Telus Makes $1.1 Billion Bid For Fido (Microcell)

[Mike Temporale]

http://www.canada.com/vancouver/vancouversun/news/business/story.html?id=784730e4-c312-4ac0-a7c1-2af100cf037f

"Telus has offered $1.1 billion for Montreal-based Microcell, or $29 per share, a figure already exceeded by the market run-up. Microcell, better known by its brand name Fido, could be worth $40 to $45 a share to Rogers and Bell, John Henderson, an analyst at Scotia Capital, wrote in a note."

Following in the footsteps of Cingular and AT&T, consolidation among the Canadian wireless carriers is in the air. These two carriers run different networks so chances are one of them will be shutdown. Unfortunately it would probably be the Microcell GSM network. This merger will put Telus ahead of Bell Canada as the largest wireless carrier in the country.

[Mike Temporale]

http://www.canada.com/vancouver/vancouversun/news/business/story.html?id=784730e4-c312-4ac0-a7c1-2af100cf037f

"Telus has offered $1.1 billion for Montreal-based Microcell, or $29 per share, a figure already exceeded by the market run-up. Microcell, better known by its brand name Fido, could be worth $40 to $45 a share to Rogers and Bell, John Henderson, an analyst at Scotia Capital, wrote in a note."

Following in the footsteps of Cingular and AT&T, consolidation among the Canadian wireless carriers is in the air. These two carriers run different networks so chances are one of them will be shutdown. Unfortunately it would probably be the Microcell GSM network. This merger will put Telus ahead of Bell Canada as the largest wireless carrier in the country.

[groan]

If this is true, that's terrible!
why would they do such a thing?
i have not yet bought a smartphone at all, but was seriously considering it and with that, seriously considering the fido network (what choices do i have?)

if they had ANY brains, they woudl merge the services and use the smartphone features of the other network as well.

what a bunch of losers!

[rubberdemon]

Telus is CDMA, Fido is GSM. Fido has had a promotion called 'cityfido' which allows you unlimited local calls for $45 a month, supposedly to try and take the place of a regular phone line. Telus and other carriers are irked at this because they've driven the ARPU down across the board (Average Revenue Per User). There's speculation they bid on Fido to shut them down - they certainly won't be taking any GSM technology or features from the Fido GSM network; probably just run it in parallel while they attempt to convert the users with free phones and packages etc...

[Mike Temporale]

Originally Posted by rubberdemon

There's speculation they bid on Fido to shut them down - they certainly won't be taking any GSM technology or features from the Fido GSM network; probably just run it in parallel while they attempt to convert the users with free phones and packages etc...

There is no other value in Fido for Telus, just the customers. Telus already has better coverage. If they do acquire Fido they will become Canada's largest wireless carrier. I think this is the real motivation. Although I hate Rogers, they would be the best carrier to take over Fido since they are both GSM. However I have a feeling it will be Telus or Bell that ends up with Fido. I like my fido. I don't want to go back to Rogers.