TORONTO – Global News has learned the Harper government is about to take another shot at increasing competition and lowering prices in the wireless industry.
Industry Minister James Moore will unveil a plan tomorrow that could allow smaller players to gain more control of the wireless spectrum.
READ MORE: 5 things to know about Ottawa’s latest wireless spectrum announcement
The next spectrum auction will grow the amount of cell phone airwaves available to telecommunications providers by 60 per cent. This is the largest release of the wireless airwaves in Canadian history, and the government is hopeful it could shake up the market.
“This unprecedented release … is a first of its kind in Canadian history. This plan will drive down prices for Canadian wireless consumers, while giving them more choice in the market and better services on the latest wireless technologies,” said a senior government source.
Spectrum refers to the radio frequencies that carry signals to and from phones and cell towers. The more spectrum a carrier has, the more traffic it can support on its network and faster service it can provide.
READ MORE: Wireless auction raises $5.27B; Rogers biggest spender
Traditionally, smaller carriers have faced a significant disadvantage against the big three – Bell, Telus and Rogers – as they hold a limited amount of spectrum.
The government is hoping this release will allow smaller companies other than the big three – Bell, Telus and Rogers – to gain control of 25 per cent of all wireless airwaves. That’s a big jump from just two per cent in 2006.
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