For the first time, Canadian carriers have entered net-play network and spectrum sharing with pure-play independent wireless rivals, but subject to independence.
Global Live has signed a network and spectrum sharing agreement with Telus Communications Inc. as it sets the table for an uncertain and incomplete bid for the acquisition of Freedom Mobile, a Shaw Communications Inc. wireless unit valued at up to $ 4 billion in a block called Shaw. Rival telecom giant Rogers is trying to complete the merger with Communications Inc.
Globallive says its deal with Telus is the first time a Canadian carrier has entered into network and spectrum sharing with a pure-play independent wireless competitor, but it is conditional on the successful acquisition of Globallive’s Freedom Mobile.
Anthony Lacavera, founder of Globallive, has publicly and repeatedly stated that a competitive wireless market with low prices for consumers relies on Freedom Assets – once owned by Globallive and operated under the Wind Mobile banner – a pure-to-responsible telecommunication player player in a pure telecommunications player.
In addition to Lacavera’s group, Freedom Resources includes Montreal-based Quebecor Inc. And Xplornet Communications Inc., a New York-based private equity firm that has attracted interest from rural broadband providers owned by StonePic Infrastructure Partners.
According to media reports, Lacavera is dissatisfied with the way Rogers has handled the Freedom Mobile sales process and has advised Globallive to suppress it.
The sales process fell into disarray earlier this month when the Federal Competition Bureau formally objected to Rogers and Shaw’s $ 26-billion merger. In documents filed with the Competition Tribunal, the competition commissioner said Rogers and Shaw’s proposed “remedy” was not enough to alleviate his concerns about reducing competition to the detriment of Canadian consumers.
The filing argued that the dominance of Freedom Rogers, Telus and Bell had shaken the wireless landscape and reduced prices for its customers where it was operated.
Rogers said it would continue to negotiate with the competition bureau and formally respond to the filing with its arguments for being weighed by the tribunal, but nevertheless promised to “completely” sell independence.
In a press release on Thursday, Global Live stated that “long-term network and spectrum sharing is important for fourth player stability.”
The statement said, “Innovators in the industry committed to offering low wireless pricing have historically struggled to create networks that could adequately compete with those responsible for 25 years of major startups.”
“This transformational agreement will enable GlobalLive not only to offer customers low-cost and innovative offers, but also to provide on-par network quality, which will create a highly competitive environment for decades to come.”
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