June 6th, 2008Spectrum Auction: 3Billion, 32 rounds and winding down
The end is near for the spectrum auction. Total proceeds eked above 3 billion back in round 29. But since then incremental rounds have been incrementing a “mere” 30-50 million. And everyone is sorting out their marbles. The big licences (think Toronto) haven’t changed hands in several rounds. It seems to be housekeeping now.
The incumbents have sorted themselves out nicely. Rogers now pretty much owns A block from coast to coast (a national play after all) with only a few holdouts outbid by troublesome Bragg Communications out east and, oddly, sudbury.
Bell and Telus got the message from Rogers but couldn’t quite make up their minds amongst themselves and, have instead elected to share E and F blocks like a spectrum chequerboard. These are small territories, 49 pieces each and they have most of them but not quite, Shaw, Quebecor, and Globalive have sniped a few here and there (so far).
The set aside blocks B,C,D are a little messier. You might expect this from 5 national or nearly-national entrants with fat wallets contending for only 3 licence blocks. Lets hope they don’t all spend their wad just trying to get into the game. Shaw hangs on to 30MHz in BC Alberta and Northern Ontario. Quebecor has at least 30MHz covering most of Quebec but is down to 10Mhz of breathing space over Toronto. Bragg as expected is strong east of Quebec. It’s Data AV and Globalive however who’ve managed to string together licences from coast to coast.
Globalive (think Yak) is looking especially strong at this point. Their 270M bid for 20Mhz over Toronto has gone uncontested for several rounds now and they’ve hung on to some spectrum across what looks like every province and major city.
We wait and watch for any late surprises, but with bidding action trending significantly down, it looks like we’re near the end.
Enjoy your 3 billion dear taxpayer, this is the one time you get send a whopping great bill to your carrier. A funny system it is indeed. (do you think your own bill would be any lower if that didn’t happen?)
