UPDATE--Wireless Auction Nets $4 Billion - Puget Sound Radio Dot Com

UPDATE--Wireless Auction Nets $4 Billion

July 22nd, 2008

Canada's wireless spectrum auction has netted more than four billion dollars, far exceeding expectations.

Also expected is a boon for consumers of wireless products and services, due to the anticipated increase in competition in the sector. But some analysts note that the three largest existing players were among the highest bidders. They note that the enormous amounts bid on spectrum allocation will have to be recouped by passing the costs on to the end user eventually

Industry Canada says 282 licences have been conditionally assigned to 15 companies in the Auction of Spectrum Licences for Advanced Wireless Services and Other Spectrum in the 2 GHz Range.

The provisional winners of the auction, held between May 27 and July 21, were posted online after the bidding ended. Successful bidders are eligible to receive licences after making their final payments and showing compliance with Canadian ownership and control requirements.

The key auction players and the spectrum results:

Globalive Communications Corp. ($442,099,000 in 30 licences): wireless presence across Canada.

Quebecor Inc. ($554,549,000 in 17 licences): the majority of licences in; one licence in Toronto.

Data & Audio-Visual Enterprises Wireless Inc. ($243,159,000 in 10 licences): spectrum in Ontario as well as Vancouver, Edmonton, Calgary, and Victoria.

Shaw Communications Inc. ($189,519,000 in 18 licences): licences in British Columbia, Alberta, Winnipeg, urban areas in Saskatchewan and northern Ontario.

6934579 Canada Inc. ($52,385,077 in four licences): spectrum in southern Ontario and Quebec.

Manitoba Telecom Services Inc. ($40,773,750 in three licences): Manitoba.

Bragg Communications Inc. ($25,628,000 in 19 licences): Atlantic Canada; southern Ontario corridor.

Bell Mobility ($740,928,000 in 54 licences): in Quebec, Ontario, Atlantic Canada and the northern territories.

Telus Corp. ($879,889,000 in 59 licences): Ontario, Atlantic Canada, Quebec and Alberta. Rogers Communications Inc. ($999,367,000 in 55 licences): coast to coast spectrum.

"The auction exceeded our expectations in terms of the level of competitive bidding activity. I hope the industry keeps this competitive spirit alive as it enhances and expands its services with improved access to the spectrum," said the Honourable Jim Prentice, Minister of Industry. "The industry now has an unprecedented opportunity -- thanks to the government's Advanced Wireless Services (AWS) policy and auction -- to develop products and services that offer choice to Canadian consumers and businesses. We think consumers will be the big winners in this auction."

Of the 105 megahertz (MHz) of spectrum made available, 40 MHz was set aside exclusively for new entrants to bid on. The other 65 MHz was available to all bidders. The set-aside spectrum was put in place to help create a more competitive market and to increase the number of service providers, a decision designed to lead to lower prices.

The auction and AWS policy are the Government of Canada's contribution to creating a wireless marketplace that offers more choice and better services for consumers and businesses. This auction and policy are designed to increase competition and help the wireless industry develop new and robust services.

AWS spectrum is a valuable resource, providing access to a growing range of innovative wireless applications. It enables next-generation technologies such as high-speed Internet and video, and it provides faster access for mobile phones and other hand-held devices.

Bidding took place electronically over the Internet using secure encryption technology. The auction generated almost $4.3 billion in revenues for the Government of Canada.

List of other winners

1380057 Alberta Ltd.
6934242 Canada Ltd.
6934579 Canada Inc.
9193-2962 Québec Inc.
Bell Mobility Inc.
Blue Canada Wireless Inc.
Bragg Communications Inc.
Celluworld Inc.
Data & Audio-Visual Enterprises Wireless Inc.
Globalive Wireless LP
Novus Wireless Inc.
Rich Telecom Corp.
Rogers Communications Inc.
SaskTel
TELUS Communications Company

http://www.broadcastermagazine.com/issues/ISArticle.asp?id=87302&issue=07222008

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