Notice DGRB-001-97

Department of Industry

Department of Industry Act, S.C. 1995, c.1 Notice No. DGRB-001-97 — Radio Authorization Fees for Mobile Satellite Services Using Radio Spectrum Below 1 GHz

Introduction

An emerging class of global mobile satellite service (MSS) radiocommunication networks will provide Canadians with a variety of very low capacity, non-voice messaging and position location services throughout Canada. These mobile satellite networks will use radio frequency bands below 1 GHz which are allocated for mobile satellite services. Generally, these networks will use less than 2-3 MHz of radio spectrum and will share the use of this spectrum with other radiocommunication services.

The MSS networks will avoid causing interference to these other services by operating under restrictions that limit the maximum number of transmissions from certain stations within the network or on the amount of time that certain stations may transmit.

On December 14, 1996, Industry Canada issued Gazette Notice DGRB-006-96Spectrum Licence Fees for Mobile Satellite Services Using Radio Spectrum Below 1 GHz. This notice announced that the Minister will grant spectrum licences, which permit the service provider to operate an unlimited number of subscriber earth stations, to provide this class of mobile satellite service in Canada.

In addition, Industry Canada invited comments on a proposed annual authorization fee of $1140 per 100 kHz, or portion thereof, of assigned radio spectrum for the use of radio frequency bands below 1 GHz to provide mobile satellite services in Canada. This authorization fee takes into consideration that MSS service providers are only granted very limited access to this spectrum and that the potential Canadian market value of the spectrum resources has yet to be determined.

In response to the Notice, four submissions were received from interested parties. All of the respondents support the Department's broad policy objectives of fostering sustainable competition and innovative services by facilitating the timely and orderly implementation of these types of MSS networks within Canada. The respondents also agreed with the interim licence fee as proposed. One respondent cautioned that spectrum licence fees should not favour one mode of service over another thereby inhibiting fair competition between those services.

In view of the general support for this initiative and Industry Canada's efforts directed at establishing a general fee framework based on a market determined valuation of the radio spectrum, the Department will implement the authorization fee as proposed. Complete details of the fees fixed for the mobile satellite services using radio spectrum below 1 GHz 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 the date of publication of this notice. The fees are applicable to radio authorizations issued by the Minister pursuant to paragraph 5(1)(a) of the 'em>Radiocommunication Act to establish mobile satellite services using radio spectrum below 1 GHz in accordance with the terms of the authorization.

Interpretation

1. For the purpose of this fee schedule,

"mobile satellite service" (MSS) means a radiocommunication service that uses the radio frequency bands below 1 GHz for communications between mobile or fixed earth stations by means of one or more space stations;
"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

Annual Fee

2. The annual radio authorization fee is $1140 per 100 kHz, or portion thereof, of assigned radio spectrum for the use of radio frequency bands below 1 GHz to provide mobile satellite services in Canada.

Prorated Fees

3. The month that the Minister issues the annual radio authorization determines the applicable prorated fee.

4. The prorated fee is $95 per 100 kHz, or portion thereof, of assigned radio spectrum for the use of radio frequency bands below 1 GHz to provide mobile satellite services in Canada for each month until the licence expires on March 31.

Renewal Fee

5. The renewal fee is $1140 per 100 kHz, or portion thereof, of assigned radio spectrum for the use of radio frequency bands below 1 GHz to provide mobile satellite services in Canada.

General Notes

This is an interim fee regime for mobile satellite services using radio spectrum below 1 GHz. The fees may be adjusted in accordance with a market determined valuation of MSS which will be used to establish a general fee framework.

John Manley
Minister of Industry