Archived — Consultation on a New Fee and Licensing Regime for Cellular and Incumbent Personal Communications Services (PCS) Licensees

Appendix D

Sample PCS Auction Spectrum Licence (existing)

Account No. 07 - 0XXX000

Spectrum Licence
Issued under the authority of the Minister of Industry in accordance with the Radiocommunication Act and Regulations made thereunder

Appendix

The following conditions of licence apply to licensees for radio frequency spectrum licensed through the auction of additional PCS spectrum in the 2 GHz frequency range. Please note that under paragraph 5(1)(b) of the Radiocommunication Act the Minister of Industry may amend the terms and conditions of a spectrum licence. Any proposed amendment would be on an exceptional basis, and only following a full consultation.

  1. Licence Term

    The term of this licence will be ten years from the date of licence issuance. At the end of this term and any subsequent terms, the licensee will have a high expectation of renewal for a further ten-year term 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.

    A public consultation regarding the renewal of the licence will commence no later than two years prior to the end of the licence term if the Department foresees the possibility that it will not renew this licence or if renewal fees are contemplated.

    It should be noted that the licence is subject to relevant provisions in the Radiocommunication Act and the Radiocommunication Regulations. For example, the Minister continues to have the power to amend the terms and conditions of the spectrum licence (paragraph 5(1)(b) of the Radiocommunication Act). Such powers would be exercised on an exceptional basis, and only after full consultation.

  2. Licence Transferability and Divisibility

    The licensee may transfer its licence(s) in whole or in part (divisibility), in both the bandwidth and geographic dimensions. The area transferred in the geographic dimension may be no smaller than a single spectrum grid cell. A spectrum grid cell is a six-sided figure with an area of 25 square kilometres. The grid cells fit together in an interlocking pattern over the geography of Canada. No minimum limit will be imposed on the amount of spectrum transferred in the bandwidth dimension.

    For each proposed transfer of this licence, the licensee must provide a written notification to the Department. The transferee(s) must also provide an attestation (or other appropriate documentation) that it meets the eligibility criteria and all other conditions of this licence. The Minister of Industry reserves the right, prior to transferring the licences, to request additional documentation to determine if the transferee(s) complies with the appropriate eligibility requirements. The transferee(s) must also provide an attestation (or other appropriate documentation) that it will meet the appropriate conditions of licence.

    For the purposes of this condition, the "transfer" of a licence includes any leasing, subleasing or other disposition of the rights and obligations of the licence.

  3. Spectrum Aggregation Limit

    The licensee must comply with the spectrum aggregation limits outlined in Radio Systems Policy 021 (RP-021), Revision to the PCS Spectrum Cap and Timing for Licensing Additional PCS Spectrum, published November 5, 1999. The spectrum aggregation limit within a service area consists of spectrum licensed to the licensee and to its affiliates. The licensee must notify the Minister of any change that would have a material effect on its compliance with these spectrum aggregation limits. Such notification must be made in advance for any proposed transactions within its knowledge.

  4. Eligibility Criteria

    The licensee will employ the radio frequencies that are the subject of this licence as a radiocommunication carrier in order to operate one or more interconnected radio-based transmission facilities (any radio apparatus that is used for the transmission or reception of intelligence to or from anywhere on a public-switched network) that may be used by the licensee or another person to provide radiocommunication services for compensation.

    The licensee acting as a radiocommunication carrier must comply on an ongoing basis with the eligibility criteria in subsection 10(2) of the Radiocommunication Regulations. The licensee must notify the Minister of Industry of any change that would have a material effect on its eligibility. Such notification must be made in advance for any proposed transactions within its knowledge. For more information, refer to Client Procedures Circular 2-0-15 CPC-2-0-15), Canadian Ownership and Control, as amended from time to time.

  5. Displacement of Incumbent Microwave Licensee

    The licensee must comply with the revised transition policy outlined in Appendix 2 of the Policy and Licensing Procedures for the Auction of Additional PCS Spectrum in the 2 GHz Frequency Range

    issued June 28, 2000, and relocation procedure for the relocation of incumbent microwave stations outlined in Client Procedures Circular 2-1-09 (CPC-2-1-09), Displacement of Fixed Service Stations Operating in the 2 GHz Frequency Range to Accommodate Licensed Personal Communications Services (PCS).

  6. Radio Station Installations

    For each radio station, the licensee must ensure that:

    • radio stations are installed and operated in a manner that complies with Health Canada's limits of human exposure to radiofrequency electromagnetic fields;
    • where applicable, antenna structures are marked in accordance with the recommendations of Transport Canada;
    • prior to installation of significant antenna structures, consultation with the appropriate land use authorities has taken place;
    • installation of any significant antenna structure must be delayed for a period of time sufficient for departmental review where, after considering reasonable alternatives and consultation options, land-use consultation negotiations remain at an impasse; and
    • radio installations are installed and operate in a manner that complies with technical boundary and out-of-band emission conditions as specified by the Department.

    Refer to the document Environmental Process, Radiofrequency Fields and Land-Use Consultation (CPC-2-0-03), as amended from time to time.

  7. Provision of Technical Information

    When the Department requests technical information on a particular station or on a network, the information must be provided by the licensee to the Department according to the definitions and criteria specified by the Department. Refer to Client Procedures Circular 2-1-10 (CPC-2-1-10), Licensing of Personal Communications Services (PCS) in the 2 GHz Band.

  8. Laws, Regulations, and Other Obligations

    The licensee is subject to, and must comply with, the Radiocommunication Act, the

    Radiocommunication Regulations and the International Telecommunication Union (ITU) Radio Regulations and Canadian Table of Frequency Allocations pertaining to its licensed radio frequency bands. The licence(s) is(are) issued on condition that the certifications made in the application materials are all true and complete in every respect.

  9. Technical Considerations

    The licensee must comply with the technical requirements set forth in Standard Radio System Plan 510 (Plan SRSP-510), Technical Requirements for Personal Communications Services in the Bands 1850-1910 MHz and 1930-1990 MHz, and must deploy equipment certified under Radio Standards Specification 133 (RSS-133), GHz Personal Communications Services. SRSP-510 provides information on channelling plans, out-of-block emission limits, permissible effective isotropic radiated power (EIRPs) and antenna heights. RSS-133 sets out standards for transmitters and receivers for PCS in the 2 GHz band.

  10. International and Domestic Coordination

    The licensee must comply with the requirements of cross-border sharing and coordination arrangements established between Canada and the United States, as amended from time to time. While frequency assignments are not subject to site by site licensing, licensees may be required to furnish all necessary technical data to Industry Canada for each relevant site in order for international coordination to be effected with the United States as per the terms of any existing or future sharing arrangement. Should international coordination be required, Industry Canada will identify the appropriate data elements, format and means of submission.

    Coordination between licensees within Canada will follow similar procedures as those for international coordination.

  11. Lawful Interception

    Licensees using the spectrum for circuit-switched voice telephony systems must, from the inception of service, provide for and maintain lawful interception capabilities as authorized by law:

    • The requirements for lawful interception capabilities are provided in the Solicitor General's Enforcement Standards for Lawful Interception of Telecommunications (Rev. Nov. 95). These standards may be amended from time to time, following consultation with the Solicitor General of Canada and the licensees.
    • Licensees may request the Minister to forbear from enforcing certain assistance capability requirements for a limited period. The Minister, following consultation with the Solicitor General of Canada, may exercise his power to forbear from enforcing a requirement or requirements where, in the opinion of the Minister, the requirement(s) is (are) not reasonably achievable. Request for forbearance must include specific details and dates when compliance to requirement(s) can be expected.
  12. Research and Development

    The licensee must invest, as a minimum, 2 percent of its adjusted gross revenues resulting from its operations in this spectrum, over the term of the licence, in eligible research and development activities related to telecommunications. Eligible research and development activities are those that meet the definition of scientific research and experimental development adopted in the Income Tax Act. 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.

    If the licence is transferred to any eligible entity prior to the expiration of its term, the condition of licence relating to investment in research and development will continue to apply on the initial transfer of the licence and on any subsequent transfer until the term of this licence expires. Prior to a transfer, in whole or in part, of this licence, the proposed transferee must undertake to ensure that the sum of the investment it will make in eligible research and development activities and all investments made by prior licensees in eligible research and development activities equal, as a minimum, 2 percent of the aggregated adjusted gross revenues resulting from all operations in this spectrum, over the term of the licence. An attestation signed by the proposed transferee setting out the undertaking must accompany the licence transfer notification to be submitted to the Department by the licensee prior to the transfer being effected.

    To facilitate compliance with this condition of licence, the licensee should consult the Department's Guidelines for Compliance with the Radio Authorization Condition of Licence Relating to Research and Development. Further details on the exact administrative procedures for transferring a spectrum licence will be provided in a forthcoming Client Procedures Circular.

  13. PCS Resale

    Licensees must offer PCS resale throughout their service area to other PCS licensees on a non-discriminatory basis.

  14. Implementation of Spectrum Usage

    Within five years of the auction's close, the licensee must demonstrate to the Department that the spectrum has been put into use. The establishment of coverage to 50% of the population within the licensed service area, or some other indicator of usage that is acceptable to the Department, will be required. Supporting documentation should be submitted to the Manager, Wireless Networks Radiocommunications and Broadcasting Regulatory Branch at the address provided below.

  15. Annual Reporting

    The licensee must submit an annual report for each year of the term of the licence indicating

    continued compliance with all licence conditions, including:

    • audited financial statements as required under the licensee's jurisdiction of incorporation, including an audited Statement of Research and Development Expenditures with an accompanying Auditor's Report, prepared in accordance with the same standards of reporting; (to facilitate compliance with this reporting requirement, the licensee should consult the Guidelines for Compliance with the Radio Authorization Condition of Licence Relating to Research and Development published by Industry Canada);
    • a copy of any existing corporate annual report for the licensee's fiscal year with respect to the authorization.
    • an update on the implementation and spectrum usage within the area covered by the licence.

    The reports are to be submitted, in writing, within 120 days of the licensee's fiscal year-end, to:

    Manager, Wireless Networks
    Radiocommunications and Broadcasting Regulatory Branch
    300 Slater Street, 15th Floor
    Ottawa, Ontario
    K1A 0C8

    Confidential information provided in the reports will be treated in accordance with subsection 20(1) of the Access to Information Act and to the Privacy Act.

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