Canadian Regulator Blocks Radio Spectrum Transfer to Rogers and Bell

                                             

Two of Canada's largest mobile networks have been blocked from buying a block of radio spectrum that was offered by a smaller player in the latest move by the government to try and curtail the power of the big three telcos.

Last October, the regulator, Industry Canada received a request to transfer a total of 83 WCS spectrum licences from NextWave to Inukshuk, which is owned by RogersCommunications and Bell Canada.                                  

WCS consists of 30 MHz of spectrum in the 2300 MHz band.

Looking into the request, the regulator found that if approved, the transfer would represent a significant shift in spectrum concentration in the WCS band. Bell and Rogers, through Inukshuk, would increase their combined WCS spectrum holdings from 29 percent to 77 percent.

Additionally, because there is only one paired block of WCS spectrum, only one licensee can hold a licence in a given geographic tier. As such, if this request was approved, 95 percent of the WCS spectrum would effectively be held by Bell, Rogers and Telus.

In a statement, Industry Minister James Moore said that "this licence transfer would lead to unacceptable levels of concentration of spectrum in the hands of incumbent carriers that negatively affects competition in our wireless sector."

He ordered that the transfer request will be rejected.