Abstract This article develops and applies a “path of least resistance” (PoLR) methodology to analyze the effectiveness of spectrum deployment requirements in encouraging rural wireless coverage in Canada. The methodology assumes that telecommunications providers will meet deployment obligations by serving the largest population centers first, followed by progressively smaller communities until requirements are met. Using data from New Brunswick, Saskatchewan, and the Northwest Territories, the analysis applies the methodology to existing 3,800 MHz auction deployment requirements and the more ambitious 50% coverage requirement proposed in Canada’s Senate Bill S-242. Results reveal that current deployment requirements can typically be met by serving only one or two communities, limiting rural coverage expansion. Conversely, S-242’s requirements would necessitate serving significantly more communities but risk making spectrum licenses economically unviable. The analysis demonstrates that population-based deployment requirements are a blunt policy instrument and recommends alternative approaches such as bundling urban and rural licenses, offering pricing discounts for higher coverage obligations, or incorporating roadway and geographic coverage targets alongside population metrics.
McMahon et al. (Sun,) studied this question.