The upcoming 2500 MHz auction will provide critical additional spectrum for wireless providers. As announced in 2012, the Government will apply caps that will allow for four or more providers in each region to access 2500 MHz spectrum, fostering competition among wireless providers.
The 2500 MHz spectrum band is ideal for deploying next-generation networks and services, such as the long-term evolution (LTE) network standard, which can deliver faster data rates compared to previous technologies.
The 2500 MHz spectrum auction will feature smaller licence areas, providing more opportunity for Internet service providers to participate in the auction. In turn, this may increase their ability to offer new or improved services, such as wireless broadband, to homes and businesses in rural areas.
The auction for this spectrum is scheduled to begin on April 14, 2015, and will use the combinatorial clock auction format. This format uses package bids, eliminating the risk that bidders win some but not all of the licences needed for their business case. Auction applications are due on November 27, 2014.
In support of the policy objectives for competition, investment and timely deployment, carriers intending to form associations to share 2500 MHz spectrum may be permitted to participate in the 2500 MHz auction separately if they disclose sufficient information regarding their association. These carriers may also request that the spectrum cap apply individually, but they will be required to demonstrate that they will separately and actively provide services in the region. They must also adhere to the Spectrum Licence Transfer Framework. In addition, all licences include conditions requiring licensees to put the spectrum to use.
There is a prohibition on communication between bidders in the 2500 MHz auction, which includes publicly announcing any information that would indicate bidding strategies.
Approximately six weeks prior to the auction, qualified bidders will be provided with access to the software that helps determine winners and final prices for the allocation stage, available on a website hosted by Industry Canada. One information session and up to three mock auctions will be conducted prior to the auction.
For more on the rules and format of the 2500 MHz spectrum auction, please read Licensing Framework for Broadband Radio Service (BRS) – 2500 MHz Band.
