OTTAWA — In a letter sent today to Innovation, Science and Industry Minister François-Philippe Champagne, the Competitive Network Operators of Canada (CNOC) is asking for a 90-day delay to the 3500 MHz spectrum auction, which is scheduled to start on June 15.
CNOC’s main objection to having the auction proceed as currently scheduled is that the CRTC’s new wireless policy on mobile virtual network operators (MVNOs) — in which it mandates the provision of wholesale facilities-based MVNO access service but only to regional wireless carriers who own spectrum at the Tier 4 level or higher — was released after the April 6 deadline for wireless carriers to apply to participate in the 3500 MHz spectrum auction.
“CNOC is very concerned, and we submit you should be too, with the CRTC issuing a decision to rule out service-based competition, and to set MVNO eligibility rules that require spectrum ownership after the deadline has passed for participation in what is likely the last spectrum auction for some time. Had smaller competitors known that eligibility for an MVNO would depend on spectrum ownership, they could have conducted themselves differently and participated in the auction,” reads CNOC’s letter to the innovation minister.
During the technical briefing last week with the Commission, we were told the new wireless policies set by the CRTC would allow companies which don’t currently own spectrum and aren’t yet wireless operators, to set up shop as a new facilities-based MVNO if they purchase spectrum in the upcoming auction.
“Given how concentrated spectrum ownership is in Canada, and the decades-long head start the incumbent wireless carriers have had in procuring the best spectrum available, smaller competitors could not have been reasonably expected to conclude that the CRTC would suddenly set spectrum ownership as a condition precedent to new wireless competition,” continues the letter, signed by Geoff White, CNOC’s director of legal and regulatory affairs.
The list of companies who are qualified to bid for 3500 MHz spectrum in the auction has already been published by Innovation, Science and Economic Development Canada, as Cartt.ca reported earlier this month.
In addition to asking for the start of the auction to be delayed for 90 days, CNOC is also requesting ISED “allow new applications to be filed and permit current applicants to revise their applications and deposit amount in light of the CRTC’s decision,” says the letter.
