Ottawa keeping an eye on spectrum transfers as it works to ensure fourth national carrier.
Wants to ensure four major players emerge
All telecommunications 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 muchcherished 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, adding that it would treat the situation as if the future transfer that could arise has already been made.
What that means for Rogers’ deals with Shaw and Quebecor was not clear.
Simon Lockie, chief regulatory officer at Wind Mobile, a new entrant that would be interested in purchasing that unused spectrum for itself, said he did not believe Rogers would be forced to submit those option agreements for review at this time, since they were completed before the date of the policy.
“That said, I think it’s in everybody’s interest — Rogers, Shaw, Vidéotron, the government and the industry — for Rogers to submit their proposals voluntarily for review,” he said in an interview.
“If [Rogers’] interest is actually in getting that spectrum, which is what they’ve always maintained, then there’s absolutely nothing stopping them from bringing that to Industry Canada to see whether that is something the minister would approve.”
A spokeswoman for Rogers said Friday the company was still reviewing the framework to “determine the exact requirements as they pertain to the two agreements.” Industry Canada did not respond to a request for comment Friday.
Mr. Lockie praised the government for providing proactive guidance on the considerations and time lines it would follow in making transfer decisions.
The framework included a list of factors in determining whether a transfer would lead to the concentration of too much spectrum controlled by one party.