Wind Mobile Drops Out Of Spectrum Auction At The Last Minute

Any hope for real competition in the Canadian wireless space is now doomed.

Late today Wind Mobile dropped out of the spectrum auction that is due to start on Tuesday citing lack of funding. Here’s what else the CBC had to say on this:

The announcement, disclosed Monday on the Industry Canada website, leaves mainly the big three telecom companies — Telus, Rogers and Bell — in the running for airwaves that will allow consumers to connect to a new generation of devices.

“From Wind Mobile’s perspective, there will be no change in our day-to-day business as a result of this decision,” the company said in a written statement. “Wind Mobile remains firmly committed to serving our customers and we are determined to continue to be a vital influence on mobile competition in Canada.”

However, it also said this:

Amsterdam-basedVimpelCom Ltd., Wind’s main investor, told the government of its intention to withdraw from the 700 MHz spectrum auction earlier Monday.

“Wind Mobile’s shareholder VimpelCom decided not to fund Wind Mobile’s participation in this auction, but confirmed that it remains in discussions with the federal government and Wind Mobile’s other shareholder AAL Holding to craft a path forward that will continue to build Wind Mobile as a strong competitor in the Canadian wireless market,” Wind Mobile said in a statement.

Thus that means Rogers, Bell and Telus are going to get all the 700 MHz spectrum and cell phone prices in Canada are unlikely to drop. Which means that consumers get screwed.

Pity.

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