Canadian spectrum auction for beachfront 5G airwaves has raised a record $8-billion, sources say

By Alexandra Posadzki

An auction for highly prized 5G wireless airwaves has netted around $8-billion for the federal government, making it the highest-grossing spectrum auction in Canadian history, according to sources.

The auction, which was delayed by six months because of the pandemic and kicked off on June 15, is now in the assignment phase and is slated to end on July 23, according to the two industry sources with knowledge of the matter.

During the assignment phase, bidders are able to place additional bids to specify which particular frequencies they want to use within the spectrum band that they won. While the changes are expected to be minimal, the final price the bidders pay could be even higher than $8-billion. The Globe and Mail is not identifying the sources because they are not authorized to speak publicly about the matter.

The mid-band airwaves, which are in the 3,500-megahertz range, are considered beachfront property for 5G services because they are able to carry larger volumes of data over long distances. The fifth generation of wireless technology promises much faster speeds, less lag time and an increase in the number of devices that can be connected, allowing it to power everything from smart manufacturing to driverless cars. Ottawa is auctioning off a total of 1,504 licences in 172 service areas.

Canada’s three largest telecoms – Rogers Communications Inc., Telus Corp. and and BCE Inc. – were expected to shell out a combined $2.8-billion on the airwaves, according to a report by TD Securities. A report from Desjardins Securities predicted the Big Three, along with Cogeco Inc. and Quebecor Inc., could pay around $3-billion, but noted that spectrum prices are difficult to forecast. South of the border, an auction for similar airwaves netted US$80.9-billion.

Published by the Globe and Mail.