Consultation on the Licence Renewal Process for the 24 GHz and 38 GHz Bands and Preliminary Consultation on Changes to the 24.25-26.5 GHz Band

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. In developing policies and licensing frameworks, the Minister is guided by the policy objectives of the Telecommunications Act, and the Spectrum Policy Framework for Canada (SPFC), which seeks to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum resource. These policy objectives, along with the enabling guidelines outlined in the SPFC, continue to be relevant for guiding the Minister in delivering its mandate of spectrum management.

4. The Minister’s objectives for the renewal of the relevant licences in the 24 GHz band, 38 GHz band, and initial considerations for the lower 26 GHz band are to:

• foster investment and the evolution of wireless networks by enabling the development of high-quality 5G networks and technology
• support sustained competition in the provision of wireless services so that all consumers and businesses benefit from greater choice and competitive prices

5. In 1999, ISED auctioned 400 MHz of spectrum in the 24 GHz (24.25-24.45 GHz paired with 25.05-25.25 GHz) band in Tier 3 service areas for fixed point-to-point and point-to-multipoint broadband wireless access.

6. In 2014, through the release of SLPB-006-14, New Licensing Framework for the 24, 28 and 38 GHz Bands and Decision on a Licence Renewal Process for the 24 and 38 GHz Band (2014 Renewal Decision), ISED implemented a first-come, first-served (FCFS) licensing process for all remaining available spectrum in the 24 GHz band as site-specific licences. The previously auctioned licences were also re-issued after their expiry as fixed service spectrum licences in Tier 3 service areas for 10 years without a high expectation of renewal. These auctioned licences are set to expire in January and May 2025.

7. In the 2014 Renewal Decision, ISED was of the view that site-specific FCFS licensing was the most suitable licensing approach for the available spectrum in the 24 GHz band as it enabled the most efficient use of the spectrum and it was allocated for fixed service, point-to-point and point-to-multipoint systems. As a result, ISED decided that 24 GHz spectrum licences would not include a high expectation of renewal and indicated that it would hold a consultation to determine if new spectrum licences would be issued through a future renewal process and, if so, under what terms and conditions.

8. Since then, there have not been any site-specific licences issued, largely due to an absence of demand. However, there have been significant developments globally in the expected use of the lower 26 GHz band, which includes the 24 GHz band, with changes to the international allocations and a new ecosystem for 5G equipment.

9. Any change to the band plan’s policy framework to allow commercial mobile services or flexible use applications would be a fundamental change to the spectrum use policy. ISED plans to consult on the potential changes to the band plan and block sizes, and consult on its approach regarding existing licensees in the future. Therefore, ISED is placing a moratorium on FCFS site-specific licensing to maintain the stability of the 24 GHz band (24.25-24.45 GHz and 25.05-25.25 GHz) while it conducts its review of the lower 26 GHz band.

Decision

10. More recently, at the International Telecommunication Union (ITU) World Radio Conference 2019 (WRC-19), the 26 GHz band (24.25-27.5 GHz) was identified for International Mobile Telecommunications (IMT) worldwide. WRC-19 also adopted Resolution 242, which establishes coexistence requirements for the 26 GHz band. Canada is one of the approximately 190 signatories of the resulting treaty-binding updated ITU Radio Regulations.

11. Furthermore, ISED indicated that the 24.25-26.5 GHz frequency range was upgraded to Priority 1 in the Spectrum Outlook 2023 to 2027 (the Outlook) to consult on the renewal of existing licences and whether these bands would be appropriate to support 5G.

12. In terms of standards, the 3rd Generation Partnership Project (3GPP) has adopted a standard for the 26 GHz band, referred to as band n258. In recent years, an equipment ecosystem has emerged for the 26 GHz band and is expected to continue to grow.

13. ISED is already consulting on the upper 26 GHz and 28 GHz bands under the mmWave Consultation. Given this, combined with the ongoing developments in millimetre wave (mmWave) bands globally and in Canada, ISED is consulting on the renewal process for the existing licences in the 24 GHz band, and in addition, on preliminary considerations on potential future changes to the spectrum use in the 24.25‑26.5 GHz band. The potential release of additional spectrum in the 24.25‑26.5 GHz frequency range for flexible use for fixed and mobile services would provide Canadians with access of up to 4.1 GHz of contiguous mmWave spectrum, from 24.25‑28.35 GHz, to support the deployment of 5G networks and systems. ISED is also consulting on additional questions related to the mmWave Consultation and the related 38 GHz licence renewal.

14. This section discusses the proposals on eligibility for the renewal process and the renewal process itself for the 24 GHz band.

15. As mentioned in section 4, the current spectrum licences in the 24 GHz band in 24.25-24.45 GHz paired with 25.05-25.25 GHz are coming to the end of the licence term in January and May 2025. ISED recognizes that these existing licensees need certainty regarding their licences before any future changes are made to the band plan. As such, ISED is consulting on the future of these licences.

16. TeraGo Network Inc. (TeraGo) and Bell Canada (Bell) currently hold licences in eight Tier 3 service areas, as detailed in annex A. ISED is proposing that current licensees seeking renewal will need to demonstrate that they have met all conditions of their licences specified in the 2014 Renewal Decision in order to be eligible for renewal. As such, any licensee that fails to demonstrate to ISED’s satisfaction that it meets the conditions of licence for each of its licences by the expiry date would not be eligible for the renewal of that licence. Accordingly, upon expiry of the current licence term, ISED is proposing to issue new licences to those of the existing licensees who can demonstrate that they comply with all applicable licence conditions.

17. The Service areas for competitive licensing interactive map and table outlines the general service areas that are used by ISED for the purposes of issuing spectrum licences.

18. As different wireless services, applications and frequency bands are best suited to different sizes of service areas, five tiers of service areas have been established.

• Tier 1 is a single national service area.
• Tier 2 consists of 14 large service areas covering all of Canada.
  • eight Tier 2 service areas that have provincial/territorial boundaries.
  • six Tier 2 service areas that are sub-provincial within Ontario and Quebec.
• Tier 3 contains 59 smaller regional service areas.
• Tier 4 consists of 172 localized service areas.
• Tier 5 contains the smallest licensing areas and includes 654 service areas, further categorized into 4 broader groups: metropolitan, urban, rural, and remote.

19. In order to determine the appropriate licensing area, ISED takes into consideration the potential uses for the spectrum and the characteristics of the spectrum, including propagation characteristics and potential for interference coordination challenges.

20. Currently, the existing 24 GHz spectrum licences are based on Tier 3 service areas. However, the limited range of mmWave signals lowers the potential of interference, and makes mmWave suitable for licensing using smaller tier sizes. Licensing based on smaller tier sizes, such as Tier 5, also provides additional flexibility to licensees by allowing them to concentrate on the geographic markets of most interest and/or aggregate smaller service areas into larger regions that correspond to their business needs. In particular, Tier 5 further separates metropolitan, urban, rural, and remote areas allowing wireless providers to target their areas of interest with greater specificity. Additionally, Tier 5 service areas were also proposed in the ongoing mmWave Consultation for the upper 26 GHz, 28 GHz and 38 GHz bands, which have similar characteristics to the 24 GHz band. As such, ISED is proposing to issue new spectrum licences to eligible 24 GHz licensees based on the Tier 5 service area within the Tier 3 areas of their existing licences.

21. Furthermore, ISED recognizes that to date, 24 GHz licensees have not deployed in all the Tier 5 areas that make up their licensed Tier 3 service areas. At the time of the release of this consultation, licensees may have existing plans to expand their network beyond their current deployment. As such, ISED may consider issuing new 24 GHz spectrum licences to eligible licensees in all Tier 5 service areas within their licensed Tier 3 area. This would provide licensees with the flexibility to expand or respond to new business opportunities given that ISED is still considering the future use of the lower 26 GHz band (see section 7) and the timelines for any potential changes remain to be determined.

22. At the same time, current licensees were not provided with a high expectation of renewal at the time of the 2014 Renewal Decision. As such, ISED may also consider issuing new 24 GHz spectrum licences to eligible licensees only in the Tier 5 service areas where they have deployed at least one station. This would allow licensees to continue providing existing services with no disruption until ISED decides on the future use of the lower 26 GHz band.

23. Given the above, ISED is seeking comments on its proposal to issue new 24 GHz spectrum licences to eligible licensees based on the Tier 5 service areas within the Tier 3 areas of their existing licences. Furthermore, ISED is seeking comments on whether these new 24 GHz licences should be issued for all Tier 5 areas within the Tier 3 area or only for Tier 5 areas where the licensee has deployed at least one station.

24. In order to expedite the renewal of licences in a timely manner, ISED proposes that existing 24 GHz spectrum licensees must, at least 150 calendar days before the expiry of the licence, provide ISED with:

• proof that they hold a valid licence
• proof that they have met all of its current licence conditions
• any other materials required by the subsequent renewal process decision

25. The conditions of licence proposed under this section would apply to new spectrum licences issued through the renewal process for the existing 24 GHz spectrum licensees. It should be noted that all spectrum licences are subject to the 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 pursuant to paragraph 5(1)(b) of the Radiocommunication Act. The Minister may make amendments for a variety of reasons, including, without limitation, furtherance of the policy objectives related to the band. Such action would normally only be undertaken after consultation.

26. The Framework for Spectrum Auctions in Canada states that ISED has adopted a flexible approach in determining licence terms (up to 20 years) based on the specific spectrum being offered and subject to a public consultation preceding the specific auction or renewal process.

27. The current 24 GHz spectrum licences will expire in 2025, at the end of their current 10-year term. As mentioned in section 4, these licences were not given a high expectation of renewal at the end of the current licence term. Instead, ISED had indicated that site-specific FCFS licensing would be the most suitable approach for the 24 GHz band as it enabled the most efficient use of spectrum at the time. However, as detailed in section 7, ISED is currently considering changes to the lower 26 GHz band,  which could result in multiple changes to the policy, technical and licensing framework of the existing 24 GHz band.

28. As any changes to the new lower 26 GHz band would require consultation and since this process may not be completed prior to the January and May 2025 expiry date of the existing 24 GHz licences, ISED proposes a licence term of one year for new spectrum licences issued through this proposed renewal process. Until a new licensing framework is established, these new 24 GHz spectrum licences would be re-issued on an annual basis thereafter, as long as the conditions of licence have been met at the time of re-issuance. This would allow current licensees to continue to expand their networks and serve their customers until ISED determines if and/or when it will implement a new licensing process in the future.

29. ISED uses deployment requirements to encourage licensees to put spectrum to use to provide wireless services in Canada and to deter acquisition of licences by speculators and those whose intent is to prevent access to the spectrum by their competitors.

30. The current deployment requirements for the existing Tier 3 licences are to maintain ongoing deployment of eight links per one million population (rounded up to a whole number). However, as detailed in section 5.2, ISED is proposing to issue new 24 GHz spectrum licences to eligible licensees using Tier 5 service areas. Therefore, ISED proposes applying this same deployment requirement to each of the Tier 5 service areas within a given Tier 3 service area. As such, existing 24 GHz licensees would have to meet the requirement of eight links per one million population (rounded up to a whole number) in each of the licensed Tier 5 service areas. This would align with the proposed requirements for transition of each Tier 5 area within existing Tier 3 spectrum licences for the 38 GHz band as detailed in annex C of the mmWave Consultation. Different service areas would have various requirements depending on the characteristics of the service areas, as outlined in annex B of this document. For the purposes of meeting this requirement, only stations (as defined in the Radiocommunication Act), which are actively being used for radiocommunication shall be considered valid deployments.

31. Additionally, ISED recognizes that acquiring equipment and siting towers may not always be feasible in a one-year timeframe. Furthermore, given the moratorium specified in Decision 1, there will be no new deployments from licensees other than those eligible for the new 24 GHz spectrum licences resulting from this renewal process. Given this moratorium as well as uncertain timing for possible changes to the lower 26 GHz band, expanded deployment in this band could be limited. As such, ISED is seeking comments on whether licensees should be required to demonstrate deployment in their Tier 5 service area at the end of the one-year licence term or if this should be assessed at a later date, such as three years after issuance of the new 24 GHz Tier 5 spectrum licences, or relative to when any future licensing framework is established.

32. ISED is also seeking comments on the remaining proposed conditions of licence, described in annex C, which would apply to new spectrum licences issued through this renewal process. These conditions of licence are the same as the ones prescribed on the current licences in the existing 24 GHz band.

33. WRC-19 allocated 24.25-25.25 GHz to mobile (except aeronautical) on a primary basis in Regions 1 and 2, globally identified the 24.25-27.5 GHz band for IMT, and established limits of unwanted emissions that apply to IMT in the 24.25-27.5 GHz band to protect Earth Exploration-Satellite Service (EESS) passive systems in the 23.6-24 GHz band from harmful interference. Given these WRC-19 developments, ISED is seeking preliminary input on making changes to the use of the lower 26 GHz band.

34. Given that the 26 GHz band (24.25-27.5 GHz) was identified for the terrestrial component of IMT worldwide at WRC-19, other jurisdictions, such as the United States (US), Australia, United Kingdom (UK), France, Finland, Germany and Hong Kong, are also seeking to facilitate the development and adoption of 5G technology in higher frequency bands and are in the process of making mmWave spectrum available for this purpose through various licensing approaches.

35. In the US, the Federal Communications Commission (FCC) held Auction 102 in the 24 GHz band (24.25-24.45 GHz and 24.75-25.25 GHz) in March 2019. The FCC authorized both fixed and mobile operations in the band.

36. In 2021, the Australian Communications and Media Authority (ACMA) made the upper 26 GHz band (25.1-27.5 GHz) available at auction in pre-defined geographic areas encompassing cities and regions with important smaller population centres. Of the 360 licences made available in this auction, 358 were sold. Additional 26 GHz spectrum was also made available through an administrative allocation of area-wide apparatus licences in the lower portion of the band (24.7-25.1 GHz), as well as in areas outside the defined geographic areas used at auction. As of June 2023, the ACMA has issued 24 local licences across the 26 GHz (24.25-27.5 GHz) and 28 GHz (27.5-29.5 GHz) bands with limited deployment.

37. In May 2023, through the release of the consultation on Enabling mmWave spectrum for new uses, the UK regulator, Ofcom, began consulting on awarding licences using different processes in parts of the 26 GHz band. First, Ofcom proposed licensing the top 2.4 GHz of the 26 GHz band (25.10‑27.5 GHz) through an auction in high density areas such as town and cities. Second, Ofcom proposed making local access licences available on a first-come, first-served basis, using its Shared Access licensing framework in the 24.25‑25.1 GHz part of the band as well as outside towns and cities in the 25.10‑27.5 GHz part of the band.

38. In January 2019, France issued a call for the creation of 5G trial platforms in the 26.5 to 27.5 GHz band. The call was aimed at market players wanting to obtain 26 GHz band frequencies to create open trial platforms (using small-scale 5G networks) and to open these platforms up to third parties. It was also aimed at market players wanting to test new use cases: innovative tech and service companies, including start-ups and industry verticals (health, energy, smart cities, etc.) players. In October 2019, France announced the first 11 selected projects. Projects were proposed by a variety of telecom industry players and verticals.

39. Finland auctioned the 26 GHz spectrum in June 2018. Three mobile network operators, were each assigned 800 MHz of spectrum between 25.1-27.5 GHz. In the 24.25-25.1 GHz segment of the band, 850 MHz of spectrum has been reserved for local/regional vertical players and research and development (R&D) or educational usage. The strategy behind the award was to make spectrum available as soon as possible, then let the market plan and implement use cases.

40. In Germany, the Bundesnetzagentur (BNetzA) decided to issue local licences in the 24.25-27.5 GHz band. This band was identified by BNetzA as a potential enabler of retail telecommunications services and applications such as infrastructure links, industry 4.0 and Internet of Things (IoT). BNetzA published the Administrative rules for spectrum assignments for local broadband spectrum usages in the 24.25-27.5 GHz band in June 2021.

41. In 2021, Hong Kong established a local licensing framework for the 24.25-27.5 GHz and 27.5-28.35 GHz bands where a local licensee operating within a maximum network coverage  of 1 km² would be assigned up to 400 MHz of shared spectrum for the provision of innovative wireless broadband services.

42. In Canada, the lower 26 GHz band is currently allocated to the fixed service, fixed-satellite service, mobile service, inter-satellite service, Earth exploration-satellite service (space-to-Earth), space research service (space-to-Earth), Radionavigation and Radiolocation-satellite service on a primary basis, as shown in figure 1. Additionally, the standard frequency and time signal-satellite (Earth-to-space) is allocated in 25.25‑26.5 GHz on a secondary basis, which is not included in the figure.

Figure 1: Current band plan from 24.25-26.5 GHz

43. The 3GPP band class n258 covers the 24.25-27.5 GHz band, thus overlapping both the lower and upper 26 GHz bands. This band class supports channel bandwidths of 50, 100, 200 and 400 MHz and allows for Time-Division Duplex (TDD) mode operations, which is suitable for unpaired spectrum.

44. Given the international trends as mentioned in the previous section, the emerging ecosystem and the increasing demand for mobile spectrum, ISED is seeking preliminary input on whether it should repurpose spectrum in the lower 26 GHz band to accommodate flexible use for fixed and mobile services. For the purposes of this consultation, the portions of the band for consideration have been divided into three parts in this section as the:

• paired 24 GHz band (24.25-24.45 GHz and 25.05-25.25 GHz)
• spectrum between the existing paired 24 GHz band (24.45-25.05 GHz)
• spectrum beyond the existing paired 24 GHz band up to the upper 26 GHz band (25.25-26.5 GHz)

7.2.1   24.25-24.45 GHz and 25.05-25.25 GHz (current 24 GHz band)

45. As discussed in section 5, ISED is proposing to renew the existing auctioned spectrum licences in the 24.25-24.45 GHz and 25.05-25.25 GHz bands until a decision is made regarding the future use of the lower 26 GHz band. ISED recognizes that these licensees need certainty regarding the future of their licences in order to continue to provide service and invest in infrastructure.

46. Additionally, ISED is aiming to adopt a consistent approach for the licensing of mmWave spectrum for flexible use. Given that ISED may include the current 24 GHz band as part of the lower 26 GHz band for 5G, ISED is also considering to use some of the same principles outlined for the 38 GHz band in the Decision on Releasing Millimetre Wave Spectrum to Support 5G regarding how it will address the existing 24 GHz licensees in any future repurposing process. Specifically, considering that details for the new lower 26 GHz band licences will be part of a future consultation:

• Licensees of the 24 GHz band Tier 3 spectrum licences who are in compliance with their current licence conditions will be eligible to apply for a new licence as part of any new licensing process, which will be further consulted on, for the lower 26 GHz band and would be issued the licence for an equal amount of spectrum as their existing 24 GHz holdings
• The new licences available to eligible 24 GHz licensees will be issued using licence areas that align with the new licence areas, which will be further consulted on, and only for those areas within which the existing licensee has deployed services by the end of its licence term or voluntary cancellation date. Depending on the future licensing process chosen these areas could be the Tier 5 licence or smaller areas within the Tier 5 service area
• The new licences will be subject to the rules for the new licensing process, including potentially a new band plan and, as such, may be assigned different frequency blocks than their existing licences

47. Furthermore, should ISED repurpose the lower 26 GHz band, the details and timelines for how the above principles will apply will be consulted on through a future process.

48. ISED is also seeking preliminary input on a future licensing process for any spectrum in the lower 26 GHz band that could be repurposed. Should ISED implement a new licensing process for flexible use services in the lower 26 GHz band, three possible licensing approaches could be considered:

• a competitive licensing process, such as an auction
• a non-competitive process (e.g. FCFS) to issuing spectrum licences for localized areas, such as the non-competitive local licensing process detailed through the Decision 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
• a mixed approach, using a competitive process in some portions of the band or certain areas, such as metro and urban tiers, and using a non-competitive process in the other portions or areas, such as rural and remote tiers

49. ISED is seeking comments on the above preliminary options, or any additional approaches that could be considered for a future licensing process.

50. In the mmWave Consultation, ISED proposed to use an auction process to assign 3.2 GHz of spectrum in the upper 26 GHz and 28 GHz bands (26.7-28.3 GHz), and the 38 GHz band (38.4-40.0 GHz). ISED also proposed to include 200 MHz in the upper 26 GHz band (26.5-26.7 GHz), 50 MHz in the 28 GHz band (28.3-28.35 GHz), and 800 MHz in the 38 GHz band (37.6-38.4 GHz) in a future non-competitive licensing process.

51. Should ISED repurpose the lower 26 GHz band, ISED is seeking to efficiently license any spectrum that may become available. Given the similarities between the lower 26 GHz band and the bands in the mmWave Consultation, an option could be to combine the lower 26 GHz band with the licensing processes for the upper 26, 28 and 38 GHz bands. ISED is seeking comments on how and when the lower 26 GHz band should be made available in relation to the other mmWave bands.

52. In the mmWave Consultation, ISED sought comments on the proposal to auction metropolitan, urban, rural, and remote Tier 5 service areas as part of the mmWave auction and received input from stakeholders.

53. Since the publication of the mmWave Consultation in June 2022, ISED has continued to monitor policy developments internationally as mmWave technology and use cases evolve. Since that time, some countries have made plans to pursue alternative licensing processes for mmWave spectrum in rural and remote areas.

54. ISED recognizes that mmWave applications are still developing, and many potential use cases remain unclear. In addition, there continues to be uncertainty regarding the demand for mmWave spectrum in rural and remote areas. As such, ISED is seeking comments on the potential applications for the lower 26 GHz band in rural and remote areas, including in Tier 5 service areas that are adjacent to metro or urban Tiers. ISED is also seeking additional comments on the suitability of a non-competitive licensing process or auction process for licensing the lower 26 GHz band in rural and remote Tier 5 service areas, given similar considerations in the other mmWave spectrum bands.

55. The Decision on Releasing Millimetre Wave Spectrum to Support 5G noted that there are 27 fixed Tier 3 spectrum licences, held by ABC Communications, TeraGo and Xplore (formerly known as Xplornet). These licences are based on the pre-existing band plan of paired 50 MHz blocks with various transmit/receive frequency separations. The amount of spectrum held by licensees in the affected Tier 3 areas varies from 100 MHz to 600 MHz. The mmWave Consultation further proposed a transition plan for these licenses that would allow new Tier 5 flexible use licenses to be issued for eligible fixed Tier 3 spectrum licenses in the 38 GHz band.

56. On January 20, 2025, the 38 GHz fixed Tier 3 spectrum licences will expire. As the transition to flexible use 38 GHz licences will not take place prior to that time, ISED is taking the necessary steps to ensure that the current fixed Tier 3 spectrum licences remain valid until a flexible use transition plan can be implemented to avoid any disruptions in service.

57. The existing 38 GHz fixed Tier 3 spectrum licences are similar to the existing 24 GHz licences of this consultation. Given the similarities between both of these spectrum licences, ISED is proposing to apply the same renewal process described in section 5 and conditions of licence described in section 6 for the 38 GHz fixed Tier 3 spectrum licences prior to transitioning to flexible use.

58. ISED will review the comments received and publish its decision on the issues raised in this consultation. Following the publication of a decision, ISED may launch a future licensing framework consultation on the lower 26 GHz band.

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

60. All submissions should cite the Canada Gazette, Part I, the publication date, the title and the notice reference number (SPB-002-23). Parties should submit their comments no later than December 19, 2023, to ensure consideration.

61. Soon after the close of the comment period, all comments received will be posted on ISED’s Spectrum management and telecommunications website.

62. In addition, respondents are asked to specify questions numbers for ease of referencing and to provide supporting rationale for each response. As all comments will be published, respondents are asked to not include confidential or private information in their submissions.

63. Following the initial comment period, ISED may, at its discretion, request additional information if needed to clarify significant positions or new proposals.

64. All ISED publications related to spectrum management and telecommunications are available on the Spectrum management and telecommunications website.

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

Innovation, Science and Economic Development Canada
Spectrum Regulatory Policy
Senior Director
6th Floor, East Tower
235 Queen St
Ottawa ON K1A 0H5
Telephone: 613-219-5436
TTY: 1-866-694-8389

Email: spectrumauctions-encheresduspectre@ised-isde.gc.ca

The following conditions would apply to new and existing spectrum licences in the 24 GHz bands. These conditions of licence are proposed to align with the decisions taken in other processes and the proposals within the Consultation on the Licence Renewal Process for the 24 GHz and 38 GHz Bands and Preliminary Consultation on the Changes to the 24.25-26.5 GHz Band.

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 section5(1)(b) of the Radiocommunication Act.

C1 Licence term

The licence will expire on the date indicated on the licence. The term of this licence will not exceed one year.

C2 Licence fee

The licensee must pay the applicable annual licence fee on or before March 31 of each year for the subsequent year (April 1 to March 31).

C3 Eligibility

The licensee must comply on an ongoing basis with the applicable eligibility criteria in subsection 9(1) of the Radiocommunication Regulations. The licensee must also notify the Minister of any change that would have a material effect on their eligibility. Such notification must be made in advance for any proposed relevant transaction within its knowledge.

C4 Licence transferability and divisibility

This licence is transferable in whole or in part (divisibility), in both bandwidth and geographic dimensions, subject to ISED's approval. A Subordinate Licence may also be issued in regard to this licence. ISED's approval is required for each proposed Subordinate Licence.

The licensee must make the Transfer Request in writing to ISED. The Transfer Request will be treated as set out in Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

The licensee must apply in writing to ISED for approval prior to implementing any Deemed Transfer, which will be treated as set out in CPC-2-1-23. The implementation of a Deemed Transfer without the prior approval of ISED will be considered a breach of this condition of licence.

Should the licensee enter into any Agreement that provides for a Prospective Transfer with a holder of a Licence for commercial mobile spectrum (including any Affiliate, agent or representative of the other licence holder), the licensee must apply in writing to ISED for review of the Prospective Transfer within 15 days of entering into the Agreement, which will be treated as set out in CPC-2-1-23. Should ISED issue a decision indicating that the Prospective Transfer is not approved, it will be a breach of this condition of licence for a licensee to remain in an Agreement that provides for the Prospective Transfer for a period of more than 90 days from the date of the decision.

In all cases, the licensee must follow the procedures as outlined in CPC-2-1-23.

All capitalized terms in this section have the meaning ascribed to them in CPC-2-1-23.

C5 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.

C6 Provision of technical information

The licensee must provide, and maintain, up-to-date technical information on a particular station or network in accordance with the definitions, criteria, frequency and timelines specified in CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

C7 Compliance with legislation, regulations 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.

C8 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. Although frequency assignments are not subject to site licensing, the licensee may be required through the appropriate SRSP to furnish all necessary technical data for each relevant site.

C9 Lawful interception

The 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.

C10 Research and development

The licensee must invest, at a minimum, 2% of its adjusted gross revenues resulting from the use of this licence, averaged over the term of the licence, in eligible research and development (R&D) activities related to telecommunications. Eligible R&D activities are those which meet the definition of scientific research and experimental development adopted in the Income Tax Act, as amended from time to time. Adjusted gross revenues are defined as total service revenues less inter-carrier payments, bad debts, third party commissions, and provincial goods and services taxes collected. The licensee is exempt from R&D expenditure requirements if it, together with all affiliated licensees that are subject to the R&D condition of licence, has less than $1 billion in annual gross operating revenues from the provision of wireless services in Canada, averaged over the term of the licence. For this condition of licence, an affiliate is defined as a person who controls the carrier, or who is controlled by the carrier or by any person who controls the carrier, as per subsection 35(3) of the Telecommunications Act.

C11 Deployment requirements

The licensee must meet the deployment requirements as set out in the annex B of the Consultation on the Licence Renewal Process for the 24 GHz and 38 GHz Bands and Preliminary Consultation on Changes to the 24.25-26.5 GHz Band, and must provide information related to deployment at any time upon a request from ISED.

The licensee is required to meet these conditions at all relevant times during the licence term and to continuously offer services throughout the term of the licence in accordance with these requirements. In addition to any other reporting requirements, the licensee must provide the Minister with any documentation or information related to deployment spectrum access or network footprints at the Minister's request. Where, at any point in the licence term, the licensee is not in compliance with its deployment conditions, ISED may invoke various compliance and enforcement measures.

Where a licence is transferred, the requirement for the new licensee to deploy will continue to be based on the initial licence issuance date.

C12 Mandatory antenna tower and site sharing

The licensee must comply with the mandatory antenna tower and site-sharing requirements set out in CPC-2-0-17, Conditions of Licence for Mandatory Roaming and Antenna Tower and Site Sharing and to Prohibit Exclusive Site Arrangements, as amended from time to time.

C13 Annual reporting

The licensee must submit an annual report for each year of the licence term, which includes the following information:

• a statement indicating continued compliance with all conditions of licence
• an update on the deployment requirements within the area covered by the licence
• existing audited financial statements with an accompanying auditor's report
• a statement indicating the annual gross operating revenues from the provision of wireless services in Canada and, where applicable, the annual adjusted gross revenues resulting from the use of this licence, as defined in these conditions of licence
• a report of the R&D expenditures as set out in these conditions of licence (ISED may request, at its discretion, an audited statement of R&D expenditures with an accompanying auditor's report)
• supporting financial statements where a licensee is claiming an exemption based on, together with all affiliated licensees that are subject to the R&D condition of licence, it having less than $1 billion in annual gross operating revenues from the provision of wireless services in Canada, averaged over the term of the licence
• a copy of any existing corporate annual report for the licensee's fiscal year with respect to the authorization
• other information related to the licence as specified in any notice updating the reporting requirements as issued by ISED

All reports and statements are to be certified by an officer of the company and submitted, in writing, within 120 days of the licensee's fiscal year-end. Confidential information provided will be treated in accordance with subsection 20(1) of the Access to Information Act.

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

Innovation, Science and Economic Development Canada
Spectrum Management Operations Branch
Manager, Operational Policy
6th Floor, East Tower
235 Queen St
Ottawa ON  K1A 0H5

Email: spectrumoperations-operationsduspectre@ised-isde.gc.ca

C14 Amendments

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