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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.
Posted to the site on 29th November 2007