Canadian auction surpasses $2 billion

The Canadian spectrum auction continues to move along as we we enter week two of the bidding. On the interesting end, the new entrants, Shaw Communications Inc. maintains its lead, claiming the high bid on 36 licenses, most of which are in Western Canada. Quebecor Inc. is a somewhat distant second, carrying 23 high bids. The Montreal-based company has bids mostly in its home province.

Toronto’s four licenses are currently split among four newcomers. The current high bidders are Data & Audio Visual Enterprises, Globalive Wireless, Jaguar Wireless, and Bragg Communications.

Of the existing companies, bidding for 60 percent of the spectrum, Telus is still the leader with 59 high bids.

Auction rules stipulate that 40 percent of the spectrum must go to new bidders. This will allow for more entrants into the wireless industry. In theory, this will translate into more choices, hence lower prices, for consumers.

Lawson Hunter, executive VP and COO of Bell, thinks otherwise:

“Basically you’ve sold an asset of Canada at well under market price,” he said in November.

I only ask whether a government’s duty is to derive the greatest level of profit, or if its duty is to best service its people.

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