Xplornet to be sold to U.S. company for $2B: report

Xplornet Communications Inc. will be bought for some $2 billion USD by a U.S.-based investment firm, according to a report from Bloomberg News. Asked if the government was aware of the reports of the transaction, a spokesperson for Innovation Minister Navdeep Bains wrote in an emailed statement: “our government is committed to ensuring Canadians pay fair prices for mobile and wireless services, regardless of their postal code. We monitor transactions in Canada from a competition and regulatory perspective and conduct reviews as appropriate.” There are indications the government has been aware of a possible sale for at least several weeks. An Access to Information request filed by The Wire Report seeking documents related to the sale of Xplornet was fully withheld earlier this month. In rejecting the request on Feb. 10, the office of the Information Commissioner cited the Cabinet Confidence section of the ATI law. Xplornet did not respond to requests for comment. Earlier this month Xplornet announced it had bought Silo Wireless, a wireless provider in rural southern Ontario, which operates a network with over 100 fixed wireless towers, and a fibre-to-the-home network, according to a press release. Xplornet is understood to be the most affected by the ISED 3.5 GHz spectrum clawback policy, announced last June, which repurposes strips of spectrum considered essential for the upcoming 5G rollouts. The New Brunswick-based company is the second largest holder of 3.5 GHz spectrum in the country behind the Rogers Communication Inc.-BCE Inc. Inukshuk partnership, and uses the spectrum primarily for fixed wireless in rural areas. Xplornet had lobbied heavily against any kind of clawback mechanism ahead of the 3.5 GHz auction, which is expected sometime this year. “The Department has proposed taking 3500 MHz spectrum away from ISPs who are using it to deliver service to rural Canadians,” James Maunder, vice-president of communications and public affairs at Xplornet said in an email back in 2018 during its lobbying blitz. “Based on the recommendations proposed, Xplornet would lose between 25 per cent and 66 per cent of its spectrum.” Xplornet’s general counsel CJ Prudham told the House Industry committee last year that “if either of the options proposed in the consultation is implemented, rural Canadians will be disconnected… rural broadband connectivity would be set back a decade.” When the clawback mechanism was announced in June, National Bank analyst Adam Shine estimated that Xplornet would be able to maintain some 80 per cent of its spectrum holdings. Xplornet announced some $500 million of infrastructure investment earlier this year.

Xplornet to be sold to U.S. company for $2B: report

Brief | February 25, 2020

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Xplornet to be sold to U.S. company for $2B: report

Brief | February 25, 2020

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