600 MHz spectrum auction raised $3.47 billion

The 600MHz spectrum auction resulted in $3.47 billion CAD with 12 companies participating, Innovation, Science and Economic Development said on April 10th.

The auction for the coveted 600 MHz spectrum began about a month ago on March 12th and ended on April 4th. There were 112 spectrum licenses win 16 geographic locations available for telecoms to bid on.

There were 54 rounds of bidding that took place over 18 business days. Those that won spectrum licences have until April 26th to submit 20 percent of the total final payment. The remaining 80 percent is due on May 27th.

ISED said in a news release that 104 of the 112 licences were “awarded to” nine of the 12 participants. The newly acquired spectrum will be used to “further strengthen the country’s robust networks, improve wireless coverage and foster a competitive wireless market in support of lower prices.”

Innovation, Science and Economic Minister Navdeep Bains announced the department was specifically setting aside 43 percent of the spectrum (a total of 30 MHz) aside for regional wireless operators and potential new entrants in order to foster competition.

Here are provisional results of the auction:

The federal government has held several auctions in the past. More recently in 2015 for the 2,500 MHz spectrum and in 2014 for the 700 MHz auction.

In 2008, the government set aside spectrum for the 20 MHz of Advanced Wireless Services auction and after eight weeks and 331 rounds, the auction closed with 292 licenses sold. The Government grossed $4,252,710,327. Globalive Communications, at the time the owner of Wind Mobile, came out as a strong winner.

This time around, the 12 players have gotten a hold of the 600 MHz spectrum licence, which operators are hoping to use in the rollout of their upcoming 5G networks.

5G operates over traditional and new cell radio frequency bands that include the low- (sub-1GHz such as 700MHz), mid- (1.6GHz, around 3.5-3.8GHz), and millimetre-wave (mmWave, such as 28GHz) ranges.

This auction will offer operators a spectrum that is low-frequency and is able to penetrate through buildings and provide long distance coverage.

 

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