Another one bites the dust.

Mobilicity today announced it would accept a $465 million takeover bid by telco giant Rogers.

As part of the deal, Rogers will sell off some of Mobilicity’s wireless airwave spectrum to competitor Wind Mobile, a condition the federal government demanded before approving the sale.

Mobilicity has around 157,000 customers in Toronto, Ottawa, Calgary, Edmonton and Vancouver and purchased their share of wireless spectrum in a 2008 government auction – the same auction in which Wind also acquired its share of wireless airwaves.

Mobilicity had twice before tried to sell itself to Telus before the federal government put a stop to the deals, citing concerns over reduced competition in the Canadian wireless market. This time, however, the stipulation requiring the sale of part of the spectrum to Wind seems to have sealed the deal.

That said, not everyone is excited about the takeover. "To let another small competitor fall into the hands of incumbents runs counter to government policy," said Geoff White, a spokesman with the lobby group Public Interest Advocacy Centre. "There's a question of what's going to happen to customers of these alternative providers — when they get gobbled up by the big players … will they try to upsell them?"

What about you – are you worried that the Mobilicity takeover is going to mean reduced competition and higher prices in the Canadian wireless sector as a whole? Discuss in our Internet, Landline and Wireless Phone Industry forum now.


[Source: CBC ]