Freedom Mobile, Shaw to miss this week’s 5G spectrum auction

This week marks the beginning of a key event for Canada’s telecom industry as up to 23 bidders compete for federal licences used in 5G wireless networks.

But a major player will be absent from this auction, as Freedom Mobile sits on the sidelines while its rivals bid for 3,500 megahertz licences starting on Tuesday.

Shaw Communications owned Freedom is Canada’s fourth-largest wireless carrier, and competes with Rogers, Bell and Telus — the three major national telecom companies.

Shaw, which earlier this year accepted a takeover offer from Rogers, will not participate in the auction.

Some members of a Commons committee that studied the Rogers-Shaw deal said in April that Freedom’s absence from this auction will affect long-term competition.

“I think with the discussions we’ve had here, there should be some alarm bells sounding as far as Canadians are concerned,’’ said Earl Dreeshen, a Conservative MP from Alberta, at an April 7 hearing about the Rogers-Shaw deal.

An Competition Bureau official told the committee that a study prepared for an earlier review of the wireless industry concluded that prices are 30 to 40 per cent lower in regions where there were four independent players.

The auction of 3,500 megahertz spectrum licences, which had been delayed until this year because of the pandemic, are expected continue for weeks.