In an article analysing the impact of the new spectrum auction rules on Rogers, Forbes seems to completely misunderstand what is up for grabs in the upcoming Canadian spectrum auction.
Forbes says:
Shares of Rogers plunged on Thursday after a Canadian government agency issued new auction rules that will boost competition in the cable and Internet service industry.
Boosting competition in cable and internet? Shares in Rogers fell, but it should not have been due to future cable and internet competition.
In Canada, potential new entrants will have the best opportunity to win 40 MHz of spectrum (broken up into a 20 MHz slice and two 10 MHz slices) to establish a new mobile wireless carrier.
No wonder John Henderson of Scotia Capital says (in the same article):
The market is overreacting… The auction will have very little impact for the next two years.
This auction is about mobile wireless. While other social and environmental factors may be at play for TV and internet, the auction rules should have no impact whatsoever on cable and internet.