'Advice' continues to flow ahead of Canada's 700 MHz auction

Canada’s 700 MHz auction drama continues to play out as companies looking to influence bidding rules make their case known.
The latest to offer its advice is Montreal-based Videotron, which is owned by telecommunications giant Quebecor Media Inc. Videotron President and CEO Robert Depatie told attendees at this week’s Canadian Telecom Summit in Toronto that the company was in favor of rules the prevented current lower frequency holders from acquiring more than one new 700 MHz license. In addition, any provider that does not currently own spectrum in the lower bands would be allowed to purchase up to two new spectrum blocks at 700 MHz.
The proposal is aimed at preventing current market giants Rogers Wireless, Telus Mobility and Bell Canada from adding significantly to their current 850 MHz spectrum holdings. It should also be noted that Videotron currently operates its wireless network using 1.7/2.1 GHz spectrum licenses it acquired in 2008 for more than $550 million.
“We propose the use of an in-band spectrum cap for the upcoming 700 MHz auction,” Depatie noted. “The cap would work as follows: Any bidder who already owns low-frequency cellular spectrum in a given region would be allowed to bid on and if successful purchase, one new spectrum block at 700 MHz. Any bidder who does not already own low- frequency cellular spectrum in that region would be allowed to buy up to two new spectrum blocks at 700 MHz. That’s it. That’s all. The advantages of the Videotron proposal are several. It would not exclude any company from bidding on spectrum, nor would it guarantee that they would succeed. It would not be a set-aside. Furthermore, it would avoid any definitional skirmish over who is – or who is not – a new entrant.”
Rogers Communications earlier this week called for “fair and open auction” rules for the highly anticipated 700 MHz auction that would not include any restrictions, a sentiment echoed by Telus Mobility in April.