700MHz Spectrum Auction Rules Announced

On March 14, 2012 Industry Minister Christian Paradis announced that the upcoming spectrum auction would limit the amount of licenses each wireless firm can purchase. This would insure that Rogers, Bell, and TELUS would not be allowed to purchase all the available spectrum.

700MHz is the most sought after spectrum because it has the ability to offer faster download speeds, penetrate thick walls, and travel longer distances. This means that wireless firms would save money by putting up less towers that cover more areas.

Also, it was announced that the government will pass a law permitting wireless firms with less than 10 per cent market share to be 100 per cent foreignly owned. The current law limits firms to only 46.7 per cent foreign ownership.

I agree with most of the decisions made by Christian Paradis, but I would have preferred that the government set aside spectrum for the smaller wireless carriers. Unfortunately, with the current structure, it will only allow 4 companies to get enough spectrum nationally. It seems the government wants to force consolidation among small wireless carriers to offer a fourth national carrier. It is difficult to say whether or not these changes will be good because we will not know until the auction actually takes place in early 2013.

http://www.theglobeandmail.com/globe-investor/ottawa-to-permit-foreign-control-of-small-wireless-firms/article2369109/