Canada to New Company Set Aside 40% Auction Spectrum

According to reports, the Canadian federal government or by a power spectrum auction industry, competing with the wireless market existing three major suppliers.

The Canadian Ministry of innovation, science and economic development (ISED) released a consultation paper on the 600MHz band spectrum auction system last week. In response to 70MHz's available spectrum resources, the official proposes to reserve 43%, the 30MHz spectrum, to wireless infrastructure providers, saying that the resource pool is often used to address the problem of market dominance". In the 2008 auction, the conservative government set aside 40% of the spectrum is the new industry, to enhance the mobile industry competition. According to statistics, the share of wireless infrastructure providers in the national wireless subscriber market is currently less than 10%.

ISED believes that existing companies or other vendors will block access to spectrum licences in public auctions by various means. The official proposal provides that licences shall not be transferred for five years to prevent speculation. Videotron has recently made millions of profits by selling reserved spectrum to Rogers and Shaw.

The remaining 40MHz spectrum will be publicly auctioned. ISED comments on the auction rules and forms and proposes a price tag of $1 billion 537 million or $219 million 500 thousand per 10MHz. Auction earnings for the same band 84MHz spectrum in the United States were $19 billion 800 million.

The Canadian government announced two years ago that it planned to auction the 600MHz spectrum, which would take at least two years from the release of advisory documents to the launch of the auction process.