ARCHIVED—Current Licences by Licensee

24 and 38 GHz Auction

ABC Allen Business Communications Ltd.

Service Area	Frequency Block	Service Area Name
3-57	D	Prince George

24 and 38 GHz Conditions of Licence: Radiocommunication Carrier

Introduction

The following conditions of licence apply to radiocommunication carriers for radio frequency spectrum pursuant to the policy document Policy and Licensing Procedures for the Auction of the 24 and 38 GHz Frequency Bands. 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. Confidential information requested by the Department pursuant to the conditions of licence will be treated in accordance with subsection 20(1) of the Access to Information Act and with the Privacy Act. All such requested information should be submitted to the:

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

The headings of the conditions are for convenience of reference only and are not intended to be a full or precise description of the text to which they refer.

1. Licence Term

The term of this licence is ten years from the date of licence issuance and as such this licence will expire on January 20, 2010. 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 process 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.

2. Licence Transferability and Divisibility

The licence may be transferred 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. The amount of spectrum transferred in the bandwidth dimension may be no smaller than the spectrum block size (40 MHz + 40 MHz in the 24 GHz band and 50 MHz + 50 MHz in the 38 GHz band) as outlined in section 2 of the policy document Policy and Licensing Procedures for the Auction of the 24 and 38 GHz Frequency Bands.

For each proposed licence transfer, the licensee must provide a written notification to the Minister of Industry. The transferee(s) must provide the Minister of Industry with a declaration as to whether it will be acting as a radiocommunication carrier, a radiocommunication service provider or a radiocommunication user. The transferee(s) must also provide an attestation (or other appropriate documentation) that it will meet the appropriate conditions of licence. The Minister of Industry reserves the right prior to transferring the licences to request additional documentation to determine if the transferees complies with the appropriate eligibility requirements.

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

3. Spectrum Aggregation Limit

The licensee must comply on an ongoing basis with the spectrum aggregation limits outlined in sections 2.3.4 and 2.3.5 of the policy document Policy and Licensing Procedures for the Auction of the 24 and 38 GHz Frequency Bands. 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 Industry of any change which 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 and Authorized Use

The licensee acting as a radiocommunication carrier must comply on an ongoing basis with the eligibility criteria in section 10(2) of the Radiocommunication Regulations. The licensee must notify the Minister of Industry of any change which 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 the document Canadian Ownership and Control (CPC-2-0-15), as amended from time to time.

The licensee may 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) which may be used by the licensee or another person to provide radiocommunication services for compensation.

5. 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 exposure to radiofrequency 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 operated 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.

6. Laws, Regulations, and Other Obligations

The licensee is subject to and must comply on an ongoing basis with the Radiocommunication Act, the Radiocommunication Regulations, the Telecommunications Act, and the International Telecommunications Union Radio Regulations pertaining to its licensed radio frequency bands.

The licence is issued on condition that the certifications in the Application to Participate in the Auction of the 24 and 38 GHz Frequency Bands are all true and complete in every respect.

7. Technical Considerations

The licensee must comply on an ongoing basis with the technical aspects of the appropriate Standard Radio System Plan (SRSP), as amended from time to time. Refer to section 4 of the policy document Policy and Licensing Procedures for the Auction of the 24 and 38 GHz Frequency Bands.

8. International Coordination

The licensee must comply on an ongoing basis with the requirements of cross-border sharing and coordination arrangements established between Canada and the United States, as amended from time to time.

9. Implementation of Spectrum Usage

The licensee must demonstrate to the Minister of Industry by July 1, 2005, that the spectrum has been put into use. The establishment of eight links per one million population (rounded up to a whole number) within a service area, or some other indicator of usage which is acceptable to the Minister of Industry, is required. Supporting documentation should be submitted to the address provided in the introduction to the conditions of licence.

10. Research and Development

The licensee must invest, as a minimum, two percent of its adjusted gross revenues resulting from its operations in the 24 and 38 GHz radio frequency bands, over the term of the licence, in eligible research and development activities related to telecommunications. Eligible research and development activities are those which 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 this licence is transferred to an eligible radiocommunication carrier prior to the expiration of its term, this condition of licence 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(s) 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 (as reported in the prior licensees' audited Statements of Research and Development Expenditures which would have been submitted annually to the Minister of Industry) equals, as a minimum, two percent of the aggregated adjusted gross revenues resulting from all operations in the 24 and 38 GHz radio frequency bands, over the term of the licence. An attestation signed by the proposed transferee(s) setting out the undertaking must accompany the licence transfer notification to be submitted to the Minister of Industry by the licensee prior to the transfer being effected.

If this licence is transferred to an eligible radiocommunication service provider or radiocommunication user prior to the expiration of its term, this condition of licence will continue to apply on the initial transfer of the licence. Prior to a transfer, in whole or in part, of this licence, the proposed transferee(s) must undertake to ensure that the sum of the investment that the prior licensee has made in eligible research and development activities prior licensees (as reported in the prior licensees' audited Statements of Research and Development Expenditures which would have been submitted annually to the Minister of Industry) equals, as a minimum, two percent of the aggregated adjusted gross revenues resulting from the operations of all prior licensees in the 24 and 38 GHz radio frequency bands, over the expired portion of the term of this licence. If the sum of the investment does not equal two percent, the transferee(s) must undertake investments in eligible research and development to ensure that the sum of the investment in eligible research and development activities equals, as a minimum, two percent of the aggregated adjusted gross revenues resulting from the prior licensee's operations in the 24 and 38 GHz radio frequency bands, over the expired portion of the term of this licence.

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.

11. 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:

• an update on the implementation of wireless services
• this update should include the number of hub and subscriber sites installed in each licensed area;
• 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; and,
• a copy of any existing corporate annual report for the licensee's fiscal year with respect to the authorization.

The reports are to be submitted, in writing, within 120 days of the licensee's fiscal year end, to the address provided in the introduction to the conditions of licence.