The changing face of mobile

Ottawa is preparing to auction off more wireless spectrum next year, reports Globe and Mail, but a debate is raging about who gets to determines the rules of the game. The deadline for airing views on wireless was today.

Industry Canada is in charge of the auction, and it may be inclined to rely on market forces, having recently issued a third-party request to study and report on market-based spectrum rights worldwide.

The proposed study is expected only to validate the way things have traditionally been done, and will ask bidders to deliver "a summary of the rationale behind the adoption of more market-based approaches to spectrum management and … a summary of any available studies of the potential or realized welfare gains associated with such liberalization."

A major element in determining the rules of the auction will be whether Industry Canada feels there is sufficient competition in Canada's wireless market, presently ruled by three main brands: Telus, Bell Canada and Rogers. Telus, which boasts a number of analysts, calls the market extremely competitive.

New contenders for wireless could lead to greater rivalry as prices decline and new services emerge. However, there was no mention of making the wireless atmosphere friendlier for new hopefuls.

In the past, spectrum auctions have been significant factors in broadening the wireless market to new rivals.