TORONTO, MONTREAL and WOODSTOCK – Industry stakeholders wasted little time before commenting on Industry Minister James Moore’s spectrum announcement, with the majority expressing optimism, albeit cautiously.
Rural broadband provider Xplornet Communications said that it was “pleased and relieved” that Industry Canada and Minister Moore revised the previously proposed 3500 MHz spectrum policy, saying that the approach proves that the Minister understands the importance of 3500 MHz spectrum in providing fast and affordable high-speed Internet to rural Canadians.
“The Minister has taken a balanced approached that does no harm to the tremendous gains that have been made in the past few years to improve Internet access for rural Canadians and reaffirms his commitment that '[u]nder no circumstances will our government take spectrum licences away from any local Internet service provider that is providing Internet service to rural Canadians'”, said president Allison Lenehan, in a statement. “The 3500 MHz consultation process worked. By undertaking a comprehensive band-plan review, there will be a proper assessment of the current and future spectrum needed to continue providing Internet services to Canadians in rural areas. Rural broadband providers look forward to being part of that process."
Montreal-based satellite company TerreStar Solutions said that the mobile satellite service and AWS-4 decision will result in it being licensed by Industry Canada for 40 MHz of AWS-4 and 20 MHz of Mobile Satellite spectrum to provide mobile satellite and terrestrial services across the country.
"Spectrum is the fuel that drives new technological developments, higher speed mobile services and lower prices for consumers. By modifying existing policies to make this spectrum useable in Canada, the Harper government will contribute to lower prices and will allow companies to provide better services for consumers, regardless of whether they are in highly populated cities or more rural and underserved communities", said president Andre Tremblay, in a statement. "This policy…is the critical ingredient needed to attract new capital to Canada's wireless market and for making a fourth competitor in every region a reality.”
Quebecor Media’s Videotron, which is still contemplating an expansion of its wireless service outside of Quebec, greeted the announcement “with great interest” but added that it is awaiting other regulatory decisions, including domestic roaming fees and tower-sharing, before throwing its hat in the national wireless ring.
"Quebecor Media is pleased that the government has followed through on its policy by setting aside a significant amount of mobile spectrum for new entrants," said Pierre Dion, president and CEO of Quebecor and Quebecor Media, in a statement. "Minister Moore's announcements definitely go in the right direction, and today is certainly a good day for Canadian consumers."
Canaccord Genuity managing director/head of research Dvai Ghose said that the announcement is not particularly material for the wireless incumbents, Telus, Rogers and Bell, and that there is “more rhetoric than substance in the announcement”. He also added that new entrant spectrum set-asides have generally led to underutilized or unutilized spectrum.
“For example, while Wind has spectrum across Canada, except for Quebec, it has only deployed wireless services in urban markets in Ontario, British Columbia and Alberta”, Ghose wrote in a research note. “While Videotron is using its AWS-1 spectrum in Quebec, it has yet to utilize its 700 MHz spectrum in Quebec, Ontario, or Western Canada and has not used its 10 MHz of AWS-1 spectrum in Toronto. Shaw has not deployed on any of its AWS-1 spectrum in Western Canada and Mobilicity’s spectrum appears to be significantly underutilized. In contrast, the incumbents seem to be using their spectrum. This leads us to conclude that new entrant set-asides have been largely unsuccessful and have merely led to underutilization of precious spectrum.”
