The Canadian government has moved to shore up home-grown firm BlackBerry by providing a $200m investment to operator Telefonica to buy phones and services from the embattled company.
As one of Canada’s biggest brands, the government’s export credit agency Export Development Canada (EDC) has obviously seen the need to shore up the firm by encouraging inward investment from major players in the mobile ecosystem.
The funding is designed to "facilitate the procurement of BlackBerry smartphones, services and solutions across its worldwide operations", the EDC said in a statement announcing the deal.
The funding isn’t the first time the EDC has ploughed investment into Telefonica to support BlackBerry, with a relationship between the two dating back to 2006.
V3 contacted BlackBerry and Telefonica for comment but had received no reply at time of publication.
The news comes as BlackBerry faces tough market competition from the likes of Android, Apple and Microsoft with its Windows Phone platform. Despite launching its BB10 platform at the start of the year, which was well received by critics, the firm appears to be struggling to turn this into sales.
Although it received an order for one million units from a mystery US buyer – thought to be retailer Brightstar – analysts have predicted the firm will continue to decline over the coming years.
Recent financial results have underlined the problems facing the firm with revenues slumping, although the firm did return to profit in its last quarter earnings results.
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