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
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.