OTTAWA – The Federal Court has shot down a request by Telus challenging the Industry Minister’s authority to set the eligibility requirements for parties participating in next week’s 700 MHz spectrum auction. The telco was also ordered to pay for the costs of pursuing its legal action.
Telus filed an application with the Federal Court last August asking for an order to prohibit Industry Minister James Moore from setting any other eligibility criteria than what is set out in the Radiocommunications Act when issuing licenses for spectrum access. This criteria prevents “large wireless service providers” from bidding for more than one block of spectrum in the prime blocks B, C, C1 and C2. According to Telus’ application, that contravenes the Radiocommunications Act, which states that “a corporation that is incorporated under the laws of Canada or a province” is eligible to be issued a license. New wireless carriers like Wind Mobile are allowed to buy up to two prime blocks.
But Justice Cecily Strickland dismissed Telus’ request. “In conclusion, the Minister had the authority to impose conditions on spectrum licences for the 700 MHz band, including spectrum caps applicable to large wireless service providers such as Telus”, she wrote in her decision.
The 700 MHz spectrum auction is slated to begin on January 14.
