Decision Provides Certainty and Clarity for
Investment with Potential to Repurpose the 24 GHz Band Prior
to mmWave Auction
TORONTO, May 15, 2024
/CNW/
- TERAGO Inc. ("TERAGO" or the "Company") (TSX: TGO),
(https://terago.ca/), announced corporate developments
today and reiterated confidence in its Fixed Wireless and 5G
strategy following the issuance of Innovation, Science and Economic
Development Canada's ("ISED") Decision on the Licencing
Process For Existing Licencees in the 24 GHz and 38 GHz Bands and
Considerations Related to the mmWave Auction ("Decision").
The Decision re-iterated by the Minister of
Innovation, Science and Industry's objectives for the
licensing of the relevant licences in the 24 GHz band and
38 GHz band. These include to:
- foster investment and the evolution of wireless networks by
enabling the development of high-quality 5G networks and
technology; and
- support sustained competition in the provision of wireless
services so that all consumers and businesses benefit from greater
choice and competitive prices.
"The Decision provides certainty and clarity on our spectrum
licenses, allowing TERAGO to continue to drive innovation and
increase investments in its next generation wireless
connectivity offerings for Canadian businesses. These next
generation offerings foster a growing, competitive and
knowledge-based Canadian economy." said TERAGO
CEO, Daniel Vucinic. "Spectrum is the lifeblood of
any wireless business. As a significant owner of 24 GHz and 38 GHz
mmWave spectrum, this decision provides increased visibility on the
long-term, ensuring fair usage of our wireless spectrum and driving
our ability to invest in a diverse and competitive offering for
Canadian business customers." he added.
About the Decision:
Two major parts to this Decision address: (1) Licence
Renewals; and (2) Potential for repurposing the 24 GHz band prior
to finalizing the mmWave auction framework.
- For Licence renewals, existing 24 GHz and 38 GHz
spectrum licensees must demonstrate to ISED's satisfaction that
they have met all conditions of Licence indicated in the 2014
Renewal Decision. Also, these licences will be issued annually and
will be renewed annually until a new licencing process is
established for 24 GHz and a future transition to flexible use can
occur for 38 GHz bands.
This is significant as TERAGO will continue to hold all existing
licences, ensuring no disruption of services, additional costs,
changes, restrictions and spectrum "claw back" until a new
framework and mmWave auction occurs. Most of all, it provides
additional certainty and clarity to TERAGO's clients, employees,
and shareholders.
- For the 24 GHz band, ISED received a number of
comments requesting it to be repurposed and auctioned along with
the proposed 26, 28 and 38 GHz mmWave bands. ISED recognized that
understanding the full range of spectrum that will be made
available for auction in the mmWave bands will allow stakeholders
to better determine their valuation for mmWave licences and that
the potential use cases for mmWave spectrum, including the amount
of spectrum needed for them, are still developing
As such, ISED plans to consult on the potential for repurposing the
24 GHz band prior to deciding on the timing and structure of the
proposed mmWave auction. Furthermore, ISED recognizes the 24 GHz
licensees' need for certainty regarding the future of their
licences in order to continue to provide service and invest in
infrastructure.
ISED also recognizes that a future flexible use licensing process
would enable the continuation of existing 24 GHz band services and
support the growing demand for next-generation wireless
services
The 3rd Generation Partnership Project (3GPP) has standardized 24
GHz band as part of the global band for 5G. ISED continues to work
towards that direction since they upgraded 24 GHz to Priority 1 in
August 2023 and is consulting on the
repurposing of it prior to deciding on the mmWave auction.
About TERAGO
TERAGO provides managed wireless and wireline connectivity and
private 5G wireless networking services to businesses operating
across Canada. As Canada's biggest mmWave spectrum holders, the
Company possesses exclusive spectrum licenses in the 24 GHz and 38
GHz spectrum bands, which it utilizes to provide secure, dedicated
SLA guaranteed enterprise grade performance that is technology
diverse from buried cables ensuring high availability connectivity
services. TERAGO serves over 1,900 Canadian and Global businesses
operating in major markets across Canada, including Toronto, Montreal, Calgary, Edmonton, Vancouver, Ottawa and Winnipeg, and has been providing wireless
services since 1999. For more information about TERAGO, please
visit www.terago.ca.
Forward-Looking
Statements
This news release includes certain forward-looking statements.
By their nature, forward-looking statements are subject to numerous
risks and uncertainties, some of which are beyond TERAGO's control.
Forward-looking statements may include but are not limited to
statements regarding the further developing our 5G Fixed Wireless
Access program, consistently executing across all fronts of the
business, success in providing Canadian enterprises with managed
services and the 5G fixed wireless trials being conducted by the
Company. All such statements constitute "forward-looking
information" as defined under, applicable Canadian securities laws.
Any statements contained herein that are not statements of
historical facts constitute forward-looking information. The
forward-looking statements reflect the Company's views with respect
to future events and is subject to risks, uncertainties and
assumptions, including those risks set forth in the "Risk Factors"
sections in the annual MD&A of the Company for the year ended
December 31, 2023 available
on www.sedar.com under the Company's corporate profile.
Factors that could cause actual results or events to differ
materially include the inability to consistently achieve sales
growth across all lines of TERAGO's business including managed
services, inability to complete successful 5G technical trials, the
results of the 5G trials not being satisfactory to TERAGO or any of
its technology partners, regulatory requirements may delay or
inhibit the trial, the economic viability of any potential services
that may result from the trial, the ability for TERAGO to further
finance and support any new market opportunities that may present
itself, and industry competitors who may have superior technology
or are quicker to take advantage of 5G technology. Accordingly,
readers should not place undue reliance on forward-looking
statements as several factors could cause actual future results,
conditions, actions or events to differ materially from the
targets, expectations, estimates or intentions expressed with the
forward-looking statements. Except as may be required by applicable
Canadian securities laws, TERAGO does not intend, and disclaims any
obligation, to update or revise any forward-looking statements
whether in words, oral or written as a result of new information,
future events or otherwise.
SOURCE TeraGo Inc.