Decision regarding the subordinate licences
1. On March 31, 2017, as a result of the approved acquisition of MTS Inc. (MTS) by Bell Mobility Inc. (Bell), Innovation, Science and Economic Development Canada (ISED) received an application from Rogers Communications Canada Inc. (Rogers), TELUS Communications Company (TELUS) and Bell to subordinate licences held by TELUS to Bell and Rogers in rural Manitoba.
2. Upon its acquisition of MTS, Bell replaced MTS in the network sharing arrangement that MTS had with Rogers (the “Agreement”). Bell and Rogers modified the Agreement to include TELUS in the rural component of this shared network. TELUS, Bell and Rogers have requested that commercial mobile spectrum licences held by TELUS across Manitoba be sub-divided to exclude the area constituting TELUS’ existing network, and be subordinated to Bell and Rogers. The licences are described in annex A.
3. Terms not defined in this decision have the meaning set out in Client Procedures Circular CPC 2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services.
4. The subordinate licence application from TELUS, Rogers and Bell described above is approved.
5. In approving the acquisition of MTS by Bell, the Department assessed revisions to the network sharing agreements in Manitoba and all of the associated transfer and subordinate transactions against the policy objectives and criteria set out in section 5.6 of CPC 2-1-23.
6. The application to subordinate the licences described in annex A from TELUS to Rogers and Bell is consistent with the revised Agreement and forms part of the associated subordinate licences of the previously approved transfer.
7. Approving the subordinate licence application would have no impact on the overall spectrum holdings or distribution, or on the ability of existing and future competitors to provide services.
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