OTTAWA – “It’s a great day for broadband in rural Canada without a doubt.” That was Chris Johnston, executive VP of marketing at Xplornet Communications Inc., in an interview with Cartt.ca on Tuesday after the company won 42 licences in Industry Canada’s 2500 MHz spectrum auction.
With 25 MHz in 42 markets across the country, the broadband communications company will use the spectrum to rollout a near national fixed wireless LTE network, capable of providing rural Canadians with download speeds of 25 Mbps, the ability to stream HD, and all other manner of things consumers can do with a high-speed Internet connection. In essence, Xplornet can now provide existing and new customers with the type of broadband experience that most urban Canadians take for granted.
“What we’re trying to achieve is as much parity as we possible can between rural and urban speeds so that there is no disparity between an urban or a rural customer. We found a way to do it,” Johnston explained. “We’ve been building our capability around fixed wireless and we’re getting better and better at it and this is really the way to do it in order to deliver consistency of speed as well as the data plans that customers are going to need.”
Xplornet has already built a fixed wireless LTE network in New Brunswick, and is rolling out a similar system in both Alberta and Ontario. Securing this additional spectrum is a critical piece of the company’s network plans.
Johnston acknowledges that Xplornet wasn’t able to acquire all of the spectrum it wanted, but says in areas where it didn’t, it will complement its fixed wireless network with satellite broadband to fill in the gaps. It has acquired capacity on next-generation satellites that are expected to be orbiting the earth next year.
Overall, company leadership is satisfied with the way the auction played out.
“I think the other piece that we’re happy about is this is a precedent for how auctions can allow both mobile as well as fixed wireless services an equal opportunity to participate and provide services that benefit rural Canadians in particular,” he added.
Of course, there were other happy winners in the auction. Quebecor/Videotron, in particular, was able to secure additional spectrum in key urban markets outside of Quebec in case the company decides it wants to pursue a national strategy. Videotron also holds 700 MHz in southern Ontario, Alberta and British Columbia and AWS-1 spectrum in Toronto.
"For the spectrum we have acquired in English Canada, we are still analyzing various options that hold out prospects of very attractive returns, given the value of this strategic asset. We will continue patiently and carefully analyzing our options, it being understood that the financial and/or operating conditions will have to fall within acceptable parameters," said Pierre Dion, Quebecor president and CEO, in a statement.
Telus Corp., the big winner in the auction, noted that the 2500 MHz spectrum is a nice complement to its existing bandwidth holdings. It said this spectrum is ideal for carrying large amounts of data, and will fit well with its low-band frequencies that are well suited to penetrating buildings.
Bell Canada, which was limited to bidding on spectrum in the lesser populated regions, noted in a statement that the additional 2500 MHz frequencies will support its LTE services in eastern and western Ontario, Québec, Atlantic Canada, Alberta, British Columbia and the Territories.
