Ottawa's latest wireless spectrum auction kicks off today

Written By Unknown on Selasa, 14 April 2015 | 22.39

The federal government's auction of 2500 Mhz wireless spectrum started at 10 o'clock eastern time on Tuesday, and some of Canada's wireless companies could be poised to buy the building blocks to expand and improve their networks.

Wireless spectrum is the network over which wireless devices like cellphones and tablets send and receive data. Wireless companies need more and more spectrum to keep up with the growing demand for data transmission, so the government auctions off new stretches of airwaves at periodic intervals under certain rules.

The auction is for spectrum in the 2500 Mhz band. Two of Canada's biggest wireless companies, Rogers and Bell, aren't expected to be very active in this round of spectrum sales because the government imposes caps on the amount of spectrum that any one company can own in any given market — and both companies are already at or near that limit in some of Canada's biggest cities.

That's good news for Telus, one wireless analyst says, because the company is now poised to hoover up valuable spectrum at a discounted rate, if Bell and Rogers aren't bidding on many of the biggest blocks. "As Telus has no 2500 MHz spectrum at this time, we assume that it will win in all major markets," Canaccord analyst David Ghose says.

Another company that could be poised to improve its network is Toronto-based Wind Mobile, a company that Ghose expects will pick up 2500 Mhz spectrum in the big cities where it already operates, such as its densely populated home base in Ontario.

As well, Ghose says he will be looking to see whether or not Quebec-based Videotron picks up spectrum outside of Quebec and Eastern Ontario, as that would be another sign that the company could be planning to offer cell service across the country.

The 2500 Mhz band of spectrum has the potential to improve cell transmission in urban places that currently get spotty coverage, such as elevators and parking garages. But it's also viable to rural companies for transmitting internet connections where wired services aren't practical. It's also deemed to be a valuable brand because it's used internationally, in the U.S., Europe and China. Phones like the iPhone 6 and the Motorola Nexus 6 can operate on the 2500 Mhz band, Ghose notes.

The auction won't end until a complicated, multi-level bidding process ends, which could take days. But the federal government says it will reveal the results of the auction within five business days of the end of bidding.


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