Canadian operators Telus and Bell have filed a compliant over rival Videotron acquiring spectrum licences in the recent auction for the west of the country. They claim the Quebec company did not meet the criteria for the reserved spectrum, as it was not already providing services there, the Globe and Mail reports.
Videotron acquired 3.5 GHz rights in British Columbia, Alberta and Manitoba and said it plans to expand outside its home market to offer mobile services elsewhere in the country. The company may take advantage of new regulations requiring operators to open up their networks to MVNOs or could be interested in buying Shaw's mobile business as part of the conditions for the latter's merger with Rogers.
Bell and Telus filed a case with the Federal Court against the award of the spectrum licences to Videotron. They claim the rival should not have been allowed to bid on the lower-priced blocks reserved for smaller operators, because the operator is not "actively providing commercial telecommunications services to the general public" in those regions, as required by the auction rules.
Bell and Telus told the court they asked Innovation, Science and Economic Development Canada (ISED), the federal ministry that regulates spectrum, to explain why Videotron was permitted to bid on the spectrum in those three provinces. The national carriers claim that ISED refused to disclose the details of Videotron’s application, and that it said only that the telecom had indicated it offers OTT services, through its subsidiary Fibrenoire, in the areas.
Videotron confirmed this in a statement, calling the lawsuit "another attempt by Bell and Telus to eliminate real competition".
