My thoughts on this go something like this. Mobilicity approached Telus to make this deal happen according to this Telus press release. That says to me that they couldn’t make a go of it and are looking to Telus to keep them as a going concern. This may be a trend as rumor has it that Wind is looking for a buyer as well. What that means is that the Canadian Government’s attempt to lower cell phone prices, which are among the highest in the world down has failed. If this deal were to go ahead, that would not change.
Now that’s likely going to make someone ask “what will change this situation?” The way I see it, there are only two choices. the Canadian Government could pass legislation to force incumbent cell companies (read: Rogers, Bell, Telus) to share infrastructure. This was done before when the government wanted new players in the the telephone space years ago. Now I’m not in fan of heavy handed tactics like this, but it does work to a degree so I would be okay with it. What I think is the better choice is for the Canadian Government to create the environment to allow deep pocketed telcos on the scale of Orange, Vodafone, or Deutsche Telekom (aka: T-Mobile) to come in and set up shop in Canada. I suspect if that happened, the incumbents would instantly be forced to drop their prices in order not to run over by these players. Now that’s something that has been hinted at, but never actually been put into action. Perhaps it’s time that it did happen.
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This entry was posted on May 23, 2013 at 9:29 am and is filed under Commentary with tags Mobilicity, Telus. You can follow any responses to this entry through the RSS 2.0 feed.
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Hey IT Nerd! Can You Comment On The Buyout Of Mobilicity?
My thoughts on this go something like this. Mobilicity approached Telus to make this deal happen according to this Telus press release. That says to me that they couldn’t make a go of it and are looking to Telus to keep them as a going concern. This may be a trend as rumor has it that Wind is looking for a buyer as well. What that means is that the Canadian Government’s attempt to lower cell phone prices, which are among the highest in the world down has failed. If this deal were to go ahead, that would not change.
Now that’s likely going to make someone ask “what will change this situation?” The way I see it, there are only two choices. the Canadian Government could pass legislation to force incumbent cell companies (read: Rogers, Bell, Telus) to share infrastructure. This was done before when the government wanted new players in the the telephone space years ago. Now I’m not in fan of heavy handed tactics like this, but it does work to a degree so I would be okay with it. What I think is the better choice is for the Canadian Government to create the environment to allow deep pocketed telcos on the scale of Orange, Vodafone, or Deutsche Telekom (aka: T-Mobile) to come in and set up shop in Canada. I suspect if that happened, the incumbents would instantly be forced to drop their prices in order not to run over by these players. Now that’s something that has been hinted at, but never actually been put into action. Perhaps it’s time that it did happen.
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This entry was posted on May 23, 2013 at 9:29 am and is filed under Commentary with tags Mobilicity, Telus. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.