Verizon Looking to Expand Its Wireless Network Coverage Into Canada

Verizon Wireless is reportedly looking to expand its wireless service north of the border into Canada. Should VZW go through with it, Canadian mobile phone subscribers would then have access to four major wireless carriers to choose from, as Big Red would be competing against Telus Corp, BCE Inc's Bell Unit, and Rogers Communications.

According to The Globe and Mail, Canada's government is very interested in having a fourth major wireless player. Working towards that goal, the government officials reportedly relaxed foreign ownership restrictions last year in an attempt to beef up competition in the wireless sector, in part because smaller companies like Wind Mobile and Moblicity haven't been able to chip away at Canada's big three.

Verizon Wireless may be headed into Canada.

Verizon supposedly held "exploratory" talks with Wind Mobile investors about a possible buyout, though talks are still in the early stages. AT&T, Vodafone, and Telenor group of Norway are three other names being thrown around in the report, though it appears Verizon is the frontrunner to make a move.

One of the major challenges is cost. Wind Mobile is in dire straits and may need as much as $1 billion to stop bleeding cash. One analyst said the cost is closer to $2 billion in order to acquire spectrum, make network upgrades, and to cover consolidation costs. Verizon could afford a steep asking price, however, as it raked in nearly $20 billion in revenue last quarter alone.