Auction Day 16: Bragg and Globalive change strategies

Atlantic cableco Bragg Communications and Globalive Communications seemed to shift strategies in Industry Canada's Advanced Wireless Services (AWS) spectrum auction. Bragg moved its 20 MHz target from the upper AWS band to the lower and Globalive withdrew bids on a couple of properties. The EastLink owner, which had been bidding heavily on the seven 20 MHz A-band licences covering Atlantic Canada, moved most of its bids to the 20 MHz F-band properties in the early part of the day. As well, the Atlantic communications provider began bidding more heavily on licences in Ontario and Alberta. Early on Tuesday, the EastLink owner appeared to give up on acquiring 20 MHz A-band spectrum in most of Atlantic Canada, allowing Rogers Communications and Bell Mobility to control the seven licences. But the company shifted its target to the F-band 20 MHz licence going head-to-head against Rogers and Bell. Later in the day, however, the company went back to the A-band licences, reaffirming its intent to acquire at least 40 MHz of bandwidth in Atlantic Canda. Bragg's new focus also took a turn into Alberta and Northern Ontario where the company began bidding on the 20 MHz B-band licences against Shaw Communications. The EastLink owner has already been active on certain tier 3 licences in Alberta and Ontario such as Grande Prairie, Sudbury and Kirkland Lake, but appeared to be beefing up its presence in those and other markets throughout the day. Globalive pulled what could be the shocker of the day when it withdrew its high bid on the 10 MHz C-band licence in Montreal in Round 73. It also withdrew its bid on Abitibi in the same round. The move allowed auction rival Vidéotron to regain control of the 10 MHz C-band licences throughout all of Quebec. The two companies remained active in bidding against each other, however, on a number of properties from Ottawa west to Huntsville. The Yak Communications owner's decision to exit the Montreal market also mirrors Vidéotron's decision earlier in the auction to bid heavily and win the 10 MHz D-band licence covering Toronto, only to withdraw in Round 41. But realizing that the value of the licence had already risen too high for a 10 MHz property, the Quebec cableco took control of the licence again in Round 46. Some question the merit of Vidéotron's strategy when it comes to this particular licence. Was it playing a game of chicken with the other new entrants, bidding up the licence in the hopes that someone would eventually take it off its hands? That seems like a moot point now with the company is standing high bidder on the licence with $96.4 million on the table. Globalive was in a better position though as it was already in a bidding war with Vidéotron over the 10 MHz C-band Montreal licence, so it was pretty confident that the property would end up back in the Quebec cable company's hands. At the end of Round 74 on Tuesday, total standing high bids topped the $3.7 billion mark with Rogers leading the way at $827 million. Telus Mobility and Bell Mobility remain in the second and third positions with $752 million and $636 million, respectively. New entrants, Globalive and Vidéotron, are far ahead of the pack with $562 million and $440 million, respectively.

Auction Day 16: Bragg and Globalive change strategies

News | June 17, 2008

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