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Will the recent Wireless Spectrum Auction Save Canadians Money? 

The wireless spectrum has put pressure on Canada’s Wireless Big Three – Rogers, Telus and Bell. New national entrants such as DAVE and Globalive will be up and running by the end of this year, promising more competition to an industry that has been dominated by this oligopoly for many years. This added competition should drive down prices in wireless for all Canadians, or so we hope.

The Big three are rushing to lock in customers with their discount brands (Koodo, Solo and Fido) before the new entrants enter the market. One thing to keep in mind is the new national players have spent hundreds of millions of dollars just to obtain a license. DAVE paid $243 million for 10 licences that include southern and eastern Ontario, Victoria, Vancouver, Edmonton and Calgary. Globalive spent close to $442 million with coverage throughout Canada. Millions more will have to be spent to build an infrastructure that will allow these companies to compete in this market place. 

With all this money being spent and the Big Three racing to acquire more customers,  how much savings will be passed on to the Canadian consumer? Only time will tell.

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