By Greg O’Brien
OTTAWA – No one likes delay, especially when it comes to the auction of the wireless spectrum which will drive the primary advantages of 5G wireless technology.
Canadian wireless companies have been clamouring for access to 3500 MHz (3.5 GHz if you prefer) because the mid-band spectrum will deliver the speed and low latency so key to 5G’s future and all were anxious to get to this December’s auction and hit the gas on the next generation of wireless.
Then the coronavirus pandemic hit.
While company CEOs like Joe Natale (Rogers), Mirko Bibic (Bell), Darren Entwistle (Telus), and Brad Shaw (Shaw) have all stated publicly their preference was for the auction to go ahead – suggesting payment for spectrum purchased at auction be delayed until their finances stabilized, inside Canada’s wireless companies, Cartt.ca heard from some employees over the past few weeks who were hoping the auction would be pushed back.
The auction is a very specialized process and billions of dollars, not to mention the future of companies, are at stake and teams spread out working from home is a sub-optimal way to prepare for and execute something so important. Canada’s wireless companies are also working flat out to adjust to keeping Canadians connected through the pandemic, seeing revenue fluctuate or drop in ways which couldn’t be foreseen, while their own employee work situations have changed – which has increased stressors on tens of thousands of employees and management.
We’re not yet on the other side of this crisis and it’s hard to foresee when the world might settle on a new normal, so having a complex spectrum process as part of the mix while the companies work towards that, would be difficult. The delay should also allow enough time for the companies’ finances to stabilize. While the telecom companies have not been hit as hard as other sectors, growth and certain lines of revenue have taken a hit.
Plus the auction was expected to take about three weeks to complete, starting on December 15, and with this Christmas season looking (hopefully) like the time when families might be able to take some real time off to gather and celebrate more “normally” again, it makes sense for the auction to be put off. There are surely some on the Innovation, Science and Economic Development group in charge of the auction thinking the same.
All that to say it’s not surprising then that ISED minister Navdeep Bains announced today the 3500 MHz auction will be delayed until June 15, 2021, “to allow the telecommunications industry to maintain its focus on providing essential services to Canadians during the Covid-19 pandemic,” reads this afternoon’s press release. ISED “will continue to monitor Covid-19’s impact on the telecom industry and remains open to further changes to the timelines for spectrum auctions if necessary.”
Bains also announced a consultation on an additional chunk of mid-band spectrum, 3800 MHz, would be launched in August.
As well, in keeping with the federal government’s goal of a 25% reduction in wireless service prices over the next two years, Bains said that the first quarterly pricing report on 2GB to 6GB data plans will be made available online in July.
The companies themselves seem on board with the government’s decision to delay.
“Given the pandemic’s impact on Canadian society and overall business operations, we support the decision to provide additional time for industry and the government to prepare for this auction. A well-run auction process will ensure that Canadians and the Canadian economy will benefit from strong competition in wireless and 5G for years to come,” said Shaw Communications vice-president of external affairs Chethan Lakshman
“Given the current situation, it was the right decision to take. We will be ready in June 2021,” added Videotron spokesperson Merick Seguin.
“While we would like to see the auction proceed as soon as possible, we appreciate the government’s recognition of facilities-based carriers for keeping Canadians connected at all times, even during the pandemic,” said Telus spokesperson Richard Gilhooley.
