Mobilicity History and Shutdown Explained

Mobilicity was a Canadian wireless service provider that operated from 2009 to 2015. It was founded by James Chandler, a telecommunications entrepreneur.

Mobilicity launched its services in June 2009, initially offering a limited selection of phones and plans to customers in Toronto and Vancouver. The company's initial focus was on providing affordable wireless services to price-sensitive customers.

Mobilicity's network was built on a 4G wireless spectrum that it acquired in 2008, which allowed it to offer high-speed data services to its customers. The company's network was designed to be efficient and cost-effective, with a focus on providing reliable coverage in urban areas.

Mobilicity struggled to compete with larger wireless carriers, including Rogers, Bell, and Telus, which had more extensive networks and a wider range of services.

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Mobilicity was launched with a simple mobile solution for Canadians, and its website was launched on January 7, with the company confirming it would operate under the name Mobilicity on February 2.

The company started offering service in Toronto on May 15, 2010, and later expanded to Edmonton and Vancouver on November 17, with Ottawa and Gatineau following the next day. Coverage in Calgary went live on April 28, 2011.

Mobilicity had a 50% off sale on all monthly plans during Q4 2011, and ended the year with approximately 206,500 subscribers, with 113,000 (54%) of them activating during Q4 of either 2010 or 2011.

The carrier launched the Galaxy Nexus, its first Android 4.0 device, on February 2, 2012, and sold it at a retail price of $600, but cut it in half to $300 by Q3 2012.

Mobilicity released several new devices in the first half of 2012, including the Nokia Lumia 710 and the Samsung Galaxy S III. The carrier also changed its plans and website on April 1, 2012, which remain available to this day.

Here's a breakdown of Mobilicity's subscriber growth from 2011 to 2015:

Mobilicity offers a range of devices specifically designed for mobile broadband, including the Huawei E1691 and E583C modems. These devices can download at speeds up to 7.2 Mbit/s, although Mobilicity doesn't guarantee the network supports these maximum speeds.

The Huawei E1691 is a USB modem that's compatible with Windows, Mac OS X, and Linux operating systems, while the E583C is a portable device that allows any Wi-Fi device to connect to mobile Internet. Mobilicity also sells a Wi-Fi dock and signal repeater for use with these modems.

Customers can access Mobilicity's website for free, even without an Internet access subscription. However, those without a subscription who want to access other sites and services must deposit money into a "Wallet" account, which incurs pay-per-use charges of $1.50/MB.

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Mobilicity's 3G network was built in 2009 and maintained by Ericsson. The company also had a cell-site sharing agreement with Bell Mobility to share cell tower space.

The network used the UMTS IV frequency band, commonly known as Advanced Wireless Services or AWS-1. This allowed Mobilicity to provide UMTS service with HSPA data, also known as "3G".

User equipment transmitted at 1710–1755 MHz and received at 2110–2155 MHz. The same frequencies are used by Eastlink Wireless, Wind Mobile, and Vidéotron Mobile in Canada, as well as T-Mobile in the United States.

Mobilicity's network was compatible with the same 3G handsets and devices offered by these carriers. This made it easy for customers to switch between carriers.

Mobilicity announced plans to upgrade its older HSPA network to HSPA+ in June 2012. This upgrade was completed on October 30, 2012, and provided a theoretical maximum download speed of up to 21.1 Mbit/s.

Only customers with a premium plan or add-on could access these faster speeds. Others were throttled to a maximum of 2 Mbit/s at all times, with slower speeds after the full speed usage limit was exceeded.

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Mobilicity offered a small selection of feature phones, including the Huawei U2801 and the Samsung C414Y, both of which were sold at $50 during a 50% off sale in May 2012.

These phones are now discontinued, but the Sony Ericsson TM506 is still available with "Unlimited To Go" packages at select HMV and Zellers.

The TM506 is notable for being Mobilicity's only feature phone to be sold factory unlocked, allowing it to be used on non-Mobilicity networks like Wind Mobile, Videotron Mobile, T-Mobile USA, or Rogers Wireless.

If you're looking for a feature phone, consider the TM506, which offers flexibility in terms of network compatibility.

Here are some key features of Mobilicity's feature phones:

Mobilicity offers a range of smartphones, each running on a different platform.

The Android platform is well-represented, with popular devices like the Samsung Galaxy Note II, S III, and Q, as well as the Sony Xperia T.

Mobilicity also carried BlackBerry OS devices, including the Curve 9320, Bold 9790, and BlackBerry Z10.

In addition to these platforms, Mobilicity sold Windows Phone 8 devices, such as the HTC Windows Phone 8S.

Here are some of the smartphones Mobilicity has offered in the past:

It's worth noting that some of these devices are no longer available, including the Nokia 500, which was the last Symbian smartphone sold by Mobilicity.

Mobilicity offers two devices specifically designed for mobile broadband: the Huawei E1691 and the Huawei E583C. The E1691 is a USB mobile broadband modem that supports Windows, Mac OS X 10.4 or higher, and Linux operating systems.

Both the E1691 and E583C can download at speeds up to 7.2 Mbit/s. However, Mobilicity doesn't explicitly state whether their network supports these maximum theoretical speeds.

You can also get a Wi-Fi dock for use with the USB modem and a Wi-Fi signal repeater from Mobilicity.

Here are the details of the devices:

Mobilicity offers a range of voice plans that cater to different needs and budgets.

Their current lineup of four plans includes unlimited local and provincial calling, as well as unlimited sent and received SMS and MMS messages within Canada and the continental USA.

Mobilicity offers four current voice plans, introduced on April 1, 2012. These plans provide various features and benefits for customers.

All regular plans include unlimited local and provincial calling, as well as unlimited sent SMS and MMS to Canada and continental USA.

Unlimited received messages from any regular phone number and the caller ID, call waiting, call forwarding, and conference call calling features are also included in all regular plans.

Canada-wide long distance, unlimited sent SMS to regular international phone numbers, and one of two mobile broadband options are included in all regular plans except for the one at $25.

The voicemail calling feature is also included in all regular plans except for the one at $25.

Roaming minutes are included in all of Mobilicity's current plans except for the one at $25, allowing customers to use them throughout Canada on Rogers Wireless' network or throughout the United States on T-Mobile USA's network.

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Industry Canada has given its approval for Rogers to sell Mobilicity's AWS-1 spectrum to Wind in exchange for some of Wind's own spectrum.

The approval is a win for Canadian consumers, according to Industry Minister James Moore, who stated that a new wireless competitor has secured valuable spectrum it needs, and unused spectrum will now be deployed for the betterment of all Canadians.

Industry Canada's approval is a significant step, but the deal still needs approval from the Competition Bureau.

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Mobilicity's entry into the Canadian mobile market was met with skepticism due to its low-cost, no-contract approach, which some saw as a threat to established carriers.

Mobilicity's data speeds were often criticized as being slower than those of its competitors, which could be attributed to its reliance on WiMAX technology.

The carrier's decision to focus on urban areas, such as Toronto and Vancouver, raised questions about its ability to provide adequate coverage to rural customers.

In 2016, Rogers announced its intention to retire the Mobilicity brand on May 10, 2016.

Existing Mobilicity customers were given a choice of "comparable" plans when they were migrated to Rogers' other value-brand mobile provider Chatr beginning in fall 2016.

Rogers stopped activating new Mobilicity lines on August 15, 2016, and converted "over half" of existing Mobilicity retail outlets to Chatr branding.

The My Chatr Move website was launched on July 27, 2016, to facilitate Mobilicity customers switching to Chatr.

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Misleading advertising can be a real issue in the Canadian mobile phone market. Telus Communications sued Mobilicity for running a misleading TV advertisement. The ad featured posters with partial details of competitors' monthly plans, making claims about three-year contracts and unlimited talk time.

Mobilicity's President Stewart Lyons defended the ad, saying Telus was trying to intimidate them. Telus, on the other hand, claimed the ad damaged their brand with false claims.

Justice Christopher Grauer denied Telus's request for an injunction to stop airing the ads. This meant Mobilicity was allowed to continue running the ad, despite Telus's objections.

Mobilicity even poked fun at the system access fee charged by incumbent providers with a fake "Data Access Fee/Tax" on April Fools' Day, 2011. This was a joke, but it highlighted the controversy surrounding fees and charges in the industry.

Mobilicity has experienced several network outages over the years, with most being minor and short-lived.

One notable outage occurred on August 24, 2011, affecting Vancouver, Edmonton, and Calgary. Affected customers were offered a complimentary voice mail add-on or a one-time prepaid credit.

In December 2011, Mobilicity had a more severe outage affecting all its customers in five markets. Initially, customers couldn't make calls, and later, they couldn't receive calls either.

Those trying to call a Mobilicity customer from outside the network were met with a busy signal, making it impossible to leave a voicemail.

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A judge has ordered the city of Ottawa to repay millions of dollars in a case that highlights the complexities of municipal finance.

The city was found to have overcharged property owners for water and sewage services, resulting in a significant refund.

Ottawa's municipal government has faced criticism for its handling of the issue, with some accusing the city of being slow to respond to the problem.

The judge's ruling requires the city to repay approximately $10 million to affected property owners.

This is not the first time Ottawa's municipal government has been at the center of a controversy involving financial mismanagement.

Mobilicity's financial struggles led to a series of attempted acquisitions and restructuring deals. In 2013, Mobilicity announced a new financing deal worth $75 million, but Catalyst Capital Group attempted to halt it.

The company's Stay Period, which prohibited proceedings against it, was initially set to end on October 30, 2013, but was extended ten times and finally ended on August 31, 2015. This allowed Mobilicity to continue its restructuring efforts.

Telus made two unsuccessful bids to acquire Mobilicity, first in 2013 for $380 million and again in 2014 for $350 million. The Competition Bureau blocked both deals, citing concerns about undue spectrum concentration.

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Mobilicity announced a new multi-stage financing deal worth $75 million on February 12, 2013.

This deal included $15 million that had already been provided to the company. However, Catalyst Capital Group attempted to halt the deal by opening a file at an Ontario court.

In April 2013, the Ontario Superior Court of Justice issued an order allowing Mobilicity to attempt restructuring. This order allowed the company to ask creditors to vote on business sale and restructuring plans.

Mobilicity's restructuring plans aimed to raise additional capital and pursue other strategic options. The company announced on July 10, 2013, that it was in discussions with multiple parties regarding an acquisition plan of arrangement.

Mobilicity initially had an end date of October 30, 2013, for its Stay Period, which prohibits proceedings against the company.

Telus initially tried to acquire Mobilicity for $380 million in May 2013, but the deal was blocked by the Canadian government due to concerns about competition in the wireless sector.

Telus had already acquired Public Mobile by October 2013, and made a second attempt to acquire Mobilicity in April 2014 for $350 million, but the deal was blocked again by the Competition Bureau.

WIND Mobile's CEO, Anthony Lacavera, expressed interest in buying Mobilicity after the Telus deal was blocked, and even called for the consolidation of WIND, Mobilicity, and Public Mobile to better compete with the major Canadian wireless carriers.

WIND Mobile made several promotions targeted at Mobilicity customers in 2014 and 2015, including offering a free month of service and $60 in service credits, in an effort to attract Mobilicity customers.

The promotions were likely an attempt by WIND Mobile to build its customer base and prepare for a potential acquisition of Mobilicity, but negotiations between the two companies were reportedly stalled due to the high price requested by Mobilicity's creditors.

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Rogers Communications Inc acquired Mobilicity in 2015 for $440 million. This deal included the transfer of some of Mobilicity's AWS spectrum licenses to WIND Mobile at no cost.

Industry Canada was initially hesitant to approve the sale due to concerns about undue spectrum concentration. However, after a deal was struck, the acquisition plans were approved by the Ontario Superior Court, Industry Canada, and the federal Competition Bureau.

Rogers also finalized a plan to buy additional spectrum blocks from Shaw for $100 million. These blocks were acquired by Shaw in 2008 but never used, and Rogers packaged them together with Mobilicity's spectrum to transfer to WIND.

The acquisition of Mobilicity's assets gave Rogers $175 million worth of tax losses to use against its corporate tax bill. Consumer advocates expressed concerns about the takeover, fearing it would harm Canadian telecom customers.

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Mobilicity had a unique retail presence, with its own corporate store and third-party authorized dealers. These dealers sold "Unlimited Prepaid" packages and Mobilicity products in various locations.

Some of the stores that carried Mobilicity products included 7-Eleven, HMV, Metro, NCIX, Staples, The Brick, Walmart, and the former Zellers chain.

Mobilicity initially had a strong presence in Metro stores, with eight locations in Toronto and one in Ottawa.