Ottawa to acution more 5G spectrum
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Ottawa 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 millimeter 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 entirely 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 millimeter-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 600MHz auction will set aside 43 per cent of the spectrum for regional competitors such as Shaw Communications Inc. and Quebecor Inc.’s Vidéotron. 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 setaside 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, 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 federal revenue.
“We know that industry wants access to this spectrum. I’ve heard this loud and clear,” Bains said, adding he’s confident the 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 noted the government has redesigned the developmental licensing program so innovators can get temporary access to spectrum for trials.
“It’s working. People have snapped these licences up at a much higher rate, allowing them to test and validate solutions that advance Canada’s 5G leadership,” Bains said.
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.
“This is a true equalizer,” Bains said, adding that 1.2 million families live in poverty and that 70 per cent of homework assignments require internet access.
“The internet is no longer a luxury, it’s essential,” he said.
The non-profit Computers For Success Canada Inc. will create an online portal where eligible families can sign up for the service while protecting their privacy.
“Family income should not be a barrier to making an appointment or completing homework. This affordability initiative will help lowincome Canadian families spend less of their household budget on internet, and for others address significant challenges to getting online at all,” CFSC executive director Toby Harper-Merrett said in a statement.
Rogers and Telus already had programs that offered $10-per-month internet packages to low-income residents. In separate news releases, their CEOs celebrated the expansion of the program as a way to bridge the digital divide across the country. A Bell spokesman said the company looks forward to the program.
The Public Interest Advocacy Centre welcomed the expanded program for lowincome families, but questioned why it doesn’t apply to people without children. Bains responded that the initiative is a pilot project and that the government aims to “create a level playing field for all Canadians.”
Bains also lauded the government’s program to fund internet in rural and remote communities, adding 800 communities now have access to internet thanks to partnerships between the industry and all levels of government.