OSPE - COVID-19 Economic Recovery Recommendations - Federal Government - 17

5. Invest in 5G deployment through an efficient, flexible, and sustainable approach to spectrum
management and network coverage, in consultation with the engineering community.
COVID-19 has placed an unprecedented demand on communication networks. With more individuals working from home, network
bandwidth and reliability have become key issues of concern for all levels of government. The demands on the network are only
expected to increase as Canada progresses through its digital evolution in its effort to remain competitive.
The development and deployment of 5G-networks is expected to fuel Canadian innovation. The potential benefits will diffuse across
various sectors including but not limited to manufacturing, transportation, agriculture, and healthcare. The features of 5G such as ultra-low
latency, high bandwidth and improved machine-to-machine communication will enable a wide range of applications. According to the
Canadian Wireless Telecommunications Association, 5G is expected to generate $40 billion of annual GDP by 2026 and create 250,000
new jobs. Disruptive technologies such as autonomous vehicles, artificial intelligence, smart city applications, and quantum computing
will be maximized when combined with 5G networks.
In addition, 5G deployment has the potential to significantly improve the digital divide between rural and urban Canadians. The Canadian
Government has committed to achieving 95% broadband coverage across the country by 2026. According to a report by Accenture 5G
fixed wireless access technology is one way to improve rural connectivity, addressing the challenges related to last-mile network
infrastructure, at a lower cost than Fibre-to-the-Premise (FTTP) deployment.
We commend the government for investments and collaboration through initiatives such as ENCQOR 5G and CENGEN to support SMEs
to collaborate with the MNEs and 5G tech providers (Thales, Ericsson, etc.) to develop innovative solutions that leverage 5G. However, to
materialize those benefits there are challenges regarding spectrum availability and cost, infrastructure, and regulation that must be
addressed.
Here we focus on spectrum cost and availability as this is a major governing factor affecting capacity, coverage, and network rollout in
most deployments. Deploying a 5G network, like all previous wireless network evolutions, is not just enhancing the existing system, but
requires building out an entire new network from the core elements right out to every cell tower and radio. Besides core elements to
provide 5G, there will be requirements for greater density of cell sites with backhaul capability and advanced antennas transmitting in
specific frequency bands. While the service providers will have to invest massively to build the 5G network, they will also require the
bandwidth to communicate with the end-use devices (spectrum) which is in very short supply and must be managed in the most optimal
manner.
The Canadian Government has auctioned off spectrum to the highest bidders generating significant revenue. However, as equipment
and expertise costs for newer technology grow, while revenues get squeezed due to competition and regulation, providers globally are
increasingly challenged to finance the upgrade to 5G. Government spectrum auctions should be structured with these costs in mind.
17

OSPE - COVID-19 Economic Recovery Recommendations - Federal Government

Table of Contents for the Digital Edition of OSPE - COVID-19 Economic Recovery Recommendations - Federal Government