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


Common sense

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While you're putting out stats, do you want to compare the cost to operate the network compared to the number of available subscribers? For instance, the cellular network in the UK can fit inside of the cellular network in Alberta but has 17 times the population base to draw from for that same coverage area. Then you have to consider the coverage across the other provinces and territories (some in particularly remote locations) while Canada still has little more than half the population base of the UK.

You can pretty quickly see how it'd be much more costly to maintain a network in Canada than it would be almost anywhere else in the world. Even the US being a fairly large country has a much larger population base than Canada, so it can be cheaper. Compare the polar opposite of Hong Kong - a massive amount of population in a very small area - and rate plans as a function related to network costs become pretty apparent.

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  • 2 weeks later...

So it's really no different than letting Telus buy them, is it? And the rest of the small providers are on sale too, maybe Rogers and Bell can sweep them up and we can have 9 brands to continue the charade of competition. Consequences of preventing the sale may force the government to further relax the rules, if the small providers do fail. Maybe they will finally allow foreign companies to come in to take over. Whatever happens, they should not be absorbed by Robelus.

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There's a HUGE difference between Europe and Asia and Canada. Population density and the size of our country is one.

Canada Population density: 3.41 per km^2

UK: 255.6 per km^2

Hong Kong 16,576 km^2

Italy: 197.7 km^2

US: 34.2 per km^2 Even the US has 10 times our population density.

The biggest cost for networks is building infrastructure. Building networks in a country like Canada is expensive. In fact if anything Canada should probably look at improving satellite technology, we'd benefit by having satellites covering our country probably more than anywhere else.

Competition is tough when your cost of building a network is so high.

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I understand your point, but your being deliberately obtuse to mine. Perhaps another carrier comes in to replace the gap left by Mobilicity, but I don't see anyone else independent of the big 3 offering to buy them and keep their customers in service and their employees, well, employed. Whether they get bought by another company or dissolve into bankruptcy, it still means there's one less competitor in the market. Having them bought by a larger carrier is at least a positive outcome for anyone associated with Mobilicity, including their creditors.

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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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Sorry, what was your point? That nobody but the big three are interested? It isn't because of the laws, is it? Laws that would be even less likely to be changed if Telus is allowed to swallow Mobilicity.

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Not that I expected a reasonable response considering your last one, but I'm not going to argue with you when you're obviously single minded in your opinion.

I guess you aren't with Mobilicity and won't care that their customers will likely have terrible service if any in the future, and their employees might get laid off or fired. But you'll be happy when they (and others that struggle like Public) fold and leave less choice just so long as one of the big three don't get anything.

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  • 3 weeks later...

There's a HUGE difference between Europe and Asia and Canada. Population density and the size of our country is one.

Canada Population density: 3.41 per km^2

UK: 255.6 per km^2

Hong Kong 16,576 km^2

Italy: 197.7 km^2

US: 34.2 per km^2 Even the US has 10 times our population density.

The biggest cost for networks is building infrastructure. Building networks in a country like Canada is expensive. In fact if anything Canada should probably look at improving satellite technology, we'd benefit by having satellites covering our country probably more than anywhere else.

Competition is tough when your cost of building a network is so high.

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