(Adds background, details, Minister comment)

TORONTO, Feb 27 (Reuters) - Canada said on Thursday it has declined a request to transfer 83 wireless spectrum licenses from NextWave to Inukshuk, which is owned by Rogers Communications RCIb.TO and BCE Inc's BCE.TO Bell Canada unit.

Canada's Industry Minister James Moore, in a brief release, said the license transfer would have led to unacceptable levels of concentration of spectrum in the hands of incumbent carriers and negatively affected competition in the region.

The decision is yet another indication that the Conservative government is staying firm in its resolve to boost competition in the telecommunications sector in all parts of Canada, including the thinly populated northern and eastern reaches, where Inukshuk largely operates.

Last year, Canada's federal government twice rejected moves by big telecommunications company Telus Corp T.TO to acquire spectrum licenses from struggling wireless startup Mobilicity.

Spectrum refers to the leased airwaves wireless carriers use to carry their customers' voice calls, text messages, and increasingly heavy mobile video streaming and other data use.

The rulings were a warning to Canada's big three telecom players, Rogers, BCE and Telus, that any future deals would likely face major obstacles. And the government reiterated that message on Thursday. ID:nL1N0EG0J3 ID:nL1N0IK19M

"We will not approve any spectrum transfer request that results in excessive spectrum concentration for Canada's largest wireless companies, which negatively affects competition in the telecommunications sector," Moore said in the statement.

The NextWave-Inukshuk wireless spectrum request was made back in October. If approved, the transfer would have lead to a significant shift in spectrum concentration in the WCS band, which is at around the 2.3 GHz frequency.

Bell and Rogers, via Inukshuk, would increase their combined WCS spectrum holdings to 77 percent from 29 percent, if the move had been approved, said the government.

Moreover, if this request was approved, the government said 95 percent of the WCS spectrum would have effectively be held by Bell, Rogers and Telus.

(Reporting by Euan Rocha and Alastair Sharp; Editing by Stephen Powell and Meredith Mazzilli)

((euan.rocha@thomsonreuters.com)(+1 416 941 8185)(Reuters Messaging: euan.rocha.reuters.com@reuters.net))

Keywords: CANADA TELECOMS/SPECTRUM