Spectrum Auction Verification Services for the 3800 MHz Auction

Radio frequency spectrum is a finite public resource. Both private users and wireless communications service providers require spectrum for a diverse range of uses. ISED, through the Department of Industry Act, the Radiocommunication Act and the Radiocommunication Regulations, with due regard to the objectives of the Telecommunications Act is responsible for spectrum management in Canada. The Spectrum Management Program operates under the guidance of the Spectrum Policy Framework for Canada, which provides a single policy objective and a set of guidelines to guide ISED’s management of this resource.Where the demand for spectrum is not expected to exceed the supply, ISED generally uses a first-come, first-served licensing process to award spectrum licences. In instances where the demand for spectrum is expected to exceed supply, a competitive licensing process, such as an auction, is generally used.The Framework for Spectrum Auctions in Canada describes the general approaches that ISED will use to auction spectrum licences. As indicated in the Spectrum Policy Framework for Canada, the Department has adopted a policy objective to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum resource.In late 2019, ISED ran a competitive tendering process and subsequently contracted Power Auctions LLC of Washington DC, to provide auction consulting and hosting services for the upcoming 3800 MHz spectrum auction.In December 2021, ISED initiated a consultation on the licensing framework (the Framework) for the auction of spectrum in the 3800 MHz band for flexible use. The allocation of 3800 MHz band is expected to foster innovation, investment and the evolution of wireless networks by enabling the development and adoption of 5G technologies.The consultation proposes the use of a clock auction format with intra-round bidding for the 3800 MHz auction. This is a two-stage auction format that provides a simultaneous multiple-round clock stage for generic blocks to determine the quantity of blocks won in each product, followed by an assignment stage to determine the specific frequency assignment of each licence. The auction format will be confirmed in the Licensing Framework Decision.ISED is seeking an independent contractor to verify the Power Auctions software. The Contractor will develop and execute a plan to verify the Power Auctions software, including both the clock and assignment stages ensuring that the software implements the final auction rules in accordance with the Framework. Additionally, the Contractor will develop its own winner and price determination software for the assignment stage of the auction. This winner and price determination software will then be used to test and validate the Power Auctions software as well as to verify the final results of the assignment stage of the auction. At any point in time, if a discrepancy is detected between the two systems, the Contractor will work with ISED to identify the cause of the discrepancy as well as recommend and aid in the implementation of a solution.