Just days after Telus was said to be making a second attempt to purchase struggling wireless carrier Mobilicity, there’s a report Ottawa has rejected the sale.
Mobilicity was in talks with Industry Canada about the potential sale of the company, but the small wireless carrier had yet to publicly identify the potential buyer.
In a report published Wednesday, The Globe and Mail cited sources who confirmed that, in a confidential communication from Industry Canada to Mobilicity, government officials rejected the proposed purchase.
"Mobilicity sought views from Industry Canada on a potential spectrum licence transfer," Jessica Fletcher, communications director for Industry Minister James Moore, confirmed to CTVNews.ca in an email Wednesday morning. "Industry Canada considered this request under the Spectrum License Transfer Framework and provided a response in confidence."
Spokespersons for Mobilicity and Telus said they had no comment on the Globe and Mail report.
The British Columbia-based company had previously attempted to buy Mobilicity for $380 million, but the transaction was rejected by Industry Canada in June.
The deal was blocked due to the current prohibition on wireless newcomers transferring spectrum licences to large carriers.
Mobilicity's spectrum licence doesn't expire until next February.
Fletcher said the government will continue to enforce the moratorium.
"We will not approve any spectrum transfer request that decreases competition in our wireless sector to the detriment of consumers," she said.
Mobilicity is under creditor protection, which has been extended by the courts until Dec. 20.
Last week, Telus was given permission to by Ottawa to purchase small talk-and-text provider Public Mobile.
The small carrier was not under any sale restrictions.
With files from The Canadian Press
