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

5. Proposed Framework

The Department believes that the above noted market distortions can be addressed by:

  • introducing a number of measures that support spectrum efficiency by associating fees with the amount of spectrum consumed instead of number of sites deployed;
  • avoiding situations where spectrum is effectively consumed at no cost and denied to others; and
  • eliminating the incremental costs of licence fees associated with network expansion.

This approach has the added benefit of reducing the administrative burden on licensees as well as the Department. The goal is for all cellular and PCS spectrum licensees to operate under a common framework that aims to ensure there is:

  • fairness and consistency in applying policy;
  • enough flexibility to allow companies to be innovative and facilitate the delivery of innovative services;
  • increased reliance on market forces; and
  • administrative efficiency.

To create a framework that is more fair, efficient, and competitive, the Department proposes two initiatives:

  • amend current five-year spectrum licences issued to cellular and incumbent PCS licensees in 2001 to include enhanced privileges similar to auctioned PCS spectrum licences and eliminate the need for associated radio station licences other than in specified exceptional circumstances; and
  • implement a common fee regime for cellular and incumbent PCS licensees using a rate that takes into account the amount of spectrum assigned (number of MHz) and the total population included in the service area (number of pop).

The amended spectrum licences would authorize the use of specific frequencies or a frequency block within a defined geographic area under certain minimal constraints. The privileges that would be associated with the amended licences include (subject to compliance with the Act, the Regulations and the terms and conditions of licence) the ability to transfer in whole or in part the licence in both the geographic and spectral domains.

This transition from apparatus-based to spectrum-based licensing would remove the disincentive for service providers to use their spectrum intensively and efficiently. This would be accomplished by dissociating fees and the number of stations in the network. Furthermore, deployment of service in lesser populated areas would not result in additional fee expense. In other words, the transition to spectrum licences will remove the disincentive associated with building the stations required to use the spectrum most efficiently and over the broadest area.

5.1 Proposed Spectrum Licence Attributes

Spectrum licences are defined in subparagraph 5(1)(a)(i.1) of the Radiocommunication Act as authorizations "in respect of the utilization of specified radio frequencies within a defined geographic area." The proposed amendments to existing five-year spectrum licences issued to cellular and PCS providers in April 2001 are outlined in the following subsections.

5.1.1 Licence Term

The Department will extend current spectrum licence terms from five years to ten, with a high expectation of renewal at the end of the term. The extended term would therefore expire on March 31, 2011. Generally, renewed licences would be offered in subsequent ten-year terms.

5.1.2 Spectrum and Geography

Under the proposed framework, the Department will create service areas for all cellular operating territories. Through this consultation the Department proposes to offer those companies that have not yet applied for a spectrum licence to offer service in their operating territory, the right of first refusal to these licences. If companies do not want to be assigned these licences, they will be made available through the process used for new party cellular applicants as outlined in Policy for the Provision of Cellular Services by New Parties (RP-019). This is consistent with the announcement in the Canada Gazette, Notice DGTN-006-82/DGTR-017-82 in which the Minister of Communications set aside a cellular spectrum block for local telephone companies. In his December 14, 1983, licensing decision, the Minister of Communications announced that he would consider applications from telephone companies to provide cellular service in the cellular block B. Companies that are not yet licensed will be given 90 days from the issuance of the final policy decision resulting from this consultation, to submit their application for the spectrum licence. Should these companies forego this opportunity, the Department will rescind the set aside provisions established in 1983.

The spectrum licences will be issued in respect of the use of specific frequencies or a frequency block(s) within a defined geographic area. The Department will use, where possible, the Tier service areas defined in the Department's document Service Areas for Competitive Licensing, in order to determine the geographic area of the spectrum licences. However, the operating territories of the majority of local telephone companies do not fall neatly into the existing Tier service areas. Thus, for those operating territories which cannot be defined in terms of the existing Tier service areas, the Department proposes creating new Local Telephone Service Provider Tier service areas. The Department foresees the need to define 3 new Local Telephone Service Provider Tier service areas for British Columbia, 27 for Ontario, and 17 for Quebec. A list of the proposed new service areas is provided in Appendix E. Maps reflecting the service areas are available on the Spectrum Web site at http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/h_sf01627.html.

In developing the new service areas, the Department used the most reliable information available. As part of this consultation, those affected are asked to verify the data contained in Appendix F and the service area maps on the web site to ensure that they reflect the correct information as these are used to calculate the fee for each of the service areas identified. It is also necessary to bear in mind that the population figures used for the purpose of the distribution of fees are those of the 1996 census.

A list of spectrum blocks associated with the geographic areas for cellular and incumbent PCS licensees is provided in Appendix F. Definitive and detailed maps of all service areas will be made available at the conclusion to this consultation.

5.1.3 Transferability/Divisibility

The Department proposes that the spectrum licences which are the subject of this consultation be divisible and transferable, in part or whole, within the geographic (partitioning) and bandwidth (disaggregation) domains, subject to the following conditions and guidelines:

  • All conditions of the licence will continue to apply should the licence be transferred or divided.
  • The party that constitutes the newly created licensee, from the transfer or division of a licence, must meet the eligibility criteria for a radiocommunication carrier as outlined in subsection 10(2) of the Radiocommunication Regulations.
  • Should licensees transfer or divide their licence to another party, the second party will only receive a licence term equal to that remaining on the original licence but will be eligible for the same licence renewal provisions as original licensees. For example, if the transfer occurs at year six of the licence term, the second party will receive a licence term equal to four years.
  • All proposed licence transfers and divisions must comply with any spectrum aggregation limits or other measures intended to preclude anti-competitive behaviour that may be in place. It should be noted that any licence transfer or division may also be subject to the provisions of the Competition Act.
  • The minimum geographic size that any licence may be partitioned is the lesser of one census subdivision, or a new Local Telephone Service Provider Tier service area created to accommodate the serving areas. These are sufficiently small that even with this restriction an extremely high degree of flexibility will be available to the parties involved in determining the size and shape of partitioned licences.
  • No minimum limit will be imposed on the amount of spectrum transferred in the bandwidth dimension.
  • Written notification of all proposed licence transfers and divisions will be required. The Department will also request attestations or other documentation to ensure that compliance with the eligibility criteria and other conditions of licence have been satisfactorily addressed. Once a licence transfer or division has been registered, the Department will revoke the original licence and issue a new licence in its place.
  • The Department will maintain a publicly accessible database that lists all licences and their respective licensees and will update the database as changes occur to the licences.

5.1.4 Flexibility of Use

Licensees will have the maximum possible flexibility in determining the services they will offer and the technologies they will employ. Beyond the need to conform to the technical requirements set forth in section 5.3 of this document, "Proposed Conditions of Licence", and the applicable Canadian spectrum allocation, only those limitations required for interference management purposes, including the provisions of international agreements, will be imposed. This will ensure that licensees can continue to quickly and efficiently adapt their services to changing consumer demands.

5.1.5 System Access Fees

The Department is aware that consumers are the subject of inconsistent messages from service providers when it comes to System Access Fees (SAF). All four main cellular/PCS providers define SAF differently. Continuing consumer inquiries to Industry Canada indicate that there is confusion in the marketplace about the costs associated with SAF. The Department welcomes suggestions on how cellular/PCS providers could clarify this issue for consumers.

However to ensure that uncertainty is minimized as it applies to SAF, the Department is considering a new licence condition that would apply to all cellular/PCS licences. Where licensees include in their customer invoice a 'System Access Fee' or a 'Network and Licensing Charge' or a similar line item, licensees would also have to include the following statement in their customer contract and information materials explaining such charges:

System Access Fees are neither required nor collected by the Government. [Name of Company] is subject to licence fees for the use of the public radio frequency spectrum it uses in its business operations. There is no correlation between the licence fees for the radio frequency spectrum and the number of subscribers to whom the service is provided. Industry Canada encourages consumers to seek the best value from among the competing service providers that have been licensed.

5.1.6 Domestic Sharing Arrangements

With full transferability and divisibility, coordination may be required between licensees that have been licensed for similar spectrum in adjacent service areas. For coordination among PCS licensees, the Department will apply the same approach as outlined in the document, entitled Interim Sharing Arrangement between Industry Canada and the Federal Communications Commission Concerning the Use of the Band 1850 to 1990 MHz :

  • The efficient operation of PCS systems will be best assured through coordination by the PCS licensees operating in adjacent service areas.
  • The development of sharing arrangements between operators in the adjacent areas is required for any PCS base station that exceeds the field strength of 47 dBµV/m at any location at or beyond the area boundary, unless PCS operators in adjacent areas agree to a higher value.

The above sharing arrangements could include technical and/or business agreements, and should also permit service availability to users along area boundaries.

The Department will apply the current arrangement for cellular licensees outlined in SRSP-503.

5.1.7 Resale and Roaming

The current requirements with regard to resale and roaming will continue to be in effect on spectrum licences of cellular licensees as outlined in section 5.3, "Proposed Conditions of Licence", of this document.

5.1.8 Lawful Intercept

On August 25, 2002, the Honourable Martin Cauchon, Minister of Justice and Attorney General of Canada, the Honourable Lawrence MacAulay, Solicitor General of Canada, and the Honourable Allan Rock, Minister of Industry, announced that the Government of Canada will consult with Canadians concerning lawful access to information and communications. The consultation was launched by Minister MacAulay, on behalf of his colleagues.

To facilitate these consultations and public input, a consultation document on lawful access was made available. The consultation document outlines legislative, regulatory and policy options that would ensure that law enforcement and national security agencies maintain their lawful access capability, while taking into account legal, technical, privacy and economic considerations. A central element of these proposed options would require all wireless, wireline and Internet service providers to have the technical capability to provide access to communications and information, under legal authority, to law enforcement and national security agencies.

At this time PCS licensees are required by condition of licence to provide lawful interception capability. This requirement will continue for the PCS licensees and will be subject to the determinations that will follow the above noted public consultation. However, the Department notes that the Solicitor General's Enforcement Standards for Lawful Interception of Telecommunications was written to apply to circuit-switched voice telephony systems and as such is not readily applicable to a packet-based environment using routers rather than traditional switches. Router-based networks pose a number of challenges to the provision of lawful interception capabilities, in that routers may only receive a portion of a target's traffic, a target's traffic may be simultaneously routed through several routers at different points in a network, and routers permit customers to distribute traffic across several service providers.

Notwithstanding the technical complexities involved, the Department recognizes that electronic interception of personal communications under lawful warrant is an indispensable technique for law enforcement. However, the Department will only incorporate compliance with the Solicitor General's current standard for circuit-switched voice telephony systems since technical and legal requirements to support lawful interception capabilities in new network technologies and topographies are still undefined and under development. If standards are developed for router-based networks, the requirement to provide lawful interception capability for such traffic may be imposed via a licence condition or other future legislative provision.

5.2 Proposed Licence Fees

The Department proposes to institute a new licence fee regime based on a rate corresponding to the amount of spectrum assigned and the total population included in the service area. To determine what this rate should be, the Department used as its model the cellular network of Rogers Wireless Inc. which:

  • covers more than 93% of the Canadian population and the major traffic corridors;
  • is established in all provinces and the Northwest Territories;
  • operates in the 25 largest Census Metropolitan Areas (CMA) of Canada; and
  • is assigned 25 MHz of spectrum.

Rogers' annual fee for fiscal year 2000/2001 was $37,181,576 or approximately $1.5 million per 1 MHz of national cellular spectrum.2

To determine fees on a per pop basis, the Department chose to use the 1996 census data3 where the population of Canada was 28,846,761. A formula was then developed that distributes the fees based on the amount of spectrum bandwidth and the population of the geographic area licensed to each licensee. The application of the formula results in a licence fee of $0.052 per 1 MHz of assigned spectrum per person in a defined geographic area.

A transition fee estimation tool is available on the Spectrum Management and Telecommunications Web site. This tool is to be used to estimate a company's fees. The example provided is for a company which is nationally authorized for a specific frequency block. Companies having multiple authorizations with differing frequency bands and/or geographical areas will require a more in-depth calculation.

The Department proposes a seven year implementation time frame before the full measure of the new fee becomes payable. Implementation would be graduated based on the difference between licence fees payable at March 31, 2004 and the final amount payable. This graduated implementation would apply to both licensees seeing an increase in their current annual licence fees and to those seeing a decrease in their fees including situations where partitioning and disaggregation take place.

The Department will establish this fee framework by:

  • fixing the annual fees on a per 1 MHz per pop of assigned cellular and PCS spectrum using the formula referred to above and limiting the minimum fee for a licence to $1,000.00;
  • fixing the $0.052 per MHz per pop fee and allowing prorating at 1/12 the annual fee for each month remaining until April 1; such a fee will apply to all new licences issued in the cellular/PCS bands covered by this consultation effective April 1, 2004; and
  • implementing the spectrum licence fee regime over seven fiscal years.4

Should there be a proposal to amend the fee for a subsequent term, a consultation on such a proposal will begin no later than two years prior to the end of the licence term.

5.3 Proposed Conditions of Licence

The proposed conditions of licence for cellular and incumbent PCS licensees are outlined below. Given the legacy requirements of cellular and incumbent PCS licensees, some conditions will apply to both, while others will only be applicable to PCS licensees, and one condition dealing with roaming and resale will apply to cellular licensees only.

5.3.1 Licence Conditions Common to All Cellular and Incumbent PCS Licensees

  1. Licence Term

    The term of this licence will expire on March 31, 2011. At the end of this term and any subsequent terms, licensees will have a high expectation of renewal for a 10-year term unless a breach of a 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 begin 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.

    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 spectrum licences (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

    Licensees may transfer their licence(s) in whole or divide the licence in both bandwidth (disaggregation) and geographic (partitioning) dimensions. The smallest geographic area that may be partitioned will be the smaller of a census subdivision (Tier 4) or a new Local Telephone Service Provider Tier area. No minimum limit will be imposed on the amount of spectrum that may be disaggregated.

    For each proposed transfer or division of this licence, licensees must provide a written notification to the Department. Transferees must also provide an attestation (or other appropriate documentation) that they meet the eligibility criteria and all other conditions of this licence. The Minister of Industry reserves the right, prior to transferring or dividing the licences, to request additional documentation in order to determine if the proposed new licensees comply with the appropriate eligibility requirements. The proposed new licensees must also provide an attestation (or other appropriate documentation) that they 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

    Licensees 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. The spectrum aggregation limit within a service area consists of spectrum licensed to licensees and their affiliates. Licensees must notify the Minister of any change that would have a material effect on their compliance with these spectrum aggregation limits. Such notification must be made in advance of any proposed transactions of which licensees have knowledge.

  4. Eligibility Criteria

    Licensees 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 (that is 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 licensees or another person to provide radiocommunication services for compensation.

    Licensees acting as radiocommunication carriers must comply on an ongoing basis with the eligibility criteria in subsection 10(2) of the Radiocommunication Regulations. Licensees must notify the Minister of Industry of any change that would have a material effect on their eligibility. Such notification must be made in advance of any proposed transactions of which licensees have 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. Radio Station Installations

    For each radio station, licensees 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 for the general public including the consideration of existing radiocommunication installations within the local environment;
    • where applicable, antenna structures are marked in accordance with the recommendations of Transport Canada with respect to a potential hazard to air navigation;
    • prior to installation of antenna structures, meaningful consultation has taken place with all local municipalities or land-use authorities with the aim of developing consensus solutions. Installation of any 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;
    • all requirements prescribed in the Client Procedures Circular (CPC-2-0-03), Environmental Process, Radiofrequency Fields and Land-Use Consultation, as amended from time to time, are respected; and
    • radio installations are installed and operated in a manner that complies with technical boundary and out-of-band emission conditions as specified by the Department.
  6. Provision of Technical Information

    When the Department requests technical information on a particular station or on a network, the information must be provided by licensees to the Department according to the definitions and criteria specified by the Department.

  7. Laws, Regulations, and Other Obligations

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

  8. Technical Considerations

    Cellular

    Licensees must comply with the technical requirements set forth in Standard Radio System Plan 503 (SRSP-503), Technical Requirements for Cellular Systems Operating in the Bands 824-849 MHz and 869-894 MHz, and must deploy equipment certified under Radio Standards Specification 118 (RSS-118), Land and Subscriber Stations and its Annex A, Cellular System Mobile Station Land Station Compatibility Standard, Radio Standards Specification 128 (RSS-128), and Radio Standards Specification 129 (RSS-129). SRSP-503 provides information on channelling plans, power and antenna height limitations and image frequency relationship with UHF-TV channels. The RSS documents set out standards for transmitters and receivers for cellular in the 800 MHz band.

    PCS

    Licensees must comply with the technical requirements set forth in Standard Radio System Plan 510 (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 (EIRP) and antenna heights. RSS-133 sets out standards for transmitters and receivers for PCS in the 2 GHz band.

  9. International and Domestic Coordination

    Licensees 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 new cellular/PCS spectrum licences will not be subject to site-by-site licensing, licensees may be required to provide technical data to Industry Canada for given sites. This data may be requested for reasons such as the resolution of coordination conflicts as well as possible interference issues. 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 used in international coordination.

  10. Research and Development

    Licensees must invest, as a minimum, 2 percent of the adjusted gross revenues resulting from operations in this spectrum, over the term of the licence, in eligible research and development activities related to telecommunications. This condition is subject to the policy provisions contained in the Department's policy circular RP-019, entitled Policy for the Provision of Cellular Services by New Parties. 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/divided 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 a minimum of 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 licensees prior to the transfer being effected.

    To facilitate compliance with this condition of licence, licensees 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.

  11. Annual Reporting

    Licensees must submit an annual report for each year of the term of the licence indicating continued compliance with all licence conditions, and include:

    • audited financial statements as required under licensees' jurisdictions of incorporation, as well as 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, licensees should consult the Guidelines for Compliance with the Radio Authorization Condition of Licence Relating to Research and Development published by Industry Canada; and
    • a copy of any existing corporate annual report for the licensees' fiscal year.

    The reports are to be submitted, in writing, within 120 days of the licensees' 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 the Privacy Act.

  12. System Access Fees

    Where licensees include in their customer invoice a 'System Access Fee' or 'Network and Licensing Charge' or similar line item, they shall also include the following statement in their customer contract and in their information materials explaining such charges:

    System Access Fees are neither required nor collected by the Government. [Name of Company] is subject to licence fees for the use of the public radio frequency spectrum it uses for business operations. There is no correlation between the licence fees for the radio frequency spectrum and the number of subscribers to whom the service is provided. Industry Canada encourages consumers to seek the best value from among the several competing service providers that have been licensed.

5.3.2 Conditions Applicable to PCS Licensees Only

  1. Displacement of Incumbent Microwave Licensees

    Licensees 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 on June 28, 2000, and the 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).

  2. Lawful Interception

    Licensees using 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 licensees.
    • Licensees may request the Minister of Industry 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 is not reasonably achievable. Requests for forbearance must include specific details and dates indicating when compliance to requirement can be expected.
  3. PCS Resale

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

    The Department notes that the CRTC has retained oversight under section 27(2) of the Telecommunications Act with respect to public-switched mobile voice services. It also notes that it is government policy to support resale and access to network facilities by third parties, to the extent practicable, as stated in the Order in Council P.C. 1994-1689 and confirmed in the Convergence Policy Statement of August 1996. As well, one of the objectives of section 7 of the Telecommunications Act is to foster increased reliance on market forces for the provision of telecommunications services and to ensure that regulation, where required, is efficient and effective.

    It is also important to note that the conditions of licence for existing PCS licensees and for PCS licensees affected by this proceeding are without prejudice to decisions and actions of the CRTC on associated matters.

5.3.3 Condition Applicable to Cellular Licensees Only

  1. Cellular Analogue Resale and Roaming

    The cellular licensees will be required to offer analogue cellular resale and analogue cellular roaming through commercial arrangements to PCS licensees who are not also cellular licensees. The commercial arrangements are to be offered on a non-discriminatory basis and apply to those licensed areas which are common to the parties of any such arrangement. The Department does not define further the scope of these commercial arrangements.

    The Department notes that the CRTC has retained oversight under section 27(2) of the Telecommunications Act with respect to public-switched mobile voice services. It also notes that it is government policy to support resale and access to network facilities by third parties, to the extent practicable, as stated in the Order in Council P.C. 1994-1689 and confirmed in the Convergence Policy Statement of August 1996. As well, one of the objectives of section 7 of the Telecommunications Act is to foster increased reliance on market forces for the provision of telecommunications services and to ensure that regulation, where required, is efficient and effective.

    It is also important to note that conditions of licence for cellular licensees are without prejudice to decisions and actions of the CRTC on associated matters.

6. Submitting Your Comments

Interested parties should submit their comments no later than March 5, 2003. Shortly after the close of the comment period, all comments received will be posted on Industry Canada's Spectrum Management and Telecommunications Web site.

Respondents are requested to provide their comments in electronic format (WordPerfect, Microsoft Word, Adobe PDF or ASCII TXT) to the following email address: licence.transition@ic.gc.ca along with a note specifying the software, version number and operating system used.

Written submissions should be addressed to the Manager Operational Policies, Radiocommunications and Broadcasting Regulatory Branch, Industry Canada, 300 Slater Street, Ottawa, Ontario, K1A 0C8.

All submissions should cite the Canada Gazette, Part I, publication date, the title, and the notice reference number (DGRB-004-02).

This consultation is available electronically on Industry Canada's Spectrum Management and Telecommunications Web site at: http://www.ic.gc.ca/spectrum.

Paper copies can be obtained for a fee from:

St. Joseph Print Group Inc.
1165 Kenaston Street
P.O. Box 9809, Station T
Ottawa, Ontario
K1G 6S1
Phone Number: 613-746-4005
Toll free number: 1-888-562-5561
Fax: 819-779-2833
email for St. Joseph Print Group Inc.: DLSOrderdesk@eprintit.com

For further information concerning the proposals outlined in this document or related matters, you may contact:

Manager
Operational Policies
Radiocommunications and
Broadcasting Regulatory Branch
Phone: 613-990-4736
Fax: 613-991-3514.

Footnotes

2 The annual fees for the other main cellular licensees were as follows: TELUS $18,100,114 and Bell Mobility $27,680,906.

3 The Department feels it is not necessary to adjust the population value for the duration of the implementation period since the relative impact of population changes would result in only a marginal impact on the distribution of the total fee.

4 Fiscal year refers to a government fiscal year ending on March 31st.

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