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Overview
Under the Radiocommunication Act (the Act), the Minister of Innovation, Science and Industry (the Minister) is responsible for ensuring the orderly development and efficient operation of radiocommunication in Canada, in accordance with the policy objectives set out in the Telecommunications Act.
The Act authorizes the Minister to issue licences, certificates, and other types of authorizations. Furthermore, it enables the Governor in Council to establish fees for certain radio authorizations, such as radio licences, while spectrum licence fees are prescribed through a fee order issued under the Department of Industry Act.
Issuance and renewal of licences
A spectrum licence fee is the fee payable for the issuance, continuance or renewal of a spectrum licence. Fee calculations are generally based on the monthly or annual fees listed in the fee order corresponding to the spectrum frequencies or blocks on the spectrum licence, and are adjusted annually in accordance with the Service Fees Act. The licence fee is the sum of all the individual fees that apply to the licence. Licences can either be renewable or temporary.
- Issuance of a renewable spectrum licence: The monthly fee for a new and renewable spectrum licences is based on the number of months from the date of issuance until March 31, the end of the government fiscal year. Although the term “monthly fee” is used, payment will be required in one lump sum, once the licence has been authorized.
- Example: If a licensee is authorized to begin operations starting July 10, the fee will be the sum of the nine monthly fees from July 10 until March 31.
- Continuance of renewable spectrum licences: The annual fee for the continuance of a spectrum licence is payable before the spectrum licence expires on March 31 of each year.
- Renewal of a spectrum licence: Spectrum licences have a high expectation of renewal unless a breach of licence condition has occurred, a fundamental reallocation of spectrum to a new service is required, or an overriding policy need arises. The process for issuing licences after their initial term and any issues relating to renewal, including the terms and conditions of the new licence, will be determined by the Minister following a public consultation.
As part of the licence renewal process, the Minister retains the authority to establish new terms and conditions of spectrum licences and to amend them during the new term of the licence, in accordance with subsection 5(1) of the Radiocommunication Act. As outlined in the Framework for Spectrum Auctions in Canada, licence fees that reflect some measure of market value will apply to licences issued through the renewal process. Accordingly, the renewal process will determine whether new licences will be issued, the terms and conditions that will apply to the new licences and the applicable licence fees.
Other factors can affect how the licence fee is calculated, such as:
- the population or similar parameters like households covered by the licence’s service area
- the size of the service area
- the type of spectrum that is licensed (PCS, cellular, etc.)
In accordance with the Service Fees Act, the Department’s Spectrum and Telecommunications Sector updates its fees annually to reflect the consumer price index (CPI) adjustment, effective April 1 of each year. When calculating or recalculating licence fees, licensees must use the individually adjusted rates, which are published on the Spectrum and telecommunications fees web page. The CPI adjustment is applied individually to both the monthly fee and the annual fee on April 1 of each year.
Note: In all cases, licence fees must be paid in full before the licence can be issued. Once issued, the licence is valid until its expiry date. No portion of the licence fee is refundable.
Additional information
Please consult one of the following links for additional information on the different types of spectrum licences and associated bands.
If you need more information on how to calculate spectrum licence fees, email your questions to spectrumlicensing-licencesdespectre@ised-isde.gc.ca.