Freedom Mobile is a Canadian wireless telecommunications provider owned by Quebecor. It has 6% market share of the Canadian wireless market, mostly in urban areas of Ontario, British Columbia and Alberta. Freedom Mobile is the fourth-largest wireless carrier in Canada, with 2,290,497 subscribers as of November 30, 2022.[3]

Freedom Mobile
FormerlyWind Mobile (2009–2016)
Company typeSubsidiary
IndustryMobile network operator
FoundedDecember 16, 2009 (2009-12-16)
FounderAnthony Lacavera
HeadquartersToronto, Ontario, Canada
Key people
Paul McAleese (COO)[1]
ProductsFeature phones, mobile broadband modems, smartphones (Android, Apple iPhone,[2] BlackBerry 10, Windows Phone)
Services5G, LTE, VoLTE, HSPA (including HSPA+), IP relay, mobile broadband, SMS, TDD operator, telephony
Number of employees
1,250 (2016)
ParentShaw Communications (2016-2023)
Quebecor (2023–present)
Websitewww.freedommobile.ca

Founded in 2008 as Wind Mobile by the telecommunications company Globalive, Freedom was one of several new mobile carriers launched in Canada in 2008 after a government initiative to encourage competition in the wireless sector alongside Mobilicity (later acquired by Rogers Communications) and Public Mobile (later acquired by Telus). It initially launched mobile data and voice services in the Greater Toronto and Hamilton Area, Ontario, on December 16, 2009, and two days later in Calgary, Alberta.[4] Since then, Southern Ontario has been the main target of network expansion: first with Ottawa in Q1 2011, and then with about half a dozen additional regions, the most recent being Cornwall, Cobourg, Belleville, Trenton, Brockville, and Pembroke on March 8, 2019.

In 2016, Wind Mobile was acquired by Shaw Communications and subsequently renamed Freedom Mobile. On June 17, 2022, Shaw Communications, Rogers Communications and Québecor jointly announced an agreement for the sale of Freedom Mobile to Québecor, parent of Vidéotron, pending approval of Competition Bureau and Minister of Innovation, Science and Economic Development. The sale of Freedom to Québecor was approved on March 31, 2023, and closed on April 3, 2023.

History

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2008: Wind Mobile founded

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Globalive, a Canadian company was primarily financed by an Egyptian corporation, Orascom Telecom Holding, and managed by Wind Telecom S.p.A., which owns a number of other "Wind" brand telecommunications companies. Globalive bid $442 million (CAD) in 2008 to secure the Advanced Wireless Services (AWS) wireless spectrum (3G at 1,700 mhz) required for the launch of the network.[5] Ken Campbell, a former Vodafone and Orascom executive, was named as the first chief executive officer of Globalive Wireless in 2008.[6] The launch of the company was delayed due to a public ownership review by the Canadian Radio-television and Telecommunications Commission (CRTC). The regulatory body stated that Globalive did not meet Canadian ownership requirements.[7] The most prominent issue was Globalive's reliance on Orascom for its debt, which stood at $508 million (CAD).[8]

2009: Network tests, government approval, retail partnership and launch

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Globalive completed its first test call on the network in June 2009.[9]

On December 11 of that year, the Governor-in-Council (acting on the advice of Tony Clement, then Minister of Industry) issued a final decision deeming that Globalive does meet ownership requirements, allowing Globalive to enter the Canadian market immediately.[10]

On December 14 Wind announced an alliance with Blockbuster LLC in Canada to offer Wind kiosks and prepaid products within Blockbuster stores at 16 locations, 13 in Ontario and 3 in Calgary.[11] On December 16, Wind Mobile launched its service in Toronto.[12] A launch event was hosted at its Queens Quay location in downtown Toronto.

2010: Build out of urban networks, 100K subscribers and Windtab

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Number of Wind Mobile/Freedom Mobile subscribers[13][14]
  • "2021 Subscriber Stats" (PDF). CWTA. Retrieved March 26, 2022.
Date Additions Total Increase
2009-12-31 5,000 5,000 N/A
2010-03-31 39,441 44,441 788.8%
2010-06-30 49,441 93,882 111.3%
2010-09-30 45,799 139,681 48.8%
2010-12-31 92,960 232,641 66.6%
2011-03-31 39,018 271,659 16.8%
2011-06-30 45,341 317,000 16.7%
2011-09-30 41,000 358,000 12.9%
2011-12-31 45,000 403,000 13%
2012-03-31 12,364 415,364 3.1%
2012-06-30 41,552 456,886 10%
2012-09-30 53,598 510,484 11.7%
2012-12-31 79,954 590,438 15.7%
2013-03-31 11,281 601,719 1.9%
2013-06-30 18,732 620,451 3.1%
2013-09-30 16,376 636,827 2.6%
2013-12-31 39,382 676,209 6.3%
2014-03-31 25,791 702,000 3.8%
2014-06-30 39,000 741,000 5.6%
2014-09-31 59,000 800,000 8%
2015-12-16 140,000 940,000 17.5%
2016-05-31 63,469 1,003,469 6.7%
2016-11-02 39,819 1,043,288 3.9%
2017-04-12 42,897 1,086,185 4.1%
2017-08-31 60,988 1,147,173 5.6%
2018-02-28 124,012 1,271,185 10.8%
2018-05-31 46,659 1,317,844 3.6%
2018-08-31[15] 85,014 1,402,858 6.5%
2018-11-30 65,615 1,468,473 4.7%
2019-01-14 86,067 1,468,473 5.9%
2019-02-28 65,000 1,516,256 3.3%
2019-05-31 62,099 1,578,355 4.1%
2021-12-31 249,410 2,171,953 37.6%
2022-11-30 118,544 2,290,497 5.5%
2023-08-12 1,309,503 3,600,000 57.2%

Chris Robbins, Chief Customer Officer, resigned from Wind Mobile on March 4, 2010. Both Robbins and Wind Mobile said that the departure was due to strategic changes and the former wanting to pursue other business opportunities. Analysts assessed the change negatively speculating that an executive departure so early reflected disappointing market penetration.[16]

2011

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On February 4, 2011, the Federal Court ruled in a suit brought by competitors Public Mobile and Telus that the Governor in Council's decision regarding Wind's Canadian ownership requirements was improper. Wind was granted a 45-day stay of the decision to file arguments.[17][18] On May 18, the Federal Court of Appeal heard arguments from Wind and the federal government as to why the Federal Court decision should be quashed. The Federal Court of Appeal's decision allowed Globalive's appeal and restored the Governor in Council's order that Wind met Canadian ownership requirements.[19] On September 19, Public Mobile entered an application for leave to appeal to the Supreme Court of Canada.[20]

On March 17, the shareholders of Russian mobile telephone operator VimpelCom voted in support of a $6 billion deal to acquire Wind Telecom, whose assets include Orascom Telecom, a significant shareholder in Wind Mobile. The transaction would create the world's fifth largest mobile operator by subscribers – more than 173 million subscribers.[21]

Further Ontario expansion

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Wind's network in Southern Ontario expanded throughout 2012. Kingston, Peterborough and Woodstock were added throughout Q3 2012.[22] Although the carrier initially planned to add Windsor during that same fiscal quarter,[23] the plans were delayed[citation needed]

On April 10, 2013, Wind Mobile announced that it would withdraw from the Canadian Wireless Telecommunications Association. Competitors Mobilicity and Public Mobile also withdrew from the CWTA, citing bias to its competitors Bell, Rogers, and Telus as justification.[24]

On June 19, 2013, Orascom Telecom, a subsidiary of Vimpelcom, withdrew its application to take full control of Wind Mobile – which reversed an earlier decision.[25]

Recapitalization, investors buy out Vimpelcom/Wind Telecom stake

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On January 13, 2014, majority shareholder VimpelCom (which owned indirect equity in Wind Mobile through its subsidiaries Wind Telecom and Global Telecom Holding) pulled out its financial backing for Wind Mobile's bid in the Industry Canada 700 MHz spectrum auction following a dispute with the Canadian federal government.[26]

In September 2014, VimpelCom's majority stake in Wind Mobile was sold to AAL Acquisitions Corporation (a holding company controlled by Wind Mobile founder Anthony Lacavera) for a fee of $135 million, with the consortium also assuming $150 million of Wind's debt.[27] The deal received regulatory approval from Industry Canada in November 2014 and Wind's spectrum licences were transferred to AAL Acquisitions Corp.[28] The stake and spectrum licences were then transferred to Mid-Bowline Holdings Corporation, a company controlled by a consortium of investors consisting of Globalive and several private equity firms based in Canada and the United States.[29] Wind Mobile continued to license the Wind name and logo, which remained trademarks of Wind Telecom,[30] until 2016.

New CEO Pietro Cordova announced in December 2014 that Wind was engaging in planning for further expansion and development of LTE services, including bidding in the Canadian government's 2015 spectrum auctions, which was not possible when the company was controlled by VimpelCom.[29] Cordova stated that such a plan may also include purchasing spectrum from companies that are under-utilizing it (such as Vidéotron Mobile's spectrum licences outside Quebec and the unused AWS spectrum purchased by Shaw Communications in the previous auction) as well as developing agreements with other providers such as Mobilicity and Vidéotron to expand Wind's footprint.[31] The company's new priorities also included improving the network quality in their existing coverage areas.[32]

Spectrum acquisitions and transfers

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On March 23, 2015, Alek Krstajic, former CEO of rival start-up Public Mobile, was named CEO of Wind Mobile Corporation, and Robert MacLellan, a former executive of Toronto-Dominion Bank, was made chairman of the board. At the time, Wind's shareholders included the Toronto hedge fund West Face Capital (35%), the California-based fund Tennenbaum Capital Partners (31%), and Globalive Capital Voting Group (25%), which included Tony Lacavera's investment fund together with investment vehicles owned by Alex Shnaider, Terrence Hui, and Michael Serruya, and an investment firm controlled by Lawrence Guffey (8%).[33]

On June 17, 2015, Wind Mobile became the first cellular provider to offer service in TTC subway stations through an agreement with BAI Canada, the company which owns the infrastructure that provides mobile and Wi-Fi service for the TTC subway network.[34] The deal included Wind having exclusive rights to the underground mobile system for one year before BAI Canada would allow other providers to join the system.[35]

Under the terms of Rogers Communications' acquisition of Mobilicity in June 2015, Wind purchased certain AWS spectrum licences formerly held by Shaw Communications (purchased by Rogers in a separate deal) and Mobilicity for the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, and northern and eastern regions of Ontario for a "peppercorn" payment of $1 per licence.[36] Wind negotiated an option to pay Rogers $25 million for half of Mobilicity's cell sites and other infrastructure at a later date.[37] Additionally, Wind agreed to swap spectrum licences with Rogers in southern Ontario so that both companies' AWS spectrum blocks were contiguous.[36]

Purchase by Shaw, Freedom Mobile name change

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Shaw Communications announced on December 16, 2015, that it planned to acquire Wind Mobile's parent company Mid-Bowline Group in a deal worth approximately $1.6 billion.[38] The acquisition required approval by Innovation, Science and Economic Development Canada (formerly Industry Canada) and the Competition Bureau. As part of the announcement of the transaction Shaw Communications outlined some terms of the acquisition: then-CEO Alek Krstajic would remain to lead Wind as a division within Shaw and it would remain headquartered in Toronto as a "distinct unit", Wind would remain a budget-priced mobile carrier at least for the short term, and the network upgrade from HSPA 3G to a faster LTE network would continue as planned.[39][40] Brad Shaw, CEO of Shaw Communications, stated in an interview that the acquisition of Wind would allow Shaw to compete "at the same level" as an integrated telecommunications provider with rival Telus in western Canada and gain a foothold in the Ontario telecom market.[38]

The purchase was approved by the Competition Bureau on February 4, 2016[41] and the purchase of Wind Mobile by Shaw was completed on March 1, 2016.[42] Shaw sold Shaw Media to Corus Entertainment, a company also controlled by the Shaw family, as part of the funding for the deal.[43] Krstajic was given the new title within Shaw of "Executive Vice President & President, Wind" and continued to lead the new subsidiary.[44]

LTE launch, re-branding

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On November 21, 2016, Shaw announced that Wind Mobile had been renamed to Freedom Mobile. The company stated that it no longer wanted to license the Wind brand from VimpelCom due to increasing royalty fees, while CEO Alek Krstajic justified the move by stating that the company wanted to shed the "baggage" of the Wind name, and use the new ownership and developments as a means of re-launching the carrier.[45]

The same day, Freedom announced that it would be launching LTE service on the AWS-3 band in Toronto and Vancouver, with a nationwide rollout to be completed by the end of fiscal year 2017. L CEO Alek Krstajic, who had headed Freedom Mobile throughout the acquisition by Shaw, stepped down in April 2017 and was replaced by Paul McAleese. McAleese's title was changed to chief operating officer.[1]

Freedom Mobile announced on November 7, 2017, that LTE access was enabled on all grandfathered 3G plans at no additional cost. This coincided with a planned national upgrade of Freedom cell sites to utilize newly acquired 2,500 MHz (Band 7) spectrum and the re-allocation of some AWS-1 (Band 4) spectrum for LTE, both of which are compatible with a greater number of devices than Freedom's initial AWS-3 (Band 66) LTE network.[46]

In July 2020, Shaw began to operate Shaw Mobile as an MVNO on the Freedom Mobile network in Alberta and British Columbia. The service was offered as part of a quadruple play with Shaw's television, internet, and home phone services in the market.[47][48]

Sale to Quebecor

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On March 15, 2021, Rogers Communications announced its intent to acquire Shaw for $26 billion, subject to regulatory and shareholder approval.[49] Due to competition rules, Rogers was required to sell Freedom Mobile. Globalive Capital and Quebecor made bids to acquire the carrier,[50] with Rogers ultimately accepting the $2.85 billion offer by Quebecor. The deal includes Freedom Mobile's wireless and internet customers, infrastructure, spectrum and retail sites.[51] The sale of Freedom to Quebecor was approved on March 31, 2023, and completed on April 3, 2023.[52][53]

As part of conditions imposed on the purchase by the federal government, Quebecor is required to invest $150 million over the next two years to upgrade the Freedom Mobile network, maintain prices for existing customers for at least five years and increase their data allotments by 10%, and must offer prices 20% lower than those of equivalent plans offered by carriers in Alberta, B.C., and Ontario for ten years.[52][54]

iPhone support

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Because of Freedom's reliance on the AWS HSPA+ network, there are limitations on which phones the carrier has been able to offer its subscribers. The iPhone was absent from Freedom's device lineup until late 2017. Apple only began manufacturing AWS-compatible iPhones in early 2013 when AWS carrier T-Mobile US began selling the iPhone 5.[55]

Though newer iPhone models are compatible with Freedom's network, the carrier was not able to strike an agreement with Apple to sell the iPhone directly to its subscribers until 2017.[56]


Radio frequency summary

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Frequencies used on the Freedom Mobile Network
Frequency range Band number Protocol Class Status Note(s)
1.7/2.1 GHz AWS 4 UMTS/HSPA/HSPA+/DC-HSPA+ 3G Active Only band for providing UMTS Voice & Data services.
600 MHz DD 71 LTE/LTE-A 4G Active Acquired in a 2019 auction. Deployed in Kingston and Ottawa.[57]
700 MHz Upper C Block 13 Active[58] Additional LTE band with better signal propagation to provide better indoor service and fill gaps in network coverage. Also being used to provide LTE Advanced coverage in select markets. Acquired from Quebecor. (Restricted to devices that Freedom sells, or that come from Samsung, Google, LG, Moto or Apple on BYOD subject to specific models in the Compatibility Matrix)
1.7/2.1 GHz AWS 4/66 Active Primary band used for LTE service in all regions, excluding Eastern Ontario. Also being used to provide LTE Advanced coverage in select markets.
2.6 GHz IMT-E 7 Active[59] Primary band for LTE compatible with legacy devices. Also being used to provide LTE Advanced coverage in select markets. Carrier Aggregation is used in conjunction with Band 66, excluding Eastern Ontario. Acquired from Quebecor.
38 Pending Development Additional band for LTE in select regions of Western Canada. Acquired in residual spectrum auction.[60]
600 MHz DD n71 NR 5G Active/Building out Currently available in Greater Vancouver, Calgary, Edmonton, the GTA, Hamilton, London, and Windsor.[61][62]
1.7/2.1 GHz AWS n66 Access in Quebec from Vidéotron[63][61]

Foreign ownership controversy

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In 2009, the Canadian Radio-television and Telecommunications Commission (CRTC) complained that Wind received the majority of its startup funding from the foreign company Orascom Telecom Holding. The case was dismissed by Q4 of that year, allowing Wind to launch for the Christmas and holiday season. Competitor Public Mobile quickly partnered with Telus Mobility for both roaming agreements and together sued Wind for its foreign ownership. Telus later backed out, leaving Public alone to continue the lawsuit all the way to the Supreme Court of Canada. On April 26, 2012, the Court announced that it would not hear the case about Wind Mobile's foreign ownership.[64] Public Mobile itself received foreign funding of at least $350 million from the Export-Import Bank of China in 2010.[65]


References

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