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(Corrects paragraph 1 to say govt will announce spectrum auction, not auction the spectrum, on Monday)
July 7 (Reuters) - The Canadian government is expected to announce an auction of prime spectrum on Monday, a move that will eventually force smaller carriers to better compete with larger companies such as Bell Canada, Rogers Communications Inc and Telus Corp, the Globe and Mail reported.
The auction of "AWS-3 spectrum" is planned to take place ahead of an offering of 2,500 MHz frequencies scheduled for April 2015, the Globe and Mail said.
The AWS-3 spectrum is more valuable than the 2,500 MHz variety because it functions well in both urban and rural areas and signals penetrate buildings better.
In AWS-3 auction, the set-aside spectrum will be restricted for purchase by small players that are already operating in the region where they seek to buy more frequencies, the newspaper reported. (bit.ly/1m8fuOR) (Reporting by Ashutosh Pandey in Bangalore)