AWS spectrum auction starts tomorrow: RoW to provide daily coverage

Industry Canada will kick off its Advanced Wireless Services (AWS) spectrum auction tomorrow and even before the bidding is scheduled to start, major developments are potentially affecting the outcome of the airwaves sell-off. Perhaps the most significant announcement came from MTS Allstream Inc., the Canada Pension Plan Investment Board and the Blackstone Group, saying they had dissolved the consortium they set up in March to bid on AWS spectrum. The numbered company, 6934242 Canada Ltd., is still controlled by MTS and will participate in the auction. In a conference call last week, MTS CEO Pierre Blouin said the decision to end the partnership had nothing to do with the business plan, but rather was the result of not being able to agree on "a handful of key issues." He did not elaborate further, only adding that "all three parties continue to believe that the business case for a new entrant in Canada's national wireless market is sound." But MTS wasn't the only one making waves as the auction start day approaches. According to news reports over the weekend, 6934579 Canada Inc. has also decided to hang up on the auction. The numbered company, controlled by a number of venture capital firms, including Columbia Capital, M/C Venture Partners, Battery Ventures as well as the Caisse de depot et placement du Québec and the Fonds de solidarité des travailleurs du Québec, had deposited nearly $155 million. Industry Canada documents have yet to indicate the company has dropped out of the bidding. Mipps Inc., a wireless ISP controlled by Primus Telecommunications Canada Inc., has also dropped out of the bidding, Industry Canada documents reveal. With these two withdrawals the number of bidders has narrowed to 25. What impact will these developments have on bidding strategies and, ultimately, the outcome of the auction? Bell Mobility, Rogers Communications Inc. and Telus Mobility are likely breathing a little easier at the exit of MTS Allstream's deep-pocketed backers as well as the withdrawal of 6934579 Canada. But Vidéotron ltée still has its sights set on becoming a national player, and the reduction in financial resources at MTS might open the door for the Quebec-based cable company to capture a significant chunk of the new entrant airwaves. To get your daily coverage and analysis of the AWS spectrum auction, Report on Wireless will be the destination of choice. Every morning, RoW editor Perry Hoffman will provide a recap of the key happenings in the previous day's bidding as well as analysis of key battles.

AWS spectrum auction starts tomorrow: RoW to provide daily coverage

News | 05/26/2008 3:52 pm EDT

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