Telus leads in Canada’s C$755-mn spectrum auction

The Canadian government has raised C$755 million ($628 million) in its latest wireless spectrum auction aiming to boost broadband coverage across vast rural areas.

The spectrum up for sale was in the 2500 MHz band for over 302 licences across the country covering a population of about 100 million.

The Canadian government, which aims to step up broadband service in rural areas said the band is ideal for the purpose although it is used to improve cellular transmission in dense urban areas.

Telus Communications, one of the country's 'big three' telecom companies, led the lot of bidders spending C$479 million to acquire 122 licences in every province in the territory, expanding its total allocation by 37 per cent.

The second-biggest bidder, Quebecor Inc-controlled Videotron which has indicated plans for a national expansion, spent C$187 million for 18 licences in British Columbia, Alberta and Ontario.

Canada's biggest broadband provider in rural areas Xplornet Communications Inc bought new spectrum covering 42 licences across nine provinces, boosting its footprint by 62 per cent.

Other regional players who bought valuable spectrum in their own operating markets included TBay Tel, Eastlink and MTS Inc.

The other two biggies Rogers Communications and BCE's Bell Mobility Inc were less active this time due to their previous acquisitions of spectrum, picking up small chunks scattered across the country, spending C$24 million and C$29 million respectively.

Two months ago, the government raised C$2.1 billion through the auction of AWS-3 wireless spectrum comprising 39 licences, which is key to the roll out of Long Term Evolution (LTE) wireless service.

The government had reserved 60 per cent of the available spectrum solely for bids from new competitors, such as Wind, Mobilicity and Videotron, a move that was designed to boost competition.

Telus took the majority of spectrum in March paying C$1.5 billion for 15 licences, covering Canada's most populous provinces, while Bell bought 13 licences in Atlantic Canada in the north, some in southern Ontario for about C$500 million.

The companies who are allotted spectrum have to deploy it within certain period, unlike earlier auctions in which telecom companies have been criticized for buying up spectrum and sitting on it solely that nobody else can use it.

The government may go in for more spectrum auction this year to balance its budget before the October general election. Last year, it raised C$5.3 billion through the auction of 700 MHz spectrum.