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Telus Considering an Acquisition of Mobilicity, Eyeing Those Surplus Assets and Spectrum

April 12, 2013 - Written By Briley Kenney

Apparently the Canadian wireless carrier Telus, is in talks with Mobilicity with intentions to purchase all assets and rights to the AWS spectrum. Back in 2008, Mobilicity spent nearly $243 million dollars to obtain their current assets during a government auction.

It is rumored that Telus offered Mobilicity $350-400 million for their assets including their subscribers, and spectrum.

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It goes without saying, the more spectrum a telecom company has to offer the more successful it will be, or at least more prepared for the future. With LTE becoming ever more popular, wireless providers are broadening their horizons in order to provide faster speeds to customers. Compared to its direct competition, Telus is in dire need for more spectrum. Currently, Telus only owns 10MHz total of AWS spectrum in various spaced areas like Toronto, although most are pretty populated locations. In comparison Mobilicity owns the same 10MHz of the AWS range in different areas making it the perfect target of an acquisition for Telus.

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Mobilicity is currently dealing with a whole slew of financial troubles, which is why the company is looking to auction off their assets. It’s more likely that they will sell to the highest bidder when the time comes- which means Telus may have some competition when it comes time to front the money.

A lot of folks are worried that if this all goes down, Wind will be the next in line to fall. Considering that would upset the entire wireless industry (in Canada), thus throwing it into disarray in terms of competition, there’s a good reason for some of that stress.

Several other mergers are rumored to be in the works, like the deal between Rogers and Shaw Communications. Rogers will be purchasing Shaw’s surplus AWS spectrum, but the transfer can’t actually happen until 2014.

As of this time, Telus has made no official statement about the venture nor any plans that may be in the works. That being said, Telus is a publicly traded company which means intentions for such a large investment must be announced publicly before any decisions can be made. If something is going to happen, then you can bet we’ll hear from Telus real soon.

Via: Mobile-Syrup