We’re just a few days removed from the closing of the Canadian spectrum auction, and already we’re hearing whispers of what might come next. This is in stark contrast to America’s 700 MHz auction, which had a 10-day embargo after its close. Then again, it was based on anonymous bids in the first place, while Canada’s unfolded in a manner that was open to the public. It appears that these new developments could lead to a greater level of competition, which is exactly what the Canadian wireless landscape could use.

While 40 percent of the spectrum was allocated to a host of newcomers — including Shaw Communications, Globalive, Bragg, and DAVE, among others — not all of them will likely proceed with their own cellular service. Rather, some might combine their spectrum holdings to form a larger company. This would help the new carriers compete on a higher level with the current major carriers, Bell, Telus, and Rogers.

Some might question this strategy, saying the idea was to have more carriers, not fewer. However, the sheer number of carriers is not of the greatest issue. Most importantly, Canada needs carriers who will compete with the big three, with the idea of driving down prices. The new entrants may decide that this is best achieved by combining forces. A few larger carriers might do a better job than a bevy of regional providers.

In another development, some old rumors have recirculated, as word is that Bell and Telus might switch to GSM. Currently, Rogers is the only major GSM carrier in Canada. Many future technologies, including the 4G LTE technology, run on GSM, which is preferred around the world. This potential switch would give the two companies access to a wider range of handsets, as well as open themselves to international roamers.

The idea is that Bell and Telus will use their newly acquired spectrum to help make the shift. Of course, these are still just rumors. But it’s apparent that we’re on the brink of a shakeup in the Canadian wireless industry.

Posted By : Joe
Posted at : July 24th, 2008 - 7:58 am
Filed under : Canadian Wireless