Telecom spectrum deals face federal scrutiny
Ottawa restates goal of fostering competition in wireless sector
All telecom deals involving the transfer of wireless spectrum will have to survive Ottawa’s scrutiny before they can be consummated, the federal government said Friday as it reiterated its aim to foster a wireless market with at least four players in every region.
In a statement announcing a long-awaited framework on spectrum licence transfers, Industry Minister Christian Paradis made it clear his department will take a close look at any transactions that run counter to policy, emphasizing consumer interests and Ottawa’s much-cherished goal of “greater competition in the market.”
“We are working to provide Canadian families with access to the latest technology at better prices,” he said.
The minister has made clear in recent statements that the government intends to promote competition in the wireless sector by blocking transactions that lead to the “undue concentration” of cellular spectrum in the hands of any one player. It has become a central issue as flailing startup carriers consider selling to the country’s dominant three carriers or foreign players such as Verizon Communications Inc. and the whole sector looks at raising capital to enter an upcoming auction for the valuable radio waves.
Rogers Communications Inc. has also struck two deals for options to purchase unused spectrum from Shaw Communications Inc. and Quebecor Inc. when moratoriums on the transfer of those licences expire next year.
Industry Canada said Friday it will review all transfer requests and make decisions on a case-by-case basis and said “prospective transfers that could arise from options and other agreements” would also be subject to the policy. Licence holders will have to seek a review within 15 days of entering an agreement that could lead to a prospective transfer, the government said Friday.
Bell Canada said the new rules are unfair to Canadian companies and favour foreign companies like Verizon.