UPADTE 1-Quebecor's media unit prepares national wireless bid

(Adds details, background)

By Wojtek Dabrowski

TORONTO, March 13 (Reuters) - Quebecor Inc's (QBRa.TO: Quote, Profile, Research) (QBRb.TO: Quote, Profile, Research) media unit became the latest to confirm it will try to set up a wireless network across Canada on Thursday by announcing it will take part in an upcoming spectrum auction.

Quebecor Media said it has submitted a deposit of C$317 million ($323.5 million) in the form of letters of credit to Industry Canada ahead of the auction, slated for late May. It joins Shaw Communications Inc (SJRb.TO: Quote, Profile, Research) and Manitoba Telecom Services (MBT.TO: Quote, Profile, Research), which both said this week they filed applications to participate in the auction.

Quebecor chief executive Pierre Karl Peladeau said in a statement that the company previously aimed to build out a wireless network to serve the province of Quebec.

"However, exceptionally favourable conditions for new entrants, which may never occur again, persuaded us it is in the interest of our shareholders that we try to extend our deployment across Canada," he said.

"We will see at the conclusion of the auction if such a deployment is possible."

When the federal government announced its plans for the auction last year, it said it would set aside a chunk of the airwaves up for sale exclusively for bidding by potential new entrants.

This angered incumbent 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), which had argued this essentially amounts to an unfair subsidy.