MTS consortium, Shaw ready Canadian wireless bids

By Wojtek Dabrowski

TORONTO (Reuters) - Manitoba Telecom Services (MBT.TO: Quote, Profile, Research) has teamed up with the Canada Pension Plan Investment Board and U.S. private-equity firm Blackstone Group (BX.N: Quote, Profile, Research) in a bid to create a fourth national wireless firm in Canada, they said on Monday.

A little while later, Shaw Communications Inc (SJRb.TO: Quote, Profile, Research), Canada's No. 2 cable and satellite-TV company, also announced it had submitted an application, but said its participation shouldn't be interpreted as an indication it wants to build a wireless network.

"If successful, the ownership of spectrum will provide strategic flexibility as it may be utilized in a variety of ways and in a timeframe yet to be determined as the competitive communication market evolves," Shaw said in a press statement.

MTS, CPPIB and Blackstone will each own about a third of the new company, they said in their statement. They added they will not comment further until their talks and agreements are finalized.

The group has made a deposit of C$340 million ($340 million) in the form of letters of credit to Industry Canada ahead of a wireless spectrum auction slated for late May. Spectrum essentially refers to airwaves over which wireless services are delivered.

The federal government has set aside a chunk of spectrum in the auction exclusively for new entrants.

The winning bidder will present a challenge to existing market leaders Rogers Communications Inc (RCIb.TO: Quote, Profile, Research), BCE Inc (BCE.TO: Quote, Profile, Research) and Telus Corp (T.TO: Quote, Profile, Research).

Industry Canada will release the names of all parties who have applied to participate in the auction on March 14, Shaw said.