CATHERINE McLEAN
From Saturday's Globe and Mail Published on Friday, May. 25, 2007 10:24PM EDT Last updated on Tuesday, Mar. 31, 2009 10:59PM EDT
Canadian cellphone pioneer Ted Rogers insists newcomers shouldn't be given any breaks in the coming auction of wireless spectrum since he believes limited regulation has led to the industry's fast expansion.
“An auction is a great way of ensuring that radio spectrum goes to those who can put it to the best use,” Mr. Rogers said Friday in a statement. “That's why an auction should not be rigged by special rules – it should be open.”
His company, Rogers Communications Inc., will bid for more spectrum, or airwaves, as customers use their cellphones for bandwidth-hungry activities such as e-mailing and watching TV, according to a submission it made Friday to Industry Canada, which is overseeing the auction.
Rogers, one of the country's three top wireless carriers, argues Industry Canada should take a hands-off approach when it comes to the auction. That would mean allowing Rogers to buy as much spectrum as it wants, not reserving spectrum for new entrants and not forcing the big players to open up their networks to rivals' customers at regulated rates.
Any other process would penalize carriers who have spent billions building their wireless businesses, Rogers said. Its views were echoed by the other large wireless carriers, Bell Canada and Telus Corp.
“Bell believes the purpose of the auction should be to deliver [advanced wireless services] spectrum to those who will use it best and secure appropriate compensation for the taxpayers of Canada,” said Lawson Hunter, chief corporate officer at Bell, which also wants more spectrum in next year's auction. Industry Canada is in the process of setting the auction rules and comments were due Friday.
The state of competition in Canada's wireless industry will play a role in determining those rules. The established carriers say there is plenty of competition, but those who want to enter or expand in the market say it is lacking.
Manitoba Telecom Services Inc., which only sells cellphone service in its home province but wants to expand outside, said in its submission that spectrum should be set aside for new entrants, and that “reasonable” roaming agreements should be created.
If not, “the existing national players could block any further competition,” said Chris Peirce, chief regulatory officer at MTS.
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