Marvin Ryder on Telus’ purchase of Mobilicity

Mobilicity says it has agreed to be purchased by Telus for $350 million.

Telus has twice tried to buy the struggling Mobilicity, but both times the deal was rejected by Industry Canada. This time, however, Mobilicity says it believes the deal will satisfy the federal agency’s criteria and will not affect competition in the Canadian wireless sector.

The company also says the “vast majority” of its 165,000 active subscribers would be able to seamlessly migrate onto Telus’ network after the transition.

Marvin Ryder of McMaster’s DeGroote School of Business gives his expertise on the proposed acquisition.