Conditions of Licence for New Cellular and PCS Licences (Effective April 2011)


The following conditions apply to the initial term for cellular and Personal CommunicationsServices (PCS) spectrum licences issued through a first-come, first-served process.It should be noted that this licence is subject to the relevant provisions in theRadiocommunication Act and the Radiocommunication Regulations. The Ministerof Industry has the power to amend the terms and conditions of spectrum licences perparagraph 5(1)(b) of the Radiocommunication Act.

1. Licence Term

This licence will expire on the date indicated above.

At the end of this term, the licensee will have a high expectation that a new licence willbe issued for a subsequent term through a renewal process unless a breach of licencecondition has occurred, a fundamental reallocation of spectrum to a new service isrequired, or an overriding policy need arises.

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

2. Licence Transferability and Divisibility

The licensee may apply, in writing, to transfer its licence in whole or in part(divisibility), in both the bandwidth and geographic dimensions. Departmental approvalis required for each proposed transfer of a licence, whether the transfer is in wholeor in part. The transferor(s) must provide an attestation and other supportingdocumentation demonstrating that all conditions, technical or otherwise, of the licencehave been met. The transferee(s) must provide an attestation and other supportingdocumentation demonstrating that it meets the eligibility criteria.

The Department may define a minimum bandwidth and/or geographic dimension (suchas the grid cell) for the proposed transfer. Systems involved in such a transfer shallconform to the technical requirements set forth in the applicable standard.

The licensee may apply to use a subordinate licensing process.

For more information, refer to Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

3. Eligibility

A licensee operating as a radiocommunication carrier must comply on an ongoing basiswith the eligibility criteria in subsection 10(2) of the Radiocommunication Regulations. Thelicensee must notify the Minister of Industry of any change that would have a materialeffect on its eligibility. Such notification must be made in advance for any proposedtransactions within its knowledge.

For more information, refer to Client Procedures Circular CPC-2-0-15, Canadian Ownership and Control, as amended from time to time.

4. Displacement of Incumbents

The licensee must comply with the revised transition policy outlined in Appendix 2 of thePolicy and Licensing Procedures for the Auction of Additional PCS Spectrum in the 2 GHz Frequency Range issued on June 28, 2000, and the procedure for the relocation ofincumbent microwave stations outlined in Client Procedures Circular CPC-2-1-09,Displacement of Fixed Service Stations Operating in the 2 GHz Frequency Range to Accommodate Licensed Personal Communications Services (PCS) , as amended fromtime to time.

5. 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.

6. Provision of Technical Information

When the Department requests technical information on a particular station or network,the information must be provided by the licensee according to the definitions, criteria,frequency, and timelines specified by the Department. For more information, refer toClient Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

7. Compliance with Legislation, Regulation, and Other Obligations

The licensee is subject to, and must comply with, the Radiocommunication Act, theRadiocommunication Regulations and the International Telecommunication Union'sRadio Regulations pertaining to its licensed radio frequency bands. The licence is issuedon condition that the certifications made in relation to this licence are all true andcomplete in every respect. The licensee must use the assigned spectrum in accordancewith the Canadian Table of Frequency Allocations and the spectrum policies applicable to these bands.

8. Technical Considerations

The licensee must comply on an ongoing basis with the technical aspects of theappropriate Radio Standards Specifications and Standard Radio System Plans, asamended from time to time.

9. International and Domestic Coordination

The licensee must comply with the obligations arising from current and future frequencycoordination agreements established with other countries and shall be required toprovide information or take actions to implement these obligations as requested by theDepartment. Although frequency assignments are not subject to site licensing, thelicensee may be required to furnish all necessary technical data for each relevant site.

The licensee must use its best efforts to enter into mutually acceptable sharingagreements that will facilitate the reasonable and timely development of their respectivesystems, where applicable, and to coordinate with other licensed users in Canada andinternationally where applicable.

10. Lawful Interception (Applicable to PCS frequencies only)

Licensees operating as radiocommunication carriers and using this spectrum for circuit-switched voice telephony systems must, from the inception of service, provide for andmaintain lawful interception capabilities as authorized by law. The requirements forlawful interception capabilities are provided in the Solicitor General's EnforcementStandards for Lawful Interception of Telecommunications(Rev. Nov. 95). Thesestandards may be amended from time to time.

The licensee may request the Minister of Industry to forbear from enforcing certainassistance capability requirements for a limited period. The Minister, followingconsultation with Public Safety Canada, may exercise the power to forbear fromenforcing a requirement or requirements where, in the opinion of the Minister, therequirement is not reasonably achievable. Requests for forbearance must includespecific details and dates indicating when compliance to the requirement can beexpected.

11. Research and Development

The licensee must invest, as a minimum, 2 percent of its adjusted gross revenuesresulting from its operations in this spectrum, averaged over the term of the licence, ineligible research and development activities related to telecommunications. Eligibleresearch and development activities are those which meet the definition of scientificresearch and experimental development adopted in the Income Tax Act. Adjusted grossrevenues are defined as total service revenues, less inter-carrier payments, bad debts,third party commissions, and provincial and goods and services taxes collected.

To facilitate compliance with this condition of licence, the licensee should consult theDepartment's Guidelines for Compliance with the Radio Authorization Condition ofLicence Relating to Research and Development (GL-03).

12. Implementation of Spectrum Usage (Applicable to PCS licences)

Within five years of the initial date upon which the licence is issued, the licenseemust demonstrate to the Department that the spectrum has been put into use. Theestablishment of coverage to 50% of the population within the licensed service area,or some other indicator of usage that is acceptable to the Department, will berequired.

13. Mandatory Antenna Tower and Site Sharing

Licensees operating as radiocommunication carriers must comply with the mandatoryantenna tower and site sharing requirements set out in Client Procedures Circular 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.

14. Mandatory Roaming

The licensee must comply with the mandatory roaming requirements set out in ClientProcedures Circular CPC-2-0-17, Conditions of Licence for Mandatory Roaming and Antenna Tower and Site Sharing and to Prohibit Exclusive Site Arrangements, asamended from time to time.

15. Annual Reporting

The licensee must submit an annual report for each year of the licence term, includingthe 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 thelicence;
  • existing audited financial statements with an accompanying auditor's report;
  • a report of the research and development expenditures for licensees operating asradiocommunication carriers (the Department reserves the right to request an auditedstatement of research and development expenditures with an accompanying auditor'sreport); and
  • a copy of any existing corporate annual report for the licensee's fiscal year withrespect to the authorization.

All reports and statements are to be certified by an officer of the company andsubmitted, in writing, within 120 days of the licensee's fiscal year end, to the addressbelow. Where a licensee holds multiple licences, the reports should be broken down byservice area. Confidential information provided will be treated in accordance with section20(1) of the Access to Information Act.

Manager, Emerging Networks
Spectrum Management Operations Branch
Industry Canada
300 Slater Street, 15th floor
Ottawa, Ontario K1A 0C8

16. System Access Fees or Network and Licensing Charges

Licensees are not required nor permitted to levy charges to their subscribers on behalf ofIndustry Canada. In particular, charges which appear to be for spectrum managementpurposes, such as system access fees or network and licensing charges, are notmandated by Industry Canada.