Award and Conditions of Licence

Dear Applicant:

Further to Minister Manley's announcement of , this letter constitutes a five year spectrum licence, such period ending , to operate Local Multipoint Communication Systems (LMCS) in the 28 GHz range pursuant to s.5(1)(a)(I. 1) of the Radiocommunication Act.

This authorization allows you to offer service in frequency blocks A and B in the service areas listed in Appendix A as defined in the LMCS Policy and Call document, subject to the licence conditions as stated in Appendix B and receipt and approval of executed Shareholders'and Vendor Supply Agreements. These conditions will take effect as of the date of this authorization.

The Government of Canada's action plan for the Information Highway includes the realization of economic and social benefit for all Canadians. Being essentially local in nature, LMCS presents a unique opportunity to provide a community-based "public lane" access for local non-profit organizations and institutions. We are particularly pleased to note that WIC Connexus Ltd. has committed to provide 16 MHz for a free four-lane "public highway" in each of their service areas. Given that LMCS is at an embryonic stage, I strongly encourage all LMCS licensees to accommodate the "public lane" concept in their service plans. Further, I would request that you include in your annual report the status of your developments in this regard.

This authorization and its attached conditions have been established without prejudice to subsequent actions that may be undertaken by the Canadian Radio-television and Telecommunications Commission on associated telecommunications and broadcasting issues. While distribution of broadcasting services is an application for which LMCS may be particularly well suited, applicants are cautioned that an award of a radio authorization for LMCS does not convey any rights under the Broadcasting Act. You must submit an application to the CRTC should you wish to provide broadcast distribution services on your LMCS network.

Furthermore, you are expected to respect Industry Canada's policy of encouraging shared use of advantageous antenna sites among telecommunications service providers.

The initial authorization fee will be payable in two instalments. The first instalment will be due five business days from the date of this authorization. This first payment will be in the amount of 20% of the total authorization fee of $…, for the period of to , payable for the spectrum blocks in the service areas authorized. The balance of the authorization fee (80% of the total fee payable) will be due within 30 calendar days from the date of this authorization. Payment of this balance by the due date will be a condition of this authorization. Should this condition not be met, this authorization may be revoked.

May I take this opportunity to wish you every success in the operation of Local Multipoint Communication Systems in Canada.

Yours truly,

Jan Skora
Director General
Radiocommunications and Broadcasting Regulatory Branch


Appendix

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