updated 11:03 am EDT, Thu August 15, 2013
Report claims Verizon to bid in Canadian spectrum auction instead
Verizon may be putting a hold on its attempts to purchase two Canadian carriers, in favor of acquiring spectrum directly, according to a report. The American carrier, believed to be offering at least $600 million to Wind Mobile and a similar figure for Mobilicity, is now considering bidding in a Canadian government wireless spectrum auction instead.
Two sources of the Globe and Mail state that Verizon will be focusing on entering the mobile phone network market of Canada by taking part in the 700Mhz auction in January. If it succeeds in gaining spectrum, Verizon could look towards acquiring Wind and Mobilicity next year, giving it a much stronger position when compared to its potential targets, and giving it room to compete against others in the market once it does acquire a carrier.
The change in plans could be down to the scheduling and rules of the auction itself. Though it will not begin until January, carriers wishing to take part must pay a refundable deposit and apply before September 17th, with all signing up being prevented from making deals with other carriers in a similar position until after it has ended.