Mobilicity will not take part in Canada’s auction of 2.5-GHz spectrum in April and is still working on securing the funding for the AWS-3 sale in March.
"After reviewing the terms of the 2500 MHz auction, [the company has] determined that…participation is not a favourable option," the latest report from the struggling Canadian telco’s court-appointed monitor Ernst & Young stated.
As such, Mobilicity does "not plan to participate in any further discussions" regarding the auction, it added.
The firm still hopes to be involved in the AWS-3 auction in M arch though, the report confirmed. It has yet to secure the C$62 million refundable deposit it needs to pay by 30 January to be able to bid for AWS-3 spectrum in all the regions in which it operates. It is working on a number of options to get the funding, but has yet to finalise a deal.
On a similar note, Mobilicity has engaged with several parties with a view to brokering an acquisition or funding deal.
As it stands, the telco is operating under court protection from its creditors. That protection expires on 30 January, but the company has applied for an extension until 8 May; it has successfully obtained a number of extensions since it applied for court protection in September 2013.
Although the company has significantly fewer customers than it had 18 months ago, it seems to have stemmed losses.
It now only offers month-by-month plans, rather than pay monthly contracts, to both new and existing customers. It has allowed existing contracts to expire and given customers the option to pay the same rate on a month-by-month plan.
By the end of 2014 Mobilicity had 158,600 active customers, down from 189,000 when it entered court protection, but up slightly from 157,000 in mid-2014.
