It was only yesterday that Rogers announced that they were buying Mobilicity with the blessings of the Industry Minister, and while all of the ramifications of this deal are yet to be known...one thing's for sure...WIND Mobile certainly ended up in a position of strength. The main focus is on the sale of Mobilicity and how it will affect their customers and what this purchase will do for Rogers, and rightly so, and the media watchdog, OpenMedia, is not at all happy with the deal claiming it will mean higher prices for all. However, the reason the Industry Minister allowed this deal to go through, involves the Canadian wireless industry as a whole and after the dust settles, we will have a clearer picture of what this means for both WIND Mobile and the wireless landscape of Canada. Suffice it to say that WIND practically doubled its spectrum holding overnight, as part of the agreement included the transferring on a portion of Mobilicity's spectrum to WIND.
The Rogers-Mobilicity deal helped strengthen WIND's position in the Western Provinces of Alberta and British Columbia. There is both a short-term gain in much needed spectrum to help it stay competitive with less dropped calls, faster data speeds and a better signal, but in the long run, it will help WIND Mobile when it eventually switches over to its LTE network in 2016. Wind Mobile's new CEO, Alek Krstajic spoke with our source and said, "The initial benefits from yesterday's transaction are going to be seen in the west. The foundations of being a solid wireless player is having a solid network, and right now what's more important than having an LTE network is having capacity."
While this deal really gives WIND Mobile a boost, he admits that they will not be a true national player until they get some 700MHz spectrum - the kind needed to travel through buildings and to reach more remote areas. At least now, WIND can come to the party and go home with a date. He added, "Wind is now the master of its own destiny. Do we need low-band spectrum? Of course we do. But now we can approach a company like Videotron and say, 'Let's make a deal.' Couples that want to be together always do better than those who have to be together...Yesterday's deal shifted the power balance to deals that we want to do, rather than deals we have to do."