Ottawa announces another wireless spectrum auction
The 2500 megahertz spectrum is ideal for deploying next-generation networks and services that deliver faster data rates and download speeds, government says.
By: Michael Lewis Business Reporter, Published on Fri Jan 10 2014
Industry Minister James Moore was in Vancouver Friday talking up the government’s wireless polices and unveiling rules for an auction of airwave spectrum licenses to start in April 2015.
Moore stressed that the previously announced auction of the 2500 megahertz frequency imposes conditions on carriers “specifically designed to put Canadian consumers first.”
He said carriers who win licenses in the bidding contest must put them to use quickly and reiterated that Ottawa will impose caps to give four cellular providers in each region access to the radio waves that transmit wireless communications.
Moore said the measure will help spur competition in a market dominated by incumbent providers Bell, Telus and Rogers.
Moore said the 2500 megahertz spectrum is ideal for deploying next-generation networks and services that deliver faster data rates and download speeds on mobile devices compared to previous technologies.
He said spectrum in the 2500 MHz band also supports fixed broadband Internet services and will increase online access in rural areas.
Rules for the auction impose smaller geographic licenses aimed at encouraging rural Internet service providers to participate and include curbs on transfers of the 2500 MHz spectrum to limit concentration among incumbent carriers.
The government says Canadians pay among the highest wireless rates in the developed world and has promised steps including a cap on wholesale roaming charges designed to bring down prices and support new entrants.
The spectrum sale starting April 14, 2015 is among a series that includes a separate auction of frequency in the 700 megahertz band beginning Tuesday.
Moore said the 700 MHz auction is another important step in encouraging new competitors in the wireless market, even though no foreign investors or bidders have registered to take part. Four applicants have withdrawn, leaving eleven qualified bidders.
Ottawa’s 2008 spectrum auction led to the establishment of small carriers Wind Mobile, Mobilicity and Public Mobile. The carriers offered discount service packages to build a subscriber base but have struggled to win significant market share from the big three.
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