Should Shaw be allowed to participate in the spectrum auction?

My telecom Spidey senses say no.

That’s assuming, of course, the Western Canadian cable network operator buys air waves in the forthcoming auction, which begins on May 27, then resorts to inaction afterwards.

If the federal government, Industry Canada specifically, wants to promote competition as it has said and Shaw gobbles up valuable air waves, shouldn’t the company have to build a network in one part of the country within a reasonable amount of time? (presumably Western Canada where the overwhelming majority of the company’s customers are based)

I assume there are provisions for those companies that choose to shelve spectrum. Shaw, I should note, has paid a $400-million deposit to Industry Canada in advance of the auction.

But Shaw has said it’s not sure if it’ll actually do anything with airwaves it may yet buy.

By my count, the spirit of the (reserved spectrum) auction will be violated if that’s the path it pursues or if it resells the spectrum at a later date.

Most likely Shaw is using the same sort of gamesmanship it used in the months leading up to Friday’s announcement that it will participate. You’ll recall Shaw said it wasn’t going to participate in the auction.

Perhaps Shaw wants to partner with Videotron and/or MTS Allstream and its statements are the company’s way of moving its potential allies to action? I don’t know.

One thing’s for sure - Shaw, for the sake of relevancy, will have to get into the wireless game over the long term.

March 16, 2008 | Filed Under News Items and Commentary