700 MHz auction did in the U.S. But Canada plans to auction off 105 megahertz of spectrum this May, and already we’re seeing about 30 companies lining up for the bidding. This will do well to help new entrants to the market, such as Quebecor Media and Manitoba Telecom Services. These companies are at a distinct competitive disadvantage, as Rogers, Bell, and Telus control 95 percent of the market. This will also help companies like Shaw Communications, a cable company that interest in offering a triple-play sort of service.
“We will have competition in the wireless market, there’s no doubt,” said Iain Grant, managing director of SeaBoard Group in Montreal. “The fact we now have more players will make it a more exciting auction.”The best provision in this auction is that a 40-megahertz block is being reserve for companies with less than 10 percent of the Canadian wireless market. In other worse, for companies not named Rogers, Telus, and Bell. Deposits on the auction ranged from $80,000 Canadian all the way up to $881 million, made by Niagara Networks Inc. This is a pretty much unknown company, leading many to believe it’s a vehicle for a larger outfit.
Under the rules, BCE, Telus and Rogers must let the new entrants use their networks for 10 years at market rates as the competitors build their own systems.That can only be a good thing for the Canadian cellular landscape. [Bloomberg]]]>
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