Canada Opens Up To Other Networks, Newcomers More Welcome

The Canadian government will be auctioning airwaves next year to boost its wireless network, which should be good news to all concerned, but it also decided to block its prominent phone companies from getting into the act.

Canada's government will block the country's largest phone companies such as Rogers Communications Inc. from buying some airwaves in an auction planned for next year, setting them aside for new wireless competitors.

The government, which is auctioning 105 megahertz of spectrum on May 27, will permit Quebecor Inc. and other companies that have less than 10 percent of the national wireless market to bid on an exclusive 40-megahertz block of airwaves.

The goal here is to make the Canadian wireless market more competitive and innovative. As you can probably guess, Rogers, among others, isn't too thrilled about the forced non-involvement. Both Rogers and Bell are saying that the decision is disappointing while Telus thinks that it's flawed.

As consumers, we won't feel its impact until next year. Smaller networks mean smaller steps, so the adjustment period is going to be gradual. Here's to hoping we get better services in the long run.

Source: Bloomberg

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