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Canada: Pulled financial support crushes hopes in wireless auction

 |  January 14, 2014

As regulators look to boost Canada’s wireless competition, the government had high hopes for a federal spectrum auction to secure four main competitors in the industry. But those hopes were dashed as smaller wireless company Wind Mobile announced Monday that it will drop out of the auction bidding process.

According to a statement on Industry Canada’s website, Wind’s main foreign financial backer pulled its support for Wind to acquire new wireless licenses. Wind’s main financial backer was Amsterdam giant VimpelCom, which informed Canada of its decision to withdraw financial backing of Wind only hours prior to the announcement, according to reports.

The development is a major blow to government officials looking to secure public support in the fight for wireless competition; according to reports, the government is funding a $9 million PR campaign to promote competition policies in the industry.

Wind was the only independent new entrant wireless operator in the auction.

Full Content: Business News Network

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