OTTAWA, Ont. - The federal government raked in $5.27 billion in the latest wireless spectrum auction, the most Ottawa has ever received in such a sale.
Industry Canada announced Wednesday that the biggest buyer of the 20-year licenses was Rogers (
TSX:T.RCI.B,
Stock Forum), which paid $3.29 billion for 22 licenses across the country, except in the Yukon, Northwest Territories and Nunavut.
Telus (
TSX:T.T,
Stock Forum) spent just over $1.14 billion for 30 licenses, while Bell spent (
TSX:T.BCE,
Stock Forum) $565.7 million for 31 licenses.
In total, the auction saw some 10 bidders participate, with eight of them winning licenses.
Quebecor (
TSX:T.QBR,
Stock Forum) subsidiary Videotron was the biggest buyer outside of the big three telecommunications companies, spending $233.3 million. In addition to the spectrum in its home market of Quebec, Videotron also acquired licenses in Ontario, Alberta and British Columbia giving it a platform for growth in Canada's most populous province and Western Canada.
“Canadians will soon benefit from a fourth wireless player in every region of the country having access to this high-quality spectrum to provide all Canadians with dependable, high-speed wireless services on the latest technologies,” Industry Minister James Moore said in a statement.
“Canadians have been clear that they want more choice, lower prices and better service in our wireless industry.”
The airwaves up for grabs are considered particularly valuable because they allow signals to travel further and penetrate buildings and tunnels where calls are often dropped.
They became available after television broadcasters switched to digital signals.
97 of the 98 available licenses were sold during the 108 rounds of bidding that took place over 22 business days.
The previous auction in 2008 raised $4.3 billion for federal coffers and saw the addition of several new wireless companies.
Another auction for wireless licenses for the 2,500 megahertz band is set for April 2015.