Government Threatens to Exclude Telus from Next Wireless Auction

Posted by Knowlton Thomas

The federal government is threatening to block Telus from a future auction of cellular frequencies if the Vancouver-based telecommunications giant doesn't stop attempting to acquire wireless startup Mobilicity, which it recently did for the third time.

Quoth The Globe and Mail:

This warning of unprecedented action is evidence tensions between the federal government and major telecom players are nearing a breaking point. Relations between the Conservative government and the Big Three incumbent carriers have eroded in recent years over the manner in which the Tories have tried to inject more competition into the wireless industry.

“If Telus doesn’t drop efforts to acquire spectrum set aside for new entrants, the Harper government is prepared to change the rules of the upcoming wireless auction that could effectively bar Telus or any incumbent from acquiring that spectrum,” a senior government source told the Globe.

Telus did successfully acquire Public Mobile, after which it raised the carrier's plan's prices then effectively shut it down. There's nothing to suggest Telus wouldn't do more of the same were it allowed to swallow Mobilicity.

It's now expected that Industry Minister James Moore will not only reject Telus' latest bit for the entrant carrier, but possibly redesign the next auction (scheduled for 2015) to favour entrants gaining spectrum, which could involve excluding Telus from bidding.

“If companies like Telus think the government will allow them to stockpile spectrum that was set aside for a fourth player, and access new spectrum in future spectrum auctions, they are kidding themselves,” a federal government source told the Globe.

Meanwhile, Wind Mobile is steadily gaining subscribers thanks to incredibly high-value plans, like this one, which for $39 offers unlimited talk, text, and data not only in Canada, but also the US.

 

Company:
Telus Corp.
Website:
http://www.telus.com
Location:
Vancouver, British Columbia, Canada

Technology is a key enabler for TELUS and our customers, providing advantage and differentiation in the marketplace. By managing the life cycle of current technologies and the timely introduction of new technologies we deliver superior service value to our customers and long-term growth oriented investment performance to our shareholders. For investors, TELUS is succeeding in managing technology and capital... more

Company:
Wind Mobile
Website:
http://www.windmobile.ca
Location:
Toronto, Ontario, Canada

Simply put, we want to create the most unforgettably positive customer experience in Canada. How? By speaking with you, not at or over you. By making every site you visit, every store you set foot in and every call you have with us into a meaningful conversation to help build something better - together. We'll make it as easy as possible to be a customer. You'll have more control over your mobile experience than... more

Company:
Mobilicity
Website:
http://www.mobilicity.ca
Location:
Vaughan, Ontario, Canada

We believe that Canadians deserve an alternative wireless experience that delivers better value, more freedom and most of all choice. Simply a better wireless experience No Term Contracts Unlike other providers that lock you into a term contract, Mobilicity has no term contracts or cancelation fees. We are so certain that you’ll love us and want to stay that we don’t have to force you – the choice is yours to make... more


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Knowlton Thomas

Knowlton Thomas

Knowlton is the managing editor of Techvibes. Based in Vancouver, Knowlton has been published in national publications and has also appeared on television and radio. Previously he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing tennis or otherwise enjoying the outdoors. more



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