As part of its ongoing efforts to boost mobile competition, the Canadian government plans to sell 30MHz. of spectrum in the 2.5GHz. band (good for urban areas) to smaller carriers. Strict rules will be placed to prevent the transfer of spectrum to bigger carriers.
Telus (TU -2%), Rogers (RCI -1.8%), and BCE (BCE -1.2%), who between them have 90% of the Canadian mobile market, are trading lower. BofA/Merrill has downgraded Telus and Rogers to Neutral in response to the news.
Earlier this year, the carriers bought the lion's share of the (rural-friendly) 700MHz. spectrum sold through an auction that raised $4.78B.