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Canada concluded spectrum auction raising $3.5 billion

Bidding in the Canada’s 600 MHz band auction that started on March 12, stood concluded in last week on April 4 with total amount C$3.47 billion spent by Canadian wireless operators to grab the blocks of airwaves required to build-up their next-generation 5G networks.

Innovation, Science and Economic Development released the auction results on Wednesday which highlighted that 12 companies qualified for the bid, which went through 54 bidding rounds over 18 business day. Finally there were 9 participants who remained successful to be awarded with the 104 out of 112 licenses and the auction raises an amount of C$3.47 billion for the government which will be remitted to the Consolidated Revenue Fund, administered by the Receiver General of Canada

The spectrum auction came out with the spending of more than what the analysts were expecting from the same. Moreover it was structured in way that eliminated the need of smaller or regional providers of network like Videotron and Freedom Mobile to compete against the Big Three players, an effort to promote more competition by setting aside 43 percent of the spectrum and to bring down the prices for consumers.

The regional players came out doing well in the auction, said ISED Minister Navdeep Bains, in an interview.

The suitability of low-frequency 600 MHz spectrum for the operators to deliver next-generation of wireless services in urban as well as rural areas, as that frequency band of 600 MHz has better ability of carrying signal not only over long distances but can also penetrate buildings better than the higher frequency bands.

Rogers Communications came on leading the auction with bids of C$1.72 billion to win 52 licenses, which made the operator biggest spender in the Canadian spectrum auctions so far, followed by Telus Corp, which spent C$931.2 million for winning 12 licenses, while Freedom Mobile won 11 licenses for C$492 million.

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Maria Wiggins

Written by Maria Wiggins

Maria Wiggins:- News Stories
I am Maria Wiggins and I have over 11 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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