SAB-03-25 — Notice of amendment to spectrum limit condition of licence in the 3900 MHz band under the non-competitive local (NCL) licensing framework

In May 2023, Innovation, Science and Economic Development Canada (ISED) published 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 (NCL Licensing Framework) to support government priorities and promote innovation by enabling Canadian companies to invest in, develop and deploy 5G networks and technologies that enhance productivity in the Canadian economy. The NCL Licensing Framework includes 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

The NCL Licensing Framework includes a condition of licence imposing a spectrum limit of 20 MHz per licensee within any geographic area in the 3900 MHz band. This limit was initially intended to prevent one or two licensees from holding all 80 MHz and foreclosing access to other users in the same area, given expected demand. In the Framework, ISED also indicated that it would monitor the demand for NCL licences and conduct a future review of the measures to support local access to the 3900 MHz band.

ISED recognizes that supporting strong industries requires access to the spectrum needed to deploy the latest technologies. In some cases, high-performance private wireless networks supporting mission-critical industrial operations, such as real-time monitoring and Internet of Things within a factory or warehouse, could benefit from more spectrum than the 20 MHz limit currently allows. Additionally, in these circumstances, access to the licensed area is limited and/or controlled (i.e., requiring permission to access the physical area), such that only one licensee would be able to operate within the licensed area. Applying the spectrum limit in these cases would therefore leave the remaining spectrum unused, which would conflict with the guiding principles of the NCL Licensing Framework.

Based on feedback from licensees and potential users, ISED has begun studying revisions to the spectrum bandwidth limit as part of the review mentioned in the NCL Licensing Framework, with the intent to ensure that any changes continue to support fair and equitable access to the spectrum. However, to provide more timely access to NCL licensed spectrum while this review is underway, ISED is implementing targeted adjustments to the NCL licensing spectrum bandwidth limit as described below:

Specific industrial use cases – spectrum bandwidth limit (up to 80 MHz)

For specific industrial use cases where interference risks to other spectrum users are low, ISED will allow eligible licensees to hold up to 80 MHz of NCL licensing spectrum. To be considered, applications must meet all the following criteria:

• the applicant is a radiocommunication user as defined in the Radiocommunication Regulations
• the applicant is an industrial user, specifically: a warehouse, mine, factory, Canadian offshore oil and gas production site, or a radio access network manufacturer conducting research for 5G or 6G services
• the applicant is an existing NCL licensee with 20 MHz of spectrum in the requested area
• the applicant is compliant with the conditions of licence for all its existing NCL licences
• the applicant is seeking a renewable licence (i.e., an annual licence)
• the applicant is able to coexist with all impacted existing NCL operations and other services as determined by the applicable technical requirements
• the applicant can demonstrate that they control physical access to the entire licence area during the licence term, thereby controlling the ability to deploy network infrastructure in the licence area. This includes showing that the applicant owns or leases the entire licence area or that they have made arrangements with the owners/lessors of the physical area to be covered by the licence
• the entire requested licence area must be located outside of any metropolitan Tier 5 service area boundaries
• applications in urban Tier 5 service areas must be for indoor use only, but may be indoor or outdoor in rural and remote Tier 5 service areas

Although applicants may meet the eligibility criteria above, ISED will examine each application, and may contact the applicant to obtain further information to deny the application or grant the requested licences in whole or in part.

ISED notes that Canadian offshore oil and gas producers may request NCL licences for locations that lie outside any Tier 5 service areas. Consistent with decisions resulting from the Addendum to the Non-Competitive Local Licensing Framework to include Spectrum in the 27.5-28.35 GHz in section 7. Classification of unclassified Canadian land masses, ISED will classify any offshore oil and gas locations as remote Tier 5 areas to facilitate management and processing of these licences.

Rural and remote Tier 5 service areas – spectrum bandwidth limit (up to 40 MHz)

To support broader access to spectrum in areas where demand is lower and interference risks are reduced, ISED will allow NCL licensees in rural and remote Tier 5 service areas to hold up to 40 MHz of spectrum per licence area, an increase from the existing 20 MHz limit. This change is expected to be available in early 2027 and is intended to enable a wider range of localized deployments contemplated under the NCL Licensing Framework.

The increased spectrum limit applies only to NCL licences issued in rural and remote Tier 5 service areas; if any portion of an NCL licence is located in a metropolitan/urban area, the licence is not eligible. All other NCL licences remain subject to the existing spectrum limit and eligibility requirements set out in the Framework, unless otherwise specified.

Information on Tier 5 service areas considered rural and remote is available in ISED's Decision DGSO-008-19, Decision on a New Set of Service Areas for Spectrum Licensing or through the NCLL Spectrum Browser.

Next steps and application process

The application process differs for rural and remote Tier 5 service areas and for specific industrial use cases, as outlined below:

Specific industrial use cases – spectrum bandwidth limit (up to 80 MHz)

Requests related to industrial use cases that meet the criteria set out above may be submitted using the application form available here: Non-Competitive Local Licensing Spectrum Limit Increase Request Form.

ISED will update its licensing portal to allow licensees that meet the criteria in this Spectrum Advisory Bulletin (SAB) to request licences of up to 80 MHz.

The requirement to be an existing NCL licensee with 20 MHz of spectrum will be removed once the portal update is implemented. Until then, interested parties who meet the other criteria will first have to apply for a licence for 20 MHz and then apply for additional licences up to the new limit of 80 MHz. 

Rural and remote Tier 5 service areas – spectrum bandwidth limit (up to 40 MHz)

Requests related to the rural and remote Tier 5 service area spectrum limit increase will be accepted once the required functionality is enabled in ISED's NCL licensing portal. This functionality is anticipated to be available in early 2027, subject to the completion of required system updates. Until that time, existing system limits will continue to apply. Additional information will be provided when available.

Additional considerations

The amendments to the conditions of licence detailed in this SAB are focused on the spectrum bandwidth limit only. Other policy elements in the Framework, the conditions of licence and technical rules (e.g., power levels, antenna height) are excluded within the scope of this revision. However, further revision to the conditions of licence and licensing process may be considered as part of ISED's ongoing review. ISED will continue to engage stakeholders as part of its review.

In addition, ISED notes that, pursuant to 5(2)(b)(ii) of the Radiocommunication Act, licences obtained through misrepresentation can be suspended or revoked.

The Minister of Industry retains the discretion to further amend NCL licences, revisit the application criteria or the licensing process.

For any questions, please email ncll-lncl@ised-isde.gc.ca.