Globalive Communications Corp. isin talks with various lenders to accelerate the expansion of its WindMobile cellular brand across the rest of Canada, the company's chairmanand chief executive said today.
“We've got to roll out the network as fast as possible,” AnthonyLacavera said in an interview. “This financing is expansion financing.”
Mr. Lacavera would not name any of the lenders, but said the companywas looking at various Canadian, U.S. and international banks.
The upstart national wireless carrier, which launched in Toronto andCalgary in December after a regulatory delay, is looking to build outits distribution and infrastructure networks across the country.
The company plans launches in Edmonton and Ottawa in late Februaryor early March, and in Vancouver by early April at the latest, he said.
These conversations are going much better than those Mr. Lacaverawas having with lenders back in November, shortly after it was deniedby the Canadian Radio-television and Telecommunications Commission.
The CRTC ruled that because of financing by Egyptian telecom giantOrascom Telecom Holding SAE, Globalive was foreign-owned and ineligibleto operate in Canada's strictly regulated telecommunications sector.
Industry Minister Tony Clement overturned that ruling in December, allowing Globalive to go ahead with Wind Mobile's launch.
“When we had the regulatory uncertainty and we had the initiallaunch risks in front of us, there was a different risk profile forinvestors,” Mr. Lacavera continued. “The good news is there's anappetite for what we're doing.”
Mr. Lacavera would only say that the company was seeking “severalhundred million,” and that the number was not small. But one industrysource, who did not want to be named, said Globalive was seeking around$700-million, about the same amount of financing the company receivedfrom Orascom.
“It's very formulaic,” the source said. “Generally you get privateequity firms to help you in the beginning... Then your incrementalsource is usually the U.S. high yield market. And then you generally doan [initial public offering].”
For a variety of issues, including competition and momentum, “Theyneed as big a footprint as possible as quickly as possible,” the sourceadded.
Wind Mobile is one of several new entrants to Canada's wirelesssector, following a spectrum auction back in 2008 designed to introducemore competition. Both Public Mobile and Dave Wireless have launchesplanned for this year, as does Quebecor Inc.'s Videotron.
Analysts and industry watchers have predicted a gradual erosion of market share from Canada's national wireless incumbents, Rogers Communications Inc. , Telus Corp., and BCE Inc.'s Bell Canada, which currently control about 95 per cent of the wireless market.