Canada to open 105Mhz spectrum for auction on 5/27/08

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Canadian Government Opens Competition in Wireless Sector

The Honourable Jim Prentice, Minister of Industry, today released details on how the auction for Advanced Wireless Services (AWS) spectrum, to be held on May 27, 2008, will be conducted. Of the 105 megahertz (MHz) of spectrum to be made available, 40 MHz will be set aside exclusively for new entrants to bid on. The other 65 MHz will be available to all bidders. The spectrum being set aside amounts to less than 14 percent of the total mobile spectrum that will be in use after the auction.

"We are looking for greater competition in the market and further innovation in the industry. At the end of the day, our goals are lower prices, better service and more choice for consumers and business," said Minister Prentice. "That is why we are setting aside a portion of radio spectrum exclusively for new entrants into the wireless market."

Recent studies comparing international pricing of wireless services show Canadian consumers and businesses pay more for many of these services than people in other countries. These services are key to strengthening the competitiveness of Canadian business.

The decision to set aside spectrum for new entrants is consistent with measures taken in Canada in 1985 and 1995 to facilitate access to spectrum and market entry. It is also similar to measures taken in other countries with competitive wireless markets, notably the United States and the United Kingdom.

Spectrum is used by wireless providers to offer services such as video, music and Internet access over wireless devices such as mobile phones, much the same way a radio station emits its signal over the airwaves. On February 16, 2007, Industry Canada launched a public consultation on how best to conduct an auction process for the available spectrum. The 2006 Telecommunications Policy Review Panel (TPRP), launched by the previous government, also made recommendations on future wireless licensing.

"Having considered all of the comments received during our public consultation, we agree with the TPRP that measures should be taken to enhance competition in this market," said Minister Prentice. "Spectrum is a scarce and valuable resource that is used by all Canadians. It is up to the government to decide how it is to be deployed, to best meet the growing and diverse needs of Canadians."

Further details on the policy framework for the auction can be found at Spectrum Management and Telecommunications - Spectrum Auctions

Quebecor Media says it will participate in the spectrum auction and is confident that the outcome will allow the company to invest $500 million to build a broadband wireless network using the latest-generation technologies.

"This policy in favour of greater competition will translate into better technology, more services and lower prices for Canadian consumers," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor Inc. "As a content company, Quebecor Media is engaged in all aspects of content creation and delivery, and this decision will have a very positive impact on the production and distribution of Canadian content."

Quebecor Media announced it will invest at least $500 million in the years following the spectrum auction. If successful, the company expects its planned network would be fully operational within 18 months of the auction.

"Our telecom subsidiary Videotron is committing to the creation of a regional network in Quebec and, in light of the policy to encourage new competitors with national scope, we are considering all the options," said Peladeau. "Our next steps will be to explore the best business opportunities for Canadians."

Quebecor says its new services would include mobile broadband access to a wide range of innovative consumer services and a new universe of content that will appeal to a broad spectrum of Canadians.

"We know that the Internet and mobile connections are the future. We need to ensure that Canadians are part of this revolution in a meaningful way with innovations and quality content that will be successful and give Canadians what they want and need," said Peladeau. "Quebecor Media is already the biggest content provider for different platforms of distribution and we will be working with creative Canadian organizations and individuals to develop content that can be world class."

Canadian Government Opens Competition in Wireless Sector | Wireless IQ

[RJB]

Holy cow that is crazy they are doing these spectrums I wonder how well they will work out.

[Fire14]

Canada to Allow a 4th National Cellular Carrier

Canada is preparing to allow the entry of a 4th nationwide operator in the country after the Minister of Industry, Jim Prentice has released details on how the auction for Advanced Wireless Services (AWS) spectrum, to be held next May will be conducted. Of the 105 megahertz (MHz) of spectrum to be made available, 40 MHz will be set aside exclusively for new entrants to bid on. The other 65 MHz will be available to all bidders.

"We are looking for greater competition in the market and further innovation in the industry. At the end of the day, our goals are lower prices, better service and more choice for consumers and business," said Minister Prentice. "That is why we are setting aside a portion of radio spectrum exclusively for new entrants into the wireless market."

"Having considered all of the comments received during our public consultation, we agree with the TPRP that measures should be taken to enhance competition in this market," said Minister Prentice. "Spectrum is a scarce and valuable resource that is used by all Canadians. It is up to the government to decide how it is to be deployed, to best meet the growing and diverse needs of Canadians."

Responding to the announcement, major operator Telus commented that it is "deeply disappointed with the Government's decision on the rules for the upcoming AWS auction. It is inconsistent with this Government's stated policy of relying on market forces to deliver benefits to Canadian consumers. It also rewards companies that have both the resources and the motivation to bid openly for new available spectrum. As a consequence, Canadian taxpayers will receive less than full market value for the new spectrum."

Any incumbent bidder must also be willing to allow the new entrant to roam on their network while they build out their own network.

Canada to Allow a 4th National Cellular Carrier