PIAC: Rumoured Cap in Spectrum Auction Would Threaten Competition

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This latest press release by the Public Interest Advocacy Center (PIAC), is related to OpenMedia.ca's mission to keep the Internet open and accessible for all Canadians. A necessary step to achieving that goal is ensuring Canada has a competitive market by setting aside crucial infrastructure for smaller telecoms, called spectrum.

The rumoured structure of the wireless spectrum auction involves a capping of wireless companies' total spectrum, rather than setting aside part of it for smaller competitors. If true, this would give the Big Three an unfair advantage because, together, they can flex their financial muscles and hoard the wireless spectrum.

Press Release By Public Interest Advocacy Centre

OTTAWA –The Public Interest Advocacy Centre (PIAC) noted today that the rumoured structure of Canada’s 700 MHz wireless spectrum auction (capping wireless companies’ total spectrum) would be an abandonment of the Government’s commitment to improve competition in the wireless market. Spectrum was set aside for new entrants to bid on in the last auction and it is even more important to continue with set-asides in this key part of the available wireless spectrum, according to PIAC.

“Only set-asides can ensure new wireless companies can offer the latest handsets with wireless data, which are what consumers are demanding,” said John Lawford, counsel for PIAC, an Ottawa-based non-profit organization that provides legal representation, research and advocacy on behalf of consumers. “Caps do not solve the issue of dominance by the big three wireless carriers because Bell, TELUS and Rogers can afford to pay to keep all new competition out of their markets.” Read more »

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Read more at piac.ca

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Topics: Cell Phones