OTTAWA – Despite the promise of cheaper and more widespread 4G services, Canadian cellphone customers are unlikely to see any real benefit from the 700 MHz auction to be held later this year says consumer rights group the Public Interest Advocacy Centre (PIAC). Industry Minister Christian Paradis officially outlined on Thursday the final regulations for the eagerly awaited spectrum auction.
While Paradis ensured “at least four providers in every region can acquire spectrum in the upcoming 700 MHz spectrum auction,” PIAC claims there have been no substantive changes to the upcoming auction rules to ensure this result.
“It is unfortunate that the federal government has in fact not learned its lesson from the last spectrum auction,” said John Lawford, Co-Counsel for PIAC. “New wireless players can only bring down prices for consumers if they can have a viable national network to take on Rogers, Bell and Telus. That takes adequate spectrum. These announcements avoid the real problem,” he added.
PIAC also noted that the announcement of a further short consultation on transfer of wireless spectrum between wireless carriers appeared designed to avoid the problem faced by Rogers Communications Inc.’s announced option to buy Shaw Communications Inc.’s AWS spectrum from the previous spectrum auction. “That’s just bolting the door long after the horse has left the barn,” added Lawford.
PIAC and several consumer and public interest groups have recently written to the Minister on the issue of the Rogers-Shaw spectrum deal, expressing the view that it was contrary to both the letter and the spirit of Industry Canada’s stated spectrum auction policy.
