Canada’s business ministry Industry Canada has revealed an all-Canadian list of companies that will compete in January’s 700 MHz spectrum auction.
The government had hoped to entice foreign operators to bid for the licences by offering favourable…
Canada’s business ministry Industry Canada has revealed an all-Canadian list of companies that will compete in January’s 700 MHz spectrum auction.
The government had hoped to entice foreign operators to bid for the licences by offering favourable terms, but none have taken the bait.
A few months ago Verizon Communications seemed a likely candidate to enter the market, but the company quashed that possibility following its US$130bn deal to buy Vodafone out of Verizon Wireless in early September.
The other major US wireless – players AT&T, Sprint Corporation and T-Mobile US – had all distanced themselves from bidding. While there would be clear synergies for US telcos looking to enter Canada, many have argued that there is no room for another nationwide player and that the returns are not there for a new entrant because of required network investments.
Fifteen entities have placed deposits allowing them to participate in the tender for the so-called “beachfront” frequencies, ideal for deploying 4G.
Operators can bid for licences either nationally or in specific regions. In total, there are 98 licences up for grabs across the country, equivalent to seven blocks per service area.
Canada’s three incumbent wireless operators – Bell Canada, Rogers Communications and Telus – are all expected to bid for nationwide frequencies.
Challenger operator Wind Mobile has also thrown its hat into the ring but it remains unclear whether it will be able to acquire licences across all 14 service areas.
Smaller telcos Mobilicity and Public Mobile have not placed deposits. However Catalyst Capital, which holds bonds in indebted Mobilicity, and the operator’s founder John Bitove are both on the list.
Private equity firm Birch Hill Equity Partners will also participate. The firm was linked with acquisitions of Wind and Mobilicity in the summer.
The rest of the list is made up of regional players including EastLink, MTS, SaskTel, TBayTel and Videotron.
The lack of any significant new bidders comes as a blow to the Canadian government which has pursued an interventionist strategy in a bid to stoke competition and ultimately lower prices for consumers.
