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Industry Minister Removes Limits on Spectrum Holdings for Cell Phone
Companies

OTTAWA, August 27, 2004 -- The Honourable David Emerson, Minister of
Industry, today announced a decision rescinding the mobile spectrum cap
policy, which limited the amount of radio spectrum that cellular telephone
companies could hold.

"Today's decision reflects the maturity of the market, and clarifies the
market framework for the industry," said Minister Emerson. "Over 94 percent
of Canadians have access to cell phone service today. Canada's mobile
telephone system is highly developed and cell phone users have a variety of
service options."

Extensive consultations by Industry Canada, regarding both the mobile
spectrum cap policy and a proposal to make additional spectrum available to
the wireless industry, began in October 2003 and concluded in March 2004. A
majority of respondents indicated that the spectrum cap should be lifted,
and that Industry Canada should make additional spectrum resources available
for use by the wireless industry in the near future.

The mobile spectrum cap policy was introduced in 1995 to encourage
innovation and help new entrants become established in the wireless
industry. Canada now has close to 14 million cell phone subscribers and a
modern wireless infrastructure capable of delivering a wide range of voice,
data and media services. The Canadian Radio-television and
Telecommunications Commission (CRTC) provides an overview of the
telecommunications market in its report to the government, Status of
Competition in Canadian Telecommunications Markets, 2003. The CRTC report
depicts a mobile market with strong growth relative to other
telecommunications markets.

Industry Canada will continue to monitor the wireless industry for spectrum
concentration and manage the licensing of spectrum resources with other
mechanisms at its disposal. The Competition Bureau and the CRTC also have
roles in ensuring a competitive telecommunications market.

A notice rescinding the spectrum cap policy will also be published in an
upcoming edition of the Canada Gazette, and will be made available on the
Industry Canada Web site.