Feds to auction more 5g wireless spectrum

Moves expected to increase competition, address worries Canada lagging in tech

The federal government says it will auction off more spectrum suitable for next-generation wireless networks, a move that comes amid industry fears that Canada is not moving fast enough to enable the 5G networks required for real-time applications like self-driving cars.

On Wednesday, Innovation, Science and Economic Development Minister Navdeep Bains announced the government will hold three spectrum auctions in the next three years, including for millimetre waves that are “prime real estate for 5G networks,” he said in a speech at the Canadian Telecom Summit in Toronto.

He also unveiled a program to provide internet access for $10 per month to hundreds of thousands of families that receive the maximum Child Care Benefit, an initiative that will be funded en- tirely by the seven participating internet service providers.

When it comes to spectrum, the radio frequencies essential for mobile communications, Bains launched two consultations for auctions in 2020 and 2021. The first will be for the 3500 MHz band, the preferred range for 5G networks, and the second for an additional 1 GHz of milli-metre-wave spectrum. The auction for 600 MHz spectrum, which has applications for 5G and for rural areas, was previously announced for 2019.

“The consultation reflects our commitment to get this spectrum into the marketplace in a timely manner that also supports competition, a key priority for our government,” Bains said.

Bains said the government is proud that the 600-MHz auction will set aside 43 per cent of the spectrum for regional competitors such as Shaw Communications Inc. and Quebecor Inc.’s Videotron. Bains called the set-aside “an important way to deal with affordability,” although he wouldn’t say whether there will be set asides in the other two auctions.

“As you know from the 600 MHz, we feel the set-aside is critical for competition,” he said.

“We want to continue to encourage more competition going forward, but I don’t want to prejudge the outcome of the consultations.”

Canada’s largest wireless carriers including BCE Inc., Telus Corp. and Rogers Communications Inc. have opposed set-asides, though they continue to invest in 5G capabilities. They’re already testing 5G technology.

Bains’ speech came the day after a panel discussion where industry executives said the government needs to move faster to release spectrum or Canada could fall behind in 5G deployment.

The government tightly manages spectrum auctions, which can add billions of dollars to fed- eral revenue.

“We know that industry wants access to this spectrum. I’ve heard this loud and clear,” Bains said, adding he’s confident the government’s auction timing will set the industry up for success.

“This puts us in the Top Five in our international peers when it comes to the deployment of spectrum for 5G, ahead of countries like Australia and Germany,” he told reporters.

Bains also launched a new initiative called “Connecting Families” that will help Canadians with low income access the internet. Bell, Cogeco, Rogers, Sasktel, Shaw, Telus and Vidéotron are participating in the program, which will offer internet for $10 per month with download speeds of at least 10 Mbps and at least 100 GB of data until 2022. There will be no equipment or installation fees, although it’s not clear if data overages will apply. The government will also distribute 50,000 computers through the Computers For Schools program.