Telus (TSX:T) has walked away from Industry Canada’s latest high-speed wireless spectrum auction as the biggest spender after acquiring licences for the coveted 2,500 MHZ airwaves.
Meanwhile, the auction is also fuelling speculation Quebec-based Videtron will soon be making a play for new markets including Vancouver after results released May 12 show it’s acquiring more licences outside its historic territory.
Vancouver-based Telus spent $479 million for spectrum in every region across Canada, accounting for nearly two-thirds of the $755 million Industry Canada raised during its latest auction.
The next closest competitor wasn’t fellow telecom giants Bell (TSX:BCE) or Rogers (TSX:RCI.B), which spent $30 million and $24 million, respectively, on licences for the 2,500 MHz spectrum.
Rather, Quebec’s Videotron came second, spending $187 million and expanding its spectrum reach by 28%, according to figures calculated by Industry Canada.
Videtron has operated mostly as a regional player in Quebec but its latest auction activity secured licences for it in Vancouver, Toronto, Calgary, Edmonton and Ottawa.
"For the spectrum we have acquired in English Canada, we are still analyzing various options that hold out prospects of very attractive returns, given the value of this strategic asset,” Pierre Dion, president and CEO of Videotron parent company Quebecor, said in a release.
“We will continue patiently and carefully analyzing our options, it being understood that the financial and/or operating conditions will have to fall within acceptable parameters."
Fellow regional player Wind Mobile, which operates in B.C., Alberta and Ontario, expanded its high-speed reach in March after spending the minimum bid of $56 million to acquire AWS-3 spectrum in the provinces it already has a presence in.
Mobilicity, which is under creditor protection, did not come up with the cash to bid in the AWS-3 auction against Wind and Wind did not expand its spectrum reach in the latest 2,500 MHz auction.
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