Auction Day 14: SaskTel and MTS struggle to hit their auction target

Industry Canada's decision last year to give SaskTel and MTS Allstream new entrant status - and all the competitive benefits that go with that - hasn't give the former monopoly telcos the advantages they were likely hoping for in the Advanced Wireless Services (AWS) spectrum auction. Even battles in their home territories have proven more difficult than anticipated.Despite being able to get control of the 20 MHz set-aside B-band licences in their respective provinces earlier this week, their fight to get this initial swath of AWS spectrum has been anything but easy. Their toughest foes have been other new entrants, Tough competition from other new entrants, particularly Shaw Communications and Globalive Communications, have forced SaskTel and MTS to err on the side of caution and keep the bidding high. The battle for Saskatchewan spectrum reached such a level that SaskTel backed away from trying to acquire the 10 MHz C-band on Thursday, ceding control to Globalive. After seesawing standing high bids with Shaw, and with Globalive in a couple of rounds, MTS was able to secure the Manitoba C-band licence on Wednesday. In the 10 MHz D-band where there are multiple licences covering Saskatchewan and Manitoba, both SaskTel and MTS were in the hunt early on. MTS bowed out of the fight for the Winnipeg and Brandon licences about a week ago, but SaskTel stayed in the battle until finally acquiescing on Wednesday. With bidding so intense for new entrant reserved spectrum, both companies have had to fight their ILEC brethren for pieces of the non-set aside bandwidth. SaskTel has been the most active of the two in the 20 MHz A-band licences, going head-to-head with Rogers Communications, Telus Mobility as well as fellow new entrant Shaw for the Regina, Moose Jaw and Saskatoon properties. Globalive has also been active on these licences. At the end of Round 61, SaskTel is standing high bidder on the Moose Jaw licence with Regina in Telus Mobility's hands and Rogers Communications controlling Saskatoon. MTS fought a little harder to get a piece of either the 10 MHz E-band or 20 MHz F-band covering Winnipeg and Brandon. It put up a valiant effort against Rogers and Telus as well as Shaw and Globalive, but ultimately gave up earlier this week. SaskTel tried to land Regina, Moose Jaw and Saskatoon licences in these two bands as well, but was up against Rogers, Telus, Globalive and Shaw. The provincial Crown corporation was out of this battle about a week ago. With the auction winding down, it looks like SaskTel and MTS will end up with 20 MHz of core AWS spectrum with another 10 MHz from the PCS Extension band (the G-band). As well MTS has held the 5 MHz of bandwidth in the 1670-1675 MHz band (the I-band) since the first round. They had problem hoped for more spectrum licences when the bidding began, but things could have been worse for the regional incumbents particularly if Industry Canada determined that they belonged in the ILEC class. Under this scenario, the possibility of not be able to acquire any spectrum at all would have been a distinct possibility.

Auction Day 14: SaskTel and MTS struggle to hit their auction target

News | June 15, 2008

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