Communications (Canada Market)

2023: Canada's largest telecom companies ordered to open networks to create virtual operators

On May 9, 2023, the Canadian Radio-television and Telecommunications Commission (CRTC) approved new rules to create virtual mobile operators (MVNOs). In accordance with the requirements introduced, the country's largest telecommunications providers are required to open their networks to companies that intend to provide MVNO services.

The solution applies to operators operating in Canada - Bell Mobility, Rogers Communications Canada, Saskatchewan Telecommunications and Telus Communications. Under the new rules, they must provide access to their infrastructure at the request of MVNO companies. The official document states that the relevant agreements must be concluded between the parties within 90 days from the date of publication of the order, that is, by August 7, 2023. If this deadline is not met, the CRTC will consider using all tools at its disposal to speed up the process.

Canada's largest telecom providers are required to open their networks to companies that intend to provide MVNO services

The MVNO scheme provides for the provision of communication services without the company having frequencies and associated cellular infrastructure. In this case, the base operator network serves as the basis. According to the CRTC, the new rules will help improve competition in the Canadian mobile market: a wider range of services and tariff plans will become available to subscribers. The adopted document covers issues such as the use of spectrum, the deployment of 5G services, etc.

The Canadian Radio, Television and Telecommunications Commission is taking action to encourage competition in the cellular service market. The current decision builds on our efforts to ensure that the nation's residents benefit from lower prices and more choice of mobile services, CRTC Chairman Vicky Eatrides said in a statement[1]

2021: In Canada, 5G frequencies sell out for billions

At the end of July 2021, an auction for the sale of 5G frequencies in the 3.5 GHz band ended in Canada. The total volume of trading reached C $8.91 billion, the most active were telecom companies Bell, Rogers and Telus.

Bell Mobility acquired 271 licenses worth C $2.07 billion, Rogers Communications spent C $3.33 billion on 325 licenses, and Telus acquired 142 licenses worth C $1.95 billion. Three market leaders, thanks to new licenses, can achieve almost nationwide coverage.

In Canada, 5G frequencies sold out for C $8.91 billion

Other companies participating in the auction include Videotron, with 294 licenses valued at C $830 million, including expansion to four provinces outside of traditional Quebec territory; Sasktel with 68 licenses totaling C $145 million; Cogeco with 38 licenses worth C $295 million; Xplornet with 263 licenses for C $244 million.

The auction began on June 15, 2021, a total of 23 Canadian companies took part in it, of which 15 companies won the spectrum. Licenses for a time period of 20 years were granted on the basis of 172 localised service areas covering the entire country, allowing bidders to target geographical markets including rural areas.

Several other smaller providers have also acquired rights. According to the government, the auction rules provided for the allocation of frequencies up to 50 MHz for small and regional providers in order to increase competition in the mobile market. This method has been proven to help lower prices.

A total of 1,495 of the 1,504 licenses available were issued to 15 Canadian companies, including 757 licenses to small and regional providers nationwide. All 172 service areas have at least one small or regional provider owning the spectrum to provide new services to Canadians by the end of July 2021.^[2]

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