 elwoodbluesElwood BluesPremium
join:2006-08-30
HarperLand
kudos:1 | Moblicity files for creditor protection I missed this, caught late last night and forgot about it again....
Anyway, seems Moblicity is in it's death throes and has filed for creditor protection, while awaiting for industry Canada to say OK to a financial transaction (which is still rumoured to be Telus).
Small wireless carrier Mobilicity says it has been granted creditor protection by the courts while awaiting a ruling from Industry Canada on an unspecified transaction.
Mobilicity, which has been looking for a buyer, said Monday that creditor protection would give it the necessary time and financing to complete the transaction now before the federal body for review and approval.
What's interesting is founder John Bitove under a company called Feenix Wireless Inc. has put money down for the 700mhz spectrum auction. Which apparently has thrown a wrench into Mobilcity's "deal" to sell itself to Telus.
John Bitove has a new wireless plan. He just won’t say what it is.
The entrepreneur behind wireless carrier Mobilicity put down a deposit last month to purchase wireless spectrum from the federal government in January. But he did so under a new corporate name, Feenix Wireless Inc., that has no connection to Mobilicity, which on Monday filed for creditor protection.
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No, I didn't. Honest... I ran out of gas. I... I had a flat tire. I didn't have enough money for cab fare. My tux didn't come back from the cleaners. An old friend came in from out of town. Someone stole my car. There was an earthquake....... |
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zorxd
join:2010-02-05
Quebec, QC | There wasn't enough room for both Wind and Mobilicity to compete for the exact same market. |
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| there totally was, the problem is while mobi has a better network wind has a larger one and so mobi started a race to the bottom and wind's price had to go from $55 a month for a given plan to $25 which now puts us in this position |
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 mlernerPremium
join:2000-11-25
Nepean, ON
kudos:5 | Maybe a better network but Mobi's pricing was also too low considering how much they spent on spectrum alone. WIND was only successful because they had a better pricing strategy, a big financial backing and yes along with that a larger customer base.
Public Mobile is likely not too far along.. hopefully WIND or even a brand new entrant with a financial backing and real competitiveness comes along to fix up the mess so we can truly have a 4th regional player with a good network. |
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 GuspazGuspazPremium,MVM
join:2001-11-05
Montreal, QC
kudos:20 | said by mlerner:Public Mobile is likely not too far along.. hopefully WIND or even a brand new entrant with a financial backing and real competitiveness comes along to fix up the mess so we can truly have a 4th regional player with a good network. Why would you think PM would be having trouble? They've got the same number of customers as Mobilicity (250k), an ARPU of $25.27, and very low spectrum ($52m) and infrastructure costs (only cover Montreal/Toronto).
I suspect that PM is actually doing rather well, perhaps even profitable, and that the reason they put themselves up for sale was to get a deeper pocketed owner who could pony up the cash for the 700MHz auction rather than out of any financial difficulty.
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elwoodbluesElwood BluesPremium
join:2006-08-30
HarperLand
kudos:1 | reply to mlerner
Public Mobile was bought by the Woodbridge Group, a holding company owned by the Thomson Family, my guess is to be able to sell it when the 5yrs is up for a profit, but in the meantime, they're flush. |
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 sbrookPremium,Mod
join:2001-12-14
Ottawa
kudos:11
 ·WIND Mobile
 ·TekSavvy Cable
| This sounds like Bitove trying to get a bigger share out of the dissolution of Mobi ... by buying spectrum, he limits Telus expandability on the existing Mobi platform. So, he then sells Feenix spectrum to Telus later on and has a big $ signs on each eyeball!
Talk about a mess.
One of the biggest problems the small carriers had is they undercut the big guys TOO far. |
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