There could be consolidation amongst Canada's new wireless networks, as Globalive Communications is reported to be in merger talks with Mobilicity.
Globalive, which trades as Wind Mobile has struggled to gain customers after its launch was repeatedly delayed due to the dispute as to whether its main backer, Egypt's Naguib Sawiris had a majority stake in the company - which would have been illegal.
Citing a person familiar with the discussions, Bloomberg News said that a deal could be reached inas early as the first quarter of 2012.
A merger with Mobilicity would boost Globalive's subscriber base by 50%, while also probably diluting the stake held by Egypt's Orascom Telecom - now itself part of Russia's VimpelCom. The size of the foreign holding in Globalive is still contentious.
Globalive had previously talked to another new entrant, Public Mobile about a merger, which would have given the enlarged company national coverage, but the talks broke down last year.