus broke down.
That deal was effectively blocked by the government, which does not want the three incumbent operators – Telus, Bell and Rogers – to acquire any more spectrum. Instead it is keen to nurture the creation of a new fourth player in a bid to spark more competition in the mobile market.
Telus has repeatedly tried to acquire Mobilicity, but walked away from a deal in May after talks with the government’s business department, Industry Canada.
At the end of April it was reported that Industry Canada could effectively block Telus from Canada’s auction of 2.5 GHz licences scheduled for next year due to its repeated attempts to acquire spectrum from Mobilicity.
The government was reported to be unhappy at seeing Mobilicity’s AWS spectrum tied up in a legal battle when it could be in the hands of a new challenger.
Quebecor, which operates regional quad play operator Videotron, now appears the most likely acquirer of Mobilicity.
Last week the Quebecois telco laid out its vision to become Canada’s fourth nationwide mobile operator and said it was looking to consolidate with willing partners.
Pierre Dion, the new CEO of Quebecor, said he wanted to offer a low-cost alternative to the country’s big three operators.
However, the operator would want the government to reform the rules around roaming policy and wholesale pricing. Dion cited a previous comment from the Competition Bureau of Canada, which has said incumbent players have used the roaming policy as a “strategic tool to eliminate or reduce the competitive pressure… in Canadian mobile wireless markets”.
