Allow regional carriers to share 700 MHz networks, bid separately in auction, Quebecor says

Industry Canada should allow regional wireless carriers operating in different parts of the country to share network infrastructure and bid in next year's 700 MHz auction as separate players, Quebecor Media Inc. said. In reply comments filed with the department for its final consultation on the auction rules, Quebecor said Industry Canada must ensure the auction regulations avoid “a double standard whereby it encourages alliances among national players to the detriment of alliances involving regional players.” Competitors of BCE Inc. and Telus Corp. have taken issue with those incumbents’ network sharing agreement and departmental rules that the competitors say will allow Telus and Bell to bid separately in next year's 700 MHz auction and enter into a new agreement for the spectrum following the auction. Under Industry Canada’s proposed auction guidelines, carriers will be deemed “associated entities” if they “enter into any partnerships, joint ventures, agreements to merge, consortia or any arrangements, agreements or understandings of any kind, either explicit or implicit, relating to the acquisition or use of any spectrum in the 700 MHz band.” Bell and Telus currently have national network-sharing agreements covering their HSPA and fourth-generation LTE networks using other spectrum bands, and competitors say they expect a similar agreement for the 700 MHz frequencies. Reply comments for the consultation were published on Industry Canada's website Tuesday. Quebecor, which operates new entrant carrier Videotron Inc. in Quebec and part of Ontario, said the department should allow regional carriers to enter affiliation agreements and bid separately to obtain their maximum allowable blocks of the frequencies. “In our opinion, there is no inherent reason to believe that the consumer benefits from intra-regional cooperation should be greater than the consumer benefits from inter-regional cooperation,” the company said. “To the extent the Department allows associated entities in the same geographic area to participate as separate bidders in the 700 MHz auction, it should also allow associated entities in different geographic areas to do the same.” Other new entrant and regional wireless carriers, as well as national incumbent Rogers Communications Inc., have also asked Industry Canada to ensure that they can bid separately if they enter “affiliate agreements” prior to next year’s 700 MHz spectrum auction. The auction, planned to take place in the first half of 2013, has rules that will limit large, incumbent carriers to one of the four available “prime” blocks of spectrum available in each licence area. Bell said in its reply comments the department should dismiss requests to require Bell and Telus to bid as a single player in the auction. “In the words of the definition, there is no partnership, no joint venture, no agreement to merge, no consortium, nor any arrangement, agreement or understanding of any kind whatsoever between Bell mobility and Telus relating in any way to the acquisition or use of any 700 MHz spectrum,” Bell said. Telus, in its comments, said it and Bell “vigorously compete for subscribers.” “ proposal would mean that Bell and TELUS together would be limited to the same amount of 700 MHz spectrum as Rogers which already holds 50% of the nation’s low band spectrum serving only a third of the nation’s subscribers roughly,” Telus said. news@thewirereport.ca

Allow regional carriers to share 700 MHz networks, bid separately in auction, Quebecor says

News | August 2, 2012

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Allow regional carriers to share 700 MHz networks, bid separately in auction, Quebecor says

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