TORONTO — Upstart wireless cable company Look Communications has entered into a C$550 million ($375 million) merger agreement with Internet service provider ID Internet Direct Ltd., the companies announced Monday.
The yet unnamed company will bundle wireless cable service with high-speed Internet access, providing an alternative to standard cable with high-speed online link-up that is now offered by the likes of cablers Rogers and Shaw.
“Canadians would benefit from the added competition,” said John Nemanic, ID’s prexy and CEO.
But the possibilities go much further than that, said Dvai Ghoshe, telecom analyst at Toronto-based HSBC Securities.
Look, which started offering wireless cable last summer, is controlled by CTV and Montreal-based Teleglobe.
Teleglobe, an international wholesaler of long-distance time whose sister company is in the cellular business, last year merged with Dallas-based Excel, a multilevel marketing company. Excel Canada was launched just two months ago as a multilevel marketing company selling long-distance service.
The deal is expected to close in August.