Public Mobile expects other startups to fail and wants to acquire them. Good luck

Public Mobile CEO Alek Krstajic has come out and said - without naming names, of course - that it expects one or two of the wireless startups to run out of money by the end of the year. And that Public wants to acquire them.

By process of elimination, one Sherlock Holmes would certainly be able to deduce Public can't be talking about Wind, which is backed big time by foreign financial support, leaving the likes of Mobilicity locked into Public's crosshairs.

"I would love to be an acquirer," Krstajic said at a news conference in Toronto, according to the Winnipeg Free Press. "I think one or more of the other new entrants runs out of money by the end of this year," Krstajic said, referring to Wind Mobile and Mobilicity and acknowledging that he has made calls to them.

Wait... Public over Wind? Hmmm.

As the article notes, consolidation between Public Mobile, Wind Mobile and Mobilicity is possible as there are no federal rules to prevent acquisitions among the startups.

"Access to capital is everything," Krstajic said. "We have a very diverse shareholder group, so I think we're in a good position." Public Mobile is supported by OMERS Private Equity and U.S. private equity firms.

But Wind Mobile's financial situation is arguably much stronger, and if anyone is in a position to acquire, it's Wind. (This is of course not including the Big Three, Bell, Telus, and Rogers, who cannot yet acquire the startups.)

In more surprisingly transparent talk, the chairman of Wind's parent company, Globalive, has said essentially the same thing as Alek: "Given our market leadership and financial strength, we continue to believe we are the logical consolidator of the new entrants." Anthony Lacavera pointed out that "there is only room for one new national carrier." He also believes Public Mobile's low pricing is unsustainable. "Public will not last long selling below their cost and we feel this move is consistent with their business plan of selling to Globalive or one of the incumbents."

I would agree. If Public things it's in the best position to become the next major wireless carrier, it's dead wrong. Advantage: Wind Mobile.