The federal government will again tailor the next auction of wireless spectrum to make it even easier for new entrants to get a head start on competing with the big three incumbents.
Industry Minister James Moore made the announcement at an event in Toronto on Monday morning.
Moore gave details on an upcoming auction of wireless spectrum, known as the AWS-3 band. Wireless spectrum is the network over which cellular signals travel and transmit information. The government controls access to the spectrum and auctions it off to companies that wish to use it.
Previous auctions, with the exception of one in 2008 that gave birth to new companies such as Mobilicity, Public Mobile and Wind Mobile, have been dominated by three major players — Rogers, Bell and Telus — which together control 95% of the wireless business in Canada today.
Ottawa has a stated policy of trying to spur new investment in the sector and would prefer to see a fourth truly national wireless player, but so far no such company has emerged. The government's hoping to change that with the next auction of so-called AWS-3 spectrum, currently slated for some time in early 2015.
There's also another auction of spectrum coming up, with the 2,500-MHz block of wireless airwaves slated to be sold off next April. The AWS-3 auction will happen before that, Moore confirmed Monday.
The AWS band up for grabs is of a higher frequency than most of what's currently being used, which means it's able to transmit more data if you can get a signal, but it's less able to penetrate thick walls such as parking garages and subways. It's also less useful in remote areas, because you need more cellular towers closer together in order to get a signal.
Specifically, Ottawa is going to tailor the auction in favour of new entrants in three ways:
More than half (30 megahertz out of 50 megahertz total) will be set aside for new entrants
There will be strict provisions on the transfer of spectrum between companies after the auction
The auction process will be simpler, shorter and more streamlined, so that new entrants have a much more visible sense of how to make a go of it.
The new spectrum will be "ideal for delivering fast reliable service on the latest devices," Moore said.
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