Mobile Future filed a paper at the FCC...
Mobile Future filed a paper at the FCC questioning the net effect of bidding limits the Canadian government imposed in two recent spectrum auctions -- AWS spectrum in 2008 and 700 MHz spectrum this year. “The analysis concludes that exclusionary…
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auction rules, such as spectrum set-asides or caps, prevent efficient competition and hinder investment in the state-of-the-art wireless networks and services that consumers are demanding,” Mobile Future said (http://bit.ly/1fltxzo). “These asymmetric rules essentially add up to public subsidies that are wasted on either established players who would have bid vigorously at full market value or lost to new entrants that, similar to the European experience with preferential rules, consistently fail.” The paper cites as an example Quebecor’s purchase of licenses outside its home market in Quebec. “Quebecor has made clear the spectrum, which had no other significant bidder, was acquired for its ‘advantageous price,’ with the CEO publicly stating that it remains uncertain if it would ’sit’ on the spectrum or ‘do something with it,'” Mobile Future said. “At this stage, few analysts expect Videotron, which is owned by Quebecor, to develop a network outside of Quebec."