Spectrum auction rules announcement

[icemasta]

could explain why tony wants to boycott the auction.... why artificially inflate the spectrum price when you can just let 2 or 3 of the less capitalized players bid on it, then buy them out entirely (spectrum and customers...).. they'll still be under the 10% cap for foreign investment

Don't forget, in order to maintain 100% foreign ownership after the 10% they must not merge so it would make sense to merge before the new rules are set in order to continue with 100% foreign ownership.

B4-2(1): Two OR two-by-association (aka Belus) MANDATORY coverage of 90% in 5 years, 97% in 7 years. This actually would make it very UNAPPEALING for Belus to buy more than one paired block in any area. In any event, it will certainly reduce the amount they would be willing to pay.
*** I would like to point out that there is a REAL nasty level to this provision... this provision applies separately to BOTH providers within overlapping coverage areas, which means that they would BOTH be forced SEPARATELY to cover 90/97% of the population in those areas.

This might actually work in favour to the new entrants. Telus and Bell usually build one half of the Canadian network each to save costs and if both buy spectrum across they will have to build two overlapping networks which essentially destroys their whole cost savings procedure. Obviously you never know with the Big 3, but it may mean more spectrum being available to be bid on.

Also, Wind will 100% bid on the spectrum regardless of what they say. Losing out on prime spectrum even if it's in only in several licenses can be damaging.

[savbers]

You guys forget that now, Mobilicity can apply for foreign investment too! 100%! They CAN buy out WIND. Same with Public Mobile, Shaw, MTS, anyone with less than a <10% share of the Canadian wireless market or a different foreign investor looking to get into the Canadian market can do that 100% now!

There's serious competition in this next auction and I think Tony is feeling the heat.

Sent from my SGH-T959 using HowardForums

[droidhacker]

You guys forget that now, Mobilicity can apply for foreign investment too! 100%! They CAN buy out WIND. Same with Public Mobile, Shaw, MTS, anyone with less than a <10% share of the Canadian wireless market or a different foreign investor looking to get into the Canadian market can do that 100% now!

There's serious competition in this next auction and I think Tony is feeling the heat.

Not going to happen and here's why; if you're interested in buying someone out, you partner with the BIG guy and buy out the little one. Not the other way around.

Further, if you're a foreign investor, who do you invest in? Little Mob close to floundering? Or big Wind?

[torontocolin]

B3-4: VERY interesting.... what could they have in store? Perhaps treat Belus as a single entity?

Bell/Telus is possible, but I think more likely they're hinting at Rogers/MTS, TBayTel/Rogers, and Sasktel/Bell. Maybe even Videotron/Rogers, who have a sweetheart roaming/MVNO deal in Quebec.

IMO, it was unreasonable to expect a spectrum set-aside for both new-entrants. That's just not good value for most taxpayers.

Actually, I think the government left money on the table here. Imagine if they had said that between the Big 3 there would be one lower 700 (AT&T) block and one upper 700 (Verizon) block and that's it. Imagine the bidding war if only one of the Big 3 can have lower 700 spectrum and one gets shut out completely. At the moment, it's not really each other they have to worry about, so they won't have to extend themselves financially in the same way they would if they were directly competing with each other not to be shut out completely.

[droidhacker]

This might actually work in favour to the new entrants. Telus and Bell usually build one half of the Canadian network each to save costs and if both buy spectrum across they will have to build two overlapping networks which essentially destroys their whole cost savings procedure. Obviously you never know with the Big 3, but it may mean more spectrum being available to be bid on.

So you understood my point....

[boron228]

Tony seems all smoke and mirrors. What happened to integrity? He keeps exaggerating subscriber numbers, and has his cronies publicly bash the government even though it was the government that allowed his company to operate in the first place.

[Tendenzi]

You have a very narrow minded view and are missing the big picture.

I believe @millergd to have the opposite. If anything their answer was very open-minded, and directed at the side-question I imposed to this forum. If you think you know the "big picture" on why Tony is throwing media tantrums all the time, and bi-polarly optimistic at other times, I'm all ears and open to your own suggestion.

[hardy83]

After reading the IC page a little more, this caught my eye.

"Many governments are supporting competition in mobile telecommunications services through auction rules and other requirements. For example, France, Germany, Italy and the U.K. have adopted spectrum auction caps, which limit the amount of spectrum that a company can acquire. These countries also require spectrum holders to deploy to rural areas within a certain time frame."

So the government is saying these rules will create world-class wireless infrastructure, using these countries as examples of how the rules are similar...Seemingly forgetting the other laws in those countries that restrict contracts to 2 years or less and ones that stop monopolies from forming.

/clap for having selective hearing/reading Conservatives.

[droidhacker]

Bell/Telus is possible, but I think more likely they're hinting at Rogers/MTS, TBayTel/Rogers, and Sasktel/Bell. Maybe even Videotron/Rogers, who have a sweetheart roaming/MVNO deal in Quebec.

That provision screams Belus. Those other associations are more like just roaming agreements rather than clear network sharing/association.

[millergd]

You have a very narrow minded view and are missing the big picture.

Okay, then please explain...how does whining get you ahead, grow your revenue, and draw subscribers, and make your business successful?

Are comments like this just smoke and mirrors?

~millergd~

[torontocolin]

That provision screams Belus. Those other associations are more like just roaming agreements rather than clear network sharing/association.

All three of those first pairs are not only straight-up network sharing, they also include handset acquisition partnerships too.

[icemasta]

So you understood my point....

Ya I think Tony overreacted too quickly before reading all the rules. This auction will be much more strategic than throwing money all over the place.

I do kinda wish these rules were set out in the AWS auction first. No offense to Wind, but a more aggressive player (China Telecom/Verizon) would've been great at securing the Quebec licenses and maybe even pushed the government into addressing the tower sharing complaints especially now with the cap and 100% foreign ownership.

[403808]

...Seemingly forgetting the other laws in those countries that restrict contracts to 2 years or less

Countries have laws stating this? Please provide a link. I always thought it was market conditions that determined that. Are you suggesting Canada has a law that allows for three year contracts?

[SRG01]

If we want to talk about strategic bidding, Mobi and Wind should adopt a Bell/Telus strategy by not bidding in the same region and negotiate a roaming agreement afterwards.

[403808]

If we want to talk about strategic bidding, Mobi and Wind should adopt a Bell/Telus strategy by not bidding in the same region and negotiate a roaming agreement afterwards.

Mobi has stated they do not have the ambition to become a national provider (outside large cities) whereas Wind does. A strategic alliance would only work if Mobi's business plan changes and they intend to buy spectrum in areas outside their current "zones" (which *might* happen with new investment / investors).