Industry Canada seeking at least $250M from 2500 MHz auction

Industry Canada aims to generate at least $250 million in proceeds from the licensing of all available 2500 MHz spectrum in an auction expected to take place in 2014, the department said in a notice of consultation. In the notice posted on its website this week, Industry Canada said it intends to auction off 318 licences of 2500 MHz spectrum in 61 service areas across the country, with a total opening bid price for all blocks of $251,853,000. Proposed opening bids for individual licences in each market range from $32,000 in the Nunavut service area to $18,606,000 in Toronto. The suggested opening bid price for a “national licence” is $66,905,000, the department said. The department said the suggested bid prices apply 20 MHz blocks of “paired spectrum” (superior for voice and data communications) in the 2500-2570 MHz and 2620-2690 MHz frequency ranges and to 25 MHz of “unpaired spectrum” (superior for data communications) in the 2570-2620 MHz range. The department said licences will be awarded on 20-year terms. The department's proposed opening bids for all licences in the 700 MHz frequency range amount to $897.3 million. Industry Canada has said it intends to auction the 700 MHz spectrum licences in the first half of 2013 and that the 2500 MHz auction will follow within a year. The 700 MHz spectrum is considered more valuable to operators due to its ability to carry mobile signals over longer distances and through walls, plants, and other potential sources of interference. Industry Canada proposed rules for the 2500 MHz auction that largely mirror its rules for the 700 MHz auction, including a combinatorial clock auction format; its proposed definition of “associated entities,” or companies sharing spectrum; and lawful intercept provisions. The department proposed general roll out requirements of 10 years, matching those used in the 2008 AWS spectrum auction, as well as a five-year prohibition on transferring licences after the auction is completed. The department said some existing 2500 MHz spectrum licensees will be permitted to keep their current spectrum beyond the auction but could be prevented from acquiring more spectrum if it pushes them over a 40 MHz cap per licence area. “Licensees planning to return any of their existing spectrum licence holdings to Industry Canada in order to increase their eligibility to bid in the related licence areas must do so by October 4, 2013,” the department said. The deadline for comments is Nov. 19 and reply comments will be accepted until Dec. 17, the department said. news@thewirereport.ca

Industry Canada seeking at least $250M from 2500 MHz auction

News | October 12, 2012

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