Telus reportedly in talks to buy Mobilicity, spectrum likely to be the prize

Canadians have been enjoying a minor renaissance in wireless competition since its AWS auction allowed a slew of smaller carriers to join the fray. Unfortunately, that diversity might be shrinking soon. The Globe and Mail reportedly has documents showing that Telus has been in active talks to buy Mobilicity through a share buyout deal. While the apparent leak doesn't mention the exact motivations, it's thought to be a spectrum grab when LTE on major Canadian carriers primarily leans on the very AWS frequencies that Mobilicity also uses for its 3G service. Neither Telus nor Mobilicity is commenting, although we'd note that there may be a few roadblocks (however temporary) if the scoop is accurate. Rules meant to preserve competition will prevent Telus from buying any newcomers' spectrum until early 2014, and Mobilicity left the Canadian Wireless Telecommunications Association just this week while accusing the industry group of being a puppet for bigger networks like Telus. If negotiations are real and still in progress, there could be some very awkward meetings ahead.

[Image credit: Andrew Currie, Flickr]

Filed under: Cellphones, Wireless, Mobile

Comments

Via: MobileSyrup (1), (2)

Source: The Globe and Mail