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Spectrum auctions can bring in billions of dollars in government revenue. But the Ministry of Innovation, Science and Economic Development proposed ‘set asides’ instead of a completely open auction, contending the Big Three likely have the means to stop smaller players from acquiring spectrum in an open auction. It’s a similar framework to the 2008 spectrum auction that resulted in startups getting the asset for far cheaper than they would have in an open auction.

But Cope said the set asides for new entrants in the last auction were different because the bidders were startups like Public Mobile (now owned by Telus Corp.), Mobilicity (bought by Rogers) and Wind Mobile (now Freedom).

Now, the definition of new entrant applies to well-established companies. Each of the Big Three incumbents has about 30 per cent of the market share in a country with more than 30 million wireless subscribers. Videotron and Freedom each serve less than 10 per cent of the market, with slightly less and slightly more than 1 million subscribers, respectively.

“I do take issue with the fact that we’ve got vibrant capable regional players that are being classified as new entrants and being given set aside opportunities when they’re not new entrants in the classical sense,” Natale said.

Both said they would make their views clear to the government and touted the importance of spectrum in general, with Natale calling it “the lifeblood of our industry.”

Telus CEO Darren Entwistle previously told investors he was disappointed by the proposed set asides given the strength of the players.

Wireless plans are far cheaper in Manitoba, Saskatchewan and Quebec that are served by four strong competitors.

ejackson@postmedia.com