Shaw Communications has acquired WIND Mobile in a $1.6 billion deal.
by Global News Dec. 16 2015
CALGARY – In a blockbuster shake-up of Canada’s mobile phone industry, cable and Internet giant Shaw Communications is buying upstart WIND Mobile in a deal valued at about $1.6 billion.
If approved by regulators, the deal could go a long way toward helping the federal government meet its stated desire for a fourth national wireless carrier to challenge the market dominance of Rogers, Bell and Telus.
“This transaction represents a transformational step in the history of Shaw and we are excited about our future growth prospects in mobile,” Chief Executive Officer Brad Shaw said in a statement released late Wednesday.
“This growth will be accelerated by combining Shaw’s existing customer relationships, trusted brand and wireline and WiFi infrastructure with WIND’s impressive asset base.”
WIND is Canada’s fourth-largest wireless services provider, serving approximately 940,000 subscribers across Ontario, BC and Alberta.
The move by Shaw comes as a surprise, since the Calgary-based company had announced in 2013 that it was abandoning plans for a cellular division and would focus instead on cheaper Wi-Fi options for mobile customers.
MORE DETAILS HERE AT THE GLOBAL NEWS WEBSITE
Sad that as soon as somebody threatens competition, big money just buys them out, and we’re right back to square one…
What bugs me about this, is Shaw had bought wireless spectrum in the same auction as wind and mobilicity. They sold there spectrum to Rogers and Rogers bought mobilicity so wind ended up getting some of the shaw spectrum. Now shaw is buying wind. To me it seems like they were to lazy to do the work of rolling out a wireless company so they waited for someone else to do it and bought them. I just wonder how much the plans will go up now or if the crtc will regulate them to keep prices low. Which means cable and internet will continue to go up as they continue to make cuts at global
Once the sale closes, Shaw will most likely keep the current rates the same, but I’d give them six months at most before the various rate plans jump anywhere from 40-70% of their current pricing. And of course, Shaw would then try waging a PR campaign, claiming that the rate hikes were justified, that they’re simply trying to fall in line with what the other gutless, psychopathic monopolies, i.e., Rogers, Bell, Telus, are offering their customers. As we’ve seen time and time again, the Canadian consumer gets bent over the counter, the only lube available being their sad, salty tears.
Wind/Shaw rates cant go up in the next two years at least as they provide inferior service to their competitors because their spectrum doesnt work well in buildings (ie shopping malls). If they jack up pricing there will be a mass exodus away.
In all likely hood the Wind plan holders will be grandfathered. Of course the minute a current wind plan holder goes to make ANY change to his plan the protection ends. Thats how Fido eliminated their original $40 per month unlimited talk plans.. This when Telus was charging 25 cents per minute. Back about 1995 my Telus bill was about 300 per month for cellular then Fido made it drop to 40.
Suffice to say Shaw will gouge its cellular customers with the same gusto it screws its cable and internet subscibers.
Look South to verizon and sprint to see what it should cost.