Sweet Like Maple Syrup: Canadian 5G Mid-Band Auction Already at $6.4B

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A Canadian 5G wireless airwaves auction kicked off on June 15 and is already the highest-grossing spectrum event in the country’s history, reported The Globe and Mail. The auction, slated to run through July 23, has netted around $6.4 billion* for the federal government. 

According to industry experts, the auction could be a “game-changer” for the Canadian deployment of 5G. 

The auction is currently in the assignment phase, where bidders can specify which frequencies they want to use within the spectrum won. The mid-band airwaves up for grabs are in the 3,500 MHz range. According to The Globe and Mail, Ottawa is auctioning off a total of 1,504 licenses in 172 service areas.  

According to a report by TD Securities, before the auction, estimates expected the Big Three Canadian telecoms – Rogers Communications, Inc., Telus Corp., and BCE Inc. – to pay a combined $2.2 billion on spectrum. Additionally, Desjardins Securities forecast that Cogeco Inc. and Quebecor Inc. could spend $2.4 billion at the auction. 

Smaller wireless players will also have a chance to bid as the government has set aside 50 MHz of mid-band spectrum licenses. Also, Shaw Communications, Inc. will not participate in the auction, leaving room for smaller telecoms. 

To date, actual auction bidders have not been identified, reported The Globe and Mail. “In order to protect the integrity of the auction, Innovation, Science and Economic Development (ISED) cannot comment on the status of bidding at any point during this period,” spokesperson Hans Parmar said in an email.

Canada is also hosting two more upcoming 5G spectrum auctions. Another mid-band auction is slated for early 2023, while a higher-frequency millimeter band auction will happen sometime in 2024.

*all $ figures in USD

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