Verizon Communications is continuing its efforts to expand into Canada's mobile market, after putting an initial offer on the table for Wind Mobile and beginning talks with Mobilicity, according to The Globe and Mail. Verizon's initial offer for Wind Mobile values the Canadian carrier at roughly USD 700 million, according to two people familiar with the situation. Verizon has also held talks with stakeholders of Mobilicity, and is also considering whether to participate in the federal government's auction of spectrum licences.
Verizon, long barred from full ownership of a Canadian telecom company by foreign investment rules, now has an opening. Ottawa, in 2012, relaxed those restrictions on small telecom companies with market share of 10 percent of less, with the aim of increasing competition for the big three phone companies, Telus, Rogers Communications and BCE.
Chief financial officer Fran Shammo has publically confirmed that Verizon was examining the opportunity to enter Canada after The Globe and Mail reported the company was in talks to potentially acquire Wind. However, it is unclear whether the deal will be concluded, the article said.
