Telus buys $317.6M in 3,800-megahertz spectrum licences

Executive Summary

• Telus Corp. acquired new 3,800 MHz spectrum licenses in British Columbia and Alberta for $317.6 million through ISED's residual auction.
• The acquisition is intended to enhance 5G wireless broadband connectivity, optimize network speeds, and support emerging 5G applications including public safety, industry automation, and AI services.
• Telus now holds an average of 104 MHz of prime 5G mid-band spectrum (3,500- and 3,800 MHz bands) nationally, acquired at an average price of 82 cents per MHz-pop.

Key Details

• Transaction Value: $317.6 million paid for the spectrum licenses.
• Geographic Scope: Licenses acquired in British Columbia and Alberta.
• Spectrum Band: 3,800 MHz (mid-band), critical for 5G innovation due to the balance of speed and coverage.
• Strategic Positioning: Telus obtained the most spectrum among all auction participants at an attractive price.
• Total Holdings: Telus now has an average of 104 MHz of prime 5G mid-band spectrum in the 3,500- and 3,800 MHz bands nationally.
• Cost Efficiency: Average acquisition price of 82 cents per MHz-pop.
• Use Cases: Supports mission-critical applications such as public safety advanced communications, industry automation, private wireless networks, and real-time, high-availability services for AI applications.
• Financial Impact: The investment is consistent with Telus's capital plan and fiscal discipline; there is no impact to the deleveraging plan.
• Deleveraging Targets: 2025 net debt to adjusted EBITDA is currently at 3.4 times; target is circa 3.3 times or lower by year-end 2026, and 3.0 times or better by the end of 2027.

Notable Quotes

• "In alignment with our commitment to always be building Canada, the acquisition and deployment of this spectrum will further enhance the advancement of our 5G growth strategy and the globally leading network quality, speed and coverage we provide to Canadians," said Darren Entwistle, Telus president and chief executive officer.
• "Importantly, this spectrum will complement Telus's existing holdings to support emerging 5G applications that our team is progressing and that enable mission-critical applications with dedicated and secure resources, such as public safety advanced communications, industry automation and private wireless networks, as well as real-time, high-availability services for AI applications."