700 MHz auction in Canada: Difference between revisions
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Revision as of 15:11, 5 March 2014
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Comment: Solid references and a notable event. The Ukulele Dude - Aggie80 (talk) 12:46, 1 March 2014 (UTC)
700 MHz auction in Canada was a spectrum auction that took place from January 14th 2014 to February 13th 2014. During this auction the government of Canada sold the rights to the 700 MHz spectrum band to eight telecommunication companies.[1]
Purpose
The Canadian government wished to “encourage more choice and lower prices in Canada's wireless sector” as a result of this auction.[2]
Spectrum and process
700 MHz spectrum was a television spectrum that became available for cellular usage after Canada's switch from analog to digital television in August 2011. While not necessarily faster, this spectrum has the advantage of penetrating through objects better than the existing spectrums. It is also able to travel longer distances which reduces the need for more infrastructures. This can translate into lower costs for providers.[3] For this auction, the spectrum was divided into seven licence blocks in 14 areas, creating a total of 98 licences for government to sell.[4] During this 22-day auction, 108 rounds of bidding occurred.[5] On February 25th 2014, The Globe and Mail reported that, according to sources, some rounds of bidding reached a total of over $7 billion.[6]
Participants and outcome
The initial list of applicants included both major and small players in the wireless industry. Globalive Wireless Management Corp. was among the small players until the day before the beginning of the auction, however, it withdrew from the auction due to the refusal of its major stakeholder to fund the plan.[7] The company's withdrawal, conflicted with the government's plan to have a fourth major player in every region of the country.[8] Below is the initial list of applicants and the status of their application:[9]
| Applicant | Application Status |
|---|---|
| 1770129 Alberta Inc. | Withdrawn |
| Bell Mobility Inc. | Qualified |
| BH Wave Acquisition Corporation | Withdrawn |
| Bragg Communications Incorporated | Qualified |
| Feenix Wireless Inc. | Qualified |
| Globalive Wireless Management Corp. | Withdrawn |
| MTS Inc. | Qualified |
| Novus Wireless Inc. | Qualified |
| Rogers Communications Partnership | Qualified |
| Saskatchewan Telecommunications | Qualified |
| TBayTel | Qualified |
| TELUS Communications Company | Qualified |
| The Catalyst Capital Group Inc. | Withdrawn |
| Vecima Networks Inc. | Withdrawn |
| Vidéotron s.e.n.c. | Qualified |
At the end of the auction, eight of the ten participants won 97 licences and the government generated a total of $5,270,636,002 in revenues.[10][11] Below is the list of winners and the number of their corresponding licences: [12]
| Bidder | Number of Licences Won | Final Price |
|---|---|---|
| Rogers | 22 | 3,291,738,000 |
| Bell | 31 | 565,705,517 |
| TELUS | 30 | 1,142,953,484 |
| MTS | 1 | 8,772,072 |
| SaskTel | 1 | 7,556,929 |
| TBayTel | 0 | — |
| Vidéotron | 7 | 233,328,000 |
| Bragg | 4 | 20,298,000 |
| Novus | 0 | — |
| Feenix | 1 | 284,000 |
See also
- Digital dividend after digital television transition
- List of Canadian mobile phone companies
- List of LTE networks
- Spectrum auction
- Spectrum reallocation
References
- ^ "700 MHz Spectrum Auction-Process and Results". Retrieved 27 February 2014.
- ^ Industry Canada (January 14, 2014). "700 MHz Wireless Spectrum Auction Begins Today". Retrieved 27 February 2014.
- ^ "How the spectrum auction could shake up Canada's wireless industry". The Globe and Mail. 22 February 2014. Retrieved 27 February 2014.
- ^ "700 MHz Spectrum Auction FAQs". Retrieved 27 February 2014.
- ^ "700 MHz Spectrum Auction FAQs". Retrieved 27 February 2014.
- ^ "Spectrum auction bids topped $7-billion". The Globe and Mail. 25 February 2014. Retrieved 27 February 2014.
- ^ "Wind Mobile pulls out of wireless auction". The Globe and Mail. 13 January 2014. Retrieved 27 February 2014.
- ^ "Wind Mobile withdraws from wireless spectrum auction". The Canadian Press. 14 January 2014. Retrieved 27 February 2014.
- ^ "Auction of Spectrum Licences for Mobile Broadband Services (MBS) in the 700 MHz Band". Industry Canada. Retrieved 27 February 2014.
- ^ "700 MHz Auction". Retrieved 27 February 2014.
- ^ "700 MHz Spectrum Auction-Process and Results". Retrieved 27 February 2014.
- ^ "700 MHz Spectrum Auction-Process and Results". Retrieved 27 February 2014.