Ottawa is setting aside 60% of its advance wireless services (AWS) band for new entrants in a bid to boost competition in a telecom landscape dominated by three major players.
Industry Minister James Moore announced Thursday (December 18) the AWS-3 spectrum auction will go ahead on March 3, 2015.
The government previously announced in July this auction would take place before April’s 2,500 MHz auction.
“After these auctions that I’ve announced today will be in place, after all this spectrum has been deployed across the country, 25% of total wireless spectrum will be available for competitors to the incumbent big three,” Moore told reporters in downtown Vancouver.
“The result of all this, of course, will be lower prices, it will mean more choice, it will mean better results for consumers all across the country.”
The federal government previously set aside blocks for smaller wireless players in its 700 MHz spectrum auction in January and February 2014. That auction generated $5.2 billion in revenue for the federal government but it was still dominated by the likes of Rogers (TSX:RCI), Bell (TSX:BCE) and Vancouver-based Telus (TSX:T).
Wind Mobile had intended to bid in the 700 MHz auction but withdrew when Amsterdam-based VimpelCom — Wind's major shareholder — refused to provide the funding needed.
But a Canadian-led investors group — headed by Wind Mobile CEO Tony Lacavera’s own Globalive Capital — announced in September it would help Wind recapitalize.
Lacavera told Business In Vancouver later that month one of his main goals to was to expand his company’s network now that it was not constrained by a foreign owner.
Moore also announced the government was launching a consultation process that would examine the viability of making 600 MHz spectrum band available for mobile use. The band, which is used for over-the-air TV broadcasts, would allow for stronger mobile signals.
