Graphic Intelligence

|
|

Consequences of High Spectrum Costs

The cost of spectrum is a central factor in the higher wireless bills for Canadian customers relative to customers around the world. Auction design and company behaviour in past auctions pushed prices for Canadian wireless spectrum higher. These high upfront fees coupled with provider’s internal financing restraints can result in lower network re-investment and higher consumer prices.

To address these challenges, policymakers should avoid high minimum auction prices, sluggish or unclear schedules for release of new spectrum, fragmented packaging of spectrum for auction, and auction rules that encourage bidding wars (e.g., opaque auction rounds, lack of spectrum caps).

Share

Related Graphics

Membership Application

Interested in becoming a Member of the C.D. Howe Institute? Please fill out the application form below and our team will be in touch with next steps. Note that Membership is subject to approval.

"*" indicates required fields

Please include a brief description, including why you’d like to become a Member.

Member Login

Not a Member yet? Visit our Membership page to learn more and apply.