Telecom companies began bidding today on the coveted 700 MHz spectrum. This is the bandwidth that will make it possible to talk on a cell phone while on the subway in down town Toronto. Or, more importantly perhaps, provide service for the first time to some of the most remote regions of Canada.
92% of the market and control 85% of the available spectrum
Industry Minister James Moore, framed the auction as an opportunity to generate more competition, improve service, and bring down prices. The current telecom landscape is dominated by three companies, known to Canadians as Rogers, Bell and Telus. They have 92% of the market and control 85% of the available spectrum, according to the CRTC‘s latest figures. A fourth major carrier in all markets was the goal.
Much has been made today of Wind Mobile’s last-minute withdrawal from the competition yesterday citing financing challenges. Wind Mobile is the international player, with parent company, Amsterdam-based VimpelCom committing to continue to monitor the situation, and clarify the Canadian government’s foreign-ownership rules. But as Carmi Levy, a telecom analyst based in London, Ontario said, “an auction is only one way of gaining entry into a market.”
As for the remaining mostly regional carriers still in the game with the big three, an opportunity to grow beyond provincial borders may now be possible. This auction may not be as financially lucrative as the 2008 competition that brought in over $4.3 C billion, but whatever the outcome, Canadians will soon be able to access the wireless world that will enable them to compete in the global marketplace.
Carmel Kilkenny spoke with Carmi Levy, an independent technology analyst who’s been tracking the developments in Canada’s telecom industry.
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