VANCOUVER and OTTAWA — In response to Minister of Innovation, Science and Industry François-Philippe Champagne’s announcement last week the 3500 MHz spectrum auction scheduled for June 15 will not be delayed, independent telecom services provider Novus Entertainment has instead asked for the application process to be reopened.
“Novus would like to propose that the Department of Industry, Science and Economic Development (ISED) simply extend the time allowed for providing an application,” writes Donna Robertson, co-president and chief legal officer of Novus, in a letter sent to Minister Champagne on April 30.
“We would not expect a delay to the auction,” adds Robertson.
Novus, along with the Competitive Network Operators of Canada (CNOC), the Canadian Communication Systems Alliance (CCSA) and Distributel Communications, had previously asked for a delay to the auction’s start and for more potential participants be given a chance to submit applications.
Extending the application deadline “would allow ISED to stand behind its policy objective to ‘support sustained competition, so that consumers and businesses benefit from greater choice,’” concludes Robertson’s letter.
Applications to participate in the 3500 MHz spectrum auction closed April 6, and ISED has already published the list of qualified bidders.
The independents argue, because the CRTC released its new wireless policy regarding mobile virtual network operators (MVNOs) on April 15 — after the auction application deadline — the door has been shut on new wireless competitors in Canada, they say. The CRTC’s’ new regulatory framework for MVNOs requires telecom providers to own spectrum licences (at the tier 4 level or higher) to be eligible to use mandated wholesale MVNO access services.
It’s unknown if ISED will consider accepting more applications. We have asked for comment.
UPDATE May 5: Innovation, Science and Economic Development will not be re-opening the application process, it told Cartt.ca in an email.
“The timelines for the auction were made public in June 2020, and many applicants have already invested significant effort to apply despite the potential uncertainty surrounding the CRTC’s mobile virtual network operator (MVNO) decision. ISED has now assessed these applicants and published the list of qualified bidders on April 22. As auction preparations are underway, reopening the application process at this time would result in significant delays. The auction has also already been delayed by six months to allow providers to respond to COVID-19,” reads the message.
“However, the 3500 MHz auction is not the only opportunity for interested parties to access spectrum. We encourage companies who are seeking to offer mobile services to explore licence transfer or subordination agreements with existing licensees, and to participate in upcoming 5G spectrum auctions.”
