Rogers Wireless Fetches Fido

[ComicalMoodyDan]

Rogers Wireless Fetches Fido
By Susan Rush
September 20, 2004
news@2 direct

After months of pouring through bids, Canada's Fido wireless brand creator Microcell Systems has found a buyer, Rogers Wireless. The wireless arm of Rogers Communications trumped a hostile takeover attempt by Telus.

In May, Telus put forth an initial offer to buy up its smaller rival for some good cold cash -- a deal valued at about $801 million, or $21 a share. Microcell rejected the bid, calling it 'inadequate' and said it would open itself up to other potential bidders.

Although Telus kept extending its deadline for Microcell to accept the offer, ultimately the company opted to go with a higher bidder. Rogers Wireless has agreed to buy Microcell for $27 a share, in a deal valued at roughly $1.08 billion.

When the deal, which is supported by Mircocell shareholders, closes, the combined entity will become the largest wireless operator in Canada with more than 5.1 million customers. Telus, which has roughly 3.6 million subscribers, could not be immediately reached for comment on the deal.

Rogers Wireless plans to finance the purchase with cash on hand, a draw down of its credit facility and a bridge loan from its parent Rogers Communications. Last week, AT&T Wireless agreed to sell its 34 percent stake in Rogers Wireless to its partner Rogers Communications.


Rogers Wireless Fetches Fido

[ShoresGuy]

Holy cow, this is a major change but it's not the big deal going on in NA. It shows that consilidation of major carriers is progressing quickly.

[ninjajoe]

I like what Fido has to offer me now and I hope Rogers doesn't go and mess around with the Fido plans and offers. I use a Fido prepaid and the options they have with that are outstanding. Rogers prepaid couldn't compare.

[agentHibby]

What I see the world of wireless is that we will always have small or nationwide carriers in the US. The middle size regional carriers are going to dissappear as well as other small and nation providers. I think we all can agree in 1999 Comcast cellular being sold was the best thing they could do. Where is Comcast now?? #1 in cable TV service provider. Where will Cingular be soon #1 in Wireless. Smart move for both SBC and Comcast.
I am sure this will help both companies in the end with fido/rogers deal

[ZaphodB]

Originally Posted by ninjajoe I like what Fido has to offer me now and I hope Rogers doesn't go and mess around with the Fido plans and offers. I use a Fido prepaid and the options they have with that are outstanding. Rogers prepaid couldn't compare.

I have to agree, Rogers prepaid isn't very user-friendly -- but they have got the coverage. Fido have got coverage in YHZ airport and within, oh, ten blocks of the Historical Properties in Halifax, but that's it for the Maritimes... so I just deal with sucky Rogers prepaid when I go.

[radioguy]

AgentHibby, hopefully the information in your Signature Line is intended to be humorous and not a "troll". If not, a bit of clarification.....

GSM is NOT a dying technology, in fact it is the fastest expanding cellular technology in the world, with over a billion users in 208 countries (at last count). The use of WCDMA technology in the so called "3G" phones is not entirely the same as that used in current CDMA phones.

A "3G" GSM phone will be equipped with both a WCDMA radio interface for use with packet switched data, and a GSM interface for use with circuit switched data. Both devices will co-exist in the handset, and the device will choose which of the radio systems it uses at any given time, based on what the user or the network is requesting.

I think it's safe to say that GSM will continue to be the predominant cellular technology worldwide.

Cheers!!!