Air for Sale:Canadian Government Sells it $3.7 billion!

Feds pulling billions out of thin air -- and it's for real By PETER ZIMONJIC, NATIONAL BUREAU

The Conservative government is about to experience a windfall to the tune of at least $3.7 billion from the sale of an invisible commodity -- airwaves.

It's the selling of a portion of Canada's public frequency spectrum to cell phone companies. The airwaves auction, announced May 27 by Industry Canada, is intended to bring new mobile phone companies into the market and lower prices for consumers through increased competition.

It was thought the auction would last a month and raise perhaps $1.5 billion in revenue. But the government has already seen the bids rise to a staggering $3.7 billion in an auction that's bringing in about $11 million each hour it's open.

"This is the most competitive bid we've ever had," said Peter Hill, director of spectrum management operations for Industry Canada. "Consumers will have a lot more choice by the time this is over."

Industry Canada regulates the use of radio frequencies in the country.