VANCOUVER, British Columbia-Canadian telecommunications provider Telus Corp. said the government’s decision late last week to eliminate the previously existing 55-megahertz spectrum cap for wireless carriers removes one of the principal approvals required for Telus’ pending unsolicited offer to acquire rival Microcell Telecommunications Inc. If approved by Microcell’s stockholders and management, the acquisition would strengthen Telus’ spectrum holdings in Quebec and Ontario.
Telus said it advocated the elimination of the spectrum cap during Industry Canada’s Consultation on Spectrum for Advanced Wireless Services and Review of the Mobile Spectrum Cap Policy that concluded earlier this year, noting the cap no longer served its purpose.
“Telus is fully supportive of Industry Canada’s decision, which essentially reflected the recommendations we submitted earlier this year,” said Robert McFarlane, executive vice president and chief financial officer for Telus. “We are pleased with the decision, in light of the fact that a waiver will no longer be required from Industry Canada to operate Microcell’s GSM network.”
McFarlane added that the decision was largely anticipated and factored into Telus’ approximately $780 million bid for Microcell.
The U.S. government repealed a similar cap at the beginning of 2003.
