Cogeco won’t be among bidders for 600 MHz spectrum

Cogeco Inc. isn’t among the list of participants in the 600 MHz auction, released by Innovation Canada Thursday. Companies that will be bidding in what is the last significant chance to snap up valuable low-band spectrum in the foreseeable future include the big three — BCE Inc., Rogers Communications Inc. and Telus Corp. — and smaller and regional players. Bragg Communications Inc.’s Eastlink, Shaw Communications Inc., Quebecor Inc., Xplornet Communications Inc. and Saskatchewan Telecommunications Holding Corp. (SaskTel) , are also on the list, as are Iristel Inc., Novus Entertainment Inc., Tbaytel Inc., and a consortium led by SSi Micro Ltd. Cogeco said in a press release late Thursday afternoon that the “structure of the auction based on large geographic areas makes the acquisition of such spectrum uneconomical for the company.” Cogeco -- the only Canadian publicly-traded telecom without a wireless division -- has been saying for years that it is interested in entering the wireless market, but only under the right conditions. Early this year, it indicated a renewed interest in wireless, which it said was driven by the opportunity to jump directly into building a 5G network. It bought $24.3-million worth of 2300 and 2500 MHz spectrum in May, followed by another $8 million worth of the 2500 MHz in June. The company said in the press release the decision to opt out of the 600 MHz auction doesn’t mean it’s abandoning its wireless ambitions. “Following the acquisition of spectrum licenses earlier this year, we are committed to continue exploring various business models in order to launch a profitable wireless service,” Cogeco chief technology officer Luc Noiseux said in the release. Canaccord Genuity analyst Aravinda Galappatthige said in a Thursday note that the decision was "largely in line with our belief that the company would be very judicious with its wireless endeavours," but added that wireless is still an option in the longer term for the company. He referred back to earlier comments he made about a possible spectrum-sharing arrangement, suggesting that it was the right decision to drop out considering it didn't have a partner in wireless. The company, along with smaller providers, has been pushing Innovation Canada to split spectrum into smaller licence areas, something that also came up as an issue in the consultation ahead of the 600 MHz auction. In late November, the department launched a consultation on a newly proposed category of smaller service areas for spectrum licensing. The new category wouldn’t affect the 600 MHz auction.

Cogeco won’t be among bidders for 600 MHz spectrum

Brief | December 6, 2018

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Cogeco won’t be among bidders for 600 MHz spectrum

Brief | December 6, 2018

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