Canadian Cable Operators Consider Bidding on AWS Spectrum
Canadian cable operators are considering whether to bid on 1.7 GHz AWS spectrum that the Canadian govt. plans to auction within 18 months, said a regulator and an executive. Shaw Communications believes the spectrum probably would work well with WiMAX, said Pres. Peter Bissonnette. The company, Canada’s number 2 cable operator, is considering whether to bid, though its interest isn’t high, he said. Other cable operators appear interested in participating in an upcoming auction for 90 MHz of the spectrum, said Peter Hill, the Dept. of Industry’s spectrum management operations dir. The 1.7 GHz to be auctioned is paired with 2.1 GHz, he said.
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The spectrum to go on the block is similar to what was recently auctioned by the FCC for $13.7 billion (CD Sept 19 p7), said Hill. A half dozen U.S. operators made high bids in that auction. The Canadian auction will draw interest from cable operators besides Shaw, though it’s too early to predict how much the industry will participate, Hill said: “I know for a fact that other cable companies are interested and indeed some of them have been very publicly talking about it… We are getting interest from all sorts of folks, including the existing mobile” carriers.
Canada held off the auction to observe U.S. bidding, said Hill. Dept. of Industry officials will soon review a policy discussion paper on the subject that Hill expects to be publicized before year’s end, he said. The govt. would next seek public comment on the document, which will contain rules on topics that may include bidding eligibility and designated issues. A final rulemaking is likely to be issued in 2007 and the auction to start late that year or in 2008, Hill said: “This is a complex one… There’s the competition issues that are always difficult to deal with.”
Canada will likely auction spectrum in geographic chunks because potential bidders operate regionally, Bissonnette said. Shaw isn’t very interested in AWS to sell wireless, he said. Selling broadband outside the home intrigues Shaw, he said: “That would be very suitable for some sort of WiMAX service… We are looking at the economics, we are looking at the product demands.”
Rogers may not be motivated to bid heavily in the auction because it sells wireless service and already has a lot of spectrum, said an industry executive. Officials at the company, Canada’s largest cable operator, didn’t comment; nor did other cable companies. Shaw executives haven’t decided whether they will bid, Bissonnette said: “It’s a matter of what products would be compelling enough to make that kind of investment, and that’s what we really have not come to a conclusion on. At this time, we would rate ourselves as low interest but inquisitive.” - Jonathan Make