Globalive Communications Inc. announced that it will receive up to USD$700 million from Egyptian-based Orascom Telecom over the next four years. Globalive, which intends to launch its own mobility service in Canada, won 30 licenses covering about 10MHz of spectrum in every province except Quebec, in the last Canadian wireless spectrum auction.
Further funds will also need to be raised in Canada to meet ownership rules as outlined by the federal government. Those funds could come from private investors or a public market offering. The additional funds will also be needed as a national wireless network could cost Globalive as much as CAD$2 billion to build.
Globalive is looking to roll out its wireless network in the second half of 2009. It will target Toronto, Calgary, Edmonton and Vancouver initially and focus initially on prepaid customers as well as voice service (rather than data services). Within three years, it wants to have 1.5 million customers and has set a long-term goal of 3.5 million subscribers.
Globalive also confirmed that it had paid in full the CAD$442 million it owed to the Canadian federal government for the 30 licenses it won in the spectrum auction.