Shaw Not Bidding In Upcoming Wireless Spectrum Auction
03:47 PM EDT, 04/07/2021 (MT Newswires) -- Freedom Mobile and its parent Shaw Communications Inc. (SJR, SJR-B.TO) will not participate in a wireless spectrum auction deemed crucial for the development of 5G networks, The Canadian Press is reporting Wednesday. It noted the two companies do not appear on a list published by Innovation, Science and Economic Development Canada (ISED) of telcos that have applied to participate in the June 15 spectrum auction.
According to the report, the 3,500 megahertz auction will provide winning bidders with the capacity to build out and speed up their 5G wireless networks, which are being rolled out around the world. There had already been doubt about whether Freedom could continue to put competitive pressure on the three biggest wireless companies when the family that controls Shaw struck a deal in March for the company to be bought by Rogers Communications Inc. (RCI-A.TO, RCI-B.TO) for $26 billion.
A Freedom spokesman said the company had no comment. Freedom operates in three provinces -- Ontario, Alberta and British Columbia -- and has Canada's fourth-largest subscriber base but is still small compared with Rogers, BCE Inc. and Telus Corp., which collectively have more than 90% of the market.
Wednesday's report noted the list of 24 applicants posted by the Government of Canada includes the Big Three -- as well as some smaller candidates, including Eastlink parent Bragg Communications and Videotron, which is owned by Quebecor Inc.
Quebecor CEO Pierre Karl Peladeau told MPs on March 31 that the Rogers-Shaw deal will result in the elimination of the fourth player essential to maintaining real competition.
Most Liberal and opposition MPs on the committee, Wednesday's report noted, have expressed concern over the impact on competition and some have questioned how the announcement would affect the auction -- but got no concrete answers from telecom executives who cited strict government confidentiality rules. The same committee, which isn't a regulator but plays an advisory role, will question officials as part of their hearings on Wednesday afternoon.
(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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