Canada, 18.09.2024

Spectrum for Mobile Operators in Canada: A Comprehensive Overview

 Key Players in Canada’s Mobile Market

The Canadian mobile landscape is dominated by three major national operators:

1. Rogers Communications: One of the largest telecommunications companies, Rogers offers extensive 4G and 5G services across the country.
2. Bell Canada (BCE): Bell operates a national wireless network, providing mobile, broadband, and television services.
3. Telus Communications: Known for its high-quality customer service and technological investments, Telus also operates a national wireless network.

In addition to these major players, regional operators like Videotron in Quebec and SaskTel in Saskatchewan, along with Mobile Virtual Network Operators (MVNOs), offer localized or smaller-scale services, often at competitive prices.

Spectrum Allocation in Canada

Spectrum allocation in Canada is a regulated process led by ISED Canada. The government holds spectrum auctions where operators bid for licenses to use specific frequency bands. The goal is to balance competition, ensure efficient use of spectrum, and maximize the benefits for consumers and businesses.

Key Frequency Bands

• 700 MHz and 850 MHz: These lower-frequency bands are crucial for rural coverage and indoor penetration. They are often used for 4G LTE services and provide strong nationwide coverage.
• 1700/2100 MHz: Also known as AWS (Advanced Wireless Services), these frequencies are widely used for 4G networks, offering a balance between coverage and capacity.
• 2600 MHz: A higher-frequency band, this is used in densely populated urban areas for faster data speeds and increased network capacity.
• 3500 MHz and mmWave (26 GHz to 28 GHz): These are vital for 5G networks, which require higher bandwidth to support faster data rates, low latency, and massive device connectivity. The 3500 MHz band is seen as a cornerstone of Canada's 5G future, providing a mix of coverage and capacity, while millimeter wave (mmWave) frequencies are crucial for ultra-fast speeds in urban areas.

Recent Developments in Spectrum Auctions

Canada has held several key spectrum auctions in recent years, each playing a vital role in the evolution of 5G networks. In 2021, ISED auctioned off licenses in the 3500 MHz band, which is critical for 5G deployment. The auction raised over CAD 8.9 billion, with major players like Rogers, Bell, and Telus securing large portions of the spectrum.

• Rogers spent CAD 3.3 billion to acquire 52 licenses, covering urban and rural areas.
• Bell invested CAD 2.1 billion for licenses to expand its 5G services.
• Telus spent CAD 1.95 billion for spectrum licenses to enhance its 5G network.

The 2023 auction of the 3800 MHz band, which complements the 3500 MHz band, further accelerates the development of 5G in Canada. This spectrum band allows for improved network capacity and coverage, crucial for meeting future data demands, particularly with the rise of smart cities, IoT (Internet of Things), and autonomous vehicles.

Challenges in Spectrum Management

While spectrum auctions are critical for securing licenses, they come with challenges. Canada's vast geography, which includes remote and rural areas, poses unique difficulties for providing ubiquitous mobile coverage. Lower-frequency bands are often essential for these regions, but they are limited, creating intense competition among operators. Moreover, spectrum prices in Canada are among the highest globally, which can drive up costs for mobile operators and potentially increase prices for consumers.

Additionally, the rise of 5G has created a need for more spectrum in higher-frequency bands, like the 26 GHz and 28 GHz mmWave bands. While these bands offer incredible speeds, they have shorter transmission ranges and require more infrastructure, such as small cells, to ensure seamless connectivity.

Future Prospects: The 5G Era and Beyond

As Canada transitions into the 5G era, spectrum will continue to play a crucial role in shaping the mobile landscape. The 5G network promises faster data speeds, lower latency, and the ability to support millions of connected devices, which will drive innovations in sectors like healthcare, transportation, and manufacturing. The rollout of 5G will also be instrumental in advancing IoT, enabling smart cities, and supporting the development of autonomous vehicles.

To ensure that Canada remains competitive in the global digital economy, ongoing investments in spectrum are essential. ISED is expected to continue auctioning off more spectrum bands, including the highly anticipated mmWave bands, to provide additional capacity for 5G networks.

 

Latest frequency spectrum allocation for Canada is reflected in our database and can be found here: https://www.spectrum-tracker.com/Canada