Canadian spectrum auction raises record $ 7.2 billion as businesses gear up for high-speed internet

OTTAWA, July 29 (Reuters) – The auction of 3,500 MHz spectrum in Canada, which is essential for next-generation 5G networks, generated a record C $ 8.9 billion (C $ 7.2 billion dollars), the top three telecommunications companies in the country representing more of the amount raised.

Of 1,504 licenses available, 1,495 have been awarded to 15 Canadian companies, including 757 licenses to small regional suppliers, Innovation Minister François-Philippe Champagne said in a statement on Thursday.

The results would boost competition, he added, a reference to Ottawa’s pressure to open a market dominated by BCE Inc (BCE.TO), Telus Corp (T.TO) and Rogers Communications Inc (RCIb.TO) ), known as the big three.

Canadian consumers have complained about high wireless bills, which are among the highest in the world, and the Liberal government of Prime Minister Justin Trudeau has asked carriers to cut prices by a quarter by 2021.

Preliminary results showed BCE Inc spent C $ 2.1 billion, Rogers C $ 3.3 billion and Telus Corp C $ 1.9 billion.

The 3500 MHz range radio waves are essential for providing 5G wireless services as they carry greater volumes of data over long distances. They also offer faster upload and download speeds and help power everything from smart cities to driverless cars.

Videotron, owned by Quebecor Inc (QBRb.TO), spent C $ 830 million to expand its geographic presence in Canada, purchasing licenses not only in its native Quebec, but also in Ontario, Manitoba, Alberta and Colombia -British.

The move indicates that Quebecor plans to become a service provider in these areas, said Mark Goldberg, industry analyst. He noted that the regions where the company did not bid – Saskatchewan and Atlantic Canada – both have strong fourth competitors over the big three.

“They are poised to be the fourth service provider… This represents an investment of roughly $ 1 billion in spectrum,” Goldberg said.

Videotron said in a statement that the investment would help the company “achieve its ambition of stimulating healthy competition in telecommunications beyond Quebec’s borders.”

Bell, Rogers and Telus have said their investments will help deliver reliable 5G services.

The auction, initially scheduled for June 2020 and delayed due to the COVID-19 pandemic, closed after eight days and 103 auction rounds, the government said. Read more

($ 1 = 1.2444 Canadian dollars)

Reporting by David Ljunggren in Ottawa and Moira Warburton in Vancouver; Editing by Diane Craft and Richard Pullin

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