Unique Broadband Systems Inc fka UBS

[Ubertino]

DBRS says wireless giants' credit shouldn't be hurt by new entrants/UBS to enter cellphone market?

1 day ago

TORONTO - Debt-rating agency DBRS doesn't expect Canada's three wireless giants to suffer near-or medium-term credit woes if smaller regional players enter the cellphone market.

But the Toronto-based agency said Friday that new entrants into the wireless market - such as Quebecor Inc. (TSX:QBR.B) and Manitoba Telecom Services Inc. (TSX:MBT) - could slow the growth rate of Rogers Communications (TSX:RCI.B), Telus Corp. (TSX:T) and BCE Inc. (TSX:BCE).

Earlier this week, the federal government decided to open the possibility of greater competition from smaller regional players. The move is expected to help increase wireless competition, which could bring cellphone users more choice and more competitive pricing.

Several other carriers besides Quebecor and MTS are expected to officially announce plans to join in the May auction, including Unique Broadband Systems, Inc. (TSXV:UBS) and its subsidiary Look Communications Inc. (TSXV:LOK), which speculated Friday about entering the cellphone market.

Look currently has the right to use about 90 megahertz of MDS spectrum in the 2.6-to-2.7-gigahertz mobile spectrum band. The company said its share of the spectrum, coupled with its mobile broadcast licence, positions it well in the wireless market.

Toronto-based Yak Communications (Canada) Corp., which began by selling long-distance phone services and more recently started an Internet home phone service, may also join in the auction.

Quebecor CEO Pierre Karl Peladeau, who has been pushing for Ottawa to set aside some wireless spectrum for companies that don't have a wireless network, will invest $500 million to build a broadband wireless network in Quebec.

http://canadianpress.google.com/article/ALeqM5hivkIDRxPfwLwbCi3MR6DRH0bnrg