BlackBerry Set to Make a Killing Off Government Deal
BlackBerry gives the impression that they are headed towards big achievements and plenty of success. And it seems that fortune is favoring the Canadian telecom company. Vodafone, the European telecom behemoth, will be receiving financial aid of approximately $850 million from Expert Development Canada, amount from which BlackBerry will be receiving a significant boost.
Export Development Canada and the telecom company have come to an agreement for a five year loan that also includes the commitment of $750 million to purchase BlackBerry cell phones, support services and programming, which the company offers. BlackBerry is in a position to make a significant level of profit via this deal, which was made clear by the announcement the company made on Tuesday.
Phil Taylor, who represents Export Development Canada, stated that regardless of how one analyzes the situation, the telecom company will be buying everything from BlackBerry. Organizations all over the world receive financing from Export Development Canada to promote Canadian services and products as well as other universal connections. Phil Taylor also stated that the loan to Vodafone also includes $100 million for assisting it in obtaining corporate purpose.
One such reason is to help in establishing business connections with Canadian companies involved in production networks in places where it is attempting to develop and expand its business. This is the second time Vodafone has received financial help from Export Development Canada. The first one was $750 million, which Vodafone paid back relatively recently. BlackBerry have been partners for quite a while.
Vodafone has been selling BlackBerry phones since the Canadian company hit the mainstream in early 2000. At the moment, Vodafone operates in 26 differentcountries and has more than 438 million clients. Export Development Canada offered Telefonica – a Spanish telecom company – a 200 million EUR loan in 2013 to buy BlackBerry cell phones and services.
BlackBerry’s Chief Executive Officer, John Chen, will certainly get a much-needed boost to his confidence thanks to the loan being granted to Vodafone while he does his best to improve the company’s performance. The Canadian organization has been failing massively in the cell phone space as it has to face rivals such as Samsun and Apple, which have been eating up the market share in the industry.
BlackBerry made a statement about a month ago saying that they would be making their mobile security engineering accessible to the Android framework in 2016, with Samsung as its partner. With the help of Rogers in Canada and Vodafone in the UK, the company will make sure that its security portfolio is accessible to wider range of clients.
Blackberry is close to releasing the eagerly-awaited “Classic” device, which comes with a trackpad for fans of the older version of the phone but with an updated Look. The company based in Waterloo will be releasing their financial results for Q3 of FY2016 soon.