CPC-2-1-31 — Licence Application Procedures under the Non-Competitive Local (NCL) Licensing Framework

The radio frequency spectrum is a resource managed for the benefit of all Canadians. Innovation, Science and Economic Development Canada (ISED) endeavours to provide access to this resource with minimal administrative burden while ensuring the efficient use of the radio frequency spectrum.

The procedures outlined in this CPC support the objectives of the Telecommunications Act, the Spectrum Policy Framework for Canada, Canada’s Digital Charter: Trust in a digital world, and Canada’s Connectivity Strategy and Innovation and Skills Plan, through the use of a Non-Competitive Local (NCL) licensing framework that facilitates innovation across the Canadian economy. The intent of this circular is to outline key policy directives, as well as the procedures by which applicants may apply for and be granted licences under the NCL licensing framework.

It is important to note that the items below may vary from frequency band to band. Prior to the release of future NCL licensed spectrum bands, ISED will consult on some of the items listed below and may add, remove, or modify restrictions and measures to support local access as necessary. Stakeholders should always refer to the specific frequency band’s decision document for any variability in these licensing considerations.

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. Under the Radiocommunication Act, the Minister has the authority to issue spectrum licences which permit the use of specified radio frequencies within a defined geographic area, and may fix or amend the terms and conditions of any such licence.

Custom vector-based licence area is a custom area that can vary in size or shape and is representative of the licensee’s planned coverage as defined by the applicant during the application process for a non-competitive local spectrum licence.

Effective date refers to the date on an NCL licence which indicates when the licensee can begin providing service under that licence.

First-Come First-Served (or FCFS) refers to a licence application approach used for the authorization of NCL spectrum licences. Applicants that are approved first are provided with a licence for a specified area and block(s) of spectrum which is then not available to other applicants, unless otherwise specified through relevant policy provision(s) in specific bands (e.g. indoor-only and outdoor users in the same area).

Initial deployment term refers to the two years following the effective date of an initial NCL licence.

Issued date refers to the date that an NCL licence is created and sent to a licensee, however the effective date of the licence may later than the issued date.

Local licensing refers to a licensing framework approach that provides service area flexibility and facilitates deployment in targeted custom vector-based licence areas to meet the relatively small-scale connectivity needs of wireless service providers and individual spectrum users alike.

NCL Decision refers to the non-competitive local licensing framework published as 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.

Non-competitive refers to any licensing process where licences are assigned through a non-competitive process (e.g. not an auction or comparative review).

ISED has implemented a non-competitive local licensing framework to foster the development of new technologies and private networks in industrial applications, private broadband networks on enterprise campuses, and additional targeted capacity for fixed wireless access systems in rural, remote, and northern communities, including Indigenous communities. The details of this framework were published in 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 (the NCL Decision).

Given that spectrum bands have unique characteristics and considerations, ISED will consult on specific measures to adapt the general NCL licensing framework to each new band released under NCL licensing.

As noted in the NCL Decision, ISED’s policy objective for the NCL licensing framework is to promote innovation by enabling Canadian companies to invest in, develop, and deploy 5G networks and technologies that enhance productivity in the Canadian economy, guided by three key 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

6.1 Automated licensing

ISED has implemented an automated licensing approach, referred to as the online application form, for NCL licence applicants. This online application form allows ISED to manage access to NCL licensed bands on a FCFS basis.

The online application form facilitates technical coexistence analysis between applicants and existing licensees (including other radio services) during the licensing process. If an application fails the technical analysis, the system will provide a reason for failure, which may assist applicants in determining how they may wish to modify their application if they choose to re-apply. If an application fails for any reason, applicants will be notified of potential next steps.

6.2 Eligibility

Prior to applying for a licence, applicants should determine if they meet the eligibility criteria as set out in section 9(1) of the Radiocommunication Regulations. However, applicants should note that ISED makes the final determination of eligibility. Additional requirements or restrictions with regard to eligibility will be addressed in the relevant frequency band’s policy and licensing framework. Applicants should check the relevant policy and licensing framework prior to applying to ensure they meet the criteria for eligibility.

6.3 Licence area

A custom vector-based approach has been established under the NCL licensing framework, giving applicants the ability to request a licence for a specific geographical area. Due to the licence area being an applicant defined shape, the area requested must coincide with the area intended to be served in the near term. NCL licensees should not reserve areas for future deployments. ISED may request documentation at any time from licensees to ensure that the spectrum is being fully used in the NCL licence area (i.e. the licence area aligns with the service area).

A maximum of twelve geographic coordinates are permitted as points, or “vertices”, that create the licence boundary perimeter. The licence area cannot enclose another area (i.e. a single licence area cannot have a hole in the middle). Geographic coordinates refer to latitude and longitude measurements at precise locations and may contain up to six digits after the decimal point (e.g. 45.444444, -75.333333). Applicants can choose to draw their requested licence area on a map via the online application form and be provided with the corresponding geographic coordinates, or they can input geographic coordinates that they determine prior to application and verify the resulting licence area map. The coordinates must be provided in a counter-clockwise direction. Acceptable formats include either the WGS84 or NAD83 geodetic reference system.

It is recommended that applicants refer to ISED’s Non-Competitive Local Licensing Spectrum Browser prior to applying to plan their licence area, view technical information about nearby incumbents, get an idea for how congested the geographic area might be, and to determine if any modifications to the intended licence area may be desired.

The licence area will be validated against the area size limits specified in the relevant policy provisions for the type of licence chosen. Each band may have different area size limits due to frequency characteristics, technical limits such as maximum equivalent isotropically radiated power (e.i.r.p.), antenna height limits, licence area location, and measures to support local licensing. The online application form will not accept proposed licence areas that do not meet the relevant policy provisions and technical criteria and will not allow the applicant to proceed further in the application process without modifications to the proposed licence area. If applicants need a larger area than allowed for under a single licence application, multiple applications will need to be submitted to cover the intended service area. Please note that some frequency bands may have minimum licence area size requirements; applicants should consult the relevant band’s licensing framework.

6.4 Area type designation

Prior to applying, applicants should determine the area type designation(s) that their desired licence area falls within. Area type will generally follow ISED’s Tier 5 area designations of metro/urban/rural/remote, however this may vary on a band-by-band basis. See ISED’s Service Areas for Competitive Licensing for information on Tier 5 designations across Canada. As noted in the Decision, licences located within different area type designations may have different regulations, technical limits, and fees.

There may be situations where a licence area will overlap two or more area types. In general, if the technical limits between area types differ, a licence area overlapping two or more different area types would result in the licensee being restricted to the more conservative technical limits. For the impact on fees of a licence area overlapping multiple area types see section 6.5.

6.5 Licence fees

Licence fees are part of the overall spectrum management regulatory scheme that supports the efficient use of spectrum. The Minister of Innovation, Science and Industry pursuant to section 19 of the Department of Industry Act, fixes fees for spectrum licences issued pursuant to paragraph 5(1)(a) of the Radiocommunication Act. The Minister has used this power to establish the Fee Order for Non-Competitive Local Licences.

Once a valid licence area is entered in the online application form, a licence fee estimate will be displayed, with the final fee being made available at the end of the application process. However, applicants may wish to use the following formula to estimate the fee for their intended licence area and bandwidth prior to application for planning purposes:

The following fee base rates apply to NCL licences using low and mid-band spectrum (below 10 GHz):

• A fee base rate of $1.80 per MHz per km² for calculating annual licence fees for spectrum licensed in metro/urban areas and a minimum total licence fee of $48.00 annually or $4.00 monthly
• A fee base rate of $0.45 per MHz per km² for calculating annual licence fees for spectrum licensed in rural areas and a minimum total licence fee of $48.00 annually or $4.00 monthly
• A fee base rate of $0.01 per MHz per km² for calculating annual licence fees for spectrum licensed in remote areas and a minimum total licence fee of $48.00 annually or $4.00 monthly

The following fees apply to NCL licences using high-band spectrum (10 GHz and above):

• A fee base rate of $0.18 per MHz per km² for calculating annual licence fees for spectrum licensed in metro/urban areas and a minimum total licence fee of $48.00 annually or $4.00 monthly
• A fee base rate of $0.045 per MHz per km² for calculating annual licence fees for spectrum licensed in rural areas and a minimum total licence fee of $48.00 annually or $4.00 monthly
• A fee base rate of $0.001 per MHz per km² for calculating annual licence fees for spectrum licensed in remote areas and a minimum total licence fee of $48.00 annually or $4.00 monthly

Licences eligible for lower rural and remote fee base rates 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 that overlap two area types, ISED follows 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. (Note that this differs from the rules for power levels when considering overlapping areas.)

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). Licences authorized during a fiscal year, or authorized for durations of less than one year, will have a prorated fee applied. Prorated fees are 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.

Sample licence fee calculations for NCL licences in rural and urban areas are detailed in annex A.

6.6 Indoor and outdoor operations

Certain NCL bands may allow for separate co-channel indoor and outdoor operations. Applicants are advised to check the relevant licensing framework.

Prior to applying for NCL licences, applicants should determine if they intend to provide indoor service only, or both indoor and outdoor service. Opting for indoor service only may improve the chances of spectrum being available if an applicant is applying for a licence in a highly congested area. Once an indoor only licence is issued, it cannot be modified later to include outdoor operations as neighbouring licences may have been granted in the interim that are in close proximity due to the indoor only classification. The indoor operator wishing to add outdoor service would have to apply for a new outdoor licence in the area for a new coexistence analysis to be completed.

6.7 Licence term

Before applying for an NCL licence, applicants should determine if they desire a renewable or a temporary licence.

Renewable NCL licences are generally granted on a one-year basis, although the initial term may be shorter as all licences expire on March 31^st of each year. Note that the NCL licensing framework states that NCL licences will generally be one year in length, however, there is potential for variation on a band-by-band basis. Licensees should refer to their licence to confirm the length of their licence term. There is a high expectation of renewal, provided that all licence conditions are met and there is no fundamental reallocation of spectrum to a new service or overriding policy need. Licence fees must be paid annually.

Temporary NCL licences are shorter term licences that are issued on a non-renewable basis. These licences are available for up to 11 months.

Applicants may choose a start (effective) date for their licence up to 60 days after the date of submission of their application.

6.8 Spectrum blocks and bandwidth limits

Prior to applying, applicants should note the spectrum block sizes and any aggregate bandwidth limits of their desired frequency band and determine which frequency blocks they will apply for. If applicants do not select a frequency block preference, the online application form will automatically assign available blocks to them where possible.

Note that there may be a limit on the amount of spectrum that can be applied for depending on the NCL licensing band, as indicated in the specific frequency band’s policy decision under the NCL licensing framework. Additionally, if the application is for an area adjacent to a location where the applicant already holds a licence, and is for spectrum on a different block than the existing licence, care should be taken not to overlap the areas, as the online application form may not accept the application if any overlapped area exceeds the spectrum aggregation limit (or spectrum “cap”). However, if an applicant applies for a new licence which geographically overlaps one of its existing licences and is for the same frequencies, the online application form does not count co-channel spectrum (the same frequency block) against the spectrum limit in the overlap area.

The following are considerations for various aspects of the general NCL licensing framework after a licence application has been submitted but not yet processed by ISED.

7.1 Application duplications and modifications

In some cases, applicants may wish to duplicate an existing licence application to speed the application process for a new geographic area or to add an additional frequency block in the same area. For example, due to the area size limit per application an applicant may have to apply for multiple licences to create the intended service area; thus duplicating common data fields can help to speed the process. Instructions for duplicating existing applications are available on the NCL licensing application.

Applications cannot be modified after they are submitted. If a submitted application has an error or was rejected, applicants have the ability to copy data from the submitted application to speed modifications and re-application. Applicants who wish to withdraw their application after it has been approved may withdraw their application after a payment invoice is generated by navigating to their Submitted Applications page or licence conditions page and selecting the application withdrawal option.

7.2 Timeline

Once an application is submitted, the timeline for processing can be found on ISED’s Spectrum and Telecommunications Service Standards webpage. If an application contains errors, ISED may request that a new application be submitted and the processing timeline will begin anew. An approved application will generate an invoice that will be sent to the applicant which must be paid in full within 90 days. A licence will be issued after payment. If payment is not received within 90 days, an applicant would have to re-apply if a licence is still desired.

The following are considerations for various aspects of the general NCL licensing framework after a licence has been granted. The conditions of licence that form the foundation for all non-competitive local licences, based on the general licensing framework, can be found in annex A of the NCL Licensing Framework Decision. However, as some aspects of the conditions of licence can vary on a band-by-band basis, licensees should always refer to their licence for their specific conditions of licence.

8.1 Licence renewals

Renewable NCL licences are generally granted on a one year basis, while temporary licences may be granted for a term of up to 11 months. Further information on licence terms is described in section 6.7, Licence term. Temporary licences are not renewable.

At the end of the one year term for renewable NCL licences, the licensee will have a high expectation that a new licence will be issued for a subsequent term subject to the licensee having met all conditions of licence, including but not limited to the payment of the annual fee prior to renewal, and the monthly upload of site data to demonstrate compliance with CPC-2-1-30, Technical Information Associated with Radiocommunication Installations.

Renewal invoices will be sent to the licensee in the months leading up to the end of the year and must be paid by March 31^st. Previous year's licences will expire on April 1^st. Instructions on how to pay the licence fee will be included with the invoice.

Licensees may be contacted if there are any outstanding items that would result in their licence not being renewed.

8.2 Deployment requirements

NCL licences have deployment conditions of licence. Demonstration of deployment will occur through the mandatory monthly site uploads of site data.

NCL licensees with renewable licences are required to demonstrate deployment within two years of the initial effective date of the licence. Following the initial two-year period, deployment must be maintained and will be verified through site data upload information prior to annual renewal. Deployment requirements for different frequency bands will be specified in relevant policy provisions and licence conditions accordingly. Licensees should refer to their licence conditions to determine the relevant deployment requirements. ISED may consult on any additional deployment requirements on a band-by-band basis. Temporary NCL licences are currently not subject to deployment requirements.

Furthermore, ISED may request documentation at any time from licensees which demonstrates that the entire licence area is being served. Any spectrum warehousing or anti-competitive behaviours may result in investigation by ISED and compliance and/or enforcement measures taken as appropriate.

8.3 Reporting requirements

ISED requires technical information associated with radiocommunication installations covered by the spectrum licence in order to carry out certain spectrum management responsibilities.

NCL licensees, with either renewable or temporary short term licences, must provide monthly site data uploads. The first site upload is required within one month of the effective date of a licence. All sites deployed and/or modified must be reflected in the site database. Licensees must always provide a monthly site upload update, even if it is simply to indicate that there have been no changes or to indicate that there has not yet been any deployment.

A detailed list of site data field requirements can be found in CPC 2-1-30. ISED discloses all relevant site data related to NCL licences on the NCL licensing Spectrum Licence Browser to allow prospective NCL licence applicants to see where NCL licences are currently deployed to help with planning purposes.

Where, at any point in the licence term, a licensee is not in compliance with its requirements to provide monthly technical information about its sites, ISED may invoke various compliance and enforcement measures, and licences may be revoked or found to be ineligible for renewal.

8.4 Additional licences

The process of applying for additional licences under the NCL licensing framework may be influenced by specific frequency band spectrum aggregation limits. In frequency bands with spectrum aggregation limits, applicants with existing licences that are already at the limit in an area will not be able to apply for additional licences on different frequency blocks in the same area. The online application form will not accept these new applications since the total spectrum would exceed the limit for the area.

8.5 Divisibility, transfers, and subordinations

The division, transfer, or subordination of licences issued through the NCL licensing framework is not permitted. However, changes in the ownership or control of the licensee are not restricted, provided the licensee continues to meet the eligibility requirements set out in the Radiocommunication Regulations and any other requirements that have been established for the band. Further, any spectrum aggregation limits in place for the frequency band must continue to be respected.

While the subordination of licences is not permitted, this does not preclude private network operators from obtaining the services of an adviser, such as an equipment vendor, telecommunications company, or other specialists to assist in the construction and operation of their network.

8.6 Licence modifications

Once a licence has been issued, due to the nature of NCL licensing and the automated process, those wishing to increase the size of their licence area must apply for an additional licence. Licensees that wish to remove an area or change the chosen technical parameters, such as power level or indoor/outdoor use, should contact ISED for advice on appropriate next steps as the NCL licensing system does not allow these types of modifications after a licence has been issued. However, contact information can continue to be modified after licence issuance and should always be up to date.

8.7 Environmental process, radio frequency fields and land-use consultation

ISED recognizes the importance of considering the potential impact of antennas and their supporting structures on their surrounding environment. To address this, ISED has established procedures outlined in Client Procedures Circular CPC-2-0-03, Radiocommunication and Broadcasting Antenna Systems, as amended from time to time. Spectrum licensees must ensure that they meet all of these requirements.

8.8 Air navigation obstruction clearance and marking

Spectrum licensees must follow CPC-2-0-03 and ensure that antenna structures are marked in accordance with the Transport Canada recommendations. For further information concerning the requirements for aeronautical obstruction clearance and air navigation obstruction marking can be obtained by contacting Transport Canada, Regional Superintendent, Aerodrome Safety.

8.9 Returned NCL licences

When a licensee returns a spectrum licence to ISED, the Department will make the associated spectrum available to the public in a timely manner so that it can be used for the benefit of all Canadians. The spectrum will not be withheld, except where a specific policy directive may apply.

In order to remain current on spectrum availability, interested parties are encouraged to consult ISED's website on a regular basis. The Non-Competitive Local Licensing Spectrum Browser will show the spectrum that is in use, while the automated system will have information regarding the spectrum blocks available and the geographic areas in which this spectrum can be used. Updates to these databases occur as licences are granted or returned, leading to a dynamic reflection of the current status of licence availability.

The NCL licensing framework may be applied to multiple frequency bands with different frequency characteristics and incumbent operators. Due to these considerations, technical parameters may vary by frequency band. Applicants should consult the relevant Standard Radio System Plan (SRSP) for guidance on such matters as the band plan, permissible power levels, antenna height limits, area size limits, and coexistence measures (including cross-border requirements). The Radio Equipment List should also be consulted to determine whether equipment has been certified for use within Canada (i.e., meets the technical requirements of the relevant RSS).

In addition, ISED recognizes that some licensees may wish to use drones as part of their networks. However, ISED intends for NCL licensing at this time to be limited to terrestrial use in order to manage interference between systems, and that licence areas would be designed in a manner to take into account only terrestrial stations. Therefore, drones are not permitted in any NCL licensed frequency band at this time.

Applicants are advised that the sequence in which NCL applicants are licensed does not establish a priority level for interference protection after licensing. Regardless of which NCL licensee deployed first, NCL licensees are required to address any interference issues through mutual cooperation and the implementation of appropriate coexistence mechanisms. In addition, in the event of interference to other services, NCL licensees are obligated to protect existing systems of other (non-NCL) licensed radio services in accordance with the relevant policy provisions and any applicable protection levels specified in the relevant SRSP.

All ISED publications related to non-competitive local licensing are available on the Spectrum Management and Telecommunications website.