Expanded rural spectrum access a ‘glimmer of hope’ for wireless ISPs still concerned about band transition

Rural wireless internet service providers (WISPs) received some encouraging news from Innovation, Science and Economic Development Canada (ISED) earlier this month, as the department updated its rules around a new band of available spectrum. While the change is welcome, some industry groups say more must be done for the band to be viable. In early 2027, the maximum amount of spectrum available to rural WISP licensees in the 3.9 GHz band will double, increasing from the current 20 MHz limit to 40 MHz. The change, announced April 7, was met with applause by groups including the Canadian Association of Wireless Internet Service Providers (CanWISP) and the B.C. Broadband Association (BCBA), who have long-criticized the restrictions of the 3.9 GHz band and the non-competitive local (NCL) licensing framework through which it is available. Although they emphasized their support for the amendment, the two associations say there is still a risk of many rural internet providers closing up shop if more changes to the framework are not made. To facilitate the expansion of 5G, ISED decided in May 2021 that WISPs in the 3650-3700 MHz band would have to vacate it and move their services to other spectrum bands. Those operating in Tier 5 urban service areas were given a deadline of March 31, 2025 to make the transition, while those in Tier 5 rural areas must do so by March 31, 2027. ISED gave displaced licensees the opportunity to apply for early access to spectrum in the 3900-3980 MHz range on a first-come, first-served basis, but there has been little uptake among WISPs. CanWISP and the BCBA blamed the strict rules around how that spectrum band must be used, including the 20 MHz maximum bandwidth limit for each licensee in a given area. “Small WISPs were asked to change seats,” said BCBA president Bob Allen in an interview with The Wire Report, comparing spectrum licensees to passengers on a bus. “The seat was needed for more important people, and could please take this seat at the back of the bus,” he said, referring to the 3900 MHz band. “The core problem with assignment was the seats weren't big enough at the back of the bus to accommodate the passengers. You needed a whole seat, you got half a seat.” “On a good day” with 20 MHz of bandwidth, WISPs in rural areas can “just barely” provide internet download speeds of 50 megabits per second (Mbps), explained Allen, but “40 MHz will allow you to offer a 100 Mbps product pretty reliably.” He noted how this is especially important for WISPs competing against SpaceX’s Starlink, which has grown increasingly popular in rural and remote areas, with speeds that “start at a nominal 100 , and they’ll go up to 200 and in some places even higher.” Starlink is Canada’s sixth largest internet provider, according to the Global Media and Internet Concentration Project. Meanwhile, as of mid-2025, Bloomberg reported the country is Starlink’s largest market outside of the U.S., with more than 500,000 subscribers. Being limited to 20 MHz was also “a step back,” said CanWISP executive director Neil Smellie, “because we did have 50 MHz of spectrum available to us in the old band.” This made keeping existing customers even more difficult for ISPs, as they already face spending lots of money on equipment that does not meet their needs. “We wrote in many times … and ISED listened to us and actually gave us what we needed,” said Allen. Smellie described the update as a “glimmer of hope” for rural WISPs. “They did listen to us, they heard our concerns, and they took some action, which was positive,” he said. WISPs call on ISED to ‘think a little bit outside the box’ as late approval timeline raises concerns ISPs will not be allowed to apply for the additional 20 MHz bandwidth until ISED updates its licensing portal, which it anticipates will be done in early 2027. “Until that time, existing system limits will continue to apply,” states ISED on its website. That estimate leaves at most a three-month window between when rural WISPs can get their spectrum license and March 2027, which is when they must vacate the old 3650 MHz band. “We’re a little concerned,” said Allen. “Getting your license assignment three months before — in the middle of winter, Canadian winter — that's not very good,” he continued, highlighting the challenges and higher costs of construction in the winter. This is made worse by the lack of certified equipment that meets ISED’s requirements. Allen explained the expanded spectrum access will likely mean higher demand for wireless equipment, which in turn will likely motivate manufacturers to get their equipment certified — but there is very little time left between now and when that equipment must be deployed. “There's a real question mark about how the industry is going to deal with this,” he said, “manufacturers will now begin to take an interest — that doesn't mean there's a product that you can buy tomorrow — and the last build season before the big ‘get out of the band’ comes is upon us.” “There's an urgency for ISED to show flexibility in encouraging people to design and build their networks,” Allen stated. “There still is opportunity for ISED to maybe think a little bit outside of the box,” said Smellie. “If your plan is that you're going to migrate into NCL spectrum for the March 31 deadline, and it's contingent on getting 40 MHz, I'm not sure how many companies are going to jump in there in the hopes that they're going to get the spectrum. Because it still is an application process, it still needs to be approved. So having that approval earlier is better for everyone,” he said, calling on ISED to speed up its current licensing timeline. Another solution, Allen and Smellie both said, would be to grant WISPs an extension in areas where there are no competitors at risk of signal interference, or encouraging the incumbents moving in to share access to spectrum that they are not currently using. “Setting the hard date — it might be appropriate in a congested area…, but where this gear is, a lot of it is very rural and the risk of interference ,” said Smellie. Access to Broadband Fund would be ‘very helpful at this point,’ says Smellie “On April 1, 2027, becomes the property of the incumbents, and you're supposed to shut off your transmitter,” said Allen. “It's important right now to encourage those small operators to plan to reinvest, because if they're not planning to reinvest, then they're planning to leave.” Smellie said they could be encouraged to reinvest with support from the CRTC’s Broadband Fund, which recently issued its fourth call for proposals. He suggested granting displaced WISPs special access to those funds, “similar to what they’re doing with Indigenous communities.” “No matter what we do, we're ripping and replacing our equipment to save a customer and do not have the opportunity to garner any additional revenue from that,” he said. “It's very difficult, from a business point of view, to justify this . I think we are going to see — if there isn't some sort of assistance somewhere — operators turning off service to .” Those funds could also be applied to the manufacturing side, proposed Smellie, noting that equipment suppliers could be motivated to certify their equipment in Canada if they received some money for it. “I'm sure there's equipment out there that may be certified for use elsewhere, and needs to go through the certification process in Canada for us to be able to legally deploy it,” he said. “Canada is a small market, so having the ability to leverage some funds to make that sort of thing happen, so that we have a better ecosystem of equipment, would also be very helpful.” Although there are still headwinds, Allen and Smellie emphasized the significance of ISED’s decision. “Now that we can offer 40 MHz, the manufacturers will take an interest, and the buyers will take an interest… We are going to see some reaction,” said Allen. For instance, according to Allen, U.S. manufacturer Tarana Wireless has a product that covers the NCL band. He said a member of its sales team previously told him they would certify their product in Canada if there was 40 MHz available. “Expanded access to wider channels in the 3.9 GHz band will ultimately mean better performance, lower costs, and more sustainable networks for rural Canadians,” Allen and Smellie said in a shared statement. “Continued progress will depend on maintaining this momentum.” Smellie noted that the two associations have “written the department thanking them for the decision and asking if they can escalate the timeline for us, or mitigate somehow.” They did not receive a response by the time of publication. phalentm@thewirereport.ca

Expanded rural spectrum access a ‘glimmer of hope’ for wireless ISPs still concerned about band transition

Regulatory |
By Phalen Tynes-MacDonald
|April 21, 2026

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Expanded rural spectrum access a ‘glimmer of hope’ for wireless ISPs still concerned about band transition

Regulatory | By Phalen Tynes-MacDonald |April 21, 2026

Unlock all the Canadian telecom, broadcasting and digital media news you need.

FREE TRIAL

SUBSCRIBE

New government bill would enable satellite launches from Canada

Feds must ban development of superintelligence to prevent democratic erosion, says committee witness

Q&A: Senator explains why Canada needs stronger penalties for copper wire thieves

Related Stories

ISED eyes ‘subscriber’ approach to spectrum access for drones, as Canada’s telcos worry about liability

New Indigenous Priority Window should help bridge Canada’s digital divide: telcos, stakeholders

Government rakes in over $415M from Big Three carriers in residual spectrum auction

Industry minister to conduct new national security review of TikTok, Canadian business allowed to continue operating for now

Reuse & Permissions

Inside The Wire Report

Information

Hill Times Publishing

Get in Touch With Us

Regulatory |
By Phalen Tynes-MacDonald
|April 21, 2026