Why did Wind pull out of the Spectrum auction?

by Andrew Roach on January 15, 2014

Over the last few months, Wind Mobile had been portraying themselves as the network most likely to become the much alluded fourth national mobile network in Canada.

However, all the talk has seemingly been for nothing as Wind Mobile pulled out of the upcoming 700MHz spectrum auction that is expected to take place later this week.

The decision to pull out comes as Wind’s parent company VimpelCom refused to financially back the wireless network to participate against some of the biggest firms.

This means that Rogers, Bell and Telus are without any new challengers on a national front adding a further dent to the government’s hopes of increasing competition in the wireless sector.

For Wind Mobile, the announcement comes as yet another major blow for the firm’s chances of trying to become a national competitor and putting an end to their troubles of the past couple of years.

Despite the ambitions of the network’s senior executives, it seems that the senior figureheads at their Dutch based owners VimpelCom were dissuaded by Wind’s chances forcing them to delay any additional funds for the auction.

Even though the withdrawal will place extra pressure on Wind’s chances, the network still believe that they have a chance of having a major influence on the national wireless market. This was underlined in comments made by the company in a written statement which said: “Wind Mobile remains firmly committed to serving our customers and we are determined to continue to be a vital influence on mobile competition in Canada”

It’s unclear for now how the nation’s fourth largest wireless network will proceed but it means that the pressure will be off their main rivals with no other companies in a position to challenge their dominance nationwide.

With the spectrum auction just a day or so away, it is virtually too late for any other firms to provide a challenge meaning that the likes of Rogers, Bell and Telus are set to enjoy more dominance in the domestic market for the foreseeable future.

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Written by: Andrew Roach www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube

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