Through the release of this document, Industry Canada hereby announces the decisions resulting from the consultation process undertaken in Canada Gazette notice SLPB-003-14 – Consultation on a New Licensing Framework and Licence Renewal Process for the 24, 28 and 38 GHz Bands (hereinafter referredto as the Consultation).
All comments and reply comments received in response to thisconsultation are available on Industry Canada’s website at http://www.ic.gc.ca/spectrum. Commentsand/or reply comments were received from Bell Mobility Inc. (Bell), GlobaliveWireless Management Corp. (WIND), I-NetLink Incorporated (I-NetLink), JavelinConnections Inc. (Javelin), Mobilexchange Spectrum Inc. (MSI), MTS Allstream(MTS), Québecor Media Inc. (Québecor), Rogers Communications Partnership(Rogers), TELUS Communications Company (TELUS) and TeraGo Networks Inc.(TeraGo).
The following document (hereinafter referred to as the Decision) setsout decisions for the new licensing process for remaining and unassignedspectrum in the 24, 28 and 38 GHz bands and the renewal of 24 and 38 GHzauctioned licences.
In 1999, Industry Canada conducted its first spectrum auction for fixed point-to-point and point-to-multipoint broadband wireless access in the 24 and38 GHz bands. The auctioned 24 GHz band refers to400 MHz of paired spectrum with the lower frequency band of24.25-24.45 GHz and the upper frequency band of 25.05-25.25 GHz. Theauctioned 38 GHz band refers to 800 MHz of paired spectrum with thelower frequency band of 38.70-39.10 GHz and the upper frequency band of39.40-39.80 GHz. Of the 354 licences made available for theauction, 260 were awarded to 12 licensees. The 94 licences that were notawarded remained with Industry Canada.
An additional 800 MHz portion of the 38 GHz band was made availablefor first-come, first-served (FCFS) licensing. DGRB-003-99/DGTP-005-99, FinalPolicy and Licensing Procedures for the Auction of the 24 and 38 GHzFrequency Bands, made 38.4-38.6 GHz, 38.6-38.7 GHz, 39.1-39.3 GHz,39.3-39.4 GHz, and 39.8-40 GHz available for FCFS licensing on a geographicbasis (i.e. grid cells). The band 38.4-38.6 GHz is designated for unpairedpoint-to-point and unpaired multipoint communication systems. The band38.6-38.7 GHz is paired with 39.3-39.4 GHz and the band 39.1-39.3 GHz is pairedwith 39.8-40 GHz. These paired bands are designated for point-to-pointmicrowave systems.
In April 2008, Industry Canada issued Canada Gazettenotice DGRB-001-08 – Consultationon the Renewal of 24 and 38 GHz Spectrum Licences and Spectrum LicenceFees for 24, 28 and 38 GHz Bands. This consultation dealtspecifically with the renewal of the 24 and 38 GHz licences issued followingthe 1999 auction and discussed on what basis 24 and 38 GHz licences shouldbe renewed, and proposed a renewal fee that would apply to new and renewedlicences in the 24, 28 and 38 GHz bands. The paper also proposed afirst-come, first-served licensing process for unassigned or returned spectrum,including spectrum in the 28 GHz band.
The 28 GHz band refers to the frequency bands 25.25-26.50 GHzand 27.50-28.35 GHz, which consists of 2,100 MHz of spectrum. DGTP-002-10 –Consultation on the Use of the Band 25.25-28.35 GHz, announced an interim licensing process for this band where licensees would be issued site-specific radiolicences. The Department indicated that it would immediately begin acceptingapplications for radiocommunication station licences, to be issued on anon-standard basis, in parts of the bands. SP 25.25 – Spectrum Utilization Policy, Decisions on the Band 25.25-28.35 GHz, was also released and addresses the implementation of fixed radio systems in the band.
In June 2014, Industry Canada issued Canada Gazettenotice SLPB-003-14 – Consultationon a New Licensing Framework and Licence Renewal Process for the 24, 28 and 38 GHzBands. This consultation set out considerations for renewal of auctioned licences in the 24 and 38 GHz bands, as well as a licensing process for all three bands, which would make spectrum available in an expeditious and efficient manner.
The bands addressed in this decision paper include:
- The 24 and 38 GHz spectrum that was made available in the 1999 auction (see paragraph 4);
- The 28 GHz spectrum, currently available through an interim licensing process on a FCFS radio site-specific licensing basis (see paragraph 7); and
- The 38 GHz band, currently available for spectrum licensing on a FCFS basis (see paragraph 5).
Section 3 of this paper addresses the new licensing process for available spectrum in the 24, 28 and 38 GHz bands. Section 4 addresses the existing FCFS 38 GHz licences. Section 5 addresses the renewal process for auctioned 24 and 38 GHz.
As noted above, spectrum in the 24, 28 and 38 GHz bands has been assigned though various licensing processes, using either site-specific or spectrum licences. Since all of these bands are used for fixed services and similar applications, in the Consultation, Industry Canada sought comments on the proposal to license any available spectrum in all ofthese bands through site-specific licensing on a FCFS basis.
The 28 GHz band is currently being licensed under the interim, site-specific licensing process, which is consistent with the proposal going forward. The Department sought comments on its proposal that existing non-standard licences in the 28 GHz band be made standard.
MSI, Bell, Rogers, I-NetLink and Québecor noted thatdemand is expected to increase in the 24, 28 and 38 GHz bands as backhaul capacity is required for wireless networks.
All respondents agreed with a FCFS licensing approach for these bands. Bell generally agreed with the direction and policies outlined in the consultation. MTS had no objections to these proposals and noted that since supply exceeds demand they support moving towards a FCFS process.
TeraGo, WIND and Rogers supported FCFS licensing but did not support thecurrent fees associated with site-specific licences in these bands. TeraGosuggested that the current FCFS shared spectrum licensing used for a portion of the 38 GHz band, already makes efficient use of the spectrum by allowing operators to deploy in a given grid cell area and on a shared basis with other licensees. They suggested that this achieves the same goal as radio licensing for efficient use of the spectrum since areas are not provided on a tier basis and are not exclusive to an operator. They added that there would be economic challenges created by such a licensing scheme and it would make these bands nolonger viable for fixed wireless deployment. They noted that currently, fees donot take a link’s spectral efficiency into consideration.
Similarly, WIND did not support site-specific licensing since the fee structure discourages the adoption of adaptive modulation or other techniquesto increase the number of channels that can be generated on a single transmit or receive frequency.
TELUS agreed with TeraGo's statement that site-specific licensing in these bands will cause unreasonably high fees and suggested that Industry Canada consider modernizing the fee structure as part of a timely consultation to facilitate the development of these bands.
Rogers was not in favour of site-specific licensing as site licensing would fundamentally change the business model for deployment in the 38 GHzband; furthermore, site-specific licensing may provide an incentive for currentand potential users to consider alternative ways of deploying connectivity, such as fiber. They also suggested that the current FCFS shared spectrum licensing process is successful and there is no evidence to suggest it could not also be effective in licensing new systems.
MSI agreed with TELUS and Rogers that area-based licensing is preferable to site-specific licensing given the benefits of technological operational certainty, the low operational overhead associated with coordination relativeto a non-exclusive framework, more reasonable licence fees, a lower administrative burden on Industry Canada and greater flexibility in terms of band use. However, MSI considered that site-specific licensing was warranted for licensing residual spectrum left over from the 1999 auction.
TeraGo, TELUS, Rogers, MTS and MSI indicated that FCFS shared spectrum licensingwould be a more appropriate licensing process. TeraGo added that radio licensing would create an undue administrative burden for the Department and operators, as an application and departmental authorization would be required for each individual link. This managed approach would be less efficient since authorizationsfor radio licensing applications can take as long as six weeks. Currently, spectrum licensing enables operators to plan and deploy within three to five days to quickly meet bandwidth demands. TeraGo further commented that shared grid cells can provide the same opportunity for spectrum use as site-specific licensing.
The 24, 28 and 38 GHz bands are designated for the use of fixed point-to-point and point-to-multipoint systems. Thepropagation characteristics for fixed services in these bands allow licensees to operate relatively close to each other.
A spectrum licensing approach provides licensees more flexibility to adjust and expand their use of the spectrum as required. This is particularly useful when deploying commercial mobile services wherethere is a need to cover large areas and serve a large number of subscribers who could be anywhere.
Many respondents did not support the use of site-specific licensing based on the radio fees applicable to site licensing. For fixed services, particularly at these frequencies, and since demand for these bands is expected to increase, site-specific licensing can maximize the efficient use of the spectrum by allowing many licensees to operate in the same area. Currently radio licensing is used for all other backhaul bands,including the upper and lower frequencies of 6 GHz, 8 GHz, 11 GHz, 15 GHz, 18 GHz and 23 GHz. Industry Canada maximizes the use inthese bands by managing access to reduce interference issues. Therefore, site-specific licensing, as proposed in the consultations, would provide a more consistent licensing approach since all bands are used for similar services. Aligning the licensing approach would also ensure that decisions regarding what spectrum to use for backhaul would not be unreasonably influenced by significant differences in the licence fees, since similar fees would apply for each of thebands.
Fees for site-specific licences, as set out in the Radiocommunication Regulations, will apply. The fee is determined by the type of station licensed and the type ofservice used. Schedule III, Part II, Column IV of the Radiocommunication Regulations is used for calculating radio licence fees for fixed stations that communicate to otherfixed stations. Additional information on how to calculate radio fees can be found in RIC-42 – Guide for Calculating Radio Licence Fees.
Existing 28 GHz radio licences that were issued as non-standard licences as part of the interim licensing process wouldbe issued standard radio licences in their place provided the technical requirements as outlined in the relevant SRSP are met.
For the FCFS site-specific licensing process, standard radio licence procedures, as per RSP-113 – Application Procedures for Planned Radio Stations Above 960 MHz inthe Fixed Service, including conditions of licence, will apply.
Licensees must continue to follow the applicable technical requirements as outlined in SP 25.25 – Spectrum Utilization Policy, Decisions on the Band 25.25-28.35 GHz and SP 23/38 – Spectrum Policy and Licensing Considerations, Fixed Radio Systems in the 23 GHz and 38 GHz Frequency Bands. These documents will be revised to reflect the decisions made in this paper for the 24,28 and 38 GHz bands.
As noted in the Consultation, a change to footnote C51 of the Canadian Table of Frequency Allocationswill be required to reflect the change from area licensing to site-specific licensing.
D1 – A FCFS licensing process will be implemented for all available spectrum in the 24 GHz (24.25-24.45 GHz, 25.05-25.25 GHz) and the 38 GHz (38.70-39.10 GHz and 39.40-39.80 GHz) bands, and within the 28 GHz band (25.25-26.5 GHz and 27.5-28.35 GHz) as site-specific licences with applicable radio fees.
D2 – Industry Canada will make existing non-standard licences in the 28 GHz band standard at the time of publication of this document.
D3 – Footnote C51 to the Canadian Table of Frequency Allocations is updated as follows:
C51 (CAN-14) The band 38.6-40 GHz is being licensed for applications in the fixed service, which will be given priority over fixed-satellite service systems sharing this spectrum on a co-primary basis. Fixed-satellite service implementation in this spectrum will be limited to applications which will pose minimal constraints upon the deployment of fixed service systems, such as a small number of large antennas for feeder links.
Both Block A in the 24 GHz band and Block B in the 38 GHzband were auctioned as 200 + 200 MHz blocks. However, sinceIndustry Canada proposed no longer issuing licences according to the auctionblocks, the Department sought comments on issuing site-specific licences basedon the SRSP-defined channel sizes, as discussed in SRSP-324.25 and SRSP-338.6. In the Department’s proposal, the 24 GHz auctioned spectrum, Block A, would be licensed as 40 + 40 MHz paired blocks and the 38 GHz auctioned spectrum, Block B, would be licensed as 50 + 50 MHzpaired blocks and licensees could apply for multiple blocks to meet their needs.
TELUS indicated they supported the proposal of the current channel bandwidthof 40 MHz in 24 GHz and 50 MHz in 38 GHz and would like the Department to be aware during the licensing process that licensees prefer adjacent channels.
I-NetLink Wireless indicated they would be limited by the 50 MHz paired blocks as demand for rural backhaul increases and would thereforerequire blocks larger than 50 MHz.
Québecor supported 50 MHz blocks and having two blocks adjacent to each other as is the case in the 11, 15 and 18 GHz bands. They supported TELUS’s comment from Canada Gazette notice SMSE-018-12 – Consultation on Spectrum Utilization Policies and Technical Requirements Related to Backhaul Spectrum in Various Bands, Including Bands Shared With Satellite, Mobile and Other Services, in which TELUSstated that the 38 GHz band has significant spectrum that could be usedfor short urban backhaul, but that the fragmentation between FCFS and auctionedspectrum makes it difficult to use this band as a fibre alternative, since the band would require pairedblocks larger than 50 MHz + 50 MHz.
Licensees have different bandwidth requirements and Industry Canada agrees with stakeholder comments that licensing block sizes that meet these requirements increases flexibility and efficiency. The proposal provides for licensing in accordance with the radio frequency block arrangements that are described in the relevant SRSPs for the 24 GHz (SRSP-324.25), 28 GHz (SRSP-325.25) and 38 GHz (SRSP-338.6) bands, consistent with the comments received on this issue.
Applicants may apply for more than one block and Industry Canada will issue licences for contiguous spectrum where possible.
D4 – Industry Canada will license the 24, 28 and 38 GHz bands based on the channel sizes defined in the relevant SRSPs.
When the Department made spectrum in the 38 GHz band available through a FCFS process, six frequency pairs of 50 + 50 MHz (a tota of 600 MHz) were designated for licensing for point-to-point use only. Unpaired spectrum in the 38 GHz band allows for both point-to-point and point-to-multipoint use and the auctioned portion of this band also allows for both uses.
The consultation proposed that these blocks of paired for FCFS 38 GHzspectrum that are currently designated for point-to-point use only should alsobe permitted to allow point-to-multipoint use in order to align with the restof the 38 GHz band.
TELUS supported point-to-multipoint use in the 38 GHz band.
TeraGo noted that coordination of the two types of deployment may become complex given a shared basis of the band and short propagation. They advise that only point-to-point use be permitted.
Québecor did not support point-to-multipoint use in the band due to the extensive coordination that would be required and because the main use is for backhaul. If allowed, they suggest point-to-multipoint should be permitted only at the extreme ends of the 38 GHz band.
Given the decision above to implement site-specific licensing going forward, the concerns raised by TeraGo and Québecor will be addressed, since IndustryCanada will manage the coordination.
Given that most licensing for 24, 28 and 38 GHz spectrum permits both uses, allowing use of both point-to-point and/or point-to-multipoint in the entire 38 GHz band will provide consistency and also offer flexibility to provide a broader range of services.
D5 – Industry Canada will permit the use of both point-to-point and/or point-to-multipoint for new licences within the frequency ranges 38.6-38.7 GHz, 39.1-39.4 GHz, and 39.8-40 GHz.
In the Consultation, Industry Canada proposed aconsistent licensing approach throughout the 38 GHz band. The intent of this proposal was to enable licensees to aggregate channels across the 38 GHz band to obtain larger channel sizes, which increases capacity. This would give greater flexibility to licensees to address increased spectrum requirements forbackhaul as a result of growing consumer demand, faster data rates and more sophisticated applications.
CPC-2-1-17 – Licensing Process and Application Procedure for Non-auctioned Spectrum Licences in the 38 GHz Band, contains thelicensing process and the conditions of licence for the FCFS 38 GHz band. The Department uses grid cells to define service areas. A spectrum grid cell is a hexagon covering an area of 25 square kilometers. The minimum authorized service area normally consists of a group of five adjacent spectrum grid cells or 125 square kilometers. Each grid cell could be shared with multiple licensees. The annual licence fees for paired and unpaired blocks are $240 and $120 per spectrum grid cell, respectively.
Industry Canada sought comments on the proposal to continue to provide licensees with the opportunity to renew their existing 38 GHz spectrum licences as issued under the above-mentioned licensing process and that existing radio stations operated under these licences will continue to be authorized under the grid cell licence. However, any new station ormodifications of an existing station would require a new radio licence.
With respect to the treatment of existing 38 GHz licences issuedunder the FCFS licensing process, Rogers, TELUS and TeraGo suggested that additionallinks in 38 GHz FCFS should not require new site-specific licences.
As noted above, Industry Canada has determined that the most appropriate licensing process for fixed systems in the 24, 28 and 38 GHz bands is site-specific licensing and this is the licensing process that will be used going forward, in order to provide a more consistent licensing approach across all bands used for similar services. However, in recognition of the existing licensees’ use of the bands and in order to minimize disruption of the existing systems, Industry Canadawill allow licensees of these systems to obtain new spectrum licences based on their existing links. However, consistent with the decision on licensing goingforward, any new links will require a new radio licence.
D6 - Licences in the 38 GHz band licensed on a FCFS basis may renew their existing spectrum licences based on their existing deployment. The licences are subject to the current spectrum licence fee for grid cell described above. However, deployment of any new stations within those licensed areas or modification of an existing station authorized as part of that licence will be authorized through the new FCFS site-specific licensing process described in Section 3.
The auctioned 24 and 38 GHz spectrum licences were awarded with 10-year terms from the date of issuance. Industry Canada indicated that at the end of the term or any subsequent term, licensees would have a high expectancy of renewal for a further 10-year term unless a breach of a licence condition had occurred, a fundamental reallocation of spectrum to a new service was required or an overriding policy need arose.
The conditions of licence also included a deployment requirement for licensees to demonstrate to the Minister of Industry that their spectrum has been put to use within three years of the auction's close. Licensees were required to show the establishment of eight links per one million population (rounded up to a whole number) within a service area, or provide some other indicator of usage deemed acceptable to the Department. The objective of this licence condition is to ensure that spectrum, a limitedpublic resource, is put to use in a timely manner.
There were two extensions to the deployment requirement offered to licensees citing lack of suitable and affordable equipment. The first was granted to July 2007 and a second one until the end of the licence term. The deployment requirement was then extended a third time when the licence termwas extended for an additional five years.
In the Consultation, Industry Canada proposed that the deployment condition of licence of eight links/million population (rounded up to a whole number)within a service area be the minimum indicator of usage acceptable for meeting this condition of licence, given that there is deployment within some licensed areas and certified equipment in both bands.
The Consultation sought comments on the proposal to renew auctioned licencesin the 24 and 38 GHz bands as Tier 3 spectrum licences, for 10-year terms,for those licences in compliance with their conditions of licence and to notrenew licences that are not in compliance with all of their conditions oflicences, as set out in the document.
Summary of Comments
Regarding the 24 and 38 GHz licence renewal, the Department received comments from Bell, I‑NetLink, Javelin, MSI, MTS, Québecor, Rogers, TELUS, TeraGo and WIND.
TELUS, Bell, WIND, TeraGo and MTS supported the proposal to only renewlicences that have met all conditions of licence.
TELUS supported renewal of those licences that have met their conditionsof licence and to not renew licences that have no deployment. However, also suggestedthat those with partial deployment and that have otherwise met all otherconditions of licence should be eligible under the renewal process for asubdivided Tier 3 licence commensurate with the level of deployment achieved.
MSI, Québecor and Javelin disagreed with the Department’s proposal.
MSI stated that all licence terms should be extended by an additional 10 years, with the deployment condition also being extended for 10 years or for at least five years. They indicated that as a result of the upcoming auctions that the demand for backhaul will increase. MSI further argued that granting thedeferral to the deployment requirement will ensure that licensees are able to obtain the value that they anticipated from their considerable capital expenditures in 1999.
Québecor provided a similar comment, noting that extending the licence term would provide licensees with additional time to generate returns on their investments, now that technology has developed further. They added that it is critical to retain these licences in regions where they do not have fiber and theselicences will be of great importance for 2500 MHz and for AWS-3 and that non-renewal will impact their ability to deploy 700 MHz.
Javelin believes that the best opportunity to ensure deployment of this spectrum is by the current licence holders as they have made significant financial investment in the spectrum. Javelin agrees that a new 10-year licence term should be granted but does not agree that a renewal should be contingent on deployment.
Rogers suggested that licensees using a lack of equipment argument to support a request for an extension to their licence term have a weak case given some licensees have deployed, demonstrating that equipment is available.
Licensees in the auctioned 24 and 38 GHz bands will have had 15 years in which to meet the eight links/million population deployment requirement in their Tier 3 areas. Previously, in recognition of a lack of suitable and affordable equipment, Industry Canada provided a term extension and two deployment extensions. However, as noted in the consultation, some licences have had extensive deployments in the 24 and 38 GHz bands, indicating that there is equipment available. According to Industry Canada’s records, data collected shows that 913 links have been deployed in the 24 GHz band, and 82 links in the 38 GHz band.
In the consultation, Industry Canada proposed that the deployment condition of licence of eight links/million population (rounded up to a whole number) within a service area be the minimum indicator of usage acceptable for meeting this condition of licence. None of the respondents suggested any other level other than zero be used for assessing deployment. Given that a certainamount of deployment has taken place and the deployment condition has already been extended, a further extension is not considered to be warranted.
Since there is no fundamental reallocation of spectrum to a new service or an overriding policy need foreseen for these bands, licensees that have met the conditions of licence have a high expectation of renewal. Therefore, where all conditions of licence have been met by the end of the term, thelicences will be eligible for a new licence for a 10-year term.
Licensees who have not met their deployment requirement or are in breach of any other conditions of licence at the end of their licence term will not be eligible to obtain a new spectrum licence through this renewal process. Existing licences that have some deployment, but do not meet the deployment requirement, could apply for radio licences with respect to these specific sites, as discussedin Section 4.1. This allows for the continued service of existing systems that have been deployed as well as the option to expand deployment through additional radio licences.
Currently, no fee applies to spectrum licences in these bands. A fee will apply to licences issued through a fee consultation to be held at a later date.
D7 – Where all conditions of licence for the auctioned 24 and 38 GHz licences have been met, licensees will be eligible to be issued a new spectrum licence for a subsequent 10-year term, through this renewal process.
The consultation set out the proposed conditions of licence, including that a high expectation of renewal should not apply to the subsequent licence term due to the transition to site-specific licensing.
Industry Canada stated in Framework for Spectrum Auctions in Canada that for licences issued through a renewal process, licence fees that reflect some measure of market value will apply. A consultation will be undertaken to determine the spectrum licence fees that will apply to new spectrum licences issued through this renewal process for the 24 and 38 GHz bands.
The Consultation sought comments on the proposed conditions of licence for the new spectrum licences in the 24 and 38 GHz bands. The Consultation also indicated that the deployment requirement will be to maintain the existing level of deployment of eight links per one million population (rounded up to a whole number) within a service area.
TELUS indicated they supported all the conditions of licence except for the R&D requirement. They stated that they find the R&D requirement antiquated, even though it has been amended, and concluded it is no longer necessary; therefore, TELUS requested the R&D requirement be removed.
Bell supported the conditions of licence. Québecor indicated they supported the deployment requirement of eight links per million population, but only if the term is extended.
Other respondents did not comment directly on the conditions of licence.
With respect to the licence term, it was proposed that new licences issued under this renewal process have a 10-year licence term. Industry Canada believes that site-specific FCFS licensing is the most suitable licensing approach for the 24 and 38 GHz bands as it enables the most efficient useof the spectrum. As such, any spectrum licences renewed at the end of the subsequent licence term will not include a high expectation of renewal. Industry Canada will hold a consultation to determine if new spectrum licences will be issued through a renewal process and, if so, under what terms and conditions.
In February 2014, Industry Canada released a decision modifying the condition of licence requiring licensees to invest a portion of their adjusted gross revenues in research and development (R&D) activities, as published in SLPB-002-14 – Decisions on Conditions of Licence Regarding Research and Development and Learning Plans. This revised condition of licence applies to all existing spectrum andsatellite licences that are currently subject to the R&D condition of licence and as such, it will be applied to the new spectrum licences in the 24 and 38 GHz bands.
Industry Canada encourages ongoing use of the spectrum. Therefore, licences that are eligible for renewal in the 24 and 38 GHz bands will be expectedto maintain a level of deployment equal to or greater than the existing deployment condition of eight links per one million population (rounded up to a whole number), within a service area and throughout the new licence term. Annex A states the conditions of licence that will apply to these licences.
D8 – Spectrum licences in the 24 and 38 GHz bands which are issued through the renewal process noted above will be subject to the conditions of licence described in Annex A.
6. Obtaining Copies
For further information concerning the process outlined in this consultationor related matters, contact:
c/o Senior Director, Spectrum Licensing and AuctionOperations
235 Queen Street
Ottawa, Ontario K1A OH5
The following conditions will apply to new spectrum licences in the auctioned 24 and 38 GHzbands. These conditions of licence are proposed to align with the decisionstaken in other processes and the proposals within the Consultation.
It should be noted that the licences are subject to the relevant provisions in the RadiocommunicationAct and the Radiocommunication Regulations, asamended from time to time. For example, the Minister continues to have thepower to amend the terms and conditions of spectrum licences, under section5(1)(b) of the RadiocommunicationAct.
1. Licence Term
The term of this licenceis 10 years. Prior to the end of the licence term, a consultation will be heldto determine whether new licences will be issued through a renewal process andif so under what terms and conditions. Therefore, these licences do not have a highexpectation of renewal.
2. Licence Fees
The licensee must pay theapplicable annual licence fee on or before March 31 of each year for thesubsequent year (April 1 to March 31).
3. Eligibility Criteria
The licensee must conformto eligibility criteria as set out in Section 9(1) of the Radiocommunication Regulations.
4. Licence Transferability and Divisibility
This licence istransferable in whole or in part (divisibility), in both bandwidth andgeographic dimensions, subject to Industry Canada's approval. ASubordinate Licence may also be issued in regard to this licence, subject toIndustry Canada's approval.
In all cases, the licenseemust follow the procedures as outlined in Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services.
All capitalized terms havethe meaning ascribed to them in CPC-2-1-23.
5. Radio Station Installations
The licensee must complywith Client Procedures Circular CPC-2-0-03, Radiocommunication and Broadcasting Antenna Systems, as amended from time to time.
6. Provision of Technical Information
The licensee must provideIndustry Canada with, and maintain, up-to-date technical information on a particular station or network information in accordance with the definitions,criteria, frequency and timelines specified in Client Procedures Circular CPC-2-1-23 – Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.
7. Compliance with Legislation, Regulations and Other Obligations
The licensee is subjectto, and must comply with, the Radiocommunication Act and the Radiocommunication Regulations, asamended from time to time. The licensee must use the assigned spectrum inaccordance with the CanadianTable of Frequency Allocations and the spectrum policiesapplicable to this band, as amended from time to time. The licence is issued oncondition that all representations made in relation to obtaining this licenceare all true and complete in every respect.
8. TechnicalConsiderations and International and Domestic Coordination
The licensee must complyon an ongoing basis with the technical aspects of the appropriate RadioStandards Specifications (RSS) and Standard Radio System Plans (SRSP), asamended from time to time. Where applicable, the licensee must use its bestefforts to enter into mutually acceptable agreements with other parties forfacilitating the reasonable and timely development of their respective systems,and to coordinate with other licensed users in Canada and internationally.
The licensee must complywith the obligations arising from current and future frequency coordinationagreements established between Canada and other countries and shall be requiredto provide information or take actions to implement these obligations asindicated in the applicable SRSP. Although frequency assignments are notsubject to site licensing, the licensee may be required through the appropriateSRSP to furnish all necessary technical data for each relevant site.
The licensee operating astelecommunication common carrier using the spectrum for voice telephony systemsmust, from the inception of service, provide for and maintain lawfulinterception capabilities as authorized by law. The requirements for lawfulinterception capabilities are provided in the Solicitor General's EnforcementStandards for Lawful Interception of Telecommunications (Rev. Nov.95) – SGES. These standards may be amended from time to time.
The licensee may requestthe Minister of Industry to forbear from enforcing certain assistancecapability requirements for a limited period of time. 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,the requirement is not reasonably achievable. Requests for forbearance mustinclude specific details and dates indicating when compliance to therequirement can be expected.
10. Research and Development (R&D)
The licensee must invest,as a minimum, 2 percent of its adjusted gross revenues resulting from the useof this licence, averaged over the term of the licence, in eligible researchand development activities related to telecommunications. Eligible research anddevelopment activities are those which meet the definition of scientificresearch and experimental development adopted in the Income Tax Act, as amended from time totime. Adjusted gross revenues are defined as total service revenues, less inter-carrier payments, bad debts, third partycommissions, and provincial goods and services taxes collected. The licensee isexempt from research and development expenditure requirements if it, togetherwith all affiliated licensees that are subject to the research and developmentcondition of licence, has less than $1 billion in annual gross operatingrevenues from the provision of wireless services in Canada, averaged over theterm of the licence. For this condition of licence, an affiliate is defined asa person who controls the carrier, or who is controlled by the carrier or byany person who controls the carrier, as per subsection 35(3) of the Telecommunications Act.
To facilitate compliancewith this condition of licence, the licensee should consult the Department'sGuideline GL-03 – Guidelines for Compliance with the Radio Authorization Condition ofLicence Relating to Research and Development.
11. Implementation of Spectrum Usage
The licensee must demonstrateto the Minister of Industry, a maintained level of deployment equal to orgreater than eight links per one million population (rounded up to a wholenumber) within the licensed service area on an ongoing basis.
12. Mandatory Antenna Tower and SiteSharing
The licensee operating astelecommunications common carrier must comply with the mandatory roamingrequirements set out in Client Procedures Circular CPC-2-0-17– Conditions of Licence for Mandatory Roaming and Antenna Tower and SiteSharing and to Prohibit Exclusive Site Arrangements, as amended from time to time.
13. Annual Reporting
The licensee must submitan annual report for each year of the licence term, which includes thefollowing 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;
- 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 Research and Development Expenditures for licensees whose annual gross operating revenues exceed $1 billion (the Department reserves the right to request an audited Statement of Research and Development expenditures with an accompanying Auditor's Report);
- supporting financial statements where a licensee is claiming an exemption to the Research and Development condition of licence;
- a copy of any existing corporate annual report for the licensee's fiscal year; and
- other information related to the licence as specified in any notice updating the reporting requirements as issued by Industry Canada.
All reports andstatements must be certified by an officer of the company and submitted, inwriting, within 120 days of the licensee's fiscal year-end.Confidential information provided will be treated in accordance with section20(1) of the Access to Information Act.
Reports are to besubmitted to Industry Canada at the following address:
c/o Manager, Emerging Networks (JETN, 15th Floor)
Spectrum Management Operations Branch
235 Queen Street
Ottawa, Ontario K1A 0H5
Where a licenseeholds multiple licences, spectrum implementation reports should be broken downby licence area.
The Minister ofIndustry retains the discretion to amend these terms and conditions of licenceat any time.