Mobilicity Considering MVNO Action

It’s no secret that Canadian wireless carrier Mobilicity has been having some financial issues during the last few years or so. In fact, the company has been entertaining bids and M&A talks with both Rogers and Telus in the last few months, although firm details have yet to be released. UPDATE: Not sure how I missed it, but apparently Mobilicity has, indeed, been purchased by Rogers. However, there is still some legal tape both companies must navigate before the deal officially goes through. Recently, I came across several articles on Mobilesyrup and TeleGeography which suggest that Mobilicity is considering switching to an MVNO setup after purchase. John Bitove, in a public proposal from his company Obelysk Inc., said he was interested in having Mobilicity take on the MVNO setup with its parent company to retain current brand and network infrastructure. However, there is mass speculation that such mergers would not be met with government approval mostly due to spectrum and competition concerns. There are a number of ways that the companies are considering getting around this, including transferring some of the spectrum to Wind Mobile, but nothing is solid yet. Currently, Mobilicity has around 155,000 active subscribers with a handful of stores and kiosks scattered across the country. With this MVNO suggestion, Mobilicity would sell its spectrum and continue to operate by leasing or using spectrum from one of the main companies. Mobilicity has been in operation since 2009 and has seen declining subscribers and profits in recent years. The company offers contract plans ranging from $25 – $45. I don’t believe a no-contract option is currently available but with an MVNO setup, it might be.]]>