Are 3 wireless carriers enough?

There is an auction for mobile wireless spectrum coming up and a consultation paper can be expected from Industry Canada some time before the end of the year.

Expect five issues to be canvassed:

  • Should there be a set-aside for new entrants?
  • Should a spectrum cap apply?
  • Should there be mandated roaming for new entrants to be able to leverage existing networks?
  • Should there be mandated tower sharing?
  • Should the auction include national / regional / local spectrum?

A set-aside would presume that Industry Canada does not believe that the current industry structure, with 3 facilities based wireless service providers, is sufficiently competitive. It would be interesting to understand how the spectrum branch could reach that kind of conclusion, when the Competition Bureau did not intervene in the Rogers acquisition of Microcell.

That said, we have been somewhat vocal about consumer pricing for mobile wireless, with LD rates and so-called system access fees.

We’ll be covering the consultation more over the coming months.

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