Canadian operator Telus has agreed to acquire 100 per cent ownership of rival Public Mobile. Telus currently has 7.7 million subscribers, as of September 2013, according to WCIS+, shy of the 7.73 million subscribers that second placed operator Bell Wireless has on its network.
Canadian operator Mobilicity has announced that its proposed acquisition by Telus has been officially abandoned.
Canadian mobile operator Public Mobile has been acquired jointly by Toronto-based investment vehicle Thomvest Seed Capital, and Cartesian Capital, a New York-based private equity firm. Thomvest is now the company’s controlling shareholder and the two firms’ investment has taken Public Mobile to a cash flow positive position.
Canada’s government has blocked mobile operator Telus’ application to transfer Mobilicity’s spectrum licences to the firm. Telus agreed to acquire the smaller Canadian operator for $380m in May, pending regulatory approval. Mobilicity has over 250,000 subscribers and 150 employees, according to Telus.
Smaller operators and new entrants to the market appear to be growing increasingly frustrated by the power wielded by the industry’s big players. This trend was evident this week, as three of Canada’s smaller operators announced their withdrawal from industry body the Canadian Wireless Telecommunications Association (CWTA).
