Telus sues federal government over wireless policy

Telus Corp. is taking the federal government to court, saying it wants clarity on the country's wireless spectrum policy.

Telus filed an application for judicial review in Federal Court on Monday.

It followsthen-industry minister Christian Paradis'sdecision on June 4 to prevent the transfer of struggling Mobilicity's wireless spectrum licences to larger rival Telus. The decision effectively killed Telus's $380-million takeover bid for Mobilicity.

• Ottawa blocks Telus takeover of Mobilicity

The government has alsosaid any future requests for spectrum transfers would be reviewed individually, and that any deemed to result in undue spectrum concentraton would be rejected.

The federal government's stated goal is to have four national wireless phone competitors in the Canadian market.

"Greater competition means better prices for Canadian consumers,"Sbastien Garipy, a spokesman for current Industry Minister James Moore, said Tuesday.

"We are aware of the judicial review application.As this matter is before the courts we have no further comment."

As part of thelastauction of wireless spectrum in 2008, which saw the entry of small playersWind andMobilicity,the three incumbent phone companiesRogers, Telus and Bell werebarred for five years from acquiring any of the wireless spectrum held by the small competitors.

Last month, Ottawa pushed back the application deadline for the next auction of wireless spectrum to Sept. 17. Bids had been originally due in mid-June of this year. Now the bidding will begin on Jan. 14, 2014.

Canada's three major players will only be allowed to bid for one of the four blocks of spectrum available. However, potentialnew market entrants, such as giant U.S. firmVerizon Communications, won't be limited by that rule.

The Telus court filing comes as Canada'slarge phone companies are undertaking a vigorous PR campaignagainst the rules governing foreign entry in the market.

As Verizon eyes the Canadian market with a potential takeover of Wind Mobile or Mobilicity, the big three Canadian telecom companies are saying federal rules put them at a competitive disadvantage.

• Is Verizon really the 'bogeyman' Canada's telecom giants claim?
• Level the wireless playing field, Rogers CEO says
• Bell cries foul over federal telecom rules
• Verizon takes aim at telecom Big 3 with possible Wind Mobile bid

On Monday,the Canadian Council of Chief Executives andthe Communications, Energy and Paperworkers Union of Canada both came out saying they opposed any special treatment for Verizon.