Additional Wireless Spectrum Licences to be Made Available in August

OTTAWA, ONTARIO--(Marketwired - May 1, 2015) - Industry Canada

Today, Industry Minister James Moore announced that the Government of Canada plans to auction more valuable wireless spectrum this summer. The auction, featuring unallocated spectrum licences from the recent 700 MHz and AWS-3 auctions, will be held this August. This auction will be the third spectrum auction of 2015.

Spectrum is a vital public resource and the invisible infrastructure on which wireless information travels. For new wireless companies to be able to compete and provide choice to Canadians, spectrum is essential.

Less than one year ago, nearly 90 percent of spectrum was held by Canada's largest wireless companies. As a result of the recent AWS-3 spectrum auction and the ongoing 2500 MHz auction, by summer 2015 new wireless companies are expected to hold approximately 25 percent of the total wireless spectrum available. The consultation that was launched today, along with previous auctions, is leading to more choice, lower prices and better service for consumers.

Quick facts

• The Government of Canada proposes using a sealed-bid format for this auction, which was the same format used for the AWS-3 auction.
• The spectrum cap put in place for the original 700 MHz auction would remain for the unallocated licences in that band.
• One licence, serving Yukon, the Northwest Territories and Nunavut, was unallocated after the 700 MHz auction in January 2014, while three licences, serving the northern territories, Manitoba and Saskatchewan, were unallocated after the AWS-3 auction in March 2015.
• To give more providers the opportunity to obtain this valuable spectrum, the government proposes to divide the northern licences into smaller areas. In addition, the unallocated AWS-3 licences would have the set-aside provisions removed, meaning the AWS-3 licences would be open to bidding by all interested companies. The available 30 MHz AWS-3 blocks in each region would also be split into three 10 MHz blocks.
• Spectrum licences acquired through this auction would be subject to strict deployment requirements.
• The amount of spectrum available to provide mobile services to consumers has grown by almost 60 percent since early 2014.

Quote

"Spectrum is an essential public resource, and it is our job as a government to ensure it is allocated in such a way that encourages robust competition and choice in our wireless market. This auction, like all of our previous auctions, is designed with the interests of Canadian consumers first. We look forward to seeing consumers benefit."
- James Moore, Minister of Industry

Related product

- Backgrounder - Auction of 700 MHz and AWS-3 Spectrum Licences

Associated link

- Consultation on a Licensing Framework for Residual Spectrum Licences in the 700 MHz and AWS-3 Bands

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May 1, 2015

Backgrounder

Auction of 700 MHz and AWS-3 Spectrum Licences

A sealed-bid, second-price format is proposed for the auction of unallocated licences from the 700 MHz spectrum auction held in January 2014 and the AWS-3 spectrum auction held in March 2015. This streamlined format will help put this valuable spectrum in the hands of the wireless competitors that will use it to deliver next-generation services to Canadians.

To help give more companies an opportunity to acquire this valuable resource, the Government proposes to remove the set-aside restriction on the unallocated AWS-3 licences, as well as divide the licences from both bands into smaller geographic areas in the territories. The Government also proposes to divide the 30 MHz AWS-3 blocks into 10 MHz blocks in Saskatchewan, Manitoba and the territories. Details of the new smaller licence areas are as follows:

PREVIOUSLY OFFERED LICENCE		PROPOSED NEW LICENCES
700 MHz-one licence covering Yukon, the Northwest Territories and Nunavut		700 MHz-one licence covering Yukon
		700 MHz-one licence covering the Northwest Territories
		700 MHz-one licence covering Nunavut
AWS-3-one 30 MHz licence covering Yukon, the Northwest Territories and Nunavut		AWS-3-three 10 MHz licences covering Yukon
		AWS-3-three 10 MHz licences covering the Northwest Territories
		AWS-3-three 10 MHz licences covering Nunavut
AWS-3-one 30 MHz licence covering Manitoba		AWS-3-three 10 MHz licences covering Manitoba
AWS-3-one 30 MHz licence covering Saskatchewan		AWS-3-three 10 MHz licences covering Saskatchewan
Total licences: 4		Total licences: 18

More information on this auction, including the proposed format, timelines and other details, can be found in the Consultation Paper.