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.
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.
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.
For further information: TeraGo Investor Relations: Dennis Fong, LodeRock Advisors Inc., Telephone: 1-416-282-9930, Email: firstname.lastname@example.org