Consultation on a Non-Competitive Local Licensing Framework, Including Spectrum in the 3900-3980 MHz Band and Portions of the 26, 28 and 38 GHz Bands

1. Through the release of this document, Innovation, Science and Economic Development Canada (ISED), on behalf of the Minister of Innovation, Science and Industry (the Minister), is initiating a consultation on a non-competitive local (NCL) licensing framework, with the intent to apply that framework to release spectrum in the 3900-3980 MHz band (referred to as the 3900 MHz band) and portions of the 26, 28 GHz and 38 GHz bands (millimetre wave bands, or mmWave bands). The specific portions of the mmWave bands to be included will be subject to the decision resulting from SPB-001-22, Consultation on a Policy and Licensing Framework for Spectrum in the 26, 28 and 38 GHz Bands.

2. The Minister, through the Department of Industry Act, the Radiocommunication Act and the Radiocommunication Regulations, with due regard to the objectives of the Telecommunications Act, is responsible for spectrum management in Canada. As such, the Minister is responsible for developing national policies for spectrum utilization and ensuring effective management of the radio frequency spectrum resource.

3. Wireless communication is an integral part of the Canadian economy and is undergoing transformative change due to technological advancements. Not only are consumers, businesses, and public institutions reliant on wireless services and technologies to enable day-to-day activities, they are also increasingly being leveraged to enable a diverse range of innovative and emerging use cases.

4. In this context, ISED is committed to ensuring that Canadians have access to the latest wireless telecommunications services to enable investment and innovation in emerging technologies and services. A robust wireless telecommunications industry drives the adoption and use of digital technologies and enhances the productivity of the Canadian economy.

5. Spectrum is a critical resource for the telecommunications industry and a key enabler of a variety of services, including new technological developments, such as next-generation networks. The fifth generation of mobile technology, known as 5G, is expected to dramatically change the telecommunications landscape and facilitate the delivery of innovative services to Canadian consumers and businesses. The continued development and deployment of 5G technologies is essential to Canada becoming a global centre for innovation, and will bring the country to the forefront of digital adoption, strengthening our world-class wireless infrastructure.

6. The emergence of new technologies is also expected to support the creation and expansion of wireless applications in industry verticals, such as agriculture, mining, manufacturing, healthcare, public safety and transportation. As the needs of these types of users continue to evolve, facilitating access to spectrum in a flexible manner will support the emergence of new and disruptive businesses models, and drive ongoing investment in 5G networks.

7. In this context, while there remains uncertainty around the anticipated needs of users, and the services and applications expected to deliver the greatest benefit to Canadians, ISED recognizes the growing demand for spectrum across different industry sectors and the importance of facilitating flexible spectrum access for a variety of users and services. This growing demand is also creating new opportunities for optimizing the use of spectrum and providing new sharing tools that incorporate intelligent decision-making solutions and geographic/operational awareness of the radio environment to facilitate sharing of spectrum between multiple different services and in higher frequencies.

8. As such, ISED views the development of an NCL licensing framework as a way to provide a broad range of users, including businesses and industry verticals, with the opportunity to acquire licences in localized areas across the country. In addition, as NCL licensing frameworks generally promote more intensive use of spectrum by means of spectrum sharing, new users should benefit from lower barriers to entry, and reliable, easy access to spectrum. At the same time, to facilitate this access in a timely manner, an NCL framework should also ensure licensees deploy quickly and require that areas without active spectrum use are made available for other users to advance connectivity and innovation goals.

9. ISED is also of the view that an NCL framework should be of general application for use with different spectrum bands. In SLPB-002-21, Decision on the Technical and Policy Framework for the 3650-4200 MHz Band and Changes to the Frequency Allocation of the 3500-3650 MHz Band (the 3800 MHz Repurposing Decision), ISED designated the 3900-3980 MHz band for shared use to leverage the emerging equipment ecosystems for 5G technology and provide opportunities for users including wireless Internet service providers, utilities, and industry verticals. Similarly, and subject to final decision, in SPB-001-22, Consultation on a Policy and Licensing Framework for Spectrum in the 26, 28 and 38 GHz Bands, ISED proposes to release portions of the mmWave bands (26 GHz, 28 GHz and 38 GHz) for shared use to support innovation and facilitate access to spectrum for industry verticals and other non-traditional users. ISED is of the view that given their potential use cases, both of these spectrum bands are appropriate to release through an NCL licensing framework.

10. Making these spectrum bands available through an NCL licensing framework is expected to support the creation and expansion of new services and applications in industry verticals. These industries may benefit from specialized uses, such as private networks, which enable a wide range of automated, robotic and remote operations for real-time monitoring, dispatching and emergency notifications. For example, agricultural and manufacturing sites are likely to make use of spectrum in these bands for automated operations, such as crop tracking or product traceability, which require high levels of bandwidth and network performance. Private networks are also likely to provide operators with the flexibility to satisfy their specific connectivity and coverage needs, and manage their own networks to enable quality of services as they deem appropriate.

11. Further, the release of this spectrum is expected to support private broadband networks on enterprise campuses, such as universities, stadiums and shopping centres. By focusing on approaches that make spectrum easily available in localized areas, and which facilitate deployment in different sectors of the economy, Canadian consumers will benefit from the increased investment and innovation that takes place.

12. In addition to facilitating access to new and non-traditional users, releasing this spectrum though an NCL licensing framework may support the development of 5G services by existing users, and may enable wireless broadband services and wireless Internet service providers (WISPs) to bolster connectivity in various regions across the country. This builds on the ISED’s recent efforts to facilitate access to spectrum in rural and remote areas, including through the SLPB-004-21, Consultation on New Access Licensing Framework, Changes to Subordinate Licensing and White Space to Support Rural and Remote Deployment, which seeks to introduce a new supplementary licensing process for unused spectrum.

13. More and more Indigenous service providers, business and communities in Canada are taking an interest in access to spectrum. In remote Indigenous communities, access to spectrum can have crucial benefits to accelerating broadband connectivity, establishing reliable cell service, improving access to emergency response services, building economic resiliency amongst Indigenous-led businesses and facilitating the participation and connectedness of remote Indigenous communities with the rest of Canada. A NCL licensing framework can provide access to spectrum to support Indigenous connectivity.

14. In developing this consultation, ISED was guided by the Spectrum Policy Framework for Canada (SPFC), which states that the objective of the spectrum program is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum resource. This objective and the enabling guidelines listed in the SPFC remain relevant for guiding ISED in delivering its spectrum management mandate.

15. In May 2019, the Government of Canada released Canada’s Digital Charter: Trust in a digital world (Digital Charter). The Digital Charter lists universal access as the first of ten principles that will lay the foundation for a made-in-Canada digital approach, and guide policy thinking and actions towards establishing an innovative, people-centred and inclusive digital and data economy built on trust. Universal access is the principle that all Canadians will have an equal opportunity to participate in the digital world and have the necessary tools to do so, including access, connectivity, literacy and skills.

16. Through Canada's Innovation and Skills Plan and its focus on people, technologies and companies, the Government of Canada is committed to promoting innovation-led growth across all sectors of the Canadian economy. The ubiquity of digital technologies and services across sectors is a defining feature of the new digital economy and enabling greater access to spectrum will allow all sectors to benefit.

17. The proposals set out in this consultation support the objectives of the Telecommunications Act, the SPFC, the Digital Charter, Canada’s Connectivity Strategy and Innovation and Skills Plan, through the use of an NCL licensing framework that facilitates innovation across the Canadian economy. Consequently, ISED’s policy objective for the NCL licensing framework, including the release of spectrum in the 3900 MHz band and portions of the mmWave bands, is to promote innovation by enabling Canadian companies to invest, develop and deploy 5G networks and technologies that enhance productivity in the Canadian economy, through three guiding principles:

• facilitating low-barrier access to spectrum to support the needs of new users, including industry verticals
• providing increased flexibility of spectrum use to support a variety of use cases
• ensuring areas without active spectrum use are quickly made available to others

18. Technological innovations, such as 5G, the emergence of new business models, as well as the continuing growth in wireless communications, has resulted in a greater demand for spectrum in mid and high bands. As such, international telecommunication regulators are seeking to implement additional spectrum licensing approaches that complement traditional authorization models. These approaches aim to facilitate the deployment of wireless networks in smaller, more geographically targeted areas while providing predictable service quality to meet emerging needs and diverse uses (e.g. industry verticals, rural and remote broadband provision, etc.).

19. Local licensing is a general term used to refer to various emerging licensing framework approaches to provide flexible access to meet the relatively small scale connectivity needs of wireless service providers and individual spectrum users alike. The development of such approaches has been driven by rapid global data use, including automation advances in manufacturing, agriculture and resource industries where wireless connectivity is needed for specialized applications with low-latency over limited areas. Typically, the regulatory frameworks that support local licensing target multiple concurrent objectives, including: simplicity and flexibility in licensing; enabling access to more and varied spectrum users; and advanced sharing.

4.1 International context

20. Worldwide, various regulators have started considering new licensing approaches that enable localized access to spectrum bands for wireless services. The following paragraphs provide an overview of recent activities conducted by different international regulators to advance local licensing approaches that promote increased shared use of spectrum by diverse stakeholders in multiple frequency bands.

21. Activities at mid-band: An increasing number of countries have investigated regulatory frameworks that facilitate localized spectrum access at different mid-band frequencies. Seven countries (the United Kingdom (UK), Sweden, Germany, France, Finland, New Zealand and Japan) have already implemented such frameworks. The status of local licensing activities for mid-band spectrum as of March 2022 is summarized in figure 1.

Figure 1: Status of global local licensing frameworks for mid-band spectrum

22. Most countries have focused on frequencies in the range 3.4-3.8 GHz. However, Japan recently awarded spectrum in the 1800 MHz and 4.6-4.9 GHz bands, and the UK implemented a local licensing framework for shared access in the 1800 MHz, 2300 MHz, and 3.8-4.2 GHz bands.

23. Activities at millimetre wave (mmWave) bands: Various countries including Germany, the UK, Sweden, Finland, Australia and Japan have already implemented a local licensing framework in the mmWave bands while others, such as Brazil, are currently consulting on similar approaches. France is in a trial phase testing different use cases to enable local licensing in mmWave bands. The status of local licensing activities for mmWave spectrum, as of February 2022, is summarized in figure 2.

Figure 2: Status of global local licensing frameworks for high-band spectrum

24. Most countries have focused on the 24.25-27.5 GHz band for initial 5G deployments (3GPP band n258), which is one of the 5G pioneer frequency bands in Europe (EU 2019/784). However, some Asian countries and others are focused on the 28 GHz band (3GPP band n257). Considerable bandwidth is being made available by all of these countries.

25. In recent consultations and decisions, ISED indicated that it will consider making certain portions of bands available for fixed, mobile or flexible use services using a non-competitive (i.e. not auctioned or otherwise competitively assessed) licensing framework for localized areas, in support of the policy objectives discussed in section 3. Through this consultation, ISED intends to establish an NCL licensing framework that can be applied generally, but initially to the 3900 MHz band and some segments of the mmWave bands. Given that these bands have unique characteristics and considerations, ISED is also consulting on specific measures to tailor a general NCL licensing framework to each band (see sections 6 and 7).

5.1. NCL licensing approach

26. In establishing an NCL licensing process, ISED has considered three broad types of licensing: all-come all-served (ACAS), first-come first-served (FCFS), and dynamic spectrum access (DSA).

27. An ACAS licensing model is a spectrum sharing method where there is no priority among operators and no restriction on where operators can acquire additional spectrum licences and deploy. Coordination amongst operators is very important as there is the possibility of network overlap with other operators, and none have priority over the others. The advantages of ACAS are that it has a low administrative burden for both ISED and operators, has a low barrier to entry, and maximizes the number of operators using the spectrum. The disadvantages are potential interference and congestion issues, with operator service quality fluctuating due to a changing environment and possible harmful interference. Notably, this approach has been used in the past for the wireless broadband service (WBS) in the 3650-3700 MHz band.

28. A FCFS licensing model is a spectrum sharing method that would be managed by ISED. The advantages of FCFS are that it provides a specified level of protection from interference to licensed operations and helps to mitigate the congestion and interference issues that can occur with ACAS, providing a level of certainty to businesses for planning and investment purposes. The disadvantage is that a FCFS approach may not maximize the number of operators as thoroughly as ACAS.

29. Additionally, FCFS licensing may carry a higher administrative burden for both ISED and operators. Some of this additional burden may be alleviated through automation of some or all of a FCFS licensing process.

30. In the future, ISED may consider the use of DSA for NCL bands. DSA is a machine-based spectrum sharing system that supports intensive use of spectrum by assigning frequencies based on immediate availability and need. Available spectrum is assigned for the desired duration of use, with the spectrum becoming available for new users immediately after the device/operator ceases to use the spectrum. The advantages of DSA are that it allows maximum versatility and efficient use of spectrum, lowers barriers to entry, lowers administrative burden, and ensures operators only pay for spectrum while it is actively in use. However, a DSA ecosystem for the NCL bands under consideration is not readily available at this time.

31. Section 10.1.4 of SLPB-002-21, Decision on the Technical and Policy Framework for the 3650-4200 MHz Band and Changes to the Frequency Allocation of the 3500-3650 MHz Band (the 3800 MHz Repurposing Decision) summarized comments that responded to several questions that were posed by ISED in SLPB-002-20, Consultation on the Technical and Policy Framework for the 3650-4200 MHz Band and Changes to the Frequency Allocation of the 3500-3650 MHz Band (3800 MHz Repurposing Consultation), pertaining to the future 3900 MHz band. There was strong support for a licensed system using a database to coordinate deployments, similar to a FCFS system. Comments regarding DSA were mixed, with some supporting a system similar to Citizens Broadband Radio Service used in 3550-3700 MHz in the United States (US), some arguing against that same system, and some arguing against DSA in general. An ACAS system received little stakeholder support.

32. ISED recognizes that there are new technologies and techniques (e.g. cognitive radio, DSA) being developed that will change the way spectrum is accessed through intelligent decision-making solutions and geographic/operational awareness of the radio environment. However, these new sharing paradigms are still in the early stages of development, and may take time to effectively implement.

33. Accordingly, ISED is proposing a FCFS spectrum licensing approach for NCL licensing. ISED is of the view that a FCFS spectrum licensing approach would be appropriate for a local licensing model, where operators may be very close to each other. This option would help to provide protection from interference that can be an issue in ACAS, and is more practical for expedited release for use in 5G systems than DSA.

34. Due to the local licensing nature of the framework and the potential high number of licences, and in order to limit processing delays related to a high number of applications, ISED may automate some parts of the FCFS application and review process to ensure speed of assessment. ISED notes that a partially automated system for FCFS licensing is a first step towards laying a foundation for more complex sharing techniques and would not limit adopting new approaches like DSA in the future.

5.2. International local licensing models

35. ISED is considering two approaches to local licensing: methods applied by the Office of Communication (Ofcom) in the UK, and by the Bundesnetzagentur (BNetzA) in Germany.

36. Ofcom model: For the purposes of this consultation, ISED is only describing the Ofcom approach for the 3.8-4.2 GHz and 24.25-26.5 GHz bands. The term used by Ofcom for its local licensing structure is “shared access licences,” as defined in its Shared Access Licence Guidance document. Ofcom expects shared access licences to be used for agriculture, mining, industry, oil and gas, utilities, enterprises, and rural wireless access. Ofcom manages the licensing and technical coexistence analysis of shared access licences using its spectrum management software. Two types of shared access licences are available, distinguished primarily by their permitted effective isotropically radiated power (e.i.r.p.) levels. Specifically, Ofcom uses a radius-based area licensing approach for low power systems (i.e. low power shared access licences) and a sited-based licensing approach for medium power systems (i.e. medium power shared access licences).

37. Under the Ofcom model, low power shared access licences are available in the bands 3.8-4.2 GHz and 26 GHz (this band is limited to indoor only), and are designed for industrial and enterprise users looking to deploy their own private networks. These licences allow users to deploy as many base stations as they require within a 50 metre radius circle centered on a coordinate provided by the user. This provides users with the flexibility to move their base stations around within the designated 50 m circular area without requiring further coordination. Ofcom is of the view that the 50 m radius offers the right balance between spectrum efficiency and facilitating expected use cases.

38. The overall coverage area for a low power shared licence extends to a larger area outside the 50 m radius circular area where base stations may be deployed. The parameters of the overall coverage area are limited by the technical considerations and the placement of base stations. For the 3.8-4.2 GHz band the low power systems have an e.i.r.p. limit of 24 dBm/carrier for bandwidths less than or equal to 20 MHz and an e.i.r.p. limit of 18 dBm/5 MHz for larger bandwidths, with a 10 m antenna height restriction for outdoor deployments. In the 26 GHz band a total radiated power (TRP) limit of 23 dBm/200 MHz applies to base stations. It should be noted that under this model, multiple 50 m radius circular areas with base stations operating co-channel may overlap when issued to a single licensee, but do not overlap if issued to different licensees operating on the same frequency.

39. Ofcom also authorizes medium power shared access licences in the 3.8-4.2 GHz band mainly in rural areas (an urban medium power licence may be requested in rare situations) where they are unlikely to constrain low power users. These licences are designed to support users that require a longer transmission range from their base station, such as rural fixed wireless access (FWA) providers. A medium power shared access licence authorizes a single base station at a specified location and any connected terminal stations, and it is expected that there is no need to change the locations of base stations once they are deployed. The medium power licences authorize base station operations in the 3.8-4.2 GHz band for a maximum e.i.r.p. of 42 dBm/carrier for bandwidths less than or equal to 20 MHz and an e.i.r.p. limit of 36 dBm/5 MHz for larger bandwidths, with no antenna height restriction for outdoor deployments.

40. To facilitate local licensing in 3.8-4.2 GHz, Ofcom has also implemented the following three measures for shared access licences:

• these bands cannot be used as part of a regional or nationwide public mobile network
• the medium power licences are generally only allowed in rural areas
• low and medium power licensees are required to keep an accurate record of all mobile terminals and the address of the site or building that they are authorized to operate within

There is also a “use-it-or-lose-it” principle in the band. The “use-it-or-lose-it” principle is intended to prevent users from warehousing spectrum. If users fail to use the spectrum or share it, they could face unspecified fines or the possible loss of their licenses.

41. BNetzA model: Through its Administrative rules for spectrum assignments for local spectrum usages in the 3700-3800 MHz band, BNetzA has reserved 3.7-3.8 GHz spectrum for local licensing. BNetzA’s approach aims to improve broadband capacity for private networks for industrial uses as well as agriculture, forestry, and campus networks. Commercial wireless services to the public are not permitted. Eligibility for a local spectrum licence is based on land ownership or other rights of use, such as leasing or rental arrangements.

42. The licence area in BNetzA’s local licensing framework is self-defined by the applicants, with “local” referring to a property or group of jointly-used properties, such as an owned plot of land, office location, industrial park, exhibition ground, campus, stadium, agricultural or forestry area. Spectrum unused by property owners may be made available for shorter-term opportunistic use by service providers for areas and periods where additional capacity or coverage is needed. Under this approach, the self-defined area licence encompasses both the base stations and the terminals (i.e. the licence area is the same as the service area) and licence areas of different licensees do not overlap.

43. Applicants have to provide a description of the intended use and have to provide plans including site data demonstrating that the requested spectrum will be used efficiently (all MHz used in all areas). There is a “use-it-or-lose-it” principle in the band. The procedure states that a spectrum assignment can be revoked if use of the spectrum has not begun within one year of the assignment, or if the spectrum has not been used for the purpose for which it has been assigned for more than one year.

44. No general in-block power limits are defined by BNetzA, however licensees are expected to select appropriate power levels to minimize the potential for interference. Given the eligibility requirements of this licensing model, power levels are generally low by design given the localized nature of deployment.

45. In terms of coexistence, operators are asked to negotiate agreements among themselves to ensure interference-free spectrum use in adjacent geographic areas, and to protect incumbent services in the band (i.e. fixed-satellite services (FSS) earth stations and fixed services). If no agreement is reached, operators are required to meet field strength limits at the edge of their assigned areas.

46. An inherent aspect of the BNetzA system is that all site data for an area is supplied with the application; new sites cannot be added to the licence area later on without a modification, with the exception of indoor deployments where the site data for the base station with the highest transmit power is sufficient.

5.3. Licence areas for NCL licensing

47. Local licensing approaches aim to facilitate the deployment of broadband networks in smaller, more targeted, spectrum licence areas than those that have been used for licensing to date. ISED expects that the use cases for NCL licensing would include, but not be limited to:

• fixed wireless access systems in rural, remote, and northern communities, including Indigenous communities
• private broadband networks on enterprise campuses (e.g. universities/colleges, stadiums, shopping centres, office buildings)
• private networks to support vertical industrial uses, including automation, in industries such as farming, manufacturing, and mining

48. Different sizes of licence areas are best suited to different wireless services and applications. Very localized use cases, such as a university campus or factory warehouse, are much smaller than the smallest ISED tier size or grid cell. FWA systems can also serve areas that are smaller than ISED’s smallest tier sizes, but such areas are often still larger than many of the very localized private network use cases, particularly in rural and remote areas.

49. Since the proposed NCL licensing framework will be applied to different bands, propagation characteristics and the potential for interference also need to be considered. ISED is seeking to develop an approach to licence areas that enables a licensee to only apply for a licence in their area of interest. This minimizes the cost of the licence while also increasing the size of the surrounding area that remains accessible to other potential licensees. In addition, ISED is seeking to develop an approach that is accessible to licensees of different sizes and that can be partially automated to allow for easier access to these licences.

50. In the past, ISED has used grid cells (i.e. 1 minute latitude by 1 minute longitude blocks), to issue FCFS spectrum licences in certain bands, such as 3500 MHz, Personal Communication Services (PCS), cellular band, 4.9 GHz public safety and 38 GHz. In the Consultation on New Access Licensing Framework, Changes to Subordinate Licensing and White Space to Support Rural and Remote Deployment, many commenters proposed that ISED use grid cells for access spectrum licences. In the context of NCL licences, ISED is of the view that grid cells would generally be too large for many expected use cases and that a more localized spectrum licence area would be appropriate. However, should NCL licensing be applied to lower frequencies or should there be changes to the expected use cases, grid cells may become more appropriate for NCL licensing.

51. As noted in section 5.2, ISED considered international models that are presently in use. Consequently, ISED is considering the following methods to define the licence area:

1. Radius-based licence areas: based on a specified circular licence area with a defined radius from a specific geographic point (central point)
2. Custom vector-based licence areas: based on a specified licence area with self-defined boundary

52. Figure 3 shows a map of an urban area with industrial buildings, shopping centers and warehouses, with an overlap of four ISED grid cells, a radius-based licence area, and a custom vector-based licence area. The radius-based licence areas and custom vector-based licence areas offer more flexibility than grid cells (right), particularly for localized services. Both radius-based and custom vector-based licence areas also provide opportunities for multiple licensees to access spectrum in the area.

Figure 3: An illustration of radius-based and custom vector-based licence areas and grid cells

53. ISED is seeking comments on whether to adopt either radius-based licence areas or custom vector-based licence areas for the NCL framework. Each method has certain advantages and disadvantages:

• Option 1: Radius-based licence areas may be more accessible for newer spectrum users, as they start from a simple geographic point, with the option of applying for a number of contiguous licence areas should a larger licence area be required. The licence area is also relatively easy to adjust over time, as individual areas can be added or removed as needed. However, if individual licence areas are small so that a relatively large number of licence areas may be needed to support a larger local network, this may increase the overall administrative burden for users and for ISED. At the same time, if the individual licence area is large, in scenarios where only partial coverage within a licence area is required by a licensee, this could potentially deny other users access to the remaining unused spectrum within the licensed area.
• Option 2: Custom vector-based licence areas allow the licence area to be defined according to specific coverage needs. Areas can vary in size or shape, and those covering larger areas have a lower administrative burden in terms of the number of licences relative to multiple smaller radius-based licence areas. If the licence area is representative of the licensee’s planned coverage and interference protection needs, this option could allow for close packing of licence areas, maximizing the use of spectrum. However, applicants will need to pre-design their network, which may require a higher level of expertise and understanding of spectrum propagation characteristics in order to be able to specify the required licence area.

54. Licence area overlap: Should ISED implement either the radius-based licence areas or custom vector-based licence areas, the licence area for one licensee would generally not overlap with that of other licensees operating on the same frequency block. However, in the case of radius-based licence areas, a licensee could request that its own licence areas overlap for the same frequency to create its desired network area. In addition, ISED is consulting on the potential for allowing overlap between indoor and outdoor NCL licence operations (see section 5.5.1).

55. Rural or remote areas: Some operators, such as wireless Internet service providers, may target relatively large rural or remote areas compared with more localized use in urban areas. Thus, ISED is of the view that either a radius-based licence area or a custom vector-based licence area could accommodate a larger area licence in rural or remote areas. ISED is seeking comments on whether different licensing areas should be used in urban, metro, rural and remote areas (e.g. radius-based licence areas in urban areas and custom vector-based licence areas in rural and remote areas). Alternatively, ISED is seeking comments on using site licensing in rural and remote areas similar to the approach taken by Ofcom for their medium power shared access licences.

56. Maximum permissible power level: Recognizing the needs of larger networks in rural or remote areas, for both radius-based and custom vector-based licence areas, ISED could consider different maximum permitted power levels depending on the area of operation. For example, ISED could allow higher power levels outside of urban and metro areas. Higher power levels present increased challenges with respect to interference between higher power systems and lower power systems and corresponding reduced availability of frequencies, which could reduce the areas available to new licensees. That said, ISED expects that higher permissible power in the context of NCL licensing would still be significantly lower than the levels permitted in commercial mobile bands. Accordingly, ISED is seeking comments on maximum permissible power levels and whether higher maximum permissible power levels should be permitted in rural and remote areas. ISED is also seeking comments on how to address any associated technical challenges between higher power and lower power systems operating in close proximity.

57. Licence area size: With respect to the radius-based licence area model, as discussed above, it is important that the size of the licence areas address the needs of licensees with regards to coverage and optimal use of spectrum. ISED is seeking comments on the appropriate radius for radius-based licence areas in the mid-band and high-band, taking into account the appropriate maximum power levels addressed in paragraph 55. In addition, ISED is seeking comments on whether the radius should be larger in rural and remote areas, if ISED adopts a higher maximum permissible power as discussed above.

58. Boundary conditions versus specified base station deployment area: To manage potential interference between the operations of different NCL licensees, ISED could consider implementing a power flux density (pfd) at the boundary of the licence areas. Licensees could potentially deploy anywhere within their licence area as long as they meet the pfd at the boundary. However, licensees may need to specify the base stations’ locations and operating parameters in order to assess the base stations’ coverage and potential of interference in some scenarios (e.g. adjacent band NCL coexistence). Alternatively, instead of implementing a pfd at the boundary of the licence area, ISED could consider limiting the placement of base stations to a smaller area within the licence area, which may not require detailed base station information. However, a pfd limit may be imposed by ISED to resolve potential disputes between licensees. ISED is seeking comments on whether to manage interference between different NCL operations by implementing a pfd at the licence area boundary or to limit the deployment of base stations to a smaller area within the licence area.

59. Administrative burden and automation process: Recognizing that the application process may be complex for some local licensing applicants and require an understanding of the technical specifications of equipment and spectrum propagation characteristics, ISED could consider potential approaches to reduce the administrative burden on applicants and facilitate partial automation of the licensing process.

60. Modifications to licensed NCL stations: If, after consultation, ISED implements an NCL model, which will require site information with the application, any modifications to the licence area or technical parameters of the authorized base stations after the initial issuance of the licence would require a modification request prior to approval. The modification request assessment would take into account the potential for interference with other licensed operations.

61. Drones in NCL bands: ISED recognizes that some licensees may wish to use drones as part of their networks. However, at this time ISED intends for NCL licensing be limited to terrestrial use in order to manage interreference between systems, and that licence areas would be designed only taking terrestrial stations into account.

5.4 Conditions of licence

62. The following proposed conditions would apply to all NCL licences. It should be noted that licences are subject to the relevant provisions in the Radiocommunication Act and the Radiocommunication Regulations, as amended from time to time. For example, the Minister continues to have the power to amend the terms and conditions of NCL licences pursuant to paragraph 5(1)(b) of the Radiocommunication Act. The Minister may do so for a variety of reasons, including furtherance of the policy objectives related to the band. Such action would normally only be undertaken after consultation.

5.4.1 Licence terms

63. Traditionally, authorizations on a FCFS or an ACAS basis are issued for one-year licence terms, expiring on March 31. Licences are renewable upon payment of an annual licence fee, provided that the licensee is in good standing.

64. ISED recognizes that different use cases may lend themselves to shorter or longer licence terms than the traditional one-year term. Shorter licence terms may be beneficial for infrequent uses or events. For example, an operator may wish to add spectrum capacity for one week for an event that will have large crowds of participants. Alternatively, an operator may need spectrum on a regular basis but only once a month, and would prefer shorter-term licences with pro-rated fees to lower business costs. The risk associated with very short-term licences is that spectrum may not be available in that area in the future if an operator releases the spectrum.

65. Conversely, in rural or remote areas, operators may require a longer amount of time to become operational, with consideration given to the transportation of equipment or need for supporting infrastructure to be built. In this case, a longer licence term, such as two or three years, could be more appropriate. However, a longer term might only be needed during the initial stages of the deployment, making a continuing multi-year licence term potentially unnecessary. ISED could consider an initial multi-year term in rural and remote areas followed by a shift to an annual term. However, while longer licence terms can provide business certainty and attract investment, they could also make spectrum sharing in a band less dynamic. In addition, longer licence terms may lead to less localized uses by allowing operators to deploy to a larger geographic footprint over many years, restricting access to others that may wish to use the spectrum in those areas immediately.

66. As noted in section 5.1, ISED recognizes that there are new technologies and techniques (e.g. cognitive radio, dynamic spectrum access) being developed that will change the way spectrum is accessed. Should ISED evolve NCL licensing to dynamic spectrum access in the future, implementing annual or shorter licence terms allows for a relatively dynamic environment and serves as a stepping stone to more efficient spectrum sharing.

In light of the above, ISED is proposing a licence term of one year, with high expectation of renewal, for licences issued through the NCL licensing framework. This would give licensees the flexibility to acquire licences for relatively short terms. Furthermore, ISED may modify its NCL licensing framework policy in the future and adapt to the developing sharing techniques, technologies, use cases, and wireless environment.

5.4.2 Eligibility

67. Prior to obtaining a licence, ISED will require that applicants demonstrate that they meet the eligibility criteria as set out in section 9(1) of the Radiocommunication Regulations. Any additional requirements or restrictions with regard to eligibility will be consulted upon prior to the release of specific spectrum bands, if necessary. However, no additional eligibility requirements are being proposed for the initial bands in this consultation.

5.4.3. Deployment conditions

68. Generally, where spectrum licences are issued for longer licence terms (e.g. auctioned licences), ISED uses deployment requirements to encourage licensees to put the spectrum to use in a timely manner. Deployment requirements also serve to deter the acquisition of spectrum licences by those who intend to purchase spectrum for purposes of speculation, or prevent access to the spectrum by their competitors. ISED has generally based these deployment requirements on the population density of an area, with a specific amount of population that must be served by certain milestones.

69. Given that the proposed NCL framework is intended to support access to spectrum and quick deployment in a given area, ISED is of the view that deployment requirements should be included as a condition for NCL licensing. However, the population-based conditions used for spectrum licences may not be appropriate for the type of local access and use cases for which the NCL licensing framework is designed.

70. As discussed, ISED is also seeking to automate some of its processes to streamline and support NCL licensing. To this end, and to reduce the administrative burden of verification for both ISED and licencees, ISED is proposing a simple demonstration of deployment as a condition of licence. This could potentially be done through (but not limited to) an attestation, or the provision of evidence that the authorized sites have been deployed.

71. Given that the intent of the NCL licensing framework is to provide quick access to a specified area and that the deployment requirements proposed are a simple demonstration of compliance, ISED expects licensees to demonstrate full deployment relatively quickly. Using international local licensing precedents as a frame of reference, full deployment could be required within six months to one year. However, such a timeframe may be too short in rural or remote areas to build required infrastructure and to transport equipment to remote locations.

72. As discussed in section 5.3, NCL licence areas are proposed to be designed such that operators would only submit requests for the areas where they plan to actively operate. ISED is proposing that they would deploy in the entire area within a relatively short period of time. As such, ISED is of the view that a licensee should initially demonstrate deployment within one year of the licence issuance date and thereafter as a requirement for annual renewals.

73. ISED is considering the inclusion of a minimum number of sites as part of the deployment requirements to avoid a situation where an operator requests a large area and activates a single site, thus demonstrating deployment but not truly serving the entire area. Understanding that the minimum number of sites required to serve a particular area is closely related to the technical requirements, such as maximum permissible power level, the number of sites considered will account for the maximum permissible power level and other technical factors.

74. ISED is also considering additional strategies if one year licence terms are adopted. ISED is considering whether different deployment requirements are appropriate during the initial term in areas that are rural and remote, where more time may be needed to deploy equipment for logistical reasons or transportation limitations, and then requiring more deployment by specified dates that will fall in the subsequent renewal terms. In all cases licensees would need to meet the relevant deployment requirements in order to renew their annual licences.

5.4.4. Divisibility, transfers and subordinations

75. A key principle of ISED’s proposed NCL licensing framework is targeted licensing, where operators are only issued licences for the specific areas that they need for the amount of time that they need them. When an operator is no longer actively using the service, or has not begun operating in the specific area in a relatively expeditious manner, it should be released so that other operators may use the spectrum.

76. Accordingly, ISED is proposing that licences issued through this proposed NCL licensing framework not be granted divisibility, transfer or subordination privileges.

5.4.5. Data requirements

77. As the NCL licensing framework is being developed, ISED is considering the types of data that may need to be collected either at the time of application and/or on an ongoing basis. In its recently published consultation, DGSO-001-22, Consultation on Amendments to Requirements for Spectrum Licensees to Submit Technical Information about Sites, ISED proposed a number of amendments to the current requirements of spectrum licensees to provide site data information relating to their terrestrial spectrum licences. ISED also proposed to amend the associated conditions of licence. ISED expects that NCL licences may be subject to similar conditions of licence.

78. ISED notes, however, that any requirement to provide site data information does not allow a licensee to propose modifications to the licence parameters (such as licence area or bandwidth). Modifications to licence parameters will require re-application to ISED.

5.4.6. Other conditions of licence

Proposed conditions of licence for licences issued through the NCL licensing framework can be found in annex A.

5.5. Technical considerations

79. This section outlines the technical consideration for NCL licensed operations.

5.5.1. Indoor versus outdoor NCL licensed operations

80. Certain international administrations have allowed indoor and outdoor licensing in the same area to maximize the use of spectrum and emerging use cases. ISED seeks comments on whether a distinction should be made between indoor and outdoor usage in NCL licensing bands. In particular, ISED is seeking comments on whether indoor and outdoor NCL licences using the same frequency block could be issued to different operators in the same overlapping area. As well, ISED is seeking comments on whether different technical rules should be applied based on indoor or outdoor operation and what interference mitigation measures should be implemented to enable their coexistence in such a scenario.

81. ISED is also seeking comments on the availability of equipment for NCL licences, especially if differentiation is needed on the type of equipment that would allow for the co-existence of indoor and outdoor NCL licensing applications in the same spectrum frequency bands in the same area.

82. In addition to coexistence between NCL licensed operations, coexistence with other radiocommunication services using the same band would also need to be considered. In these scenarios, band sharing or coexistence could depend on the associated spectrum utilization policy for the band. Should ISED decide to allow NCL indoor and outdoor licensing to different operators in a band shared with other radiocommunication services, ISED is seeking comment on the general interference mitigation measures that could be implemented to enable band sharing.

5.5.2 Automated technical coexistence analyses

83. ISED is of the view that operator-to-operator coordination is a viable option where mutually acceptable coordination agreements and any subsequent changes could be reached between all parties. However, operator-to-operator coordination may not be practical when there are several users operating in close proximity to each other in the band, as is anticipated to be the case for bands available for NCL licensing. Alternatively, ISED could manage access by implementing and maintaining a database of registered deployments and performing technical analysis between users through an automated licensing process. Users, particularly smaller new spectrum users, are likely to want simple and cost-effective access to spectrum and a managed interference environment.

84. In view of this, and with the aim to have a licensing approach that is easy for users to access spectrum, ISED proposes to manage access to the bands where the NCL framework is applied and to automatically perform technical coexistence analysis between users during the licensing process. This would avoid the burden of coordination between new users and create a consistent process for users to access spectrum in the NCL shared spectrum bands.

85. ISED acknowledges that it would also be useful to provide additional feedback as part of this licensing process. For example, in cases where an application is rejected on the basis that the station or system may cause or receive harmful interference, ISED could provide applicants with information, where possible, to inform the applicants of the reason for the rejection of their application, and allow them to submit a modified application.

86. ISED typically develops technical rules that will allow for a wide range of usage scenarios, while also encouraging spectral efficiency and orderly coexistence with other users in the band and in adjacent bands. As such, ISED proposes not to mandate specific technology solutions, for example time-division duplexing (TDD) synchronization between systems, to address interference issues. Instead, as with current practice, ISED proposes to set technical rules to facilitate the coexistence between NCL licensed operations. These technical rules will be developed in future consultations for the respective bands.

87. In the case where two or more systems operate in the same or adjacent frequency blocks and in close geographic proximity, there exists a potential for mutual inter-system interference. ISED’s proposed automated process will perform coexistence analysis between co-channel and adjacent-channel NCL operations to determine if a licence application could be approved.

88. Even with technical rules and an automated licensing process, ISED recognizes there still may be situations of interference between licensed operations. For these situations, ISED encourages parties to work together to resolve any harmful interference issues (which may include TDD synchronization). Any agreements made during this process would not need to be submitted to ISED. If a resolution cannot be found between licensees, ISED may impose specific interference mitigation measures. However, adjustments to site or technical parameters may need to be reflected in the system to ensure that accurate information is being used for interference modelling for new applications in the area.

89. When site data is modified, an interference check would need to be re-run to ensure that the modified system parameters do not affect other neighboring operations.

5.6. Fees for NCL licensing

90. Licence fees are part of the overall spectrum management regulatory scheme that supports the efficient use of spectrum by licensees. The Minister is provided the general powers for spectrum management in Canada pursuant to section 5 of the Radiocommunication Act. Section 19 of the Department of Industry Act, gives the Minister the authority to issue authorizations and fix the fees with respect to the privilege of using spectrum. The Minister has used this power in the past to establish various fees related to the use of spectrum under spectrum licences.

91. In developing a fee model, ISED considers a number of policy objectives that relate to its overall spectrum management responsibilities. First and foremost, ISED seeks to encourage the efficient use of spectrum by licensees. ISED also encourages innovation and aims to set fees that reflect the relative value and use of different spectrum bands in order to better manage them. Fees should also be clear, predictable and relatively easy to adjust to reflect changing markets and technological advances. Licensing and fee frameworks should also be technology-neutral. The requirements of the Service Fees Act must also be respected, including the implementation of a periodic fee adjustment.

92. ISED is of the view that the proposed fees will support consistency and promote the efficient use of spectrum. The proposed fee structure assigns fees according to the amount of spectrum consumed and discourages situations where spectrum is effectively consumed at no cost and denied to others. In accordance with this approach, the proposed annual spectrum licence fee would be based on the amount of spectrum authorized (in MHz) multiplied by a base fee rate.

93. ISED has traditionally used population data when establishing the base fee rate. However, population data does not lend itself well to the proposed NCL licensing framework since it will be difficult to determine accurate population values for the expected small licensed areas.

94. However, the population density of licence areas is still an important consideration in licensing. From a licensing point of view, the challenges of managing different spectrum users and the value of the spectrum itself tends to be higher in areas with higher population density. Additionally, ISED is committed to developing licensing policies that encourage service provision in rural and remote areas. These policies will ensure that Canadian consumers, businesses and public institutions continue to benefit from access to high quality wireless networks at competitive prices in urban, rural and remote communities. Initiatives, both within and outside ISED, to promote improved broadband, high-speed Internet and cellular connectivity in rural and remote areas build upon these objectives and emphasize their importance in an increasingly digitally connected world. Accordingly, ISED’s proposal takes into account population density and promoting technological adoption in rural and remote areas by proposing base rates that are different in metro/urban areas, rural and remote areas.

95. Given the proposal to issue NCL spectrum licences and the potential types of licence areas, ISED is proposing to adopt a fee structure based on the amount of spectrum assigned and the size of the licence area. As such, the proposed fee structure is equal to the amount of spectrum assigned (number of MHz) multiplied by the licence area (e.g. radius-based licence area or custom vector-based licence area discussed in section 5.3) and multiplied by a fee base rate. The proposed formula is shown below:

Licences authorized during a fiscal year, or authorized for durations of less than one year, will have a prorated fee applied. Prorated fees will be calculated using 1/12 of the applicable annual base rate, charged for each calendar month (in whole or in part), of the licence’s duration. Fees for renewable licences will be charged for each calendar month (in whole or in part) until March 31 of the current fiscal year, based on the month in which the licence becomes valid.

5.6.1. Base rate for NCL licensing at low and mid-band

96. In determining the base rate for NCL licensing fees at low- and mid-band specifically, ISED proposes applying fees of a similar magnitude to the existing fee base rate for low-band cellular and mid-band PCS licences of $0.03778343 per MHz per population. The base rate was established in DGRB-005-03, Radio Authorization Fees for Wireless Telecommunication Systems that Operate in the Radio Frequency Bands 824.040 MHz to 848.970 MHz, 869.040 MHz to 893.970 MHz or 1850 MHz to 1990 MHz. ISED performed analysis based on fees currently applied in Canada’s metropolitan and urban (metro/urban) areas and is proposing an NCL low-band and mid-band licence fee base rate of $35.93 per MHz per km² for metro/urban areas, adjusted for area size instead of population. ISED performed an international survey of licence fees and spectrum valuations in other jurisdictions, in both Europe and Asia. In ISED’s view, the proposed fee is in-line with other comparable jurisdictions. All licence fee base rates proposed below are derived from this low-band and mid-band base rate.

97. Furthermore, ISED proposes discounted fee base rates in rural areas (25% of metro/urban) and remote areas (5% of metro/urban) in alignment with policy objectives for the band. These discounted base rates correspond to $8.98 for rural areas and $1.80 for remote areas. Licences eligible for rural and remote discounts are those located within the rural and remote Tier 5 service areas respectively, as defined in DGSO-006-19, Decision on a New Set of Service Areas for Spectrum Licensing. For licence areas overlapping two area types, ISED will follow the precedent set out in DGSO-004-19, Decision on the Licence Fee Framework for Fixed Point-to-Point Systems. If any portion of an NCL licence is located in a remote area, the remote base rate will apply for the entire licence. Otherwise, if any portion of an NCL licence is located in a metro/urban area, the metro/urban base rate will apply for the entire licence. ISED is also proposing a minimum licence fee of $48.00 annually or $4.00 monthly.

98. As prescribed in section 17(1) of the Service Fees Act, the proposed licence fee base rates will be adjusted yearly in accordance with the Consumer Price Index (CPI).

99. ISED proposes to apply this licence fee to future licensing processes for NCL licences below 10 GHz.

5.6.2. Fees for NCL licensing in high band

100. In determining the base rate for high-band NCL licensing fees, ISED considered applying the proposed mid-band base rate of $35.93 per MHz per km². However, in ISED’s view, a lower base rate for high-band spectrum is appropriate considering the characteristics of high-band spectrum. High-band spectrum generally consists of significantly larger spectrum blocks (e.g. 50 and 100 MHz). Furthermore, the physical characteristics of high-band spectrum, including the reduced propagation compared to low and mid-band spectrum, require denser deployments and can create challenges in deploying networks in less-densely populated areas of Canada. As such, the proposed licence fee base rates for NCL licence fees at high-band are proposed to be 10% of those proposed for low-band and mid-band.

101. ISED proposes reduced fee base rates for high-band spectrum of $3.59 per MHz per km² in metro/urban areas, as well as discounted rates in rural areas (25% of metro/urban) and remote areas (5% of metro/urban), following the same approach as is proposed for low-band and mid-band NCL licence fees. The discounted base rates correspond to $0.90 for rural areas and $0.18 for remote areas. Licences eligible for rural and remote discounts are those located within the rural and remote Tier 5 service areas respectively, as defined in DGSO-006-19, Decision on a New Set of Service Areas for Spectrum Licensing. For licence areas overlapping two area types, ISED will follow the precedent set out in DGSO-004-19, Decision on the Licence Fee Framework for Fixed Point-to-Point Systems. If any portion of an NCL licence is located in a remote area, the remote base rate will apply for the entire licence. Otherwise, if any portion of an NCL licence is located in a metro/urban area, the metro/urban base rate will apply for the entire licence.

102. ISED performed an international survey of high-band licence fees and spectrum valuations in other jurisdictions, with a particular focus on the mmWave band. In ISED’s view, the proposed fees above are in-line with other comparable jurisdictions, considering that this band is targeted at smaller localized licences.

103. As with NCL licences for mid-band spectrum, ISED is also proposing a minimum licence fee of $48.00 annually or $4.00 monthly.

104. As prescribed in section 17(1) of the Service Fees Act, the proposed licence fee base rates will be adjusted yearly in accordance with the CPI.

105. ISED proposes to apply this licence fee to future licensing processes for NCL licences in the 10- 95 GHz frequency range.

5.6.3. Implementing the proposed NCL licensing fees

106. ISED proposes applying the new annual fees to licences issued through the NCL licensing process as soon as the fee is fixed through a Ministerial Fee Order. ISED expects to implement the new fee April 1, 2024. Annual renewal fees would be payable each year by March 31, and, once paid, new issued licences would be valid until March 31 of the following year.

107. Service standards and remissions: In accordance with the Service Fees Act and related policy directives, ISED has set service standards for each of its fees (see Spectrum and Telecommunications Service Standards). ISED is proposing a service standard of 84 days for licences issued through NCL licensing to allow for review or evaluation by ISED. Licence applications would be subject to remissions as per ISED’s Service Fees Remission Policy and the Spectrum and Telecommunications Sector (STS) program annex.

5.7 Indigenous connectivity

108. Many Indigenous communities in Canada face barriers in accessing reliable Internet. The Canadian Radio-television and Telecommunications Commission’s (CRTC) 2020 Communications Market Reports indicated that only 35% of First Nations reserves have access to high-speed Internet at speeds of 50/10 Megabits per second (Mbps), compared with 99% of urban households and 46% of rural households. Inuit communities also face significant barriers in accessing reliable Internet. Information from the CRTC’s Communications Market Reports: Open Data indicate that while 99.6% of households in Nunavut had access to download speeds of 10 Mbps in 2019, no households had Internet access at speeds of 50/10 Mbps.

109. Indigenous service providers, business and communities have called for more inclusive and collaborative ways of assigning spectrum that serves their communities. Indigenous advocates have pointed out that when fiber optic lines are damaged, cell phone service in remote regions is compromised, which can be dangerous in life-threatening emergency situations, as residents’ only option for help is to drive to emergency responders. Additional spectrum can build redundancy in connectivity infrastructure. This allows communities to stay connected using wireless networks when wired infrastructure is temporarily non-functional.

110. Internationally, there has been some different approaches concerning Indigenous access to spectrum and engagement on spectrum matters. The United States established the Office of Native Affairs and Policy (ONAP), which focuses on engaging Indigenous communities in ongoing consultations, and disseminating information on FCC proceedings to Indigenous communities and First Nations groups. In 2018, under ONAP, the FCC established a Native Nations Communications Connectivity Task Force (NNCTF) to ensure that voices of Indigenous Peoples are reflected in policy development. Furthermore, to incentivize service providers to secure licences in designated Tribal Lands Areas, the FCC introduced Tribal Land Bidding Credits. Finally, the FCC has also implemented a Rural Tribal Priority Window for Tribes in rural areas to have priority access to unassigned 2.5 GHz spectrum over their Tribal lands, subject to buildout requirements.

111. Another example is New Zealand, which established the Te Hurrahi Tika Trust in 2000, which enabled the Maori to access 15 MHz of 3G mobile spectrum which they used to support the launch of a mobile wireless provider (2degrees) across New Zealand. In February 2022 New Zealand also announced that, 20 per cent of all commercial spectrum will go to Mori, and a permanent Mori spectrum entity will be established to represent Maori interests in spectrum policy.

112. The proposed NCL framework, and the localized licensing approach, is uniquely suited to provide access to spectrum that can support connectivity to Indigenous communities. This provides an opportunity for Indigenous service providers, businesses and communities to get access to spectrum that covers areas they want to serve. As such, ISED is seeking comments on approaches that would make the NCL licensing more accessible for Indigenous service providers, businesses and communities. One approach that ISED could consider adopting is the same definitions and criteria that the Government of Canada applies when awarding contracts to Indigenous businesses. For access to these contracts a business must either be registered in the Government of Canada's Indigenous Business Directory (noting that Elders, band and tribal councils are exempt from registration), or be registered in a beneficiary business list, when procuring in a modern treaty of self-government agreement area with economic measures. As part of the Consultation on New Access Licensing Framework, Changes to Subordinate Licensing and White Space to Support Rural and Remote Deployment, ISED received comments on behalf of Spuzzum First Nation and 61 signatory nations across Canada that called for priority access for Indigenous communities for the unused spectrum over their land. If a priority window were to be adopted for the New Access Licensing Framework , it would need a clear definition for purposes of establishing eligibility. ISED is of the view that there would be advantages to relying on the same definition, to the extent possible, when developing policies to increase Indigenous accessibility including any polices related to Access Licensing and NCL licensing.

113. However, ISED recognizes that there are broader systemic barriers for Indigenous service providers, businesses, and communities in accessing spectrum including the ISED’s approaches to licensing spectrum and navigating ISED’s processes for making spectrum available, and is working to remove some of those barriers. For example, ISED has received feedback from recent consultations (e.g. the 3800 MHz Repurposing Consultation and the New Access Licensing Consultation) that awareness of ISED consultations among Indigenous Communities is low, and that ISED needs to develop a more inclusive engagement process to facilitate feedback from Indigenous groups. ISED has heard these concerns and is working with Indigenous consultants to improve its engagement strategy going forward. ISED would like more feedback on this, and other barriers, that Indigenous service providers, businesses, and communities face when seeking access to spectrum or services from ISED, so that it can continue to improve the accessibility of its policies and processes.

5.8. Measures to support local licensing

114. As discussed in section 3, ISED is seeking to provide operators and individual spectrum users with a low-barrier framework by which to access spectrum. This framework is aimed at facilitating the development of innovative technologies and applications through the use of local private networks that support communities, enterprise users, and industry verticals.

115. Through local licensing, ISED aims to provide NCL spectrum licences only where an individual spectrum user intends to deploy its services, in order to avoid spectrum from being reserved and not immediately being used. This approach contrasts with other spectrum licensing frameworks (such as those that provide for an auction) that allow a licensee to build out a network over a given area over the deployment period set out in the framework. Those licensing frameworks will continue to be in place to support business models that favour gradual expansion of a network over time. However, NCL licensing will compliment that approach by licensing an area with an immediate deployment need, to which additional areas may be requested over time as needs grow.

116. ISED has considered implementing various measures to facilitate local access and is of the view that the general NCL licensing measures, such as small licence area sizes (section 5.3), lower urban power levels, fees (section 5.6), and expeditious deployment requirements (section 5.4.3) will serve well to encourage localized use and allow multiple users.

117. ISED would be concerned if large operators foreclosed access to smaller providers, given that many smaller operators or private network operators may take time to make use of bands identified for NCL licencing due to their requirement to plan their networks and procure equipment. As such, in addition to the general licensing measures, if the NCL licensing regime is applied to a variety of bands in the future, there may be a need for additional restrictions to encourage access for a variety of users and use cases and to deter spectrum warehousing. These restrictions could include area limits, either per application or cumulatively, spectrum holding limits, and limitations on the type of user that could be combined, made time-limited, and/or adopted differently in rural and urban areas. Consideration of any such additional measures would form part of specific band consultations. Discussions on specific measures for the 3900 MHz band and the mmWave bands are respectively set out in sections 6.1 and 7.1.

5.9 Implementation of the NCL licensing framework

118. This section discusses elements related to the implementation of NCL licensing.

5.9.1. Legislative amendments

119. In introducing NCL licensing, ISED is exploring new licensing methods and potential functionalities of its licensing system. For example, ISED is considering how, and to what degree, automation may be adopted in order to manage increasing licence volume. Depending on the chosen approach, legislative amendments could be warranted to support these new licensing methods and tools.

5.9.2. Local licensing CPC

120. In introducing NCL licensing, ISED is exploring new licensing methods and procedures. As a result, the Client Procedures Circular (CPC) that contains many of ISED’s procedures, CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, may not always be appropriate or applicable to an NCL licensing context. ISED is considering the creation of a new CPC, based on procedures established through this consultation, to provide guidance and clarity to entities operating in NCL licensed bands.

5.9.3. Licence renewal

121. At the end of the proposed annual licence term, there is a high expectation of renewal. Licensees will normally be issued new licences following a renewal process unless a breach of a licence condition occurs, a fundamental reallocation of spectrum to a new service is required, or an overriding policy need arises. Section 40 of the Radiocommunication Regulations, regarding the assignment of frequencies, continues to apply. It is important to note that the Minister, pursuant to this regulation, would reallocate spectrum only under certain circumstances, taking into consideration whether licensees have complied with the conditions of licence, have made large investments in infrastructure, and/or are serving an established client base. If a reallocation were contemplated, it would take place only after a public consultation.

122. As noted in section 5.4, NCL licences will be subject to relevant provisions in the Radiocommunication Act and the Radiocommunication Regulations. For example, the Minister continues to have the power to amend the terms and conditions of spectrum licences (as per paragraph 5(1) (b) of the Radiocommunication Act).

123. Licensees will be required to pay any fees applicable to the licence and demonstrate that they are in compliance with the conditions of licence, including deployment conditions, in order for the licence to be eligible for renewal.

124. At the time of renewal, licences will not be renewed if conditions of licence are not met. Licensees should note that ISED is considering automation of the local licensing and renewal processes and as such, if licensees have failed to meet their conditions, the licence may expire automatically.

5.9.4. Numbering

125. ISED is seeking to understand if there are any concerns related to numbering resources or any other standard related issues that could impede the proper operation of standard mobile equipment within a private network or for a private network to communicate with a public network.

126. Mobile networks use an International Mobile Subscription Identity (IMSI) to route calls. An IMSI is a unique number to identify a mobile subscriber, and it’s a key component of a Subscriber Identity Module (SIM) profile. IMSI is based on the Telecommunication Standardization Sector of the International Telecommunications Union (ITU-T) Recommendation ITU-T E.212.

127. In Canada, the Canadian Numbering Administrator (CNA) undertakes the primary administrative functions for all IMSI resources. The CNA administers IMSI resources in accordance with the Canadian International Mobile Subscription Identity (IMSI) assignment guideline developed by the Canadian Steering Committee on Numbering (CSCN) and approved by the CRTC. The administration of IMSIs in Canada is conducted under the regulatory authority of the CRTC.

128. The IMSI format in Canada is a fixed 15-digit length, broken down as follows:

• three (3) Mobile Country Code (MCC) digits
• three (3) Mobile Network Code (MNC) digits
• nine (9) Mobile Subscription Identification Number (MSIN) digits, which are administered directly by the wireless network operator to whom the MNC is assigned

129. CNA administers the MNC segment of the IMSI. It assigns MNCs to ensure the most effective and efficient use of a finite resource in order to defer, as long as practical, the need to request additional MCC resources.

130. Given that NCL licences will be flexible use, an NCL licensee may set up a network or an infrastructure, which provides services using mobile equipment including mobile handsets. An MNC under the Canadian MCC may be required to ensure calls can be routed to and from users on a publicly available network. As discussed in this section, ISED expects a mix of use cases for NCL licences and with the proposed localized areas there may be a large volume of NCL networks, as such, there could be an increased demand on numbering resources.

131. In the US, an approach was adopted to address this increased demand on numbering resources for its Citizens Broadband Radio Service (CBRS) in the 3550-3700 MHz band. The overall IMSI format remains the same. However, the MSIN is divided into two components: the first set of four digits of the MSIN will be used as the IMSI Block Number (IBN) and the remaining five digits of the MSIN will be used for the User Identification Number (UIN). This scheme allows for 10,000 blocks of 100,000 IMSIs to be allocated for CBRS users.

132. ISED also notes that Recommendation ITU-T E.212 Amendment 1 introduced a new Appendix III on shared ITU-T E.212 MCC 999 for internal use within a private network. Any MNC value under this MCC used in a network has significance only within that network and users can be well identified within that network. However, the MNCs under this MCC are not routable between networks and, thus, won’t work for roaming purposes outside the private network.

133. ISED is seeking comments on the practicality in a Canadian context of these two approaches to manage any increased demand on numbering resources from NCL licensees.

134. In May 2021, as part of SLPB-002-21, Decision on the Technical and Policy Framework for the 3650-4200 MHz Band and Changes to the Frequency Allocation of the 3500-3650 MHz Band (3800 MHz Repurposing Decision), ISED adopted a flexible use licensing model for fixed and mobile services in the 3650-4000 MHz band and decided to designate 80 MHz of spectrum for shared use in the 39003980 MHz band (see figure 4). ISED indicated that the 3900 MHz band would be made available through a shared licensing process, as opposed to a competitive process, with a licensing framework for the band to be developed through a future consultation.

Figure 4: Blocks for non-competitive spectrum licensing process in the 3900 MHz band

135. As previously mentioned, many countries have been making spectrum available for flexible use over the 3.4-4.2 GHz band, or portions thereof, including on a shared basis or for local access. As such, the global equipment ecosystem for 5G NR band n77 (3300- 4200 MHz) devices is fairly mature, and continues to evolve as more use cases are still emerging.

136. Given the decision to make the 3900 MHz band available for non-competitive shared licensing and given that this band is expected to have a readily available equipment ecosystem, ISED is proposing to apply the NCL licensing framework to the 3900 MHz band. In addition to the proposals outlined in section 5, ISED is considering further measures specific to the 3900 MHz band in the context of an NCL licensing framework. These measures and related proposals are discussed in the following sections.

6.1. Measures to support access to the 3900 MHz band

137. As discussed in section 5.7, ISED is seeking comments on the general provisions to support access, including whether there should be consideration of additional measures on a band-by-band basis. ISED is of the view that there may be a need to apply further measures to the 3900 MHz band to prevent this spectrum from being licensed to a small number of applicants and preventing future users from obtaining access. Given the high demand for mid-band spectrum, this would support the anticipated use cases and the policy objectives.

138. ISED is therefore considering applying limits on the amount of spectrum and area a given user can acquire in the 3900 MHz band in any individual Tier 5. Tier 5 definitions and maps, including which tiers are designated metro, urban, rural and remote, can be found on ISED’s Service areas for competitive licensing website. website. Limits could be based on aggregate area and/or bandwidth, and could include a time component.

139. Aggregate area limit: An aggregate area limit would limit the contiguous or cumulative geographic area that an operator could acquire within a Tier 5 service area under a licence or multiple licences, thus facilitating access for other use cases in nearby, adjacent areas. Given the variation in the sizes of Tier 5 service areas, ISED proposes that any area-based limit be based on a percentage (e.g. 5%-20%) of the geographic area (in square km) of the Tier 5 service area.

140. Spectrum limit: A spectrum limit would restrict the amount of 3900 MHz spectrum or the number of 10 MHz blocks that a licensee can acquire in any given (contiguous licence) area. This would prevent a scenario where all 80 MHz ends up being held by one or two licensees, thereby restricting access to other users. With the anticipated spectrum efficiencies that new 5G equipment will bring, ISED believes that a spectrum limit of 20 MHz would balance the importance of enabling the deployment of quality 5G applications with the objective of facilitating access for new users.

141. Time limit: While ISED recognizes the importance of facilitating access for spectrum users, it is also aware that area and spectrum limits may not need to be in place indefinitely, particularly if spectrum remains unlicensed in some areas. An option to remove these restrictions after a period of time could facilitate optimal use of the spectrum. A period of three years may provide sufficient opportunity for users to access the 3900 MHz band under the FCFS system. However, as the rate of local licensing uptake is yet uncertain, a longer period may be required to allow for new and innovative use cases to emerge.

142. Urban and rural areas: In urban areas, the demand is expected to be greatest since they tend to have higher population density and a large number of businesses, warehouses, campuses, sports facilities, and entertainment venues where 5G services and applications would likely be deployed.

143. In rural and remote areas, a higher spectrum limit may be appropriate as demand will likely be lower. Furthermore, permitting access to larger amounts of spectrum for flexible use for would enable the leveraging of emerging equipment ecosystems for 5G NR technology in order to increase the capability of offering improved service, which could help wireless providers meet the CRTC’s announced targeted speeds of at least 50/10 Mbps for Canadian homes and businesses.

144. As for the aggregate area limit, ISED recognizes that 5%-20% of the geographic area in many rural and remote Tier 5 service areas can still represent large areas. ISED is seeking comments as to whether the percentage for aggregate area limit should be different in rural and remote Tier 5 service areas compared to metro and urban Tier 5 service areas.

145. ISED recognizes that the 3900 MHz band is a natural extension of the 3800 MHz spectrum being auctioned. However, NCL licensing is not intended to be used an extension of the commercial mobile networks operated by large and regional service providers. ISED is of the view that the proposed measures will promote a variety of users having access to the spectrum. However, ISED will monitor the use of the band and may implement additional measures should there be any spectrum warehousing or anti-competitive behaviour by licensees.

6.2. Early licensing window for existing WBS users

146. In the 3800 MHz Repurposing Consultation, ISED posed the question of whether any operators should be given early access to the 3900 MHz band. Many commented that WBS operators should receive initial consideration when ISED opens the new licensing process. Some specified that it should be WISPs and various essential services agencies. Others commented that early access should occur only in rural and remote areas while some suggested that this should not occur at all.

147. The proposed FCFS NCL licensing approach for 3900 MHz does not align with the licensing approach used for WBS. Under the WBS licensing rules, there was no limit on the number of WBS licences that could be issued for the same spectrum and geographic area. Licensing was on an ACAS basis and all applicants and licensees had equal access to the spectrum. Licences were issued on a Tier 4 service area basis for 25 MHz or 50 MHz and coordination was done between licensees.

148. Existing WBS stations are deployed in various densities in urban, rural and remote areas and often have overlapping coverage. This would suggest that any early access could result in applications for the same areas by different operators. It is anticipated that some WBS operators will take advantage of the other spectrum options recently released by ISED, such as TV whitespace, 6 GHz, 5150-5250 MHz, 5850-5895 MHz (currently under consultation: SMSE-004-22, Consultation on the Technical and Policy Framework for Radio Local Area Network Devices in the 5850-5895 MHz Frequency Band and for Intelligent Transportation Systems in the 5895-5925 MHz Frequency Band), and others. Under the proposed licensing process for 3900 MHz, even with the local licensing approach, instances of overlapping demand for service areas are expected. This would make a priority system for existing licensees unfeasible. In addition, allowing automatic priority would be counter to the proposal of FCFS licensing.

149. The 3900 MHz band will be open to all potential licensees. However, ISED recognizes that some WBS operators would be seeking to use the 3900 MHz band to maintain services, in particular in rural and remote areas. ISED is planning to open licensing for the 3900 MHz band prior to the first WBS displacement deadline of March 2025. Therefore, ISED could consider some form of early access application window for WBS licensees that would allow them to plan to deploy new systems in the 3900 MHz prior to their displacement date.

150. It should be noted that the 3900 MHz band is currently in use by fixed-satellite services (FSS). The 3800 MHz Repurposing Decision set the transition deadline for licensed FSS earth station operations in non-satellite-dependent areas as March 31, 2025. It also allowed FSS in satellite-dependent Tier 4 service areas (annex C of the 3800 MHz Repurposing Decision), two FSS gateways (located in Weir, Quebec at 200 Chemin Larose, Montcalm, QC J0T 2V0 and Allan Park, Ontario at 133438 Allan Park Rd. West Grey, ON N4N 3B8.) and a Government of Canada location in North Bay¸ Ontario to continue to operate in the 3900 MHz band after the FSS transition deadline. NCL licences in the 3900 MHz band would have to respect the protection requirements for FSS earth station licences laid out in the 3800 MHz Repurposing Decision. As such, there may be limitations on when and where the 3900 MHz spectrum can be used. In addition, coexistence between NCL operations and fixed service operations, as well as NCL operations and radio altimeter operations will also need to be taken into account (see section 6.3 below). As such, there may be limitations on when and where the 3900 MHz spectrum can be used.

151. Based on the information available on existing WBS deployments and the proposed FCFS NCL licensing process, ISED is considering two options with respect to an early application window:

• Option 1 would allow existing WBS licensees to apply for 3900 MHz NCL licences in all areas where they have deployed stations
• Option 2 would allow for an early application window for WBS in rural and remote areas

152. Option 1 would allow all WBS licensees who have deployed and registered stations to apply for licences in the 3900 MHz band during a specified application window prior to opening the band for NCL licensing. ISED would open this application window prior to March 2025. This application window would allow applicants to reserve a licence that would be issued when the NCL licensing is implemented. Noting that the band is in use by FSS operations, applicants may not obtain their licences until after the March 2025 FSS transition deadline or may be limited in what they can apply for in satellite-dependent areas. ISED notes that there is also a displacement deadline of March 2027 for WBS in rural and remote Tier 5 service areas. However, ISED proposes to only hold a single early application window prior to March 2025 and that these licenses would need to meet the proposed deployment conditions in section 5.4.3. ISED is of the view that having multiple application windows would limit access to NCL licensing for those who do not currently have WBS deployments. This timing also takes into account that some WBS licensees serve a combination of urban and rural areas. However, even with local licensing, ISED studies show that there could be congestion in urban areas and urban licensees would be limited in the amount of spectrum or area available in some locations.

153. Option 2 would limit the early application window to existing WBS licensees with stations deployed in rural and remote Tier 5  areas. Similar to Option 1, ISED would open this early application window to reserve licences prior to opening the band for NCL licensing which could be 2-3 years prior to the displacement deadline of 2027 for WBS licensees with deployments in rural and remote Tier 5 service areas and that these licenses would need to meet the proposed deployment conditions in section 5.4.3. Noting that the band is in use by FSS operations, applicants may not obtain their licences until after the March 2025 FSS transition deadline or may be limited in what they can apply for in satellite-dependent areas. This option would give an opportunity for rural WBS licensees to transition early in those rural and remote areas where they have deployed, while keeping urban areas accessible for all users seeking an opportunity to use the band.

154. Should an early application window be implemented, ISED proposes that it be limited to WBS licensees that have submitted their deployment information to ISED, as per their condition of licence, and limited to areas where they have deployed. ISED anticipates that this limited eligibility will reduce the number of competing requests for the same areas during an early access window. Any remaining area conflicts would be resolved on a first-come, first-served basis. Any other WBS licensees that did not submit deployment information to ISED would be able to apply after the early access window, once the band is opened to all users, on a first-come, first-served basis.

155. While the 3900 MHz band may provide an alternative option for spectrum to support the services currently offered by WBS licensees, a number of key differences may impact the network structure of current WBS licensees when considering a transition into the proposed NCL licensing framework. Operators should consider that:

• Applications will be limited to the local licensing area structure (i.e. not the entire Tier 4 area for which they are currently licensed).
• Licensees will be required to quickly deploy equipment and provide service to the entire licence area using all of the licensed bandwidth.
• The technical requirements for the band may ultimately establish lower power limits than those currently permitted in the WBS band. Consequently, licensees may be required to deploy a greater number of base stations to support the provision of service.
  • Licensees are expected to use spectrum issued via an NCL licensing process efficiently, through the deployment of modern and efficient equipment. At this time, ISED estimates that the limit of 20 MHz proposed in section 6.1 would be manageable for WBS operators as it is expected that an operator using 50 MHz of spectrum in the WBS band would require 20 MHz in the 3900 MHz band to provide the same level of service with newer equipment. However, given the anticipated lower demand in rural and remote areas, and the critical need for improve high-speed connectivity in these areas, ISED is considering allowing access to larger amounts of 3900 MHz spectrum in rural and remote areas.
• Licensees would be subject to the same measures to support local licensing as outlined in section 6.1 relating to any area limits and/or spectrum limits, which may be time-limited, as established in this framework.
• There may be limits on when and where the 3900 MHz can be used due to the requirement to facilitate coexistence or protection with other radiocommunication services as described in section 6.3.

156. Prior to deciding which spectrum to move to, whether it be the 3900 MHz band or other spectrum made available by ISED, displaced WBS operators should give careful consideration to the different bands available, how they may affect equipment costs, and their availability given the required displacement deadlines.

157. ISED proposes that should an early application window be implemented, the window would have a limited duration (e.g. 3-6 months). ISED recognizes that WBS licensees in urban and metro Tier 5 areas are already considering their plans for displacement and that it may take time to order equipment and redesign systems based on the proposed NCL licensing framework. As such, ISED is seeking comment on the timing of the early application window for WBS licensees in areas with deployed and registered stations if one is implemented.

6.3. Technical considerations for the 3900 MHz band

158. This section outlines the technical considerations regarding the coexistence of NCL licensing operations in the 3900 MHz band with other services in both the 3900 MHz band and adjacent bands.

6.3.1. Coexistence with flexible use operations below 3900 MHz

159. ISED recognizes that the higher transmit power that will be allowed in the 3800 MHz band (3650-3900 MHz) may create situations where new lower power NCL users suffer interference from flexible use networks in these bands. There is also a less likely possibility for NCL users to be a source of interference to the users of flexible networks in the 3800 MHz band.

160. In order to mitigate interference, ISED encourages new NCL licensees operating close to the 3900 MHz band edge to adopt the same synchronization as nearby 3800 MHz adjacent band flexible use operations. Other mitigation options could also be considered, such as site screening or other site engineering solutions, such as guard bands.

161. In the case of synchronized networks, a guard band is generally not needed between the frequency block of one network operator and the frequency block of an adjacent-band network operator.

162. ISED recognizes the benefits of operator-to-operator coordination. However, ISED also recognizes the possible challenges in arriving at mutually acceptable coordination agreements between potentially numerous NCL operations and flexible use operations in the 3800 MHz band. Such a requirement would likely be difficult to operationalize and impractical to implement. Thus, instead of reliance on operator-to-operator coordination agreements between 3900 MHz NCL licensee and flexible use licensees in the 3800 MHz band, ISED is proposing to enable adjacent band coexistence through compatibility analyses performed using an automated process when issuing 3900 MHz NCL licences.

6.3.2. Coexistence with FSS operations

163. Section 10 in the 3800 MHz Repurposing Decision outlines the applicable protection of existing and new FSS earth stations from flexible use operations in 3700-3980 MHz. As such, these provisions will apply to NCL licences in the 3900 MHz band. The technical rules for the relevant protection criteria for the earth stations will be included in a future consultation. These technical requirements may include specifications, such as transmitter power limits for NCL use, as well as, earth station receiver standard requirements for FSS earth stations. ISED may implement some or all of these protection measures through an automated process.

6.3.3. Coexistence with fixed service operations in the 3700-4200 MHz band

164. Section 10.4 of the 3800 MHz Repurposing Decision outlined the protection of grandfathered fixed point-to-point radio licences from flexible use operations in the 3700-3980 MHz band. As such, these provisions will also apply to NCL licences in the 3900 MHz band. The technical rules for the relevant protection criteria for these fixed stations will be included in a future consultation. ISED may implement some or all of these protection measures through an automated process.

6.3.4. Coexistence with radio altimeter operations in the 4200-4400 MHz band

165. ISED recognizes the importance of avoiding harmful interference to aeronautical radionavigation systems. Radio altimeters are sensors installed on most civil and military aircraft operating in the 4200-4400 MHz band. These sensors continuously measure an aircraft’s altitude above ground level in flight and provide direct measurement of its clearance over terrain and obstacles. They also feed information to other systems on board the aircraft, including the automated landing and collision avoidance systems. The Radio Technical Commission for Aeronautics (RTCA) and European Organisation for Civil Aviation Equipment (EUROCAE) are expected to release new aviation industry standards for radio altimeters in 2022 to address potential interference concerns, but it could take several years to implement, certify and deploy new equipment on existing aircraft.

166. International spectrum regulators, including ISED, have become aware of studies that have shown a possibility of interference to radio altimeters from signals outside their band of operation. This could include signals from future flexible use deployment of 5G systems operating below 4200 MHz, which include the NCL licensed operations in the 3900 MHz band.

167. In the 3800 MHz Repurposing Decision, ISED committed to continue monitoring ongoing developments internationally and to assess possible mitigation measures to limit the potential interference to radio altimeters from flexible use operations in the 3650-3980 MHz band, as necessary.

168. Given the immediate need to address potential interference to radio altimeters from flexible use in the 3500 MHz band, in August 2021, ISED initiated a Consultation on Amendments to SRSP-520, Technical Requirements for Fixed and/or Mobile Systems, Including Flexible Use Broadband Systems, in the Band 3450-3650 MHz. In September 2021, ISED published an Addendum to Consultation on Amendments to SRSP-520, Technical Requirements for Fixed and/or Mobile Systems, Including Flexible Use Broadband Systems, in the Band 3450-3650 MHz, which closed on October 15, 2021.

169. In November 2021, ISED published the Decision on Amendments to SRSP-520, Technical Requirement for Fixed and/or Mobile Systems, Including Flexible Use Broadband Systems, in the Band 3450-3650 MHz, which included measures to protect radio altimeter operation from harmful interference from flexible use systems operating in the 3500 MHz band.

170. The main protection measures included:

• exclusion and protection zones to mitigate interference to aircraft around certain airport runways where automated landing is authorized
• a national antenna down-tilt requirement to protect aircraft used in low altitude military operations, search and rescue operations, and medical evacuations all over the country

171. The mitigation measures for the 3500 MHz band are required while international and domestic studies are still underway to further assess the potential adjacent band interference to radio altimeters from flexible use operation. Depending on the outcomes of these studies, mitigation measures may also be needed to protect radio altimeters from NCL operation in the 3900 MHz band. In the interim, ISED is proposing to extend the mitigation measures applicable to the 3500 MHz band, as described in SRSP-520, Technical Requirements for Fixed and/or Mobile Systems, Including Flexible Use Broadband Systems, in the Band 3450-3650 MHz, to NCL operations in the 3900 MHz band. It is recognized that some measures, such as the exclusion and protection zones, could be modified if lower power levels are adopted for the 3900 MHz band. These measures would be incorporated into a new SRSP specific to the 3900 MHz band, which would be developed with industry in a future consultation. ISED may implement some or all of these protection measures for NCL licensing through an automated process.

172. As discussed in the Consultation on a Policy and Licensing Framework for Spectrum in the 26, 28 and 38 GHz, ISED proposed to make 250 MHz in the 26, 28 GHz band and 800 MHz in the 38 GHz band available through a non-competitive spectrum licensing process to support new and innovative use cases.

173. ISED proposed that the 250 MHz band in the 26, 28 GHz band consist of two 100 MHz blocks at the lower end of the 26, 28 GHz band (26.5-26.7 GHz) and 50 MHz at the upper end of the 26, 28 GHz band (28.3-28.35 GHz), as shown in figure 5.

Figure 5: Proposed blocks for non-competitive spectrum licensing process in the 26, 28 GHz band

174. In addition, ISED proposed that the 800 MHz of non-competitively licensed spectrum in the 38 GHz band consist of eight 100 MHz blocks in the frequency range 37.6-38.4 GHz, as shown in figure 6.

Figure 6: Proposed blocks for non-competitive spectrum licensing process in the 38 GHz band

175. ISED is proposing to apply the proposed NCL licensing framework to this spectrum, while recognizing that the amount and location of spectrum, if any, that will be made available for non-competitive licensing in mmWave is still under consultation.

176. ISED recognizes that while the global mmWave ecosystem for 5G NR bands n257, n258, n260 and n261 for the 26, 28 and 38 GHz bands has continued to develop in recent years, there remains uncertainty around use cases and deployments in the mmWave bands. As discussed in section 4.1, only a few countries have made mmWave spectrum available through non-competitive licensing processes. ISED is of the view that mmWave NCL licensing could support multiple different types of networks or combinations of networks, including localized mobile, fixed point-to-point and fixed wireless access services. As such, ISED is seeking comments on the expected use cases for NCL mmWave bands.

177. The proposed NCL licensing framework is new and will require major changes to ISED’s spectrum management systems and processes. Therefore, ISED is proposing a phased implementation of the proposed NCL licensing bands. As discussed in section 6.2, some WBS licensees may be seeking access to the 3900 MHz band prior to the displacement timelines for the WBS band. Given these factors, ISED is of the view that the priority and potential demand for the 3900 MHz band will initially be higher than demand for the mmWave bands. As such, ISED is proposing to prioritize the licensing of the 3900 MHz band by making it available for NCL licensing prior to making mmWave band NCL licensing available.

7.1. Measures to support access in the mmWave bands

178. As discussed in section 5.7, ISED is seeking comments on the general provisions to support local access, including whether there should be consideration of different measures on a band-by-band basis. ISED is seeking comments on the need to apply further measures to the mmWave bands to maximize the number and range of users that could have access to this spectrum.

179. ISED is therefore considering applying limits to the amount of spectrum a given user can acquire in the mmWave bands for all Tier 5 area designations. This limit could be based on aggregate area, holdings, or time.

180. Aggregate area limit: An aggregate area limit would limit the contiguous or cumulative geographic area that an operator could acquire in a Tier 5 service area under a licence or multiple licences, thus facilitating access for other use cases in nearby, adjacent areas. Given the variation in the sizes of each Tier 5 service area, ISED proposes that any area-based limit be based on a percentage (e.g. 5%-20%) geographic area (i.e. square km) of the Tier 5 service area.

181. Spectrum limit: A spectrum limit would limit the amount of mmWave spectrum or the number of 50 or100 MHz blocks that a licensee can acquire in any (contiguous licence) area within a Tier 5 service area. This would prevent the scenario where all 1050 MHz ends up being held by one or two licensees, thereby restricting access to other users. With the anticipated spectrum efficiencies that new 5G equipment will bring, ISED believes that a spectrum limit of 200 MHz would balance the importance of enabling the deployment of quality 5G applications with the objective of facilitating access for new users.

182. Time limit: While ISED recognizes the importance of facilitating access for spectrum users, it is also aware that area and spectrum limits may not need to be in place indefinitely, particularly if spectrum remains unlicensed in some areas. An option to remove these restrictions after a period of time could facilitate maximum use of the spectrum. A period of three years may provide sufficient opportunity for users to access the mmWave bands under the FCFS system. However, as the rate of local licensing uptake is unknown, a longer period may be required to allow for new and innovative use cases to emerge.

183. As with 3900 MHz, in urban areas, the demand is expected to be greatest since they tend to have higher population density and number of businesses, campuses, sports, and entertainment facilities where 5G services and applications would likely be deployed. Accordingly, ISED is seeking comments as to whether different spectrum limits should be considered in rural and remote Tier 5 service areas considering the demand will likely be lower. As for the aggregate area limit, ISED recognizes that 5%-20% of the geographic area in most of rural and remote Tier 5 service areas may still represent large areas. ISED is seeking comments as to whether the percentage for aggregate area limit should be different in rural and remote Tier 5 service areas compared to metro and urban Tier 5 service areas.

184. ISED recognizes that these mmWave bands are a natural extension of those being proposed to be auctioned. However, NCL licensing is not intended to be used an extension of auctioned bands. ISED is of the view that the proposed measures will promote a variety of users having access to the spectrum. However, ISED will monitor the use of these bands and may implement additional measures should there be any spectrum warehousing or anti-competitive behaviour by licensees.

7.2. Technical considerations for the mmWave bands

185. This section outlines the technical considerations regarding the coexistence of NCL operations in the mmWave NCL bands, as well as the coexistence of the NCL in mmWave bands with other co-primary services allocated in these bands.

186. In the mmWave bands being proposed for NCL licensing (i.e. 26.5-26.7 GHz, 28.3-28.35 GHz and 37.6-38.4 GHz), in addition to fixed and mobile services, co-primary satellite services will continue to have access to these bands, in accordance with the Canadian Table of Frequency Allocations (CTFA). Figures 7 and 8 show the current allocations in the 26.5-28.35 GHz, and 37-40 GHz bands, respectively.

Figure 7: Allocations in the 26.5-28.35 GHz band

Figure 8: Allocations in the 37-40 GHz band

187. In addition to these allocations, the SLPB-003-19, Decision on Releasing Millimetre Wave Spectrum to Support 5G (mmWave Decision) adopted some provisions through three CTFA footnotes that stipulates that fixed and mobile service systems have priority over satellite service systems in these bands. The mmWave Decision also indicated that in order to enable coexistence between flexible use service and earth stations of the satellite services in the 26 GHz, 28 GHz and 38 GHz bands, a population impact assessment approach would be established. These rules apply to both the mmWave spectrum proposed to be auctioned and the mmWave NCL spectrum.

7.2.1. Coexistence between NCL licensees and satellite earth stations in the mmWave bands

188. There are currently no licensed earth stations in the 26.5-26.7 GHz and 37.6-38.4 GHz bands. However, there are currently transmitting FSS earth stations in operation in the 28.3-28.35 GHz band.

189. It is proposed that existing earth stations that have deployed prior to the bands being available for NCL licensing be protected at their current operating parameters. However, should these existing earth stations require modifications, they would require re-authorization that would take into account any potentially impacted existing NCL licensed stations at the time.

190. Typically, in bands used by different radiocommunication services, including the 26 GHz, 28 GHz, and 38 GHz bands that are proposed to be auctioned, successful sharing of the bands will rely heavily upon operator-to-operator coordination agreements. These sharing agreements usually involve a very limited number of parties. In the context of the proposed NCL operations in the 26.5-26.7 GHz, 28.3-28.35 GHz and 37.6-38.4 GHz bands, ISED recognizes the possible challenges for operators to coordinate between potentially numerous NCL and earth station operations in order to establish mutually acceptable agreements. Such an approach would likely be difficult to operationalize and impractical to implement. Thus, instead of operator-to-operator coordination agreements, ISED is proposing that access to the mmWave NCL licensing bands be based on a technical compatibility analysis performed through an automated process.

191. ISED is seeking comments on whether the licensing software should authorize new earth stations to protect existing NCL licensed stations based on specific technical limits to be established. This may result in excluding new earth stations in some areas around these NCL licensed stations. Similarly, ISED seeks comments on whether the licensing software should authorize NCL licensed stations in such a way that existing earth stations would be protected based on specific technical limits, which are to be established. This may result in excluding the deployment of new NCL licensed stations in some areas around these earth stations. Modifications to already licensed earth stations or NCL licensed stations would be considered as new stations and would be subject to the same licensing approach as new potential licensing requests.

192. Respondents are requested to provide their comments in electronic format (Microsoft Word or Adobe PDF) by email to spectrumauctions-encheresduspectre@ised-isde.gc.ca.

193. All submissions should cite the Canada Gazette, Part I, the publication date, the title and the notice reference number (SPB-003-22). Respondents are asked to use the question number and question text as a header above their answer.

194. Respondents should submit their comments no later than October 11, 2022, to ensure consideration. Soon after the close of the comment period, all comments received will be posted on ISED’s Spectrum Management and Telecommunications website.

195. As all comments will be posted on ISED’s Spectrum Management and Telecommunications website, respondents are asked to not include confidential or private information in their submissions.

196. ISED will also provide interested parties with the opportunity to reply to comments from other parties. Reply comments will be accepted until November 14, 2022.

197. Following the initial comment period, ISED may, at its discretion, request additional information if needed to clarify significant positions or new proposals. In such a case, the reply comment deadline may be extended.

198. All ISED publications related to spectrum management and telecommunications are available on ISED’s Spectrum Management and Telecommunications website.

199. For further information concerning the process outlined in this document or related matters, contact:

Telephone: 613-219-5436
TTY: 1-866-694-8389
Email: spectrumauctions-encheresduspectre@ised-isde.gc.ca

The following conditions will apply to non-competitive local (NCL) licences, subject to any additions or amendments that may be established in any band-specific frameworks.

It should be noted that the licences are subject to the relevant provisions in the Radiocommunication Act and the Radiocommunication Regulations, as amended from time to time. For example, the Minister of Innovation, Science and Industry (the Minister) continues to have the power to amend the terms and conditions of spectrum licences, under paragraph 5(1)(b) of the Radiocommunication Act. The Minister may do so for a variety of reasons, including furtherance of the policy objectives related to the band. Such action would normally only be undertaken after consultation.

A1. Licence term

The term of this licence is one year.

At the end of the term, the licensee will have a high expectation that a new licence will be issued for a subsequent term unless a breach of licence condition has occurred, a fundamental reallocation of spectrum to a new service is required, or an overriding policy need arises.

A2. Eligibility

The licensee must comply on an ongoing basis with the applicable eligibility criteria in subsection 9(1) of the Radiocommunication Regulations and, where applicable, with the eligibility criteria as defined under the non-competitive local (NCL) licensing framework. The licensee must notify the Minister of any change that would have a material effect on either type of eligibility. Such notification must be made in advance for any proposed transactions within its knowledge.

A3. Licence transferability, divisibility and subordinate licensing

This licence is not transferable in whole or in part (divisibility), in either bandwidth or geographic dimensions. A Subordinate Licence will not be issued in regard to this licence.

A4. Radio station installations

The licensee must comply with Client Procedures Circular CPC-2-0-03, Radiocommunication and Broadcasting Antenna Systems, as amended from time to time.

Compliance with legislation, regulation and other obligations: The licensee is subject to and must comply with the Radiocommunication Act and the Radiocommunication Regulations, as amended from time to time. The licensee must use the assigned spectrum in accordance with the Canadian Table of Frequency Allocations and the spectrum policies applicable to this band, as amended from time to time. The licence is issued on condition that all representations made in relation to obtaining this licence are all true and complete in every respect.

A5. Technical considerations, and international and domestic coordination

The licensee must comply on an ongoing basis with the technical aspects of the appropriate Radio Standards Specifications (RSS) and Standard Radio System Plans (SRSP), as amended from time to time. Where applicable, the licensee must use its best efforts to enter into mutually acceptable agreements with other parties for facilitating the reasonable and timely development of their respective systems, and to coordinate with other licensed users in Canada and internationally.

The licensee must comply with the obligations arising from current and future frequency coordination agreements established between Canada and other countries and shall be required to provide information or take actions to implement these obligations as indicated in the applicable SRSP.

A6. Lawful interception

A licensee operating as a telecommunication common carrier using the spectrum for voice telephony systems must, from the inception of service, provide for and maintain lawful interception capabilities as authorized by law. The requirements for lawful interception capabilities are provided in the Solicitor General's Enforcement Standards for Lawful Interception of Telecommunications (Rev. Nov. 95). These standards may be amended from time to time.

The licensee may request the Minister to forbear from enforcing certain assistance capability requirements for a limited period of time. The Minister, following consultation with Public Safety Canada, may exercise the power to forbear from enforcing a requirement or requirements where, in the opinion of the Minister, the requirement is not reasonably achievable. Requests for forbearance must include specific details and dates indicating when compliance with the requirement can be expected.

A7. Deployment requirements

The licensee will be required to demonstrate to the Minister that the spectrum has been put to use throughout the licence area within one year of licence issuance.

The licensee is required to meet these conditions at all relevant times during the licence term and to continuously provide services throughout the term of the licence in accordance with these requirements.

The licensee must provide the Minister with any documentation or information related to deployment at the Minister's request.

A8. Reporting

In addition to any reporting requirements required by any other ISED document, the licensee must submit a report, upon request, which includes the following information:

• a statement indicating continued compliance with all conditions of licence
• an update on the implementation and spectrum usage within the area covered by the licence
• other information related to the licence as specified in any notice updating the reporting requirements as issued by the Minister

Reports are to be submitted to the Minister at the following address:

A9. Amendments

The Minister retains the discretion to amend these terms and conditions of licence at any time.