4.3 billion dollars paid at Canadian auction for wireless licenses

Industry Canada announced Monday that 282 wireless licenses have been assigned to 15 companies who paid a total 4.3 billion dollars (Canadian, US) at auction for the spectrum rights.

The successful bidders included leading Canadian cell phone service providers Bell Mobility, Telus and Rogers Communications, as well as several newcomers to the marketplace.

Of the 105 megahertz of spectrum made available, 40 megahertz was set aside exclusively for new entrants to bid on, said the government ministry.

The aim was to increase the number of service providers in Canada and boost competition, leading to lower cell phone service prices for consumers.

"The auction exceeded our expectations in terms of the level of competitive bidding activity. I hope the industry keeps this competitive spirit alive as it enhances and expands its services with improved access to the spectrum," said Industry Minister Jim Prentice.