Verizon makes an offer to buy Canada’s WIND Mobile
The final price would depend on due diligence that needs to be done while the offer is reviewed and Verizon would take a look at the books. It has also been reported that Verizon may also be looking to acquire WIND’s competitor Mobilicity.
WIND is Canada’s fifth largest carrier with a little over half-a-million subscribers and is currently owned by VimpelCom Ltd., based out of the Netherlands. The offer from Verizon has apparently sent a shiver down the spines of the big three Canadian carriers’ stocks at the prospect of a foreign player entering the scene, an odd supposition since WIND is already foreign owned.
WIND (and the other smaller carriers) have been struggling to compete. Canada as a market is guarded with some amount of overzealous pride which up until recently did not allow significant amounts of foreign investment. Rules have been recently relaxed however, but that has not quelled concerns about what could happen to the market if big players like Verizon or AT&T entered the picture.
Verizon’s (and we will assume AT&T’s) interest in Canada also has to do with the fact that the Canadian government will be auctioning off spectrum early next year in the 700MHz band which is in line with the bulk of spectrum that Verizon and AT&T bought in the United States and have been feverishly building out their LTE networks with.
Hopefully, Verizon will have things clarified by the September 17th deadline to be involved in the upcoming spectrum auction in 2014. WIND Mobile’s current spectrum lies in the 1700MHz range which is also in the same range as the AWS spectrum that Verizon acquired from Comcast, Time Warner and Bright House earlier this year.
1. Dorothy69 (banned) (Posts: 498; Member since: 21 May 2013)
That's just too much unnecessary WIND!
2. james004 (limited) (Posts: 410; Member since: 15 May 2013)
Article is well written, it pointed out some key facts about verizon.
From what it looks like verizon is on path to buy wind, it already has 1700mhz in america, uses 700mhz LTE of its own. it could merge wind with verizon itself and use the 700 LTE to cherish in canada.
Its all good news until you realize what the di*k company verizon is. it will provide all canadian communications to american companies and government.
Plus for consumer at the end, The price of their service! wind if the by far the best choice for lowest price.
Verizon might invest alot in wind but it will suck more money out of it later.
3. Dorothy69 (banned) (Posts: 498; Member since: 21 May 2013)
Let's just hope it doesn't leave everyone WINDed for nothing. I'm looking forward to it even though I'm in Kansas but, there are some people who feel the whole buyout just blows.