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Manitoba Telecom Services Inc. and Quebecor Inc. have made no secret of their wireless ambitions, and Friday they joined forces to make the case for more competitors in the market.

The Winnipeg-based telephone company and Montreal-based cable operator, along with a small wireless Internet firm called Mipps Inc., have formed the Coalition for Wireless Competition.

Their campaign comes at a critical time, just two weeks before comments are due on Ottawa's plan to auction off new wireless spectrum.

The coalition is eager to put the spotlight on its argument that the cellphone market needs more players.

“We're trying to get the government to take a pro-competitive approach …” explained Chris Peirce, MTS's chief regulatory officer. “If the rules don't permit new entry, you won't have any.”

The coalition's efforts consist of a website it launched to promote the cause at wirelessfuture.ca. It is also talking to other interested parties such as the Public Internet Advocacy Centre, and rivals Shaw Communications Inc. and Primus Telecommunications Canada Inc. to encourage them to express their views.

But that's where the co-operation ends. Mr. Peirce said MTS will file its own comments for the auction instead of as part of the coalition. And he denied the group was the start of a joint bid for spectrum amid speculation MTS could form such a partnership.

It's not the first time MTS has formed a lobbying group to push its view forward. With the government's policy review of the telecommunications sector last year, MTS hooked up with parties such as MCI Canada and Primus to create the Coalition for Better Competition.

“This is not about a business coalition,” Mr. Peirce said.

There's a lot at stake with the new wireless spectrum auction, which is slated to take place early in 2008.

Canada's wireless market is currently ruled by Bell Canada, Rogers Communications Inc. and Telus Corp. MTS sells cellphone service in Manitoba, while Quebecor's Vidéotron Ltée unit resells Rogers' wireless service in Quebec.

Cellphone operators are benefiting from quickly rising revenue and profit. The introduction of new wireless operators, though, would undoubtedly change the dynamics of the market.

In one camp are those who believe the wireless market is too cozy and prices too high. A recent report from telecom consultancy Seaboard Group, for example, showed a high-end business subscriber who uses 1,200 minutes of voice plus data pays 150 per cent more than a customer in the United States.

But high prices aren't just with the big guys. MTS charges 50 cents a minute for video and picture messages, while 125 text messages at Vidéotron are $6. In contrast, AT&T Inc. of the United States charges $5 (U.S.) for unlimited text, picture, and video messages.

Smaller would-be bidders such as MTS, Quebecor, and Toronto Hydro Telecom argue the government should pave the way for increased competition by creating conditions that make it easier to enter or expand in that market.

They include setting aside spectrum for new entrants so the big firms won't outbid them and buy it all up, along with the right to let their subscribers roam on other companies' networks.

But others argue there is ample competition. The big three don't want any breaks given to the new competitors, even if they themselves received some in the past.

“I think any spectrum auction should be done from a level playing field, allowing people to build accordingly, and pursue spectrum of their own volition, but not certainly on a subsidized basis,” Telus chief executive officer Darren Entwistle said last week.