T-Mobile to enter Canada?
T-Mobile USA reportedly wants to build a new wireless network in Canada, a potential return of sorts for the U.S. provider to the country that it exited four years ago.
The division of Deutsche Telekom would of course first have to find a partner that can secure wireless spectrum in the May auction of airwaves in the 2Ghz range. Industry Canada has set aside 40% of the airwaves to be auctioned off for the likes of T-Mobile and other potential new entrants.
But T-Mobile is restricted by Canada’s antiquated foreign ownership laws, which prohibits international entities from taking more than a 47% stake in a domestic telecom services firm.
T-Mobile once owned 15% of Microcell Telecommunications, which created the Fido brand. T-Mobile’s stake in Microcell was sold to Rogers as part of its $1.4-billion purchase of the company in the fall of 2004.
T-Mobile is aggressively pursuing new customers, which means a CIBC research note detailing the company’s alleged interest in Canada and follow-on blog posts could have legs.
The company, which doesn’t offer home phone service unlike wireless rivals Verizon and AT&T, launched a test service in Seattle and Dallas earlier this month that allows users to link their cellphones to any corded or cordless home phone, with multiple extensions, for just US$10 a month. That very low price includes unlimited domestic calls.
Rival Verizon Wireless introduced U.S. calling plans earlier this month that allows its wireless subscribers to call, e-mail or use the Web as much as they want. T-Mobile quickly followed suit.
If T-Mobile was to enter Canada, expect it to do so on the terms of a partner such as MTS Allstream or Videotron - companies that would like to build a national network but are somewhat resource constrained.
One has to wonder if T-Mobile is the mystery entity represented by Ogilvy Renault.
A partnership with T-Mobile could give MTS Allstream and Videotron the financial wherewithal needed to build a national wireless network.
The plans offered by T-Mobile USA would certainly be welcome.
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