Canadian telcos Rogers Communications and Telus are reportedly vying for bankrupt wireless carrier Mobilicity as pressure mounts to seal a deal.
Both Rogers and Telus have submitted proposed deals to the federal government for preliminary review, The…
Canadian telcos Rogers Communications and Telus are reportedly vying for bankrupt wireless carrier Mobilicity as pressure mounts to seal a deal.
Both Rogers and Telus have submitted proposed deals to the federal government for preliminary review, The Globe & Mail reported.
Industry Canada has sent letters in response indicating that either deal would be approved, subject to a final review, the report stated. However, one source was cited saying that if an agreement is not reached within the next week or so, Ottawa could decide to defer the matter until after the October election.
Toronto-based Mobilicity is reportedly expected to make an announcement on the subject within the next week and to command a price of more than C$300m.
The minnow has been under creditor protection since September 2013 and, in May this year, obtained a further extension of the stay of proceedings to 31 August. The judge in the creditor protection proceedings would also need to approve any M&A deal.
Telus has made repeated attempts to buy Mobilicity, all of which the government blocked. After Telus first tried to acquire the company for C$380m in 2013, the government introduced the Spectrum Licence Transfer Framework, which blocks the country’s three main operators – which also include Bell – from acquiring additional spectrum from smaller players on an indefinite basis.
According to the report, Telus’ latest proposal includes the transfer of some of Mobilicity’s spectrum to fourth player Wind Mobile, which is a key reason for the government’s changed view of the tie-up.
In recent public statements, industry minister James Moore has noted that the control of spectrum has changed significantly following policy changes allowing more airwaves to be allocated to mobile and the three auctions of airwaves in just over a year. While the three dominant wireless carriers held 98% of spectrum in 2006, Moore has said he expects new players to control 25% by this summer.
Rogers, Telus and Mobilicity were not immediately available for comment.
