Spectrum Licence

300 Slater Street
Ottawa, Ontario
K1A 0C8

Our file: 46215-1(190773RH)
March 18, 2012

Mr. John Forsey
Director, ITU and Regulatory
Telesat Canada
1601 Telesat Court
Ottawa, Ontario K1B 5P4

Dear Mr. Forsey:

This letter constitutes a spectrum licence granted to Telesat Canada to operate a Direct Broadcast Satellite facility in the 91° West longitude orbital position in the 12.2–12.7 GHz and 17.3–17.8 GHz frequency bands. This licence replaces the spectrum licence issued to Telesat Canada on March 18, 1999 for use of DBS frequencies at the 91° W orbital position and it expires the earlier of December 31, 2027, or when the Nimiq 6 satellite reaches the end of its operational life.

This licence is subject to the conditions listed in the attachment.

Sincerely,

Chantal Beaumier
Director, Space Services


Telesat Canada (Telesat)
Conditions of Licence for a Direct Broadcast Satellite (DBS) Located at the 91° West Longitude Orbital Position

1. Eligibility

Telesat shall conform at all times with the Canadian ownership and control requirements as set out for a radiocommunication carrier in section 10(2)(d) of the Radiocommunication Regulations.

2. Licence Transferability

This licence may not be transferred or assigned without a full review of the application by the Department and without the authorization of the Minister. For clarification, and without limiting the generality of the foregoing, transfer includes any leasing, sub-leasing or other disposition of the rights and obligations of the licence, and also includes any change which would have a material effect on the ownership or control in fact of Telesat.

3. Direction or Control of Spacecraft

Telesat shall ensure that the Nimiq 6 satellite is under the direction or control of a Canadian entity as set out in section 3(3)(b) of the Radiocommunication Act. Telesat shall also provide information to the Department demonstrating that any additional satellite to be operated under this licence will be under such direction or control prior to signing a contract for the procurement of the satellite.

4. Satellite Design Approval

Prior to entering into a contract for the procurement of any additional satellite to be operated under this licence, Telesat shall demonstrate to the Department that the satellite design will meet all commitments made for serving Canada, and conform with the applicable provisions of the ITU Radio Regulations and with any applicable conditions of licence.

5. Laws, Regulations, and Other Obligations

Telesat and its satellite operations are subject to and must comply with the ITU Radio Regulations, the Canadian Radiocommunication Act, the Radiocommunication Regulations, and Canada's spectrum policies pertaining to the licensed radio frequency bands and satellite orbital position.

6. Capacity to Meet Needs of Users and Service Providers in Canada

Telesat shall operate the DBS satellite at 91°W as a Canadian telecommunications common carrier, and shall make the satellite capacity available on a non-discriminatory basis to meet Canadian requirements in all regions of Canada. Should available capacity exceed such Canadian requirements, Telesat may assign such excess capacity for service outside Canada for the term of the licence.

7. Research and Development

Telesat shall invest a minimum of 2 percent of their adjusted gross revenues resulting from the provision of satellite services via the Nimiq 6 satellite on satellite-related research and development activities. This investment may be averaged over a 5 year period, with the first averaging period beginning with the commencement of operations.

Eligible research and development is that which meets the definition adopted by the Canada Customs and Revenue Agency. Adjusted gross revenues are defined as total service revenues less inter-carrier payments, bad debts, third party commissions and provincial and goods and services taxes collected.

Licensees with less than $5 million in annual gross operating revenues are exempt from research and development expenditure requirements, except where they have affiliations with licensees that hold other licences with the research and development condition of licence and where the total annual gross revenues of the affiliated licensees are greater than $5 million.

8. Orbital Debris Mitigation

Any satellite to be operated under this licence, at the end of its life, shall be removed from the geostationary satellite orbit region in a manner consistent with Recommendation ITU-R S.1003 Environmental Protection of the Geostationary Satellite Orbit.

9. International Satellite Coordination

  1. Telesat shall, at its own expense, participate with the Department to effect the successful modification of the BSS frequency assignment plans of Appendix 30/30A of the ITU Radio Regulations; provide the Department, in a form acceptable to the ITU, with any required information; and be responsible for the payment of all ITU processing charges related to the submission of this information.
  2. Telesat shall operate its satellites in accordance with the Appendix 30/30A plan and shall fulfill all commitments made by Canada pursuant to all international coordination and any other arrangements for the operation of a direct broadcast satellite facility in the 91°W orbital position.
  3. Notwithstanding the above, to the extent that operations do not conform with the Appendix 30/30A Plan, such operations shall be on a no interference, no protection basis.

10. Domestic Satellite Coordination

Telesat shall coordinate the satellite network with other potentially affected Canadian satellite and terrestrial services; and the satellite must be operated in a manner consistent with any arrangements made to facilitate domestic satellite coordination.

11. Earth Station Licensing

All earth stations in Canada communicating with the satellite, except those exempted from the licensing requirement pursuant to the Radiocommunication Act and Radiocommunication Regulations, shall be licensed prior to operation pursuant to Client Procedure Circular, CPC-2-6-01, Procedure for the Submission of Applications to License Fixed Earth Stations and to Approve the Use of Foreign Fixed Satellite Service (FSS) Satellites in Canada.

12. Reporting

  1. Telesat shall provide the Department with a detailed annual report outlining progress made in all areas respecting the approved satellite project, including:
    • an update demonstrating continued compliance with all licence conditions;
    • a current listing of all satellite capacity made available through this authorization, the capacity assigned to Canadian service providers and others, including the parties to which it is assigned, and any unused capacity including the terms of its availability; and
    • a copy of any existing corporate annual report for its fiscal year with respect to this authorization.
  2. These annual reports are to be submitted, in writing, within 120 days of your fiscal year end, to the Director, Space Services, Engineering, Planning and Standards Branch. These annual reports are also to be augmented with semi-annual interim reports providing an update on all aspects of the design, procurement, construction, coordination and launch of the satellite until the proposed satellite has been put into service.
  3. In providing the reports set out in conditions 12 (a) and 12 (b), Telesat may amalgamate the reports with other reports required pursuant to other licences.

13. Licence Fees

Telesat shall pay the applicable annual authorization fees on or before March 31 of each year.