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TELUS Invests $620 Million to Secure Premium Brand 3800 MHz Spectrum Licences Nationwide for Its 5G Network
Monday, December 4, 2023Company Profile | Follow Company
TELUS secures critically important 3800 MHz spectrum licences, unleashing the full potential of 5G
TELUS now has the largest contiguous 5G channels nationwide with purchase of 72 MHz of premium-band spectrum for $620 million
Burnaby, BC, December 4, 2023--(T-Net)--TELUS Corporation (TELUS) today announced the acquisition of new 3800 MHz spectrum licences nationwide at a cost of $620 million during the recent ISED 3800 MHz auction.
TELUS will now hold licences to an average of 72 MHz of 3800 MHz spectrum nationally, acquired at an average price of $0.24 per MHz-pop. Combined with the 3500 MHz spectrum obtained in 2021, TELUS has secured approximately 100 MHz of prime 5G mid-band spectrum nationally, with contiguity in 96% of the country including all major markets, at an average price of $0.82 per MHz-pop.
TELUS says it is well positioned to fully maximise the efficient use of 5G and the effective development and deployment of 5G products and services conceived of since the launch of this wireless technology.
With mid-band spectrum becoming the critical global band for 5G innovation due to the ideal combination of speed, capacity, low latency, and coverage, this contiguous spectrum provides wider channels and enables a superior network experience for customers.
Darren Entwistle, President and CEO, TELUS Communications Inc.
"The vital, contiguous spectrum that TELUS secured will enable us to bring transformational, next-generation, 5G services to even more Canadians, providing the globally leading network speed, coverage and reliability that our fellow citizens need to thrive in our digital world," said Darren Entwistle, TELUS President and CEO.
"Critically, this spectrum will ensure Canadians continue to benefit from the best network experience in the world, which is facilitating critical, generational change in respect of health, education, teleworking, the environment and the economy. Perhaps most importantly, this spectrum will also help us to bridge digital divides so that every member of our society has the opportunity to realise their full potential. The results of the 3800 MHz auction represent a positive outcome for Canadians and, going forward, we encourage the government to continue this balanced approach to spectrum auctions to ensure affordable, fair and expeditious access to this valuable national asset."
Innovation, Science and Economic Development Canada (ISED) shifted from the previous auction framework utilising set-aside spectrum in favour of a spectrum cap. Spectrum caps are the auction mechanism used almost exclusively by the rest of the world. This shift in the framework now more closely aligns spectrum costs with the competitive prices in the market.
Declining spectrum prices are essential in supporting the 18.6% year over year decline in wireless prices, significant during this heightened inflationary period, according to the company. In addition, this auction design enabled the provision of enough spectrum to the four national operators at a cost comparable to other jurisdictions.
Canada's average price per MHz-pop was in line with the average rate paid in Australia, of $0.26 per MHz-pop (CAD equivalent).
About TELUS
TELUS (TSX: T, NYSE: TU) is a dynamic, world-leading communications technology company with more than $18 billion in annual revenue and over 18 million customer connections spanning wireless, data, IP, voice, television, entertainment, video, and security. Our social purpose is to leverage our global-leading technology and compassion to drive social change and enable remarkable human outcomes.
Our longstanding commitment to putting our customers first fuels every aspect of our business, making us a distinct leader in customer service excellence and loyalty. The numerous, sustained accolades TELUS has earned over the years from independent, industry-leading network insight firms showcase the strength and speed of TELUS' global-leading networks, reinforcing our commitment to provide Canadians with access to superior technology that connects us to the people, resources and information that make our lives better.
Forward-looking Statements: These statements are made pursuant to the "safe harbour" provisions of applicable securities laws in Canada and the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements are subject to inherent risks and uncertainties and are based on assumptions, including assumptions about future economic conditions and courses of action. These assumptions may ultimately prove to have been inaccurate and, as a result, our actual results or events may differ materially from our expectations expressed in or implied by the forward-looking statements. |
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