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The Canadian government says it will review all carrier spectrum transfers, a decision that...

The Canadian government says it will review all carrier spectrum transfers, a decision that appears spurred by recent spectrum purchase deals (I, II) from Rogers (RCI +1.3%) and Telus (TU +2.9%). The decision comes shortly after the government blocked Telus' attempt to buy smaller rival Moblicity; Moblicity's spectrum was the main prize in that deal. Rogers, Telus, and BCE (BCE +2.8%) are all trading higher today after slumping earlier this week on a report Verizon had bid $700M for Wind Mobile.
Comments (2)
  • Although the government's position of increasing competition in telecommunications is a noble one, there is a problem in the way it is being. Implemented. If Canadian companies are not allowed to bid for the smaller players, then there is only one bidder, that being Verizon. Which means V can pick up a position in the Canadian market for a song. There should still be competition in the bidding for Canadian infrastructure, network and spectrum in order to keep the costs of capital fair.
    28 Jun 2013, 12:36 PM Reply Like
  • I agree that it would be outrageous if nobody else is allowed to bid except Verizon. That would be a gross miscarriage of the existing rules.
    28 Jun 2013, 12:45 PM Reply Like
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