This article was last updated on April 16, 2022
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The Canadian government has made another prominent move to help foster more competition in a wireless industry dominated by three players, as it aims to push smaller companies to merge and create more forceful rivals. According to an announcement made by Industry Minister James Moore on Monday, his government has decided to auction prime AWS-3 spectrum exclusively to motivate an investor to buy and combine smaller, struggling firms such as Mobilicity and Wind Mobile.
The auction will hold a special set of large 30 MHz block of the AWS-3 spectrum on offer in each region of the country for exclusive bidding by small players that are currently operating in that region. Although an auction date has not been set, it is expected to take place with results available before an already scheduled sell of separate 2,500 MHz spectrum in April 2015. The government has promised to deliver a fresh, “simpler, shorter” auction process as well. In his remarks, Mr. Moore stated that “today’s announcement will help new entrants acquire valuable new spectrum to help expand their networks and deliver fast, reliable service to Canadians.” He added that consultations on the licensing of this spectrum would begin this summer.
The decision was made amid growing tensions with the Big Three carriers, which have recently failed all attempts by Ottawa to bring a fourth player in all markets, saying it would be unsustainable and that customers could be better served if existing firms could achieve greater critical mass.
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