Verizon Considering the Acquisition of Canadian Carriers Wind Mobile

Summary: The U.S Verizon Communications will acquire Canadian carriers Wind Mobile, aiming to enter the Canadian wireless market.

According to the Global and Mail reports that the U.S Verizon Communications is considering to acquire a small mobile operator in Canada in order to enter the Canadian wireless market.

The report, citing unnamed sources, said the Canadian government wants all of the regional markets in the country with at least four major wireless carriers to enhance competition. It is considered by Canadian government that foreign investment struggle of the smaller operators as a way to ensure the competition.

Verizon has conducted exploratory talks with the Canadian Wind Mobile investors, as indicated by the reports, except Verizon, AT & T, Vodafone and Telenor are also potential investors.

Despite Wind and Mobilicity took low-cost market strategy, but the two companies are still not able to turn around. This two smaller operators are completing with larger mobile operators Telus, Bell Mobility and Rogers Communications. Mogilicity is trying to sell itself to Telus, but the government stop the deal with the excuse of that a smaller operators should not been annexed a big carriers. Canadian government has relaxed restrictions on foreign ownership to promote a more competitive wireless market, but the sale of Wind by VimpleCom has been treated in the sale of the government of Canada’s security concerns.

As reports shows, Verizon Wind and VimpelCom are all declined to make comment on it.

Sources said, Verizon will acquire Wind or Mobilicity, and participate in an upcoming spectrum auction. In theory, such a move would lead to more price competition, and put pressure on existing Canadian carriers. “Verizon is now certainly carefully consider this transaction.” One source said.

Canadian wireless market has long been controlled by existing major carries. Earlier this month, the Canadia Radio and Television Commission (CRTC) have made some changes in regulatory policies designed to stimulate more competition. The regulatory agency sad, users can cancel the contract after two years of its wireless contract (in the past, the contract period is three years), it also set up an additional monthly data traffic upper limit beyond the package price cap and international data roaming tariff ceiling respectively, which are respectively $ 50 and $ 100, in order to prevent the emergence of a huge phone bill.

Source: FiberStore News