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Telus agrees to acquire Mobilicity for $380 million, despite Canada's push for increased mobile competition

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Regulators in Canada have been making a push to enhance competition in the mobile space, with Industry Minister Christian Paradis going so far as to lay out a set of rules for the nation's upcoming 700MHz spectrum auction that he promises will give citizens "more choices and more access at better prices." Granted, that ideal world only works if the carriers can stay afloat long enough to bid. According to William Aziz, Mobilicity's own chief restructuring officer, the operator has been "losing a significant amount of money every month." To that end, he reckons that an "acquisition by Telus is the best alternative," and he seems to think that the $380 million deal will receive a hasty approval considering the circumstances.

The purchase price is thought to be high enough to cover the debts looming over Mobilicity, and it'll give its 150 employees a secure job at Telus. If it sails through, a quarter-million Mobilicity customers should see no interruption in service as the integration takes place. Of course, a secondary benefit for Telus is gaining access to the spectrum Mobilicity currently uses. The end result for customers in the world's nicest country? We'd love to say that one fewer player will result in better service, lower prices and greater fulfillment for all... but something tells us that's probably wishing for a bit much.


How sad. Just when it looked like Canada was about to get some competition against the Big 3, it's gone. This is the one time I actually want the CRTC to intervene and block the sale.

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The problem being that mobile carriers in Canada have to have a majority Canadian-based ownership stake.

of course, I would not object to the creation and arrival of T-Mobile (Canada), Verizon (Canada), or AT&T (Canada). More options, with already-established companies that know what they're doing and have the capital for this type of business.

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Yup, I'm sure they looked at other options to keep the company going but it was at the point where they either sold or let the creditors take over. This way, at least they don't layoff employees and have customers lose service.

Nice thought, but what network will the US companies use? They don't have their own towers here, so they have to either build them or pay to use existing towers. Considering the cost it takes to maintain a network in a company the size of Canada, they certainly won't let them use it for free.

Apart from ensuring roaming coverage for their US clients, I'd think companies like AT&T, Sprint, etc aren't interested in paying for a network with less available clients to pay for it.

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