Wind Mobile parent moving to acquire Mobilicity?
updated 10:55 pm EST, Tue December 20, 2011
Globalive said to be attempting to expand reach
Canadian wireless carrier Globalive, which is better known by its subsidiary brand Wind Mobile, is reportedly in talks to acquire competing carrier Mobilicity. An unnamed person familiar with the negotiations told Bloomberg that Globalive is attempting to build its presence in the Canadian market to compete with dominant carriers Bell, Rogers and Telus.
Both Globalive and Mobilicity are relative newcomers to the region, providing wireless service for approximately two years. An acquisition would boost Globalive's subscriber base by 50 percent or more, however the combined total is still expected to be overshadowed by the three leading carriers.
Globalive is said to be struggling to meet its initial growth goals, amassing just 400,000 subscribers—still more than a million short of its three-year target. Mobilicity has also grown at a modest pace, with current customer numbers estimate at 250,000.
Mobilicity and Globalive have yet to publicly confirm the acquisition talks.
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