ISED rejects request to delay 3500 MHz auction following MVNO decision

Innovation Minister François-Philippe Champagne has rejected a call by the Competitive Network Operators of Canada (CNOC) and its member company Distributel Communications Ltd. to further delay the 3,500 MHz spectrum auction scheduled for June. In a letter sent to CNOC chair and Distributel CEO Matt Stein Thursday afternoon, Champagne pointed out that the timelines for the auction were made public in June 2020, and that "many applicants have now invested significant effort to apply despite the potential uncertainty surrounding the CRTC’s MVNO decision." "The auction has also already been delayed by six months to allow providers to respond to COVID‑19. Accordingly, we will not be reopening the auction application process at this time," Champagne wrote. CNOC, which represents smaller internet service providers and had advocated for a more broad-based MVNO mandate, had written to Champagne on April 19 to request that the department of Innovation, Science, and Economic Development -- which operates spectrum auctions -- delay the scheduled auction for the 3,500 MHz band. "The combined effect of the Wireless Decision coming after the deadline to participate in the 3500 MHz auction is to shut the door to new competition in Canada,” CNOC wrote in the letter. The CRTC's MVNO decision, released earlier this month, stipulates that only regional operators with a level of spectrum assets will be able to negotiate mandated access to wireless networks with incumbent telecom companies. In a Thursday afternoon statement emailed to the Wire Report, CNOC director of legal affairs Geoff White said "while we respect the minister’s decision, we are disappointed that the government insists upon going ahead with the 3,500 MHz auction, and essentially going along with the CRTC’s misguided approach to wireless competition." "The government’s 2019 policy direction to the CRTC could not be more clear that CRTC decisions should, among other consumer-oriented objectives, reduce barriers to entry to new service providers. By denying CNOC’s request for a brief delay in the auction, the government is helping the CRTC slam the door shut on wireless competition," White said in the statement, adding that CNOC looks forward to discussing the matter with Champagne further. In his letter to Stein rejecting the request for delay, Champagne sought to assure CNOC members that the 3,500 MHz auction "is not the only opportunity for interested parties to access spectrum." "We encourage any of your members who are seeking to offer mobile services to explore licence transfer or subordination agreements with existing licensees, and to participate in Innovation, Science and Economic Development Canada’s upcoming 5G spectrum auctions," Champagne wrote. –Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

ISED rejects request to delay 3500 MHz auction following MVNO decision

News | April 29, 2021

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ISED rejects request to delay 3500 MHz auction following MVNO decision

News | April 29, 2021

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