Many new players enter auction for leftover 2300/3500 MHz licences

Battles could be fierce for spectrum in the auction of the unassigned 2300 MHz and 3500 MHz licences, according to analysts, who note that with 28 players entering the residual auction, 11 of which participated in the first auction, skirmishes are all but guaranteed. It is difficult to tell at this point where those battles might be because Industry Canada has not yet released specific bidding information. It is clear, however, that a combination of low entry prices and a crowded field of bidders will result in battles breaking out in some of the lucrative urban centres where licences remain from the first auction. "We can’t tell from what’s been published if it’s the same cities or new cities. It’s difficult to tell because we don’t know if everybody is going after the same spectrum or are they all scattered," Johanne Lemay, co-president of Lemay Yates Associates, tells Report on Wireless. She says there isn’t anything surprising about the list of participants. But what was probably a surprise to many was the number and quality of licences unclaimed from the first auction. "Certainly there were some very good licences still available, so I’m not surprised that some of the existing players went to get additional spectrum." It should come as no surprise that cable operators such as Cogeco Cable Inc., Source Cable Ltd., and Teledistribution Amos Inc., and telcos such as Amtelecom Inc. and Distributel Spectrum Inc. entered the auction. Each is looking for inexpensive ways to offer services to customers. Further, networks built in these two bands can support not only high-speed Internet access services, but are also an ideal platform for Voice over IP services. RipNet Ltd., a Brockville ON-based ISP and licence winner in the first auction, has indicated that it plans to roll out such services with its 3500 GHz licences. While the reasons for entering the residual auction may be readily apparent for these cablecos, telcos and Internet providers, there are a few of interesting entrants to watch out for. Report on Wireless highlights four companies that present interesting scenarios for entering the auction. UBS Wireless Services Inc. A subsidiary of Unique Broadband Systems Inc., which withdrew from the first auction after receiving CRTC approval to acquire a controlling interest in Look Communications Inc. (RoW, Jan. 27/04), UBS is obviously in the hunt for more spectrum in Ontario and Quebec. Earlier this year, a UBS spokesperson told RoW that the company withdrew from the auction because it has enough spectrum for "immediate purposes" through its ownership in Look and an agreement with Microcell Telecommunications Inc. subsidiary Inukshuk Internet Inc. The existence of that agreement is, however, disputed by Microcell (RoW, May 4/04). YourLink Inc.A subsidiary of VCom Inc., a winner in the 1999 24/38 GHz auction and the 2300/3500 MHz auction, YourLink recently acquired Image Wireless Communications Inc., a wireless cable operator in Saskatchewan (RoW, April 21/04). The company is likely looking to secure more spectrum in Saskatchewan where YourLink is an ISP, so that it can not only offer Internet services to a larger population, but also offer new and innovative services in competition with the province’s incumbent telco SaskTel. Tele-Mobile CompanyThe corporate entity of Telus Mobility has again entered, but the licences in which they are interested is the big question. The first auction saw the company put down a deposit large to bid on a national swath of licences, but it ended up securing upwards of a dozen licences for its Quebec operations. Will it try to shore up more licences in Quebec to defend its territory there or will it go for licences in the West to defend against incursions from its biggest rival Bell Canada? Bell recently secured access to 24 GHz spectrum in Calgary and Edmonton where it plans to build a large wireless network (RoW, Aug. 24/04). Wispra Inc. Wispra, headed by Joe Church, won spectrum in the 1999 24/38 GHz auction. A Wispra subsidiary, WNI Networks Inc. eventually gave up on those licences and sold them to Mobilexchange Spectrum Inc. (RoW, Feb. 10/04). It is clear a business case can be built around these bands and this could be Church’s chance to do. Wispra’s W2N Inc. subsidiary won three licences in the 2001 PCS auction, and Church is now a veteran of Canada’s spectrum contests (RoW, Feb. 5/01).

Many new players enter auction for leftover 2300/3500 MHz licences

News | September 9, 2004

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