Canada’s Spectrum Policy: Securing Mid-Band Capacity for 5G and 6G Leadership

Spectrum provides the hidden highways that connect us all to digital services through mobile. Having enough lanes on these highways—enough spectrum capacity—to avoid congestion is increasingly important for countries that wish to maintain a competitive edge. 6G, the next generation of mobile technology, is expected at the start of the next decade and will deliver advanced networking capabilities that enhance existing applications and enable new ones. Extended reality, AI and enterprise digitalization will all require bandwidth.

Building on its successful 5G rollout, Canada can take advantage of the socio-economic benefits that mobile can add to its economy by securing additional spectrum resources and implementing policies that allow the mobile industry to flourish.

Canada’s Strong Investment Record and Emerging Pressures

Canadian mobile network operators have been at the forefront of global mobile network development, having invested more than $50 billion in mobile CapEx since 2010. This includes a $4 billion investment in 2023, as operators continued to deploy 5G networks across the country. Canada’s three main mobile operators—Bell, Rogers and Telus—have also invested significantly in infrastructure beyond mobile. The combined total CapEx figures for the three operators surpassed $7 billion in 2024—almost double their investment in mobile infrastructure alone.

The impact of these investments is already starting to be felt as 5G connections are now above 62%, surpassing 4G (36%). These figures are among the best in the world alongside other leading markets such as Norway, Sweden, the US and South Korea. An increasing number of Canadians are accessing high-quality mobile services as operators continue to deliver cost reductions of nearly 20% per year since achieving the Government’s 25% target in 2021.

However, Canadian operators are encountering challenges similar to those of their counterparts worldwide, which could threaten service quality, 5G development and 6G deployment. Operator revenues are impacted by average revenue per user (ARPU) reductions of 12% in the last 5 years. Such ARPU reduction can support digital inclusion, but against a backdrop of rising spectrum costs, it increases the cost burden on operators and constrains critical network investments.

On average, global spectrum costs now account for 7% of operator revenues, a 63% increase over the past 10 years. This is not easy for operators anywhere, but the burden of spectrum cost for operators in Canada, which has increased by more than 300% since 2013, primarily due to acquiring additional spectrum and certain policy decisions, is among the highest in the world.

The Coming Capacity Crunch: Mid-Band, 6 GHz and Beyond

The impact of spectrum affordability becomes evident for operators and consumers when spectrum grows congested. By 2040, North America will need an average of 2.7-3.8 GHz of mid-band spectrum—a lot more than it has today. This need is driven by a growth in data traffic, which is expected to reach 240-575 GB per month per connection, again a significant increase on today’s levels as multi-device ownership proliferates and smartphone use saturates.

Countries are focusing their attention on mid-band (1GHz to 10 GHz) spectrum, which offers city-wide capacity, enabling high-speed, reliable connectivity in densely populated urban areas. Mid-bands offer a lot of capacity, but operators need to buy more to expand the bandwidth of their spectrum highways. While Canada has already assigned parts of the core 3.5 GHz band to mobile operators, Canadian consumers and businesses will require expanded assignments and finding new bandwidth. Globally, this is being found in the upper 6 GHz band, seen by mobile operators as the foundation for the next phase of mobile evolution. Canada is not making use of this and needs ideas to expand its capacity for future growth.

While the upper 6 GHz will form the next capacity solution for mobile in most of the world, bands being discussed at the next World Radiocommunication Conference in 2027 (WRC-27)—namely 4.5 and 7-8 GHz—become more important in Canada which does not have access to the upper 6 GHz spectrum (which is being used in the US and Canada for Wi-Fi).

Other spectrum solutions are required as well. Low spectrum bands have less bandwidth but propagate further over wide areas. As 6G deployment advances in the mid‑bands, complementary low‑band spectrum (below 1 GHz) will remain vital for expanding coverage in rural regions, improving indoor connectivity, and supporting greater digital equity. Strengthening rural coverage is especially important for Canada, where vast geography and dispersed populations make wide‑area, reliable mobile service essential to national success.

Aligning Global Harmonization With National Spectrum Policy

One policy theme in Innovation, Science and Economic Development Canada’s (ISED) Spectrum Outlook 2023 to 2027, captures how spectrum is an economic driver and enabler of Industry 4.0. Canada’s long-term digital competitiveness depends on two main things: a spectrum policy framework aligned with global harmonization and investment-enabling national regulation.

To meet its rising capacity needs, Canada will have opportunities to engage in international fora, particularly through proactive participation in the WRC‑27 cycle. WRC-27 will consider new candidate bands such as 4.5 GHz and 7 GHz, which can provide globally harmonized spectrum for future mobile evolution. Harmonization achieved through the WRC process strengthens global device ecosystems and gives operators predictable access to long‑term spectrum resources that support investment and innovation. A significant step forward for Canada would be to look again at the upper 6 GHz band for licensed mobile use, aligning its approach with leading international markets that have already moved in this direction. More than 80% of the global population will make use of 6 GHz mobile, meaning both the economies of scale and diversity for mobile devices are huge.

At home, if national policies are used to reinforce these international efforts, they can foster investment conditions that allow operators to expand capacity, improve service quality and enhance affordability. High spectrum prices directly constrain network investment, leading to lower coverage and slower speeds for consumers. A 10‑percentage‑point decrease in spectrum‑cost‑to‑revenue ratio can increase coverage by up to 6 percentage points and increase download speeds by 8%, showing that affordable prices have profound implications for national digital outcomes.

Expanding Spectrum Highways to Sustain Canada’s Leadership

Ensuring mobile operators have the spectrum they need will directly improve how Canadians access vital services like telehealth, e-learning, and work, while empowering businesses to adopt cutting‑edge technologies that drive productivity and strengthen the economy. Expanding and modernizing Canada’s spectrum highways will help keep its people and businesses moving forward without bottlenecks, ensuring the nation remains competitive in an increasingly connected world.