The auction will have a cap on the number of frequencies each operator can win, with the aim that at least four providers in each region can acquire a spectrum.
This is in response to the government’s new strategy to increase competition in the mobile market.
Other measures in place include expanding requirements to offer roaming to all carriers and encouraging tower-sharing.
“We are tightening the rules to increase cell phone tower sharing, thereby helping to limit the construction of new cell towers,” said Christian Paradis, minister of industry for Canada.
“This will reduce cell tower proliferation, a major concern across the country, while ensuring national wireless coverage for consumers.”
The government will reportedly be reviewing rules on spectrum transfers and a public consultation on this has been opened in Canada until May 3.
“Our government's priority is to provide greater wireless coverage at lower rates for consumers,” Paradis added.