The federal government made $4.25 billion Monday from its wireless spectrum sale, and firms trying to break into Canada's cellphone market now have the potential to form a fourth national network.
Fifteen firms took part in the sale, which lasted for 331 rounds of bidding over eight weeks.
Industry Minister Jim Prentice said the bidding should give Canadians more choice in a small market.
"We think consumers will be the big winners in this auction," he said in a press release.
"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."
The government has said the $4.25 billion will go into general revenue, giving it a comfortable financial cushion if the country hits any economic turbulence.
Iain Grant, of telecommunications consultants the Seaboard Group, said the spectrum sale could be a boon for consumers looking for cheaper rates.
"You'll probably have better prices or certainly less 'extras' in terms of prices," he told Â鶹´«Ã½. "You'll also have more responsive providers. People will start listening to you."
Fifteen players took part in the sale, including the three national heavyweights: Rogers Communications Inc., Bell Mobility Inc. and Telus Communications Inc.
Among the successful bidders was little-known Globalive Communications Corp., which sells Yak long-distance services in Toronto. The company spent $442 million to acquire licences to operate in provinces outside Quebec.
"They have some pretty hefty backers from as far afield as Egypt," BNN's Michael Hainsworth told Â鶹´«Ã½net.
"They'll be behind what's expected to be a dirt-cheap pay-as-you-go service that works right across the country -- outside of Quebec," he added.
Shaw Communications Inc., mostly known in the western provinces, Quebecor Inc. and Bragg Communications Inc. were also successful bidders, hoping to broaden their networks.
Rogers spent more than any other firm, buying up $999 million worth of licences. Bell spent $741 million.
A portion of the spectrum was only available for new firms, so major companies like Rogers could not dominate the sale.
Quebecor's Videotron spent $555 million in licences in Quebec. It could now join forces with Globalive to create a national network.
Data & Audio-Visual Enterprises (DAVE) Wireless Inc., which is partly operated by Microsoft co-founder Paul Allen, also bid on $243 million worth of spectrum in Ontario, Alberta and British Columbia.
With a report from CTV's Murray Oliver and files from The Canadian Press
