The Canadian government has yet to announce the rules that will govern the next spectrum auction but two carriers are already threatening to sit out the auction. Public Mobile and WIND Mobile today warned that they could skip the auction if Industry Canada does not set aside spectrum for smaller players. “We’re not suicidal,” Wind Mobile’s CEO Anthony Lacavera said today. We’re not going to go out and try to bid on something we have zero chance of winning.” Bruce Kirby, vice-president of strategy and business for Public Mobile, expressed a similar sentiment.
At stake is spectrum in the 700MHz band. Bidding is expected to be strong as it offers better reception inside buildings and wider coverage in rural areas. Without it, smaller players may not be able to expand into rural Canada or offer LTE connectivity to their customers.
An alternative solution being suggested would cap the amount of spectrum a company could purchase.
Canada is expected to hold its spectrum auction later this year or next year. Once the rules are announced, wireless companies interested in bidding will need time to secure the necessary financing.
Read more: The Globe and Mail