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elwoodblues
Elwood Blues
Premium Member
join:2006-08-30
Somewhere in

elwoodblues

Premium Member

Mobilicty to transfer customers to Wind.

Seems Moblicity just can't make a go of it, so they've reached an agreement to transfer their 200,000 customers to Wind Mobile.

How the debt holders are sitting on the spectrum and tax losses , hoping to fetch a decent dollar from Robellus come next winter.

So now Wind gets another 6m/month (give or take) and my service will get even slower with the addition of another 200K sucking up what little spectrum they have.

The National Post has learned the Toronto-area carrier, formally known as Data & Audio-Visual Enterprises (DAVE) Wireless, hopes to shut down its money-losing consumer operations by the end of the month. Two separate industry sources said the agreement, which is still being negotiated, would see Toronto-based Wind assume Mobilicity’s customers for little-to-no financial compensation. Investors who hold Mobilicity’s debt would retain the carrier’s spectrum licences and its tax losses in the hopes of selling those assets down the road to a separate buyer.

»business.financialpost.c ··· c6d-5cf5
MaynardKrebs
We did it. We heaved Steve. Yipee.
Premium Member
join:2009-06-17

MaynardKrebs

Premium Member

Ok, Wind gets Mobi customers for no charge.

How's this going to work out....

1) It allows Mobi customers to keep/use their existing phones and not fork out money on new phones or get locked into contracts with ROBELLUS or their flanker brands. That's a win for the Mobi customers.

2) Wind could grandfather existing Mobi rate plans for Mobi customers for say 6 months, and then insist that they choose one of Wind's then current plans, or move on to Robellus. Chances are than most would stick with Wind. Even at Mobi's current monthly revenue/client, Wind probably accretes an extra $4-5MM/month net revenue or so after additional expenses attributable to the extra Mobi customers. That's good for Wind.

3) It gives the Feds an opportunity with this material change in the market (and Verizon bowing out) to postpone the 700MHz auction and retool the rules to help the new entrants. First amongst those would be a rule that says new entrants can bid what they want on the 700MHz but that they don't have to pay for it up-front. That sort of levels the playing field a bit to reflect that the incumbents had PAYG spectrum fees before. Let the new guys pay the 700MHz fees based on audited statements of 700MHz capable handsets they sell in the years ahead. If they sell 100k handsets in the first month they launch 700Mhz service then they pay the feds 100,000 x say $4 for that month and each month after PLUS the same sort of fees each subsequent month's handset sales - until such time as they pay the full amount bid for the 700MHz spectrum.

4) It gives Wind some breathing room to see how they/Vimpelcom want to proceed. With Mobi customers off the table, maybe Thomson/Public Mobile want to join the party too. Or maybe national AWS roaming agreement between the new entrants begins to make sense, thereby making the new entrants more palatable to more customers.
bt
join:2009-02-26
canada

bt

Member

said by MaynardKrebs:

Ok, Wind gets Mobi customers for no charge.

Word is $40m.

Guspaz
Guspaz
MVM
join:2001-11-05
Montreal, QC

Guspaz to elwoodblues

MVM

to elwoodblues
$40 million doesn't sound like "little-to-no" to me, but even then, $200 per customer acquired is pretty good.
bt
join:2009-02-26
canada

bt to elwoodblues

Member

to elwoodblues
Mobilicity claiming it isn't true:

»www.edmontonjournal.com/ ··· ory.html

elwoodblues
Elwood Blues
Premium Member
join:2006-08-30
Somewhere in

elwoodblues

Premium Member

Probably because it leaked to early.

BACONATOR26
Premium Member
join:2000-11-25
Nepean, ON

BACONATOR26

Premium Member

said by elwoodblues:

Probably because it leaked to early.

Yup. I like how the press jump on this stuff, get a "nope" because obviously it's not finalized and announced and then proclaim that it can't possibly happen.