Spectrum auction complexity barrier for fixed wireless providers: Nordicity

OTTAWA — Complex auction and government subsidy application processes are among challenges facing fixed wireless providers looking to obtain spectrum, Nordicity’s Stuart Jack said in a presentation at the CanWISP 2018 conference on Wednesday. “You have to have a PhD in auction-ology,” said Jack to the crowd at the wireless provider conference hosted by the Canadian Association of Wireless Internet Service Providers (CanWISP), shortly before the announcement of the 600 MHz auction framework. Jack was there to update and communicate the results of a survey of fixed wireless companies Nordicity released last year. In the past, fixed wireless operators have needed to deal with headwinds of the large, self-interested telecom incumbents, as well as high costs and different priorities in spectrum licensing, he said. “The spectrum licensing process is another real critical barrier for WISPs in terms of accessing spectrum,” said Jack. “We've seen with the various auction processes, they're very complex and very costly to participate in.” He cited ISED’s use of combinatorial clock auction formats, which have parties bid on aggregated packages of spectrum rather than individual pieces, according to ISED’s website. The 600 MHz auction will also use this format, ISED confirmed Wednesday. While this allows larger players to ensure enough spectrum is purchased to proceed with their business plans, it also makes it challenging for the smaller fixed wireless companies — which only want to purchase spectrum in individual rural communities — to participate, he said. Jack recommended a method where the spectrum sold in smaller pieces as a fairer alternative, as well as setting spectrum prices lower in rural areas. As well, since fixed wireless providers have now experienced a couple of rounds of government broadband subsidies, Jack pointed out ways to improve them. According to his presentation, service providers have had to cancel or delay plans to expand due to the lack of information from ISED during the fund application process. “Providing certainty in terms of funding, making it a permanent fund, expediting the decision making process would go a long way enhancing business plans,” said Jack. In a follow up email, Jack explained that attempts to bring these issues to ISED have been made by CanWISP and individual wireless service providers previously, but “this is the first time they’ve been put forward as a comprehensive, integrated set backed by research,” he wrote.

Spectrum auction complexity barrier for fixed wireless providers: Nordicity

Brief | March 29, 2018

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Spectrum auction complexity barrier for fixed wireless providers: Nordicity

Brief | March 29, 2018

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