For the major players, Rogers looks to fortify its GSM stronghold, bidding an auction-high $949 million for 55 licenses. Telus was close behind, spending $847.5 million on 59 new licenses. Bell Mobility bid the least of the major three, picking up 55 licenses for $728.6 million. One has to wonder if their slight lag in spending has anything to do with their oft-rumored buyout. On the new entrants side, it looks like Quebecor Inc. dropped the most money on the auction, throwing in $556 million for 18 licenses, mostly in Quebec, and effectively keeping out other new entities. They were followed by Globalive Communications, which picked up spectrum in all territories. Except Quebec, of course. Even though new players got to bid on 40 percent of the spectrum without interference from Bell, Rogers, and Telus, they might not find competing so easy. Scotia Capital analyst John Henderson fills us in:
“Recent precedent shows industry leaders continue to prosper in the face of aggressively priced unlimited calling plans from new entrants such as Microcell, Leap Wireless, MetroPCS and even from more established carriers such as Sprint,” wrote Mr. Henderson.Many of those companies do well, though, and give consumers alternatives. That’s the whole idea in Canada, right? To give people an option beyond the Big Three.]]>
It most certainly will be a great thing to have more competition in the cell phone market. Having so many of the new entrants going to be regional carriers won’t be so great is the way I see it. How will the return of roaming fees while traveling going to be great? While the status quo has to go, isn’t more competition suppose to mean that consumers get hosed less, not more?
I hear ya, Bill. But might it be possible that the new regional carriers draft roaming agreements with each other?