Industry group CWTA laments high spectrum licence fees

16 Jul 2010

According to the Canadian Wireless Telecommunications Association (CWTA), the country’s telecoms operators pay the highest spectrum licence fees in the G7, and second only to Australia in the developed world. The industry group says that in 2010 Canada’s telcos will spend nearly CAD130 million (USD125 million) on spectrum licence fees, a cost that is ultimately borne by the customer and which acts as a disincentive to invest in network expansion. ‘Excessive and arbitrary fees, levies and other regulatory charges will only serve to redirect funding that could otherwise be spent on further network investment,’ CWTA president and chief executive Bernard Lord stated. The CWTA claims that if the fee model used by the US was used in Canada, operators would pay less than CAD4 million in concession fees.