Should Rogers Buy Wind Mobile?

Nadir Mohamed, Chief Executive of Rogers Communications wants to keep Canada’s largest telco company the biggest dog in the pound nadir-mohamedand has publically said they would be willing to acquire Wind Mobile from Globalive. Wind Mobile was recently blocked by the CRTC due to having a 65% foreign ownership.

“Spectrum is a very valuable asset,” Mr. Mohamed said Friday after a speech to the Toronto Board of Trade. “It’s the real-estate of our business, so Rogers would be for sure interested in picking it up. I’m sure others would be.”

Wind Mobile was set to launch their new wireless service in Toronto and Calgary this month after planning over this last year, hiring over a hundred employees, building a network and setting up retail stores.

Should Rogers By Wind Mobile?

Rogers biggest threat comes from TELUS who has a very strong foot hold in Western Canada but is increasing their presence in Ontario through their recent acquisition of Black’s retail stores. Rogers almost have no choice but to acquire Wind Mobile to ensure the company isn’t swept up by TELUS.  TELUS is current sitting on around a $16 billion dollar market cap and the other major wireless provider Bell who does have a larger market cap but still seems to have a few internal structural issues to iron out.

Unfortunately a deal between Rogers and Wind Mobile would not be the help Canadian consumers as there would still be one less wireless competitor. Wind Mobile has not make their offering public but it is most likely to get head to head with Rogers Wireless or their tier two company Fido.

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Founder of Profectio of business sites which includes Profectio, PR In Canada and Clean Tech Corner. He is also Founder of Toronto Tech Week. Follow Dave on Twitter or Facebook