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TELUS to acquire Mobilicity – what it means


This blog was posted on May 16, 2013.


 

Well, I guess this isn’t a surprise to some of you given the recent speculation in the media and in the market.

Today, we officially announced that we have entered into an Mobilicity logoagreement to acquire Mobilicity.

It’s no secret that Mobilicity has been going through some tough times financially.

With ongoing losses adding to high and unsustainable debt levels, both their customers and employees have been facing a lot of uncertainty.

In December of last year, Mobilicity first approached us about a deal. One of the reasons they felt TELUS would be a great fit is they genuinely appreciate our customer focus and the improvements we’ve made over the past few years. We have the best client loyalty in the business and it continues to get better.

Mobilicity approached TELUS as the best option for their company and customers. They have considered all of their options – and when I say all, I mean all.

Our agreement eliminates the threat that a bankruptcy or restructuring situation would pose for their customers and their employees.

Given Mobilicity’s distressed financial situation, the long-term continuation of their business as is isn’t an option.

The financial strength of TELUS would allow Mobilicity’s business to go forward in a way that’s sustainable and would benefit their customers and employees.

What does this mean for Mobilicity’s customers?

If approved, our agreement to acquire Mobilicity would be good news for their 250,000 customers. Importantly, their wireless service would continue without the risk of disruption.

Moblicity’s customers would also join Canada’s most satisfied and loyal customers at TELUS and Koodo.

Earlier this year, the Commissioner for Complaints for Telecommunications Services reported that complaints against TELUS were down while complaints against our peers were on the rise. Just last week, J.D. Power and Associates released its annual Wireless Total Ownership Experience Survey – one of the most exhaustive surveys of Canadian wireless customers – with both of our brands showing significant gains in customer satisfaction scores. Koodo took top spot in the stand alone category, while TELUS finished second only to provincial provider SaskTel in the full service category, with a significant lead over Rogers and Bell.

That’s not bad, but we want to do better.

Now that we have entered into an agreement, it will be business as usual for Moblicity customers. Over time, and with the required regulatory approvals, Mobilicity customers would benefit from national coverage and faster data speeds on our extensive 4G LTE network, an enhanced selection of devices and improved customer service.

What does this mean for Moblicity’s employees?

Our goal is to provide stability to the Mobilicity team and retain all 150 employees as we work through the integration. Mobilicity employees will have the opportunity to review and secure permanent roles with TELUS.

If this transaction moves forward, we’re really looking forward to working with our new colleagues.

What does this mean for Canada’s wireless industry?

Mobilicity accounts for less than 1% of Canada’s roughly 27 million wireless customers, and we don’t believe this transaction will have a significant impact on competition in our industry. Just take a look at the number of wireless stores and kiosks in any mall in Canada and you’ll see there’s no shortage of choices for Canadian consumers when it comes to a wireless provider. In addition to fierce competition amongst Canada’s three largest carriers, Canadians have other alternatives including Koodo, Virgin, Fido, Wind and in various regions Public Mobile, SaskTel, MTS, Videotron and EastLink.

Last word

As I’ve said before on this blog, we know we’re not perfect at TELUS, but we’re working hard on getting better.

One of Mobilicity’s very real concerns right now is the fate of their employees and customers. They think we’d be a great fit because of our reputation for being increasingly customer focused.

If this transaction receives the necessary approvals, we’d welcome our new customers and work closely with our new colleagues to keep improving the service we provide to all of our customers.

 


  1. Jean-François Mezei:

    Are there details on how this transaction would be done ? Will Telus become debtor in posession and then become single shareholder once Mobilicity emerges from re-organisation ? Or can Mobilicity be purchased with money going to its (former?) shareholders ?


  2. Jay:

    What does this mean for the Mobilicity Customers, will they be able to keep their plans, or will their plans have to change? What about reception, will that change too?


  3. driv3r:

    Illusion of choice is certainly great.


  4. Dave:

    Didn’t see a bunch of lies like that for a while, Telus just trying to kill the competition.
    I hope the regulator will not approve the transaction, AMEN


  5. Trevor Tsang:

    Will Mobilicity customer switch to use Telus’ cell site tower? Hence reception will be better?


  6. Azeez Abdullah:

    What is the future of Mobilicity’s dealer.


  7. Andre Avazyan:

    I’m considering signing on for a second year onto mobilicity, will this buy out affect my monthly rate plan?


  8. Natalia:

    Is this means Mobilicity customer have to pay Telus rates? Or sign any type of contract?


    • Colleen_Dix:

      Hi Natalia,

      The Mobilicity transaction was denied by the Government so as a result Mobilicity is engaged in a restructuring.

      Thank you,
      Colleen – TELUS Social & Media Relations


  9. bill:

    will the phone be good or will we have to buy a new phone?


  10. James Huckabone:

    So glad the sale was denied. I have a rational hate for Telus that will not go away in this lifetime.