All of TeraGo's 38 GHz licences will be
eligible for renewal and conversion to flexible use to support
future mobile 5G services
TORONTO, June 6, 2019 /CNW/ - TeraGo Inc. ("TeraGo"
or the "Company") (TSX: TGO, www.terago.ca), is pleased to
announce that upon expiry in 2025, all of its 38 GHz fixed wireless
spectrum licences in compliance with current licence conditions
will be eligible for renewal under the new flexible use licence
model as part of Innovation, Science and Economic Development
Canada's (ISED) decision on releasing millimetre wave spectrum to
support 5G, which came out yesterday.
"TeraGo applauds ISED's decision to permit existing 38 GHz
licensees to retain their spectrum and apply for flexible use
licences in 2025," said Tony
Ciciretto, President and CEO of TeraGo. "Future conversion
to a flexible use licencing model provides continuity for our
business and reaffirms the value of our spectrum assets as a
critical resource in delivering 5G services in the future."
Mr. Ciciretto added, "Over the years, TeraGo has made
substantial investments to develop and deploy economical, reliable,
and scalable wireless broadband services over the 38 GHz spectrum
band to businesses across Canada.
This decision recognizes the long-term value of our investments in
spectrum and provides assurances to preserve and grow our current
business. It also opens up the possibility for TeraGo to explore
options for broader use applications of the spectrum including
working with other operators and stakeholders in the industry to
deliver on the promise of 5G."
TeraGo is currently the largest holder of licenced 38 GHz
spectrum in Canada with 25 of 27
issued licences covering 1.7 billion MHz/Pops in 10
markets1. Since 1999, TeraGo has invested in excess of
$10 million in spectrum equipment and
technology development in order to operate its business.
TeraGo also holds licences in the 24 GHz band across eight major
markets including Canada's six
largest cities covering 6.9 billion MHz/Pops1. The 24
GHz band was not included in ISED's 5G spectrum consultation and
decision, however, in the United
States the Federal Communications Commission (FCC) has
auctioned the 24 GHz band for flexible use to support future 5G
services and 24 GHz has been identified as a target spectrum band
for 5G services in Europe and
China.
|
1Based on
ISED's posted 2011 population figures in these licensed
markets.
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About TeraGo
TeraGo owns a national spectrum portfolio of exclusive 24GHz and
38GHz wide-area spectrum licences including 2,120 MHz of spectrum
across Canada's 6 largest cities.
TeraGo provides businesses across Canada with cloud, colocation and connectivity
services. TeraGo manages over 3,000 cloud workloads, operates five
data centres in the Greater Toronto
Area, the Greater Vancouver
Area, and Kelowna, and owns
and manages its own IP network. The Company serves business
customers in major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver, Ottawa and Winnipeg.
For more information about TeraGo, please visit
www.terago.ca.
Forward-Looking Statements
This press release includes certain forward-looking statements
that are made as of the date hereof. Such forward-looking
statements may include, but are not limited to, statements relating
to growth of TeraGo's business, opportunities for delivering 5G
services in the future and value from spectrum assets. All
such statements are made pursuant to the 'safe harbour' provisions
of, and are intended to be forward-looking statements under,
applicable Canadian securities laws. Any statements contained
herein that are not statements of historical facts may be deemed to
be forward-looking statements. The forward-looking statements
reflect the Company's views with respect to future events and is
subject to risks, uncertainties and assumptions, including the risk
that TeraGo's growth strategy, strategic plan, and investments will
not generate the result or sustainable growth intended by
management, future ISED decisions being unfavourable to the
Company, new market opportunities for 5G may not exist or require
additional capital that may not be available to the Company, and
those risks set forth in the "Risk Factors" section in the annual
MD&A of the Company for the year ended December 31, 2018 available on www.sedar.com.
Accordingly, readers should not place undue reliance on
forward-looking statements as a number of 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.