Mobilicity
| Company type | Subsidiary |
|---|---|
| Industry | Telecommunications |
| Predecessor | Data and Audio-Visual Enterprises Wireless (DAVE Wireless) |
| Founded | 2008 |
| Founder | John Bitove |
| Fate | Acquired by Rogers Communications; brand phased out in 2016 |
| Headquarters | Canada , Canada |
Area served | Canada (Toronto, Edmonton, Vancouver, Ottawa-Gatineau, Calgary) |
Key people | John Bitove (Founder, Executive Chairman), Dave Dobbin (former President and CEO), Stewart Lyons (former President) |
| Products | Mobile virtual network operator services (wireless telecommunications) |
| Owner | Rogers Communications |
Number of employees | 150 (2013) |
Data and Audio-Visual Enterprises Wireless, operating as Mobilicity, was a Canadian mobile virtual network operator (MVNO) under the ownership of Rogers Communications. The brand name fused the concepts of "mobility" and "simplicity". Mobilicity was one of several emerging wireless providers in Canada, alongside competitors such as Public Mobile (later acquired by Telus) and Wind Mobile (which was eventually purchased by Shaw Communications), all launched in response to a government drive to increase market competition. As of May 16, 2013—the same day Telus revealed its unsuccessful bid to acquire Mobilicity—the company serviced more than 250,000 subscribers.[1] Court filings from April 2015 indicated that the subscriber base had decreased to 157,000.[2]
On June 24, 2015, the Ontario Superior Court sanctioned Rogers' acquisition of Mobilicity for CAD 440 million, with Mobilicity continuing operations as an MVNO on Rogers' infrastructure.[3] By May 2016, Rogers declared its intention to phase out the Mobilicity brand and transition customers to its Chatr network before the end of that year.[4]
2008–2009: Formation and spectrum acquisition
The company was initially established as DAVE Wireless by Canadian entrepreneur John Bitove. It participated in the 2008 AWS spectrum auction, investing $243 million to secure 10 MHz of spectrum covering key regions including southern and eastern Ontario, Vancouver, Calgary, and Edmonton. The domain davewireless.com was registered on July 10, 2008, followed by mobilicity.ca on October 27, 2009.
Dave Dobbin, an executive with extensive experience in telecommunications, was appointed as President and CEO.
2010–2012: Market entry and growth
| Date | Net Change | Total Subscribers | Percentage Change |
|---|---|---|---|
| 2011-09-30 | 143,500 | Template:? | |
| 2011-12-31 | 206,500 | 44% | |
| 2012-05-23 | 250,000 | Template:? | |
| 2012-12-31 | 271,337 | Template:? | |
| 2013-03-30 | -16,800 | 254,457 | -6.22% |
| 2013-06-31 | -19,035 | 235,422 | -7.48% |
| 2013-09-30 | -19,478 | 215,944 | -8.27% |
| 2014-06-31 | 157,000 | Template:? | |
| 2014-08-30 | -700 | 156,300 | -0.45% |
| 2014-10-31 | 2,337 | 158,637 | 1.47% |
| 2015-04-30 | -1,637 | 157,000 | -1.03% |
The company launched its website on January 7 under the DAVE Wireless name and officially unveiled the Mobilicity brand on February 2. Their mission was to provide Canadians with straightforward mobile services. Service rollout began in Toronto on May 15 and expanded to Edmonton and Vancouver by November. Coverage in Ottawa-Gatineau followed soon after, with Calgary service commencing on April 28, 2011.
During the fourth quarter of 2011, Mobilicity introduced a promotion offering a half-price discount on monthly plans. In November of that year, Dave Dobbin stepped down; John Bitove assumed the role of Executive Chairman while Stewart Lyons took over as president. By the end of the year, Mobilicity had accumulated approximately 206,500 customers.
Early in 2012, the company broadened its device portfolio by adding models such as the Galaxy Nexus (running Android 4.0), Nokia Lumia 710 (Windows Phone), BlackBerry Curve 9320, and Samsung Galaxy S III. Initially priced at $600 retail for the Galaxy Nexus, the price was lowered to $300 by the third quarter.
On April 1st, Mobilicity refreshed its plan offerings along with its website design. Throughout that year, discounted monthly plans were reintroduced multiple times. In October, multi-month discounts were added alongside a launch of a premium high-speed mobile broadband service. Retail distribution partnerships included collaborations with Loblaw Companies.
2013-2015: Financial Reorganization and Acquisition Attempts
On February 12, 2013, Mobilicity revealed a phased financing arrangement valued at $75 million, with $15 million already disbursed. Catalyst Capital Group responded by seeking a court injunction in Ontario to halt the transaction.
By April 10, 2013, Mobilicity had exited the Canadian Wireless Telecommunications Association, aligning with startups Public Mobile and Wind Mobile in criticizing the organization for favoring Rogers, Bell, and TELUS. Gary Wong, Mobilicity’s Legal Affairs Director, emphasized the company's persistent objections to CWTA’s policies.
An Ontario Superior Court ruling on April 26, 2013, permitted Mobilicity to initiate restructuring efforts and obtain creditor consent for selling the business and raising capital.
By July 10, 2013, discussions were underway between Mobilicity and several potential buyers regarding an acquisition. In September, reports surfaced about negotiations with Wind Mobile to transfer customer accounts while investors would retain spectrum licenses; however, Mobilicity refuted these allegations.
Mobilicity’s Stay Period—shielding it from creditor claims—was originally slated to conclude on October 30, 2013. The following day saw the resignation of president Stewart Lyons. This Stay Period was extended ten times in total, ultimately lasting until August 31, 2015.
Interest from Telus and WIND Mobile
On May 16, 2013, Telus declared its intent to purchase Mobilicity for $380 million, subject to regulatory approval. At that point, Mobilicity served over 250,000 subscribers and employed approximately 150 staff members. Nevertheless, Industry Minister Christian Paradis blocked the acquisition on June 4, 2013, citing breaches of conditions from the 2009 AWS spectrum auction. Telus had acquired Public Mobile in October 2013 and renewed its bid for Mobilicity in April 2014 at $350 million. Despite Mobilicity’s assurances that the transaction would not reduce market competition, the Competition Bureau again obstructed the deal, prompting Telus to withdraw its offer.
After Telus’s acquisition attempt was thwarted, WIND Mobile CEO Anthony Lacavera expressed interest in merging with Mobilicity to strengthen their position against Canada’s dominant wireless carriers. Lacavera had previously proposed combining WIND Mobile with both Mobilicity and Public Mobile; however, those proposals were declined by the latter two companies. Following the cancellation of potential acquisition talks by American carrier Verizon Wireless with either WIND or Mobilicity, Lacavera announced plans to reacquire a controlling interest in WIND Mobile and pursue purchasing Mobilicity.
Beginning in May 2014, WIND Mobile initiated promotional campaigns aimed at attracting Mobilicity customers by offering one month of free service on plans priced up to $60. After WIND completed recapitalization in December 2014, it provided $60 worth of service credits along with complimentary SIM cards to customers porting from Mobilicity. Early in 2015, WIND extended offers including free SIM cards and six months of complimentary service on its WIND35 plan specifically for former Mobilicity users.
In February 2015, the Financial Post disclosed that WIND was engaged in negotiations to acquire Mobilicity before the AWS-3 spectrum auction deadline. These discussions were delayed due to elevated price demands from Mobilicity’s creditors and were suspended during the auction period because of anti-collusion regulations. Negotiations recommenced only after auction results were finalized in March 2015.
2015: Mobilicity Acquired by Rogers
Beginning in 2013, Telus submitted three separate offers to acquire Mobilicity. Although these proposals received creditor approval, regulatory bodies blocked them because Mobilicity’s spectrum licenses were designated exclusively for new market entrants. WIND Mobile presented a $200 million bid that regulators accepted; however, creditors found this amount insufficient. Subsequently, WIND’s CEO Alek Krstajic—who had previously held positions at Rogers and Bell Mobility—approached Rogers’ CEO Guy Laurence with a plan for Rogers to purchase Mobilicity and subsequently transfer certain AWS spectrum licenses to WIND without charge.
By June 2015, both Telus and Rogers were competing to acquire Mobilicity, primarily attracted by its wireless spectrum assets. Industry Canada indicated willingness to approve a transaction involving a major telecom provider provided that some AWS licenses were reassigned to WIND. On June 23, Mobilicity’s creditors endorsed a $440 million agreement under which Rogers would acquire the company while divesting select spectrum licenses to WIND. The Ontario Superior Court, Industry Canada, and the Competition Bureau all granted approval for the acquisition on June 24.
2016: Brand Discontinuation
On May 10, 2016, Rogers revealed its intention to phase out the Mobilicity brand, ceasing new customer activations by August 15 of that year. Existing subscribers were not grandfathered into their original plans but were offered "comparable" alternatives as they transitioned to Rogers’ value-oriented brand Chatr starting in the fall of 2016. More than half of Mobilicity’s retail locations underwent rebranding as Chatr outlets. To streamline customer migration from Mobilicity to Chatr, Rogers launched the My Chatr Move website on July 27, 2016.
1700/2100 MHz AWS 3G Network (2009–2015)
Mobilicity’s wireless infrastructure was established in 2009 and operated under the management of Ericsson. The network utilized the UMTS IV frequency band (AWS-1) to provide UMTS service featuring HSPA data capabilities commonly referred to as "3G." A cell-site sharing arrangement existed between Mobilicity and Bell Mobility within overlapping coverage areas. In 2012, Mobilicity extended its agreement with Ericsson to include further network planning, engineering, and optimization services.
The network employed uplink frequencies from 1710 to 1755 MHz and downlink frequencies from 2110 to 2155 MHz. These bands were also used by competitors such as Eastlink Wireless, Wind Mobile, and Vidéotron Mobile across Canada, as well as by T-Mobile US. This commonality ensured device compatibility across carriers offering similar 3G handsets.
According to founder John Bitove, mobile broadband traffic accounted for approximately 90% of Mobilicity’s network usage. On June 14, 2012, the company announced an upgrade from HSPA to HSPA+, marketed as a "4G" enhancement, which was completed by October 30 of the same year. This improvement raised theoretical maximum download speeds from 3.6 Mbit/s to 21.1 Mbit/s. However, only customers subscribing to premium plans or purchasing add-ons could access these faster speeds; other users experienced throttling down to a maximum of 2 Mbit/s, with additional speed reductions applied after surpassing data thresholds.
Mobilicity’s network coverage encompassed segments of the Greater Toronto Area, Ottawa including Gatineau, as well as Calgary, Edmonton, and the Greater Vancouver region. No new markets were added following April 28, 2011. The company drew criticism for its limited efforts in network densification and expansion. Former President and COO Stewart Lyons mentioned intentions to broaden coverage and enhance speeds via HSPA+ upgrades before the end of 2012, targeting locations such as Orleans and Hamilton; however, substantial network growth failed to materialize.
Products
Mobilicity's primary merchandise consists of a range of smartphones, alongside other device offerings. Customers have the option to return or exchange newly acquired products within a 7-day window, provided that total talk-time remains under 30 minutes (previously set at 30 days). All devices currently sold come with a one-year warranty.
The majority of Mobilicity’s devices are locked. Although users might prefer to operate Mobilicity phones with SIM cards from other providers—often to access more affordable service plans while traveling—the company seldom grants unlock requests and does so only at its own discretion.
Mobilicity markets "Unlimited Prepaid" packages (formerly known as "Unlimited To Go") that combine a feature phone or smartphone with a SIM card and one to three months of unlimited calling and texting on its network, frequently offered at discounted prices. Certain bundles also include extras such as Bluetooth headsets or mobile broadband services.
Feature phones
Among Mobilicity’s feature phone options are the Huawei U2801 and Samsung C414Y, both available for $50 during a 50% off promotion in May 2012.
At the time of launch, the Huawei U7519, Totem, and Sony Ericsson TM506 feature phones were offered but have since been discontinued. Nonetheless, "Unlimited To Go" packages featuring the TM506 remain accessible at select HMV and Zellers locations. The TM506 stands out as Mobilicity’s only factory-unlocked feature phone, compatible with networks such as Wind Mobile, Videotron Mobile, T-Mobile USA, and Rogers Wireless.
Smartphones
Mobilicity provides smartphones across three operating systems:
- Android: Samsung Galaxy Note II, Galaxy S III, Galaxy Q; Sony Xperia T
- BlackBerry OS: Curve 9320, Bold 9790, Z10
- Windows Phone 8: HTC Windows Phone 8S
In Canada, Mobilicity was the exclusive carrier for the Mobiflip smartphone—a variant of the T-Mobile Sidekick LX 2009—released on December 22, 2010 and discontinued in 2011. The Samsung Gravity Touch feature phone succeeded the Mobiflip. Additionally, the HTC Panache 4G was exclusively available through Mobilicity except in Ottawa but was discontinued after the Galaxy Nexus became available.
At launch, Mobilicity’s smartphone lineup included the BlackBerry Bold 9700, HTC Snap, and Nokia 5230. The Nokia 500 was the last Symbian device sold by the company. The only Windows Phone 7 model offered was the Nokia Lumia 710 (available May to September 2012). All these models have since been phased out.
Although Mobilicity does not retail iPhones, its network supports iPhone 5 and subsequent models.
Internet access devices
Mobilicity retails two mobile broadband gadgets: the Huawei E1691 USB modem and Huawei E583C portable Wi-Fi hotspot. The E1691 is compatible with Windows, Mac OS X 10.4+, and Linux; Mobilicity’s version features a white shell branded with its logo. The E583C enables Wi-Fi-enabled devices to connect to mobile Internet. Both devices support download speeds up to 7.2 Mbit/s, though it is unclear whether the network consistently supports these speeds. Additional accessories include a Wi-Fi dock for the USB modem and a Wi-Fi signal extender.
Voice plans
Mobilicity commenced operations on May 15, 2010, offering six voice plans; its current selection of four plans has been available since April 1, 2012.
These plans provide unlimited local and provincial calls; unrestricted outgoing SMS and MMS messages within Canada and to the continental USA; unlimited incoming messages; caller ID; call waiting; call forwarding; and conference calling. Except for the $25 plan, all options include Canada-wide long-distance calling, unlimited outgoing SMS to standard international numbers, one of two mobile broadband choices, and voicemail.
Roaming minutes are incorporated into all plans except the $25 tier and can be used on Rogers Wireless within Canada or T-Mobile USA in the United States. Additional roaming minutes can be purchased as add-ons.
Mobile Internet
Mobilicity offers both limited-area and unlimited mobile broadband add-ons at affordable rates for feature phones and smartphones lacking mobile Internet, usable exclusively within its network coverage. Devices that support tethering include this feature at no extra cost. Users of BlackBerry devices incur an additional charge for the BlackBerry Internet Service. Separate monthly plans are available specifically for mobile broadband modem users. Previously available pay-per-day access has been discontinued.
All subscribers enjoy complimentary access to Mobilicity.ca. Those without a subscription who want to visit other websites must pre-fund a "Wallet" account, where pay-per-use fees apply at $1.50 per megabyte ($1536 per gigabyte). These fees also apply to unintended data consumption caused by apps or accidental browsing. Most devices provide options to disable mobile internet through their settings.
Mobilicity enforces a Fair Use Policy aimed at preventing "network instability" and prohibiting unauthorized distribution of copyrighted or patented materials. Breaches of this policy can result in bandwidth throttling or service suspension. Roaming services are subject to additional charges. The company has faced criticism for ambiguous throttling rules, blocking legitimate traffic, and terminating some unlimited plan users due to excessive usage despite the unlimited claims.
In October 2012, Mobilicity implemented a Fair Use Policy that capped full-speed HSPA+ data at 6 GB with speeds around 2 Mbit/s.
Roaming
Mobilicity's roaming agreements include Rogers Wireless within Canada and T-Mobile USA or AT&T in the United States, covering 2G, 3G, and 4G networks. Pricing and roaming minute packages remain consistent between both countries, with certain monthly plans containing roaming minutes. Once these minutes are depleted or if not included, standard roaming rates are applied. International roaming beyond Canada and the USA is accessible but at higher costs.
Misleading advertising
Telus Communications initiated legal action against Mobilicity in the Supreme Court of British Columbia, alleging that a television commercial was "false and misleading." The advertisement selectively presented competitors' monthly plans—using yellow for Fido Solutions and white on red for Rogers or Virgin—emphasizing conditions such as mandatory three-year contracts or limited unlimited talk time offers. Telus representative Shawn Hall claimed the ads damaged Telus’s reputation and demanded their withdrawal. Mobilicity’s President and COO Stewart Lyons accused Telus of attempting to intimidate competitors to reduce market rivalry. Previously, Telus had collaborated with Public Mobile in litigation against Wind Mobile concerning foreign investment issues. On December 20, 2012, Justice Christopher Grauer rejected Telus's request for an injunction to halt the ads.
Mobile Internet policies
Prior to October 19, 2012, Mobilicity did not have a clearly defined fair use policy despite customer concerns, occasionally terminating services without notice due to heavy data consumption on unlimited plans. COO Stewart Lyons noted that high-volume users would experience temporary speed reductions. On October 19, 2012, Mobilicity introduced a mobile broadband fair use policy guaranteeing at least 6 GB of full HSPA speed data, with premium packages or add-ons offering up to 20 GB alongside faster HSPA+ speeds. This policy replaced the earlier limit of 100 MB every 15 minutes and aligned Mobilicity’s approach with those of Wind Mobile and T-Mobile USA. Some customers criticized Mobilicity’s tiered pricing based on connection speed and protocol—a practice also used by Public Mobile, but unlike Wind Mobile, which applies uniform pricing for both HSPA and HSPA+ access.
Network disruptions
Mobilicity encountered multiple network interruptions, mostly minor in nature, with two significant events standing out. On August 24, 2011, service disruptions in Vancouver, Edmonton, and Calgary prompted the company to compensate affected subscribers by offering a choice between a complimentary three-month voicemail add-on or a one-time prepaid credit.
A more extensive outage occurred on December 7, 2011, impacting all customers across Mobilicity’s five operating markets. Initially, users were unable to place calls; subsequently, they lost the ability to receive calls or have callers leave voicemail messages. No reimbursements were issued, possibly due to an ongoing promotional event offering a 50% discount.
Philanthropic efforts
Mobilicity has donated in excess of $100,000 to the "S'Cool Life Fund", an initiative supporting Canadian primary school funding established by Mobilicity’s chairman, John Bitove.
Marketing initiatives
Among Mobilicity’s advertising efforts was a memorable 2011 campaign distributing Durex condoms within its service areas to promote a $69/month couples plan that included unlimited talk, text, and data services. Calgary was excluded from this promotion as its network was not yet operational.
On April 1, 2011, Mobilicity launched an April Fools' Day prank introducing a fictitious "$4.01 Data Access Fee/Tax," satirizing the additional charges imposed by major Canadian carriers.
In June 2011, the company debuted advertisements featuring two computer-generated alien characters named "Otis" and "Alexis," chosen through a Facebook naming contest to boost brand interaction.
Distribution channels
Mobilicity managed its own corporate retail outlet and collaborated with authorized third-party dealers to distribute "Unlimited Prepaid" packages and occasionally the full spectrum of Mobilicity products. Retail partners included 7-Eleven, HMV, Metro, NCIX, Staples, The Brick, Walmart, and the now-defunct Zellers chain. Initially, Metro stocked Mobilicity products in eight Toronto stores and one Ottawa location via full-service kiosks; this was later reduced to four Toronto locations, excluding Metro's discount banners such as Food Basics and Super C. Mobilicity ceased all third-party retail collaborations by early 2013.
Unlike Wind Mobile, Mobilicity did not establish stores targeting Francophone customers but only translated its Unlimited Prepaid offerings into French. Francophone regions serviced by Mobilicity included Vanier in Ottawa and Gatineau.
Gallery
- The Samsung C414Y is a basic flip-style feature phone offered by Mobilicity.
- The Huawei E1691 is a USB mobile broadband device; Mobilicity’s version is white with its logo, contrasting with Wind Mobile’s black variant.
- Otis (green male) and Alexis (purple female) are alien-themed mascots utilized in promoting Mobilicity’s offerings.
- A Mobilicity authorized retailer located in Toronto caters specifically to the city’s Chinese community.
- The Huawei E1691 provides mobile broadband connectivity.
External links
- Mobilicity launches handsets and plans for Toronto WhatsYourTech.ca
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