Canada’s AWS auction, in the AWS band (1.7/2.1 GHz), is winding down. The auction was expected to raise around $1 billion for the government treasury but so far bids are totaling more than C$4 billion ($3.9 billion) — says Reuters.
Canada’s government plans to allow new players to break into the cellular phone market. A total of 105 MHz of AWS radio spectrum will be open for bidding (map), which includes 40 MHz of AWS spectrum specifically set aside for new players, with another 65 MHz of spectrum for all bidders.
The three top telecom companies, which already dominate Canada’s C$13 billion wireless market; Rogers Communications, Bell Canada Enterprises and Telus — lead the pack in the dollar value of high bids across the country.
Among possible new contenders:
- Quebecor, a company controlled by the Montreal-based media and publishing group which has committed C$556 million in bids. Quebecor has long said it plans to build out a network across its home province of Quebec, also BCE’s home turf.
- Globalive Communications, a privately held firm that offers cheap long-distance calling, has put up more than C$444 million. It has said it is confident it will be able to buy enough spectrum to become a national player.
- Data & Audio-Visual Enterprises Wireless, chaired by entrepreneur John Bitove. It has committed C$242.5 million in high bids. One of Bitove’s partners in DAVE Wireless is the investment arm of Vulcan, Paul Allen’s investment group.
- Shaw Communications, a Western Canadian cable and communications group, has put up C$205.4 million so far. Still, its chief executive has warned that just because Shaw participates in the auction does not mean it will build out a network.
Because the prices of spectrum are being bid up faster and higher than expected, there is more pressure on the newcomers to set up partnerships to share the costs of a national wireless push.
Industry observers generally agree that Canadians should hold off in signing for a new contract until next year as it is expected a newly-established carrier will be set to launch by spring of 2009.
