MTS Allstream Pushes Government to Fix Canada’s Next Spectrum Sale

7:00 am on May 28, 2007 | Category: Business, Cellular, Regulation, Telecom Services, Wireless

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Manitoba Telecom Services (MTS) is pressuring Canada’s federal government to set aside wireless spectrum for new bidders in an upcoming airwaves auction, likely in the hope of establishing itself as a fourth nationwide carrier in the Canadian cell phone market.

MTS Allstream, the regional wireless subsidiary of Manitoba’s incumbent telecom operator, says that assisting new market entrants on a nationwide level would foster greater competition in the country’s wireless industry.

“The federal government must seize the opportunity presented by auctioning new spectrum licenses to ensure that barriers to the entry of new competitors are removed,” argued Chris Peirce, the Chief Regulatory Officer of MTS Allstream. “New entrants will spur more competition, greater investment and speedier roll out of innovative new services for Canadians.”

Canada’s existing nationwide carriers; Rogers, Bell, and Telus; however, have voiced strong opposition to the MTS plan, saying that it would undermine the very market forces that auctions are based on.

“An auction is a great way of ensuring that radio spectrum goes to those who can put it to the best use,” commented Rogers CEO, Ted Rogers. “That’s why an auction should not be rigged by special rules – it should be open.”

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    Published by TeleClick Enterprises
    Edited by Jeremy Maddock