The End May Be Near For Mobilicity

The ongoing saga of Mobilicity may actually be coming to an end. The Financial Post is reporting that moments before the AWS-3 spectrum auction, they lost the financing that would have allowed them to buy the spectrum that they need to be a player:

The Financial Post confirmed that Mobilicity, which has been operating under court-supervised creditor protection since September 2013, sought and received approval from an Ontario court for as much as $200 million in additional funds from one of its first lien creditors a couple of hours before Industry Canada’s deadline to submit sealed bids.

Despite receiving the court’s blessing however, it is believed that minutes before Tuesday’s noon deadline the emergency financing was not made available for a number of undisclosed reasons. As a result, Mobilicity may have been left without the ability to bid for the coveted cellular airwaves reserved specifically by Ottawa for small carriers operating in British Columbia, Alberta and Ontario.

That pretty much means that without the ability to bid for new spectrum, there is no way they could possibly complete with anyone who wins spectrum from this auction, never mind Bell, Telus, or Rogers. Thus, I think that the end is near for them.

Winners of the AWS-3 auction will be announced on Friday. The death watch for Mobility however starts now.

 

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