The Canadian government will review all transfers of spectrum licences under a new policy announced today, and transactions resulting in “undue spectrum concentration” can be blocked.
Business ministry Industry Canada laid out the guidelines as it bids…
The Canadian government will review all transfers of spectrum licences under a new policy announced today, and transactions resulting in “undue spectrum concentration” can be blocked.
Business ministry Industry Canada laid out the guidelines as it bids to promote competition in the mobile market and pursues its aim of having four wireless providers in every region of the country.
Operators will have to seek a review within 15 days of agreeing a transfer and the government said it would usually come to a decision within 12 weeks, although some transactions may take longer.
Christian Paradis, the head of Industry Canada, announced his intention to review all transfers at the start of June when he blocked incumbent operator Telus’ C$380m acquisition of indebted challenger Mobilicity because it would harm competition. Mobilicity is now pursuing a recapitalisation.
In a statement today Paradis reiterated his stance on the wireless market: “The Harper government will not hesitate to use any and every tool at its disposal to protect Canadian consumers and to promote competition.”
The new policy could also affect Rogers’ two planned acquisitions of spectrum next year, when the sellers are allowed to divest the frequencies. It has struck deals with cablecos Shaw Communications and Videotron to acquire AWS licences for a total of C$430m.
The licences would be available for a potential consolidated fourth player to acquire – the subject of much speculation over the last few months. Verizon Communications has recently expressed its interest in entering the Canadian market and has reportedly held talks with smaller operator Wind Mobile and private equity firm Catalyst Capital, a significant Mobilicity creditor.
