Notice No. DGRB-004-96

Radio Authorization Fees for Local Multipoint Communication Systems in the 28 GHz Range (LMCS)

Department of Industry Act, S.C. 1995, c.1:

Introduction

LMCS, Local Multipoint Communication Systems, provide a wide band wireless telecommunications common carrier service in the 28 GHz range that will be able to carry basic and advanced communications providing such services as "wireless" cable TV, Internet access, video teleconferencing and various other multimedia services.

On March 9, 1996, the Department of Industry issued Gazette Notice DGTP-003-96 announcing the release of the paper entitled "Local Multipoint Communication Systems (LMCS) in the 28 GHz Range: Policy, Authorization Procedures and Evaluation Criteria" to announce the Department's policy and to initiate a comparative selection and authorization process for these systems.

In addition to calling for expressions of interest and, subsequently, full detailed submissions, the paper sought comments on the proposed radio authorization fees for prospective LMCS service providers.

Generally, interested parties were invited to comment, by April 1, on the proposed annual authorization fee of $0.50 per household per 500 MHz spectrum block in each service area and other aspects of the fees. The Department of Industry has defined 66 service areas in which two 500 MHz spectrum blocks are available now for authorization. The above-noted paper provides maps of these areas and a table with the corresponding number of households and authorization fee for each service area.

The policy paper also states that this is an interim fee regime for LMCS which will be adjusted as a result of market-based information derived from the auctioning in 18 to 36 months of the remaining frequency blocks reserved for LMCS.

In response to the Notice DGTP-003-96, 34 submissions were received from interested parties. Of these, 20 submissions contained comments concerning the proposed fees.

Several of the respondents fully support the Department's broad policy objectives of facilitating the timely and orderly implementation within Canada of wireless telecommunications in the 28 GHz range and fostering sustainable competition and innovative services.

They acknowledge that fixing the fees for an interim period and reassessing them after an auction of the remaining spectrum blocks is a prudent and fair way to ensure that all Canadians receive a reasonable return for the use of this valuable spectrum. Prospective LMCS service providers are eager to offer new wireless services that may compete with cable and local telephone services.

Of the respondents who expressed some reservations or opposition to the interim fee proposal, few provided any analysis supporting an alternative amount or showed how the proposal would adversely affect them.

Revising the fee schedule to accommodate prorated entry fees and to fix an annual renewal fee address concerns raised about lowering the fee during the first year of operation and specifying the term of the radio authorization fee. Complete details of the fees fixed for LMCS are set out in the following fee schedule.

Fee Schedule

The Minister of Industry, pursuant to section 19 of the Department of Industry Act, hereby fixes the following fees, effective April 30, 1996. The fees are applicable to radio authorizations issued by the Minister pursuant to paragraph 5(1)(a) of the Radiocommunication Act to establish local multipoint communication systems (LMCS) in accordance with the terms of the authorization.

Interpretation

1. For the purpose of this fee schedule,

"designated service area" means a geographic area comprised of one or more Canada Post Forward Sortation Areas that contains at least 10,000 households and where two FSAs form part of the same service area when the FSAs are separated by less than 8 kilometres;

"Forward Sortation Area" (FSA) means a geographic area designated by the first three characters of the Canada Postal Code;

"household" has the same meaning as defined by "Statistics Canada" in the 1991 Census;

"local multipoint communication systems" (LMCS) means a wireless local broadband distribution system that uses efficient frequency reuse techniques in the radio frequency band from 25.35 to 28.35 GHz to provide services such as video, data and telephony to residential and business subscribers;

"non-designated service area" means a geographic area outside the boundaries of a "designated service area";

"renewal fee" means the annual fee payable for the renewal of a radio authorization before the radio authorization expires on March 31 of each year.

Annual Radio Authorization Fee

Designated Service Areas

2. The annual radio authorization fee is the applicable fee set out in column IV of Part I of the schedule for each 500 MHz spectrum block in each applicable designated service area.

Non-designated Service Areas

3. The annual radio authorization fee is $0.50 per household per 500 MHz spectrum block in each non-designated service area.

Initial Annual Radio Authorization Fee Payment

4. When the Minister issues an initial annual radio authorization to the applicant, payment of

  1. 20 percent of the total value of the annual radio authorization fee that corresponds to the 500 MHz spectrum blocks authorized in each designated or non-designated service area is due within five business days after the date of issuance of the radio authorization; and
  2. the balance of the initial annual radio authorization fee for the 500 MHz spectrum blocks authorized in each designated or non-designated service area is due within 30 days after the date of issuance of the radio authorization.

Initial Annual Authorization Fees Adjusted for Prorated Entry

5. The month that the Minister issues the initial annual radio authorization determines the applicable fee adjustment factor used to prorate the initial annual authorization fee.

Designated Service Area

6. The prorated entry fee for each 500 MHz spectrum block in each applicable designated service area is the applicable annual radio authorization fee set out in column IV of Part I of the schedule multiplied by the applicable fee adjustment factor set out in column II of Part II of the schedule.

Non-designated Service Area

7. The prorated entry fee for each 500 MHz spectrum block in each applicable non-designated service area is the annual radio authorization fee of $0.50 per household per 500 MHz spectrum block multiplied by the applicable fee adjustment factor set out in column II of Part II of the schedule.

Renewal Fee

8. The renewal fee is the applicable annual radio authorization fee for each 500 MHz spectrum block authorized in each designated or non-designated service area.

General Notes

All fees are rounded to the nearest dollar.

Maps of the designated service areas are in the document entitled "Local Multipoint Communication Systems (LMCS) in the 28 GHz Range: Policy, Authorization Procedures and Evaluation Criteria" released February 29, 1996.

This is an interim fee regime for LMCS. The fees may be adjusted in accordance with a market determined valuation as a result of a competitive bidding process for the remaining frequency blocks reserved for LMCS.

John Manley
Minister of Industry

Part I: LMCS Designated Service Areas and Annual Radio Authorization Fees
Item Column I: 
Designated Service Area
Column II: 
Forward Sortation Area
Column III: 
Number of Households
Column IV: 
Annual Fee
per 500 MHz ($)
1. Barrie L4N, L4M 24 010 12 005
2. Belleville K8P, K8R, K8V, K8N 24 265 12 132
3. Brandon R7B, R7C, R7A 14 695 7 347
4. Brantford N3P, N3R, N3S, N3T, N3V, N3L 33 775 16 887
5. Brockville K6V, K6T 11 410 5 705
6. Calgary T1Y, T2A, T2B, T2C, T2E, T2G, T2H, T2J, T2K, T2L, T2M, T2N, T2P, T2R, T2S, T2T, T2V, T2W, T2X, T2Y, T2Z, T3A, T3B, T3C, T3E, T3G, T3H, T3J, T3K, T3L, T4A, T4B, T1X 266 370 133 185
7. Charlottetown C1A, C1B, C1C, C1E 13 530 6 765
8. Chatham N7M, N7L 17 815 8 907
9. Chicoutimi-Jonquière- Alma  G7G, G7H, G7J, G7K, G7S, G7T, G7X, G7Y, G7Z, G8A, G8B, G8C, G7B 61 130 30 565
10. Cobourg-Port Hope  L1A, K9A 11 750 5 875
11. Cornwall K6J, K6K, K6H 18 500 9 250
12. Courtenay V9H, V9J, V9M, V9N, V9W, V9G 24 175 12 087
13. Drummondville J2B, J2C, J2E, J2A 21 585 10 792
14. Edmonton T5A, T5B, T5C, T5E, T5G, T5H, T5J, T5K, T5L, T5M, T5N, T5P, T5R, T5S, T5T, T5V, T5W, T5X, T5Y, T5Z, T6A, T6B, T6C, T6E, T6G, T6H, T6J, T6K, T6L, T6M, T6N, T6P, T6R, T6S, T6T, T6V, T6W, T6X, T7X, T7Y, T7Z, T8A, T8B, T8C, T8E, T8G, T8H, T8L, T8N, T9E, T4X 286 385 143 192
15. Fort McMurray T9J, T9K, T9H 11 295 5 647
16. Fredericton E3A, E3B, E3C, E3E, E2V 25 215 12 607
17. Granby J2H, J2J, J2G 21 145 10 572
18. Grande Prairie T8W, T8X, T8V 10 105 5 052
19. Guelph-Kitchener N1E, N1G, N1H, N1J, N1K, N1L, N1P, N1R, N1S, N1T, N2A, N2B, N2C, N2E, N2G, N2H, N2J, N2K, N2L, N2M, N2N, N2P, N2R, N2S, N2T, N2V, N3B, N3C, N3E, N3H, N1C 156 275 78 137
20. Halifax B2V, B2W, B2X, B2Y, B2Z, B3A, B3B, B3G, B3H, B3J, B3K, B3L, B3M, B3N, B3P, B3R, B3S, B3T, B4A, B4B, B4C, B4E, B4G, B2T 106 050 53 025
21. Jolliette J6E 13 370 6 685
22. Kamloops V1S, V2B, V2C, V2E, V2H, V1P 25 170 12 585
23. Kelowna V1K, V1T, V1V, V1W, V1X, V1Y, V1Z, V4T, V1B 54 050 27 025
24. Kingston K7L, K7M, K7N, K7P, K7K 41 445 20 722
25. Lethbridge T1J, T1K, T1M, T1H 25 180 12 590
26. London-Woodstock- 
St Thomas
N4T, N4V, N5C, N5L, N5P, N5R, N5V, N5W, N5X, N5Y, N5Z, N6A, N6B, N6C, N6E, N6G, N6H, N6J, N6K, N6L, N6M, N6N, N4S 150 140 75 070
27. Medicine Hat T1B, T1C, T1A 17 000 8 500
28. Moncton E1B, E1C, E1E, E1G, E1A 30 165 15 082
29. Montréal H1B, H1C, H1E, H1G, H1H, H1J, H1K, H1L, H1M, H1N, H1P, H1R, H1S, H1T, H1V, H1W, H1X, H1Y, H1Z, H2A, H2B, H2C, H2E, H2G, H2H, H2J, H2K, H2L, H2M, H2N, H2P, H2R, H2S, H2T, H2V, H2W, H2X, H2Y, H2Z, H3A, H3B, H3C, H3E, H3G, H3H, H3J, H3K, H3L, H3M, H3N, H3P, H3R, H3S, H3T, H3V, H3W, H3X, H3Y, H3Z, H4A, H4B, H4C, H4E, H4G, H4H, H4J, H4K, H4L, H4M, H4N, H4P, H4R, H4S, H4T, H4V, H4W, H4X, H4Y, H4Z, H5A, H5B, H7A, H7B, H7C, H7E, H7G, H7H, H7J, H7K, H7L, H7M, H7N, H7P, H7R, H7S, H7T, H7V, H7W, H7X, H7Y, H8N, H8P, H8R, H8S, H8T, H8Y, H8Z, H9A, H9B, H9C, H9E, H9G, H9H, H9J, H9K, H9P, H9R, H9S, H9W, H9X, J2W, J2X, J2Y, J3A, J3B, J3E, J3G, J3H, J3L, J3M, J3N, J3V, J3X, J3Y, J3Z, J4B, J4G, J4H, J4J, J4K, J4L, J4M, J4N, J4P, J4R, J4S, J4T, J4V, J4W, J4X, J4Y, J4Z, J5A, J5R, J5Y, J5Z, J6A, J6J, J6K, J6N, J6R, J6S, J6T, J6V, J6W, J6X, J6Y, J6Z, J7A, J7B, J7C, J7E, J7G, J7H, J7J, J7K, J7L, J7N, J7P, J7R, J7V, J7W, J7Y, J7Z, J8H, H1A 1 268 660 634 330
30. Moose Jaw  S6J, S6K, S6H 13 385 6 692
31. Nanaimo V9P, V9R, V9S, V9T, V9V, V9Y, V9K 41 600 20 800
32. Niagara-Ste.Catharines- 
Welland
L2G, L2H, L2J, L2M, L2N, L2P, L2R, L2S, L2T, L2V, L2W, L3B, L3C, L3K, L2E 106 610 53 305
33. North Bay P1B, P1C, P1A 19 470 9 735
34. Orillia L3V 11 390 5 695
35. Ottawa-Hull J8M, J8P, J8R, J8T, J8V, J8X, J8Y, J8Z, J9A, J9H, J9J, K1A, K1B, K1C, K1E, K1G, K1H, K1J, K1K, K1L, K1M, K1N, K1P, K1R, K1S, K1T, K1V, K1W, K1Y, K1Z, K2A, K2B, K2C, K2E, K2G, K2H, K2J, K2K, K2L, K2M, K2P, K2R, K2S, K2T, K2V, K2W, K4A, K4B, K4C, K4K, K4M, K4R, K7A, K7C, K7H, J8L 338 295 169 147
36. Pembroke K8B, K8C, K8H, K8A 12 070 6 035
37. Penticton V2A 12 445 6 222
38. Peterborough K9J, K9K, K9L, K9H 28 510 14 255
39. Prince Albert S6W, S6X, S6V 13 670 6 835
40. Prince George V2K, V2L, V2M, V2N, V1H 23 750 11 875
41. Québec G1B, G1C, G1E, G1G, G1H, G1J, G1K, G1L, G1M, G1N, G1P, G1R, G1S, G1T, G1V, G1W, G1X, G1Y, G2A, G2B, G2C, G2E, G2G, G2J, G2K, G2L, G2M, G2N, G3A, G3E, G3J, G3K, G6C, G6J, G6K, G6V, G6W, G6X, G6Z, G7A, G1A 234 330 117 165
42. Red Deer T4P, T4R, T4N 21 460 10 730
43. Regina S4N, S4P, S4R, S4S, S4T, S4V, S4W, S4X, S4Y, S4Z, S4L 67 820 33 910
44. Rimouski G5M, G5N, G5L 14 515 7 257
45. Rouyn-Noranda J9X 10 960 5 480
46. Saint John E2G, E2H, E2J, E2K, E2L, E2M, E2N, E2P, E2R, E2S, E2E 35 835 17 917
47. Sarnia N7T, N7V, N7W, N7X, N7S 28 195 14 097
48. Saskatoon S7J, S7K, S7L, S7M, S7N, S7P, S7R, S7S, S7T, S7V, S7H 71 855 35 927
49. Sault Ste Marie P6B, P6C, P6A 30 650 15 325
50. Sherbrooke J1G, J1H, J1J, J1K, J1L, J1M, J1N, J1X, J1E 57 535 28 767
51. Sydney B1H, B1L, B1M, B1N, B1P, B1R, B1S, B1V, B2A, B1A 33 055 16 527
52. Sorel J3R, J3S, J3P 16 430 8215
53. St-Hyacinthe J2T, J2S 16 055 8 027
54. St. John's A1B, A1C, A1E, A1G, A1K, A1L, A1N, A1S, A1W, A1X, A1A 49 965 24 982
55. Stratford N5A, N5B, N4Z 11 130 5 565
56. Sudbury P3B, P3C, P3E, P3G, P3L, P3N, P3P, P3Y, P3A 46 270 23 135
57. Thunder Bay P7B, P7C, P7E, P7G, P7J, P7A 43 210 21 605
58. Timmins P4P, P4R, P4N 13 680 6 840
59. Toronto- Hamilton- Oshawa L1C, L1E, L1G, L1H, L1J, L1K, L1L, L1N, L1P, L1R, L1S, L1T, L1V, L1W, L1X, L1Y, L1Z, L3M, L3P, L3R, L3S, L3T, L3X, L3Y, L3Z, L4A, L4B, L4C, L4E, L4G, L4H, L4J, L4K, L4L, L4P, L4S, L4T, L4V, L4W, L4X, L4Y, L4Z, L5A, L5B, L5C, L5E, L5G, L5H, L5J, L5K, L5L, L5M, L5N, L5P, L5R, L5S, L5T, L5V, L5W, L6A, L6B, L6C, L6E, L6G, L6H, L6J, L6K, L6L, L6M, L6R, L6S, L6T, L6V, L6W, L6X, L6Y, L6Z, L7A, L7B, L7C, L7E, L7G, L7J, L7L, L7M, L7N, L7P, L7R, L7S, L7T, L7V, L8E, L8G, L8H, L8J, L8K, L8L, L8M, L8N, L8P, L8R, L8S, L8T, L8V, L8W, L9A, L9B, L9C, L9G, L9H, L9J, L9K, L9L, L9N, L9P, L9T, M1B, M1C, M1E, M1G, M1H, M1J, M1K, M1L, M1M, M1N, M1P, M1R, M1S, M1T, M1V, M1W, M1X, M2H, M2J, M2K, M2L, M2M, M2N, M2P, M2R, M3A, M3B, M3C, M3H, M3J, M3K, M3L, M3M, M3N, M4A, M4B, M4C, M4E, M4G, M4H, M4J, M4K, M4L, M4M, M4N, M4P, M4R, M4S, M4T, M4V, M4W, M4X, M4Y, M5A, M5B, M5C, M5E, M5G, M5H, M5J, M5K, M5L, M5M, M5N, M5P, M5R, M5S, M5T, M5V, M5W, M5X, M6A, M6B, M6C, M6E, M6G, M6H, M6J, M6K, M6L, M6M, M6N, M6P, M6R, M6S, M7A, M8V, M8W, M8X, M8Y, M8Z, M9A, 1 614 405 807 202
60. Trois-Rivières G8V, G8W, G8Y, G8Z, G9A, G9B, G9C, G9N, G9P, G9R, G9T, J3T, G8T 69 550 34 775
61. Val-D'Or J9P 10 345 5 172
62. Vancouver V2P, V2R, V2S, V2T, V2V, V2W, V2X, V2Y, V2Z, V3A, V3B, V3C, V3E, V3G, V3H, V3J, V3K, V3L, V3M, V3N, V3P, V3R, V3S, V3T, V3V, V3W, V3X, V3Y, V3Z, V4A, V4B, V4C, V4E, V4G, V4K, V4L, V4M, V4N, V4P, V4R, V4S, V4W, V4X, V5A, V5B, V5C, V5E, V5G, V5H, V5J, V5K, V5L, V5M, V5N, V5P, V5R, V5S, V5T, V5V, V5W, V5X, V5Y, V5Z, V6A, V6B, V6C, V6E, V6G, V6H, V6J, V6K, V6L, V6M, V6N, V6P, V6R, V6S, V6T, V6V, V6W, V6X, V6Y, V6Z, V7A, V7B, V7C, V7E, V7G, V7H, V7J, V7K, V7L, V7M, V7N, V7P, V7R, V7S, V7T, V7V, V7W, V7X, V7Y, V1M 662 460 331 230
63. Victoria V8L, V8M, V8N, V8P, V8R, V8S, V8T, V8V, V8W, V8X, V8Y, V8Z, V9A, V9B, V9C, V9E, V9L, V8K 122 730 61 365
64. Victoriaville G6R, G6S, G6T, G6P 13 370 6 685
65. Windsor-Leamington N8M, N8N, N8P, N8R, N8S, N8T, N8V, N8W, N8X, N8Y, N9A, N9B, N9C, N9E, N9G, N9H, N9J, N9K, N9V, N9Y, N8H 104 520 52 260
66. Winnipeg R2E, R2G, R2H, R2J, R2K, R2L, R2M, R2N, R2P, R2R, R2V, R2W, R2X, R2Y, R3A, R3B, R3C, R3E, R3G, R3H, R3J, R3K, R3L, R3M, R3N, R3P, R3R, R3S, R3T, R3V, R3W, R3X, R3Y, R4A, R4H, R4J, R5A, R2C 243 975 121 987
Part II: Initial Annual Radio Authorization Fee Adjustment Factors for Prorated Entry
Item Column I:
Month of Issuance of the Initial Annual Radio Authorization
Column II:
Initial Annual Radio Authorization Fee Adjustment Factor

1. April

1.0

2. May

0.917

3. June

0.833

4. July

0.750

5. August

0.666

6. September

0.583

7. October

0.500

8. November

0.417

9. December

0.333

10. January

0.250

11. February

0.167

12. March

0.083

Date modified: