Canadian spectrum auction underway

How’s $560 million for the first day of a wireless auction sound? Okay, so maybe it’s not the $2.7 billion raked in during the first day of the 700 MHz auction. But Canadian’s auction was never expected to be on the same scale. The aim of Industry Canada is to create an entryway for a fourth national carrier to compete with Rogers, Bell, and Telus. We have a long way to go before we find out who, though.

Unlike the U.S. spectrum auction, this one is not conducted by silent bids. Who placed a bid and for how much is a matter of public record, making this a bit more interesting of an auction to follow. Right now, a company operated by Shaw Communications is the leader with $153 million spread over 41 licenses. Telus currently holds the top bid on 60 licenses.

Canada Inc., a firm controlled by U.S. private equity firms along with a couple of Canadian investor groups, has become an interesting story thus far. They had pulled out of the auction last week because of Canadian rules governing foreign ownership. Yet the company ended up bidding on spectrum in Toronto and Montreal.

Could this be the holding company representing AT&T or T-Mobile? I guess that’s what will make this an interesting process.

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