The Canadian telecom landscape is dominated by “the big three” – Rogers, BCE, and Telus – but the upcoming 5G spectrum auction could see Quebecor and Cogeco as emerging stars. Bloomberg.com reports that various analysts have predicted that Shaw’s absence will present a huge opportunity for regional players trying to elbow their way to positions of strength.
Earlier this month, Inside Towers reported that shifting regulations in Canada favored the telecom market leaders over up and comers. However, with Shaw (recently acquired by Rogers) out of the 5G spectrum auction, those who study the industry believe this will allow Quebecor and Cogeco to make strategic purchases. Shoring up resources in targeted regions could make these smaller companies viable broadband options in those areas.
Those lobbying for more competition in Canadian provider options will be keeping a close eye on the spectrum auction.
Quebecor Chief Executive Officer Pierre Karl Peladeau applauded the Canadian government’s encouragement of smaller players. Peladeau called the support “essential…If we want sustainable competition that benefits consumers over the long term.” Industry analyst Aravinda Galappatthige of Canaccord Genuity has speculated that Quebecor may bid on all the set-aside spectrum in the province of Quebec as well as in the city of Ottawa.
Scotiabank analyst, Jeff Fan, sees an equally beneficial opportunity for Cogeco. In a typical spectrum auction, Shaw would be expected to snatch up “set-aside blocks in most of Ontario, British Columbia and Alberta,” he notes, but with Shaw on the sidelines, “We think CCA has a clear path for the set-aside licenses that overlap its Ontario cable footprint.”
Canada’s 3,500 MHz auction includes mid-band spectrum, and licenses that have a 20-year term. It is unlikely that auction results will be announced for several weeks. If past years are an indication, bidding for 5G spectrum should be fierce.
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