The facts on Canada’s spectrum auction

Re: Terence Corcoran: Quebecor spectrum rigged? Aug. 13

I read with interest Terence Corcoran’s effort to incite a controversy surrounding Canada’s recent spectrum auction.

First, the facts. Vidéotron secured the right to bid on set-aside spectrum in several provinces outside Quebec based on the activities of its affiliate Fibrenoire Inc. Detailed evidence regarding these activities was provided to ISED during the auction application process. It was based on this evidence that ISED correctly determined Vidéotron's eligibility.

Second, the reality. Contrary to the subsidy myth propagated by Bell, Rogers and Telus, pro-competitive measures such as set-asides and caps are commonly used around the world to ensure equitable auction results. They foster facilities-based competition and maximize the disruptive effect of new competitors, to the benefit of consumers.

Third, the oversight. Mr. Corcoran has forgotten that much of the spectrum held today by the Big Three was acquired for free or for a pittance: free access to the cellular band (1985-89), free access to the PCS band (1995), free transformation of fixed licences to mobile licences in the 2500 MHZ band (2015, worth more than $300 million to Bell alone) and free transformation of fixed licences to mobile licences in the 3500 MHZ band (2021, worth more than $3 billion to Bell alone). These gifts have allowed the Big Three to entrench their dominance. Canadians know that a correction is required. Canadians deserve better than today’s overpriced wireless marketplace.