Canada launches long-awaited auction of 5G spectrum

COGECO

15/06/2021 18:07

By Moira Warburton
    VANCOUVER, June 15 (Reuters) - Canada is set to begin a
hotly anticipated auction of the mobile telecommunications
bandwidth necessary for 5G rollout, one that was delayed more
than a year by the pandemic.
    The 3,500 MHz is a spectrum companies need to provide 5G,
which requires more bandwidth to expand internet capabilities.  
 The auction, initially scheduled for June 2020, is expected to
take several weeks with Canadian government selling off 1,504
licenses in 172 service areas.
    Smaller operators are going into the auction complaining
that recent regulatory rulings have further tilted the scales in
the favour of the country's three biggest telecoms companies -
BCE  BCE.TO , Telus  T.TO  and Rogers Communications Inc
 RCIb.TO  - which together control around 90% of the market as a
share of revenue.  urn:newsml:reuters.com:*:nL2N2NF2PL 
    Canadian mobile and internet consumers, meanwhile, have
complained for years that their bills are among the world's
steepest. Prime Minister Justin Trudeau's Liberal government has
threatened to take action if the providers did not cut bills by
25%.
    The last auction of the 600 MHz spectrum raised C$3.5
billion ($2.87 billion) for the government.
    The companies have defended themselves, saying the prices
they charge are falling.
    Some 23 bidders including regional players such as Cogeco
 CCA.TO  and Quebec's Videotron are participating in the
process. Shaw Communications  SJRb.TO  did not apply to
participate due to a $16 billion takeover bid from Rogers.
Lawmakers and analysts have warned that market concentration
will intensify if that acquisition proceeds.
    In May, after Canada's telecoms regulator issued a ruling
largely in favour of the big three on pricing for smaller
companies' access to broadband networks, internet service
provider TekSavvy Inc withdrew from the auction, citing the
decision.  urn:newsml:reuters.com:*:nL2N2NE2N5
    Some experts say the government has been trying to level the
playing field with its decision to set aside a proportion of
spectrum in certain areas for smaller companies.
    Gregory Taylor, a spectrum expert and associate professor at
the University of Calgary, said he was pleased the government
was auctioning off smaller geographic areas of coverage.
    In previous auctions where the license covered whole
provinces, "small providers could not participate because they
could not hope to cover the range that was required in the
license," Taylor said.
    Smaller geographic areas mean they have a better chance of
fulfilling the requirements for the license, such as providing
service to 90% of the population within five years of the
issuance date.
    The auction has no scheduled end date, although the federal
ministry in charge of the spectrum auction has said winners
would be announced within five days of bidding completion.

($1 = 1.2181 Canadian dollars)

 (Reporting by Moira Warburton in Vancouver; Editing by David
Gregorio)
 ((Moira.Warburton@thomsonreuters.com; 416-687-7996;
437-771-3124;))