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MFido

join:2012-10-19
kudos:2

Canada's 700Mhz spectrum auction is over, results today - 5pm

That is it in 1h ...

akoostik

join:2013-11-07
still waiting...


Teddy Boom
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Toronto, ON
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3 edits
Click for full size
I think we can all agree that this was spectacularly successful policy. The consumer has been protected fully. There is no question that we have a healthy competitive marketplace.

Edit: The cost summary..

Bidder            # of Licences                Price        Population
Feenix           1 Paired + 0 Unpaired            $284K         107K
MTS              1 Paired + 0 Unpaired           $9M           1M
Bragg            4 Paired + 0 Unpaired          $20M           3M
TELUS            16 Paired + 14 Unpaired     $1,142M          33M
Vidéotron        7 Paired + 0 Unpaired         $233M          28M
Bell             17 Paired + 14 Unpaired       $566M          33M
Sasktel          1 Paired + 0 Unpaired           $8M           1M
Rogers           22 Paired + 0 Unpaired      $3,292M          33M
 

--
electronicsguru.ca


Spike
Premium
join:2008-05-16
Toronto, ON
reply to MFido
The sarcasm can be sniffed out for miles in here.

akoostik

join:2013-11-07
reply to Teddy Boom
Good to see Videotron winning in Alberta/BC


Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23

1 edit
reply to MFido
So Videotron is going national, then. They bought spectrum covering 28 of 33 million people covered by the total of the service areas...

The question is, how will Videotron's spectrum and Rogers spectrum work? The two companies have an agreement to operate a shared LTE network in Quebec, so basically all Rogers/Videotron 700MHz spectrum will be powering the same network here. It doesn't make much sense for Videotron to deploy new towers in the rest of the country, though...

My guess is that Videotron and Rogers will probably do something kind of like what Bell and TELUS do. Videotron manages physical network in Quebec, Rogers manages physical network outside Quebec, both contribute all their 700MHz spectrum, and both operate independent national brands.

That said, C1 is a 5+5 MHz pair. Even with LTE Advanced and multi-channel bonding, that's not a whole lot. If they were going to actually build out their own network, it's fine for Quebec because that 5+5 is added to their existing AWS spectrum here, and they already have 10MHz AWS in southern Ontario but it's not necessarily enough for out west.
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Teddy Boom
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reply to Teddy Boom
said by Teddy Boom:

The cost summary..

Bidder            # of Licences                Price        Population
Feenix           1 Paired + 0 Unpaired            $284K         107K
MTS              1 Paired + 0 Unpaired           $9M           1M
Bragg            4 Paired + 0 Unpaired          $20M           3M
TELUS            16 Paired + 14 Unpaired     $1,142M          33M
Vidéotron        7 Paired + 0 Unpaired         $233M          28M
Bell             17 Paired + 14 Unpaired       $566M          33M
Sasktel          1 Paired + 0 Unpaired           $8M           1M
Rogers           22 Paired + 0 Unpaired      $3,292M          33M
 

So.. How did Bell get so much for so little?! Videotron did great on the new entrant free pass.

Anybody have more on the terms of the licenses? How many years before you have to pay again and so on?
--
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Guspaz
Guspaz
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Montreal, QC
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Bell/TELUS got spectrum on the cheap because they went for the less desirable spectrum, and because they were two companies co-ordinating their bids. Rogers acted alone (unless they were working with Videotron), and went mostly after the most desirable spectrum...
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Montreal DSL

join:2011-02-02
Montreal-DSL
Reviews:
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reply to MFido
$5.27 billion raised vs. $1.8 billion initially estimated / expected. Not bad for the government ...

I see Rogers + Videotron team up vs. Bell + Telus country wide ... or at least in the 4 biggest provinces.

Rogers purchased A and B block spectrum – which is aligned with AT&T in the US
Videotron’s seven blocks were all in the upper C1 block, which is inter-operable with Verizon in the States.

as per: »mobilesyrup.com/2014/02/19/gover···-and-bc/

and

»news.gc.ca/web/article-en.do?nid=816869


Guspaz
Guspaz
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Montreal, QC
kudos:23
reply to MFido
Dunno about payment terms, but the buildout requirements:

- Must deploy to 20-50% of the covered population within 10 years, depending on the area

- If you win two or more paired blocks in a rural area, and you had an existing HSPA network in that area in 2012, your 700MHz network must cover 90% of the population your HSPA network covered within 5 years, and 97% within 7 years.
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Teddy Boom
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I guess what really matters though, is expiry. If these licenses are sold in perpetuity or not? Without knowing any better, it seems likely that this is a 99 year lease?
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electronicsguru.ca


Teddy Boom
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reply to Guspaz
said by Guspaz:

Bell/TELUS got spectrum on the cheap because they went for the less desirable spectrum, and because they were two companies co-ordinating their bids. Rogers acted alone (unless they were working with Videotron), and went mostly after the most desirable spectrum...

On the face of it it, Bell did way better than Telus. Are the A/B/C blocks that much more desirable than the others? What actual frequencies are we talking about here...
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Teddy Boom
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Click for full size
said by Teddy Boom:

What actual frequencies are we talking about here...

From here:
»canadianspectrumpolicyresearch.o···auction/

The D* blocks are reserved for future allocation:
»www.ic.gc.ca/eic/site/smt-gst.ns···html#pB2
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Montreal DSL

join:2011-02-02
Montreal-DSL
Reviews:
·TekSavvy Cable
reply to Teddy Boom
said by Teddy Boom:

I guess what really matters though, is expiry. If these licenses are sold in perpetuity or not? Without knowing any better, it seems likely that this is a 99 year lease?

20 years?

"....accounting rules require the government to record the revenue haul in increments over the 20 year period of the spectrum license instead of all at once."

»www.theglobeandmail.com/report-o···6980570/


pstewart
Premium,VIP
join:2005-10-12
Peterborough, ON
kudos:1
reply to Teddy Boom
I'd love to know where this money goes within government ... we're talking billions of dollars here.

mr weather
Premium
join:2002-02-27
Mississauga, ON
Two words: general revenue.

ings
Premium
join:2004-12-22
Toronto, ON

1 edit
said by mr weather:

Two words: general revenue.

Exactly. Federal government spending (including transfers) is roughly $275 billion per year. That makes the roughly $5 billion raised in the auction more or less a rounding error.

ings
Premium
join:2004-12-22
Toronto, ON
said by ings:

more or less a rounding error.

Plus the Globe's story reports that "accounting rules require the government to record the revenue haul in increments over the 20 year period of the spectrum license instead of all at once."


nitzguy
Premium
join:2002-07-11
Sudbury, ON
reply to MFido
I'm actually quite happy about Bragg bidding on some spectrum (known as Eastlink for those outside of the Centre of the Universe).

It'll be nice to have a legitimate 4th option at least for us in Northern Ontario....although it will be interesting to see how it all plays out of course...but I see they've bought spectrum out east, so definitely coming in as a regional player and since I have 3 services with them already, the quadruple play should definitely be a value hopefully for me anyways...


elwoodblues
Elwood Blues
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Somewhere in
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reply to mr weather
said by mr weather:

Two words: general revenue.

Two word : Tax cuts
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elwoodblues
Elwood Blues
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reply to ings
Uhm no,that's 2% of their spending, hardly a "rounding error" now if you said 5 million then I'd agree.
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elwoodblues
Elwood Blues
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reply to MFido
VTL is just goinging the Robellus cartel, I don't seem them being cheap like Wind.
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pnjunction
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Toronto, ON
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1 recommendation

reply to MFido
Everything about this stuff is f'ed to me. They compete over who gets to pay the most money to government and it is the consumers who foot the bill because we don't really get much choice in the end.

In a time where complain people loudly about both taxes and wireless costs, I can't believe this scheme that effectively shovels money from our wireless bills over to the government while reducing competition is simply accepted. I guess it's a testament to people's ignorance of everything that isn't right in front of their face, and the power of "well that's just the way it is" to keep absolute bullshit going.

accord1999

join:2011-10-14
Calgary, AB
reply to Teddy Boom
said by Teddy Boom:

On the face of it it, Bell did way better than Telus. Are the A/B/C blocks that much more desirable than the others? What actual frequencies are we talking about here...

A is not that valuable with virtually no phone support; B and C are the most valuable since they are compatible with AT&T and nearly all LTE phones in Canada already supports these blocks. C1 and C2 are also valuable because they are compatible with Verizon.


Guspaz
Guspaz
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join:2001-11-05
Montreal, QC
kudos:23
reply to elwoodblues
said by elwoodblues:

VTL is just goinging the Robellus cartel, I don't seem them being cheap like Wind.

Maybe not, but Videotron did briefly offer that unlimited data plan, which Robellus don't do for even brief periods.
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Spike
Premium
join:2008-05-16
Toronto, ON

4 edits
reply to pnjunction
said by pnjunction:

Everything about this stuff is f'ed to me. They compete over who gets to pay the most money to government and it is the consumers who foot the bill because we don't really get much choice in the end.

In a time where complain people loudly about both taxes and wireless costs, I can't believe this scheme that effectively shovels money from our wireless bills over to the government while reducing competition is simply accepted. I guess it's a testament to people's ignorance of everything that isn't right in front of their face, and the power of "well that's just the way it is" to keep absolute bullshit going.

Agreed, they take away a huge chunk of our public OTA TV spectrum and what exactly do we get to show for it in return?

More of the same overpriced crap, thats what. None of this benefits anyone other than the big 3 bottom line due to requiring less towers for the same coverage areas. The fact that the big 3 can manage to blow this much on something they don't really need is a testament of how much they continue to gouge us while laughing all the way to the bank. Cheap wireless internet in rural areas is just a pipedream while the incumbents own just about everything. The bidding process simply raises the cost of entry much higher than it needs to be, all while encouraging spectrum hoarding for anti-competitive purposes, nothing more.


elwoodblues
Elwood Blues
Premium
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Somewhere in
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reply to pnjunction
But they are "looking out for consumers"


HiVolt
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reply to Guspaz
said by Guspaz:

said by elwoodblues:

VTL is just goinging the Robellus cartel, I don't seem them being cheap like Wind.

Maybe not, but Videotron did briefly offer that unlimited data plan, which Robellus don't do for even brief periods.

I don't need unlimited... 99% of people don't need unlimited mobile data...

What we need is reasonable prices on data around 5-6gb/month.
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El Quintron
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said by HiVolt:

What we need is reasonable prices on data around 5-6gb/month.

For now, the need is going to grow. You also have to keep in mind that some areas aren't going to get wireline infrastructure and those areas are going to need significantly higher caps, because their wifi/LTE/Future Wireless tech is going to be completely replacing wired infrastructure rather than complementing it.

EQ
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HiVolt
Premium
join:2000-12-28
Toronto, ON
kudos:21
True, for those who dont have access to wireline. But for cellphone plans, they can give us lower prices.
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