UBS withdraws from spectrum auction, cites healthy spectrum position

Unique Broadband Systems Inc. (UBS) has pulled out of Industry Canada’s 2300 MHz and 3500 MHz spectrum auction. The move comes after UBS received CRTC approval to buy an additional 21% of Look Communications Inc., giving UBS a 51% stake in the ISP and wireless cable TV provider. Phil Koven, a representative for UBS, tells Report on Wireless that the company has enough spectrum for immediate purposes through its ownership stake in Look and an agreement with Microcell Telecommunications Inc. subsidiary Inukshuk Internet Inc. "UBS feels that with Look’s position in spectrum and the position UBS itself has through its deal with Microcell is enough spectrum for its perceived uses over the short-to-medium term and, as a result, it is conserving resources for other short-to-medium term priorities. It’s not a function of any less interest in the spectrum, it is just they really have enough for their current use," Koven says. Microcell disputes UBS’ claims that it has rights to Inukshuk spectrum. The wireless operator tells RoW it doesn’t have any agreements with UBS (see article here). Despite UBS’ apparently healthy spectrum position, the company has yet to come clean on its long-term plans. It’s likely under UBS’ control that Look will continue to offer Internet access and wireless cable TV services, but the company’s big planning picture is still sketchy. UBS chair and CEO Gerald McGoey isn’t yet ready to talk about the company’s future plans, according to Koven. McGoey did say in a Sept. 23, 2003 news release announcing UBS’ increased stake in Look to 29.9% that "our purchase of shares has allowed for both UBS and Look to focus on realigning our strengths to provide customers with improved high-speed wireless Internet access, web hosting, email, e-business and other associated services." Last summer, Look’s interim president and CEO Michael Cytrynbaum told RoW that discussions were ongoing to determine the importance of the high-speed Internet and digital TV businesses in the future (RoW, Aug. 26/03). "We haven’t decided what we are going to do on a going forward basis. It’s something we are actively working on, and over the next three to five or six months I believe we will have an approach that we will all be happy with. We are examining the entire situation right across the board and then we will decide the approach we will take," he said. "But the answer is we are aware of those items and we are working on them."

UBS withdraws from spectrum auction, cites healthy spectrum position

News | 01/27/2004 5:00 am EST

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