MTS submits application for wireless spectrum

MTS submits application for wireless spectrum - mobilesyrup.com
Manitoba Telecom Service Inc. (MTS) has formed a consortium bid with the Canada Pension Plan Investment Board and private-equity firm Blackstone Group LP and has formally submitted their $340-million deposit to Industry Canada for the upcoming wireless spectrum.

Andre Tremblay, former chief executive of Microcell Telecommunications Inc. (sold to Rogers in 2004) will run the company “It’s a fantastic opportunity and Canada is a great place to build a wireless business now.”

Pierre Blouin, Chief Executive Officer, MTS Allstream, said, “We are moving towards the auction with exceptionally strong partners, a clear and disciplined strategy, and a focus on creating long term value for our shareholders. By participating in this group with a minority interest, MTS is well-positioned to capitalize on this opportunity and maintain its current dividend policy. A strong new entrant has the potential to bring much-needed innovation to Canada’s wireless telecom sector. If our group is successful, we will have created the opportunity for our Allstream Enterprise division to offer very rich wireless voice and data products to its large business customers across Canada through a preferred wholesale arrangement and without affecting our successful wireless business in Manitoba.”

Industry Canada announced details of an upcoming wireless spectrum auction last November that would set aside about 40% of the newly available airwaves for new entrants. The move was made to encourage competition in the $12.7-billion Canadian market controlled by three companies: Rogers, Bell Canada Inc. and Telus Corp.