The Canadian governments plans to auction off 700 MHz spectrum is beginning to draw comments from industry players looking to ensure that their interests in any rule making are heard.
Speaking at the 2011 Canadian Telecom Summit in Toronto, Rogers Communications President Rob Bruce told attendees that the telecom giant was hoping for a “fair and open auction,” which to Rogers means equal access by all parties to the valuable spectrum up for grabs.
“Those who have suggested that companies like Rogers shouldn’t have fair and equal access to this spectrum are misguided,” Bruce said. “Restrictions on the 700 MHz band auction would be unfair to our nine million wireless customers who have every right to access a truly national, robust LTE network in both urban and rural markets.”
The comments come as some have suggested that the Canadian government set up incentives for new entrants into the space similar to bidding credits used for the 1.7/2.1 GHz spectrum auction. A number of new entrants that acquired spectrum in that auction have since run into hurdles slowing down their launch plans.
“If you look to other sectors with limited or precious resources, our government has a long track record of creating a level playing field for these sectors,” Bruce added. “Why would it take a different approach to the valuable and limited 700 MHz spectrum auction?”
Rogers announced late last year that it had begun LTE trials in the Ottawa area using its 1.7/2.1 GHz spectrum holdings in partnership with equipment provider Ericsson Canada.
Rogers’ rival Telus Mobility made similar comments last month, noting it planned to use 700 MHz spectrum to help expands its LTE plans into rural markets. Telus Mobility said it plans to begin rolling out LTE services next year using its 1.7/2.1 GHz spectrum holdings in urban markets.
Mobile impact on Canada
While Rogers was clamoring for “fair” auction rules, Ovum Consulting released a report at the Canadian Telecom Summit showing that the Canadian mobile industry contributed $41.2 billion to Canada’s economy in 2009. The report, commissioned by the Canadian Wireless Telecommunications Association, found that the sector contributed more than $17.2 billion in direct contributions to the country’s GDP through the sales of goods and services; $14.98 billion due to “the economic flow through to contributing suppliers” in the supply chain; and more than $9 billion in “additional benefit or satisfaction that consumers received from wireless services, above and beyond what they pay for the services.”
In addition, Ovum found that the wireless industry invested nearly $3 billion in capital expenditures in 2009, which was a 60% increase from the previous year. Canada’s mobile industry also employed more than 261,200 people with an average salary of just over $60,000, compared with the average Canadian salary of around $43,000.
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