The Federal Government Has Raised 48.9 Billion From Canada’s Telecom Auction For 5G Wireless Spectrum
The federal government has collected $8.9 billion in a license auction related to a key band of 5G wireless spectrum in results that were announced after the close of markets on Thursday.
The pack was led by Canada’s Big Three wireless companies that grabbed hundreds of licenses for the 3500MHz band of airwaves. The 3500MHz band of spectrum is expected to be important as the carriers are using it to build blocks for their 5G networks. More equipment for smartphone hardware and carriers is expected to work with that frequency band.
The mid-range bands like 3500MHz are useful in both the rural and urban areas since they can travel considerable distances and pass through the buildings. Francois-Philippe Champagne, Minister of Innovation, Science, and Industry stated in a statement that the 3500MHz auction is a key step in the government’s plan to promote competition in the telecom sector, improve the rural connectivity, and ensure that the Canadians benefit from the 5G technologies and services.
As it was aimed that the small and the regional providers must gain access to notably more spectrum which means that the Canadians can expect better wireless services at a more competitive price, which has never been more important for working online and staying connected with the loved ones. The carriers gaining the licenses include Xplornet, Videotron, SaskTel, and also Rogers, Bell, and Telus.
The Rogers have won 325 licenses, which is the largest amount paying a clock price of $3.3 billion that shall permit them to provide service to 34million people.
The company stated that its investment will allow it to reach 99.4% of the Canadians with 5G.
Joe Natale, President, and CEO of Rogers Communications stated in a statement that the investment in 5G spectrum will be built on their existing 5G assets which shall enable them to deliver world-class connectivity that Canada needs to increase their productivity, innovate furl, create jobs, and also compete with the global economy for the decades to come.
He further added that they went into this auction with a clear plan and has acquired the spectrum which they need to continue driving the largest and also the most reliable 5G network in Canada and deliver a long-term value for the customers and shareholders in Canada
Quebecor Inc., which is the parent company of Videotron stated that its investments in the 5G auction were another step towards its expansion outside of Quebec. It said that more than half of its investments are focused in Southern and Eastern Ontario, Alberta, Manitoba, and British Columbia.
Pierre Karl Peladeau, the President and CEO of Quebecor said that this major investment paves the way for large-scale projects in Quebec and also in other Canadian provinces in the coming years. He added that their success in Quebec has served the Quebecers well and today they are taking another step towards bringing the leading-edge technology and healthy competition to more Canadian customers.
