Regional players shouldn’t qualify for spectrum set asides: Bell, Rogers

Two of Canada’s largest telecom companies aren’t overly enthusiastic about the government’s proposal to set aside spectrum in the upcoming 600 MHz auction, indicating that the suggested boost for new entrants is being afforded to companies that aren’t all that new. The heads of BCE Inc. and Rogers Communications Inc. told an annual media and telecom investors conference Tuesday, hosted by BMO Capital Markets, that they intend to make their positions clear to federal government officials, as part of its ongoing proceeding, that new regional players shouldn’t count as new entrants. In its August consultation document about the upcoming auction for spectrum to be transitioned from over-the-air television to wireless use, Innovation Canada said that there are “various measures available in an auction to promote a competitive marketplace if required, notably set-asides and spectrum aggregation limits.” It proposed setting aside 30 MHz of the 600 MHz spectrum as one of those measures. Analysts have already said that Quebecor Inc. and Shaw Communications Inc.’s wireless segments could be the major beneficiaries of such a move. “I do take issue with the fact that we’ve got vibrant, capable, regional players that are being classified as new entrants and given set-aside opportunities when they’re not truly new entrants in the classical sense,” Joe Natale, Rogers president and CEO said, noting “they’ve got very strong balance sheets and long histories.” George Cope, Bell president and CEO, said the situation is different from the AWS auction that had set asides for new enterprises. He said his company intends to make plain to both the innovation and finance ministries “that maybe companies with market caps close to Telus’ market cap don’t really need Canadian taxpayers to subsidize its spectrum.” Telus Corp. said it’s expecting, and is prepared for, Shaw to “launch hard into the wireless space sometime in the next coming months,” David Fuller, company executive vice-president and consumer and small business solutions head, told the conference Tuesday. He added that Telus is in good shape for the competition that Freedom Mobile would offer, right across the country. “You don’t drive the churn or post paid growth or growth metrics that we’ve shown by being focused only on the West, right? Alberta and B.C. is 30 per cent of the market or less,” Fuller said. “By definition you can’t have grown the business to the extent that we’ve grown it in wireless unless you have a very capable wireless business in provinces like Ontario and Quebec, the Maritimes and the Prairies.” For its part, Cogeco Inc. said its position about not entering the wireless space hasn’t changed — it’s the only publicly traded telecom that doesn’t offer wireless service — but that it’s closely watching the related proceedings. “I think going and bidding for a very large region and becoming a large Canadian player is a non-starter,” Patrice Ouimet, Cogeo senior vice-president and chief financial officer, told the conference regarding the upcoming 600 MHz auction. He also said that if Cogeco were to entertain becoming a wireless provider, it would look at operating as a mobile virtual network operator (MVNO). The CRTC is in the midst of a proceeding based on an order from Innovation Minister Navdeep Bains to reconsider its decision on wholesale roaming that put a chill on the WiFi-based operators. “If the rules change and allow us to do this in a smaller fashion and more profitably, then we’ll look at it. But it really depends on what unfolds from all of these hearings,” Ouimet said. Parties have until Oct. 2 to submit comments on the spectrum proposal to Innovation Canada. — With reporting by Charelle Evelyn at cevelyn@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Regional players shouldn’t qualify for spectrum set asides: Bell, Rogers

News | September 12, 2017

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Regional players shouldn’t qualify for spectrum set asides: Bell, Rogers

News | September 12, 2017

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Related Stories

ISED auctioning off 225 leftover spectrum licences

Freedom answers to ‘unlimited’, offers $0 phones on select plans

No broadcaster compensation for 600 MHz move, ISED confirms

Shaw says patience, not regulation, required to see organic MVNO market

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us