Canadian TV, Computing and Home Theatre Forums banner

1 - 6 of 6 Posts

·
Super Moderator
Joined
·
3,996 Posts
Discussion Starter #1
A topic of conversation over the last several months has been who will (if any) of the new entrants will be acquired. Public Mobile says they would consider buying WIND Mobile or Mobilicity. WIND says they will snatch up the other and Mobilicity has just remained quiet on the issue all together.

At the press conference today Public Mobile CEO Alek Krstajic said “I would love to be an acquirer. I think one or more of the other new entrants runs out of money by the end of this year. Access to capital is everything… We have a very diverse shareholder group, so I think we’re in a good position.”

We then reached out to Mobilicity and are waiting a response but WIND Chairman Anthony Lacavera stated in an email to us that "The pricing plans introduced by Public Mobile today reflect a company with a weak market position and a weaker offering that is well behind the other new entrant players. They will not survive long selling services below cost just to try and pressure Globalive or one of the incumbents to buy them out… We continue to be open to dialog with other new entrants as there is room for only one new national carrier, and with our market lead and strong financial footing we believe we are the logical consolidator."
I don't know about Wind being the consolidator, at least until their ownership questions are resolved, but I'd be even more shocked to see Public acquire Wind of Mobilicity. Public has a very different business plan and target market. In my mind, the only way they would become a true threat to Wind and Mobilicity would be with an aggressive showing in the upcoming 700 auction, the kind of aggressiveness which would leave them with limited capital for acquisitions.
 

·
Registered
Joined
·
3,022 Posts
How could Public even opine on being an acquirer? They chose a technology that was already abandoned by everybody else, presumably because they could buy infrastructure at clearout prices, and now find themselves incompatible with the rest of the industry and on the trailing edge of innovation.

I dont think they can afford the distraction of upgrading their existing network and acquiring another..
 

·
Super Moderator
Joined
·
3,996 Posts
Discussion Starter #3
Infrastructure costs are about equivalent. Most network gear is interchangeable, and nobody is clearing out CDMA gear yet anyway.

The reason they chose CDMA was because nobody makes phones that work with their frequency so they had to have them made just for Public, and going GSM would have brought endless issues with people who don't understand why they can't use an unlocked phone.
 

·
Banned
Joined
·
7 Posts
My opinion

Public Mobile = desperate for new subscriber but can only do so much with CDMA technology.

Wind Mobile = Has the lead overall with the new entrants but haven't really made a dent yet on the big 3

Mobilicity = most likley the 3 that will sell because of bad reception with their plans and heavy investment that is involved in improving the network while still signing customers who are upset with their reception.

Shaw = New entry in 2012 but who knows what they can offer and by that time, the auction is just around the corner.
 

·
Registered
Joined
·
3,022 Posts
The reason they chose CDMA was because nobody makes phones that work with their frequency so they had to have them made just for Public, and going GSM would have brought endless issues with people who don't understand why they can't use an unlocked phone.
Well, i guess thats one way to look at it. Another way is to say that they actively bought CDMA frequency therefore they actively chose CDMA.

I need a little help understanding what you mean re: endless issues and unlocked phones. Wind doesn't seem to have that problem with their AWS freq.
 

·
Super Moderator
Joined
·
3,996 Posts
Discussion Starter #6
There's no such thing as CDMA frequency, any frequency can work with any technology. Public doesn't actually have AWS spectrum, they have an odd block of PCS spectrum.

They could have tried to build a GSM or HSPA network just as easily as a CDMA network, but because of their frequency, standard unlocked quad-band GSM phones wouldn't work with their network. In fact, the only phones that would work would be phones made just for Public's spectrum. Since nobody else uses their spectrum, it doesn't really make a difference whether their phones are CDMA or GSM.
 
1 - 6 of 6 Posts
Top