The Conservative government on Wednesday paved the way for new cellphone companies by announcing new rules for an auction of radio airwaves designed to spur competition in the wireless industry.
About 40 per cent of the spectrum will be reserved for new entrants, with the remainder open to all bidders, including Canada's big three providers — Rogers, Bell and Telus.
The government will also mandate roaming agreements, which will force existing carriers to share their networks with newcomers for five years, plus another five if the new entrants can build up their own networks nationally. If a new carrier is unable to reach a "reasonable" roaming agreement with an existing provider, an outside arbitrator will be brought in, Industry Canada said.
In handing down the rules, Industry Minister Jim Prentice gave potential newcomers, including Quebecor, MTS Allstream, Shaw and Eastlink, virtually everything they asked for.
Prentice told a news conference that he agreed with their assessment that prices are too high and the wireless industry needs more competition. "Our goal at the end of the day is lower prices, better services, and more choices," he said.
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About 40 per cent of the spectrum will be reserved for new entrants, with the remainder open to all bidders, including Canada's big three providers — Rogers, Bell and Telus.
The government will also mandate roaming agreements, which will force existing carriers to share their networks with newcomers for five years, plus another five if the new entrants can build up their own networks nationally. If a new carrier is unable to reach a "reasonable" roaming agreement with an existing provider, an outside arbitrator will be brought in, Industry Canada said.
In handing down the rules, Industry Minister Jim Prentice gave potential newcomers, including Quebecor, MTS Allstream, Shaw and Eastlink, virtually everything they asked for.
Prentice told a news conference that he agreed with their assessment that prices are too high and the wireless industry needs more competition. "Our goal at the end of the day is lower prices, better services, and more choices," he said.
Full story
More...