Monday, July 21, 2008

Cellphone market poised for shakeup as spectrum auction ends

CBC NEWS July 21

The government is $4.2 billion richer with the conclusion of the cellphone spectrum auction on Monday, while customers stand to win as five new companies are now well positioned to launch services over the next few years. The windfall is considerably larger than the original $1.5 billion many industry analysts had predicted before the auction began on May 27. But after eight weeks and 331 rounds, the government's haul from the 292 licences sold turned out to be nearly triple the original forecast. Federal Industry Minister Jim Prentice said the competitiveness of the auction exceeded the government's expectations, and that consumers should benefit as a result. “I hope the industry keeps this competitive spirit alive as it enhances and expands its services with improved access to the spectrum,” he said in a statement. “The industry now has an unprecedented opportunity — thanks to the government’s Advanced Wireless Services policy and auction — to develop products and services that offer choice to Canadian consumers and businesses. We think consumers will be the big winners in this auction.”Prentice had said before the auction that proceeds would be used to pay down national debt, but declined to say where the extra funds will go.

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