Canadian Spectrum Auction Results In Creation Of New Cellular Carrier, More Competition On The Way?

For those of you still unhappy about Rogers Wireless’s iPhone plans in Canada, there may still be hope. An auction for the 2GHz spectrum in Canada has resulted in the creation of a new Canadian cell phone carrier that may be a game changer for the industry in the country. Globalive Communications Inc., which currently operates Yak Mobile in Canada offering landline internet and home phone services, will be paying $442 million for a license giving it the rights to provide cellular service over the purchased spectrum in all Canadian provinces except for Québec.

According to the company CEO Anthony Lacavera, the service will focus primarily on lower rates and the elimination of hidden fees. “Canadians are unhappy about the costs, the complexity of the billing,” the executive says.

“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.”

Of course, it’s too late for them to win an exclusive iPhone contract in Canada since Rogers beat them to it, but other countries to get the iPhone 3G have seen it released on multiple carriers, so there may be a possibility that, technology and legalities permitting, Apple may attempt to pursue a deal with the company once it’s network is in place, or vice versa. At the very least it should help to get the competitive ball rolling to help improve conditions in the industry up north.


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