OTTAWA, September 24, 2003 — Allan Rock, Minister of Industry, today announced that a spectrum auction will take place in January 2004, and initiated its licensing process by releasing a paper, entitled Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands.
Five licences in each of 172 service areas across the country (with the exception of the 3500 MHz licences for Vancouver Island), totalling 848 licenses, will be auctioned for companies to provide innovative wireless services, such as high-speed Internet.
The purpose of this licensing process is to facilitate the growth of wireless communications services in the 2300 MHz band and fixed wireless access in the 3500 MHz band in both rural and urban areas, as well as to facilitate the implementation of new and innovative services.
"Wireless has consistently outperformed the telecom sector over the past few years which have proved to be challenging times," said Minister Rock. "This auction will result in more communities with broadband access, more competition in telecommunications and greater choice for consumers in terms of service alternatives and service providers."
The auction will be held over the Internet in January 2004. At its close, each provisional licence will be awarded to the respective high bidder. To participate in the auction, a potential bidder must submit completed application forms along with a financial deposit to Industry Canada by November 17, 2003. A Web cast will be made available to provide a general overview of the licensing process in the weeks following the publication of this document.
Information regarding the Web cast, the auction schedule and copies of Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands, as well as the associated Canada Gazette notice (DGRB-003-03) and other reference documents are available online at http://strategis.gc.ca/spectrumauctions.
For more information, please contact:
Mylène Dupéré
Press Secretary
Office of the Minister of Industry
(613) 995-9001
Media Relations
Industry Canada
(613) 943-2502
Backgrounder
Spectrum Auction
Selection and Licensing Process
Industry Canada will be assigning spectrum licences for wireless communications services and fixed wireless access through an auction process. The auction will be held over the Internet, using the latest software encryption technology to guarantee the authenticity of the bids. At its close, each provisional licence will be awarded to the respective high bidder.
Spectrum To Be Auctioned
There are five spectrum licences available in 172 service areas across the country (with the exception of the 3500 MHz licences for Vancouver Island): one 15+15 MHz licence in the 2300 MHz band; and three 25+25 MHz licences and one 25 MHz licence in the 3500 MHz band.
Overview of Attributes of 2300 MHz and 3500 MHz Licences
Five licences will be auctioned within 172 areas of the country (with the exception of fixed wireless access systems for Vancouver Island), and will be subject to the following conditions:
- 10-year licence terms;
- transferability and divisibility;
- spectrum aggregation limit — 100 MHz to all participating companies, their affiliates and associated entities;
- implementation requirement — licensee must demonstrate to Industry Canada that the spectrum has been put to use at a level acceptable to the Department, within five years of receipt of licence;
- research and development requirement — 2 percent of adjusted gross revenue, with the exception of small businesses with less than $5 million in annual gross operating revenues;
- open eligibility — successful bidders must be eligible to become radiocommunication carriers; and
- other standard conditions of licence (e.g., interference management, ownership and control, international and domestic coordination).
Deadlines
To participate in the auction, a potential bidder must submit completed application forms along with a financial deposit to Industry Canada by November 17, 2003. The auction is expected to take place in January 2004. Information regarding the auction schedule is available on the Department's Web site.
Copies of Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands, as well as the associated Canada Gazette notice (DGRB-003-03) and other reference documents are available online at http://strategis.gc.ca/spectrumauctions.