Recently Canada’s Minister of Industry announced the government’s plans to better the country’s wireless service, which includes plans for the next Spectrum Auction. The 2500MHz Spectrum Auction which is set in motion to provide faster, and more reliable data services to the country has been said to take place on April 14th in the year 2015, as stated by MarketWired. That is still a ways off, but as Industry Minister James Moore has stated, “Canadians have been very clear… They want us to take action.” There were other talks about potentially lowering the cost of wireless service as well as strengthening the network, which has been another concern for consumers, and in affect with this plan to offer more choices to consumers, should breed lower prices in time.
The idea behind the auction is to bring more choice and lower prices to Canadian consumers, offering them a variety of services at a more economical rate. Moore mentions that the Auction for the 2500MHz spectrum that is set to take place in 2015, will be held in the same exact combinatorial clock auction format as the 700MHz spectrum that is set to take place next week on January 14th. The governments plan behind these steps is to foster competition Moore states, which will happen by setting spectrum caps to ensure that 4 or more wireless carriers will be able to access the 2500MHz spectrum, as well as providing more opportunities for rural internet service providers to participate in the auction.
The 2500MHz spectrum is ideal in providing a faster and more reliable network to consumers who use smartphones and tablet devices, and will also allow certain rural areas to obtain various fixed broadband internet services. As Canadians experience some of the absolute highest wireless rates for service in the developed world, these spectrum auctions are the governments answer to providing its citizens with more choices than they have currently, and ultimately less costly services. More choices means competition, and competition means that companies will have to fight (in a sense) to keep their customers. This plan attempts to give consumers the power here and is a plan that is putting the interests of consumers before the wireless providers themselves. Although complete changes to bring down Canadian wireless rates may still take some time, the plans have at least been set in motion which is a huge step.