Attention spectrum pundits, industry Canada has just put out an RFP to ask the topical question: how much is spectrum worth? It would seem that a big chunk of existing spectrum licenses are coming up for renewal, and the government is wondering how much to charge the incumbents to roll the licenses over for another year.
Cellular and Personal Communications services (PCS) have been issued by the Minister for systems operating in the bands 824 to 849 MHz and 869 to 894 MHz for Cellular and 1850 to 1910 MHz and 1930 to 1990 MHz for PCS. Authorizations were assigned through a comparative review process in 1985 and 1995. In addition, PCS spectrum licences were auctioned in 2001. All these licences will be up for renewal at approximately the same time, April 1, 2011, and will attract an annual licence fee for the next 10 year licence term.
The Contractor will be required to complete a study that determines the value of Canada’s Cellular and PCS spectrum in the radio frequency bands 824.040 MHz to 848.970 MHz, 869.040 MHz to 893.970 MHz and 1850 MHz to 1990 MHz.
Industry Canada will take this value into consideration when it determines an annual fee for the renewal of Cellular and PCS spectrum licences.
Industry Canada is aware that there are challenges when trying to determine the underlying value of spectrum. The study should give consideration to, but not be limited by, the following: different frequency bands, different geographic areas, prevailing economic conditions, method used to assign spectrum.
The study should include a description of the proposed approach, data sources and methodology used as well as the rationale for the selection thereof. In so doing, a comparative review of differing valuation practices that could have been used and the rationale for rejecting them should be provided.
The study should assess the relevance of auction results for similar spectrum, both national and international, as well as other relevant market transactions that might be used.
What is the value of spectrum. This is not an easy question. And by that we mean that it’s not an easy question. It’s easy enough to come up with any aswer 42! but, like life the universe and everything else, it’s sometimes more important to be sure we really know what the question is.
How much could the government charge for spectrum?
How much should the government charge for spectrum?
Why should the government effectively taxing spectrum, effectively a tax on the very medium of desperately needed digital infrastructure?
What do they plan to do with the money?
How does this relate to Canada’s would-be digital strategy supposedly being talked up by Clement and others?
So go ahead and put in your offer to tell the govenment what you think about that. (we have half a mind to). But, be warned your answer can’t cost the feds more than $150,000 CAD.
