The reply comments for the AWS auction consultation have been submitted to Industry Canada and there is entertaining reading to be found – at least among the information that I have been sent. [Has anyone else been having trouble reaching the Industry Canada website?]
On Wednesday, I wondered how TELUS would respond. Well, it has re-engaged in the battle for an open auction process – its submission is feisty right from the opening quote that appears above the header on its executive summary:
One thing both TELUS and Quebecor agree on: AWS is not simply about wireless phone service. AWS represents an alternative information and entertainment content distribution platform. Small wonder that cable companies want to restrict entry by carriers like TELUS into that line of business. However, no matter how many ads Quebecor runs in their newspaper empire about wireless prices, a simple truth remains: wireless prices keep declining year over year while cable bills just keep going up.
Any doubts about its position? In my Wednesday post, I referred to Darren Entwistle’s comments that were contingent on TELUS moving forward on its BCE acquisition. Any support of new entrant incentives were tied to a condition: “Should Telus’ acquisition of BCE proceed, we believe…” The BCE deal is off the table. As a result:
In the current competitive environment, no justification exists for Industry Canada to abandon the department’s objective to rely on market forces to the greatest extent possible, in telecommunications generally and in this market in particular.
Quebecor isn’t withering from the argument. It issued a press release saying
the government should take measures to prevent the three large, current providers of wireless services from snapping up all the frequencies that will be put up for auction in the coming months. … The three main Canadian mobile telecommunications companies now have more spectrum than they need to serve their customers and supply advanced broadband mobile services. As an illustration, the three companies have an average of 60 MHz of spectrum to serve 1.1 million people in the Ottawa region, while six U.S. providers have an average of 45 MHz to serve 19 million people in New York City.
TELUS responds with:
These statements seek to throw up a smoke screen and obscure what is clear: namely that the AWS band is a new band that will create more competition and choice in the content space. New, innovative technology and services will be developed for this band that may or may not be available in the current PCS band.
MTS Allstream has also weighed in with a statement accompanying its submission:
Given recent developments in the industry, including the potential combination of the country’s two largest wireless carriers, the need for new entry to spur competition is more important than ever. Canada will benefit from more wireless competition, and a responsible AWS auction process is critical to helping Canadians get it.
The official paper file is in the hands of Industry Canada. Watch for political pressures and public advocacy over the summer months. As I sift through the filings, I’ll bring you some highlights.