Globalive seeking wireless partnerships, investors
TORONTO (Reuters) - Privately held Globalive Communications Corp is starting talks with other service providers about forging a wireless partnership and reaching out to investors, after winning spectrum in a government auction this summer.
Globalive, which spent about C$442.1 million ($417 million) on spectrum, won wireless licenses across Canada, except in the province of Quebec. There, media, communications and printing group Quebecor Inc was the big winner with total bids of C$554.5 million.
Asked whether Globalive is in talks with Quebecor, Globalive CEO Anthony Lacavera told reporters on Thursday that "we will reach out to everyone" now that a government-imposed moratorium on such talks has expired.
The company, currently known for offering cheap long-distance calling under the Yak brand, is still assessing which equipment vendors to choose and what service plans to offer, Lacavera said.
It is targeting a rollout of its network in the second half of 2009 and wants to hit about 1.5 million subscribers in the first three years of operations.
A month ago, Lacavera told Reuters that Globalive was considering offering flat-rate voice and data services as it prepares to fight the country's Big Three carriers -- BCE Inc, Telus Corp and Rogers Communications Inc -- for market share.
To pay for the fight against the incumbents, Toronto-based Globalive will need financing. Its backers include Weather Investments, which owns service providers in Italy and Greece, and the majority of Orascom Telecom Holdings, one of the biggest mobile phone firms in the Middle East.
Lacavera said that, as Globalive seeks to raise more money, it will avoid the public markets, at least for now.
"We're talking to private investors at this time," he said.
Although the country's Big Three carriers consistently complain of stiff competition in the wireless market, consumers have seen things differently.
Canadians have long complained service plans are too costly, too lengthy and loaded with hidden fees. Part of the reason for Ottawa's auction of wireless spectrum this summer was to encourage new players to enter the marketplace.
Globalive also announced on Thursday it was launching a "soapbox" website to gather consumers' opinions about what they seek in a wireless provider.
($1=$1.06 Canadian)
(Reporting by Wojtek Dabrowski; editing by Rob Wilson)
