London, UK-based telecommunications provider Lycamobile is planning an expansion that includes entry into Canada’s market.
The European telco sells low-cost international mobile calls and its target customers are immigrants and ethnic consumers who frequently talk and text with family and friends overseas (and who apparently don’t have Skype). Established in 2006, Lycamobile has 20 million customers in 16 countries currently and has a goal of reaching 25 countries by the end of 2013.
Canada is a naturally attractive country to Lycamobile—immigrants are expected to comprise more than 22% of Canada’s population by 2017, and more than 50% of the population in cities such as Vancouver and Toronto.
Lycamobile will enter Canada’s $18 billion wireless network as a mobile virtual network operator, which means the company will not own spectrum or cellphone towers but rather lease from existing carrier’s networks. The most likely partnership would be with Rogers, but that detail remains a secret for now.