The federal government is going to make it easier for small wireless companies to strike deals about sharing cellphone towers with the incumbents when it sells another batch of spectrum at the end of November.
Ottawa announced on Thursday it will sell the next batch of wireless airwaves in an auction on November 19th. On that day, the government will start accepting bids to use the so-called 700 MHz spectrum, which will allow cellular companies to transmit larger amounts of data over their networks, faster.
Recent figures suggest wireless traffic is increasing at a rate of five per cent per month in Canada.
Competition sought
Ottawa says the auction will be tailored to ensure that no one company can buy more than one of four blocks of available spectrum. That will have the effect of making sure there is real competition in every regional market.
The last time the government sold wireless spectrum, more than $4 billion was raised, far outstripping initial estimates. Minimum bid levels this time suggest Ottawa stands to earn at least $900 million this time around.
The 2008 auction led to new companies such as Wind, Mobilicity and Public Mobile launching cellular networks to compete with the big three established players: Bell, Rogers and Telus.
Although the big three still control more than 80 per cent of Canadian cellphones, the new players have eked out market share.
On Thursday, Wind Mobile announced it added almost 80,00 new subscribers last quarter, bringing their total customer base to 590,000. That's a drop in the bucket compared with Rogers' more than seven million customers, for example, but Wind's customer gains from a smaller baseline level eclipsed the 58,000 postpaid customers that Rogers added to its network during the period.
The announcement Thursday follows earlier steps to help smaller wireless providers enter the market by getting rid of foreign-investment restrictions.
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