Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands
Published September 2003, Revised July 2004
Spectrum Management and Telecommunications Policy
Policy
and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and
3500 MHz Bands
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Preface
With this preface the Department is announcing corrections to certain spectrum licences which were made available in the recent auction and outlined in its document Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 and 3500 MHz Bands ("the policy"), issued in September 2003 and revised in December 2003. The policy had identified that Fixed Wireless Access (FWA) Tiers 4-010, 4-151, 4-156 and 4-157 in the 3500 MHz band in Halifax, Dartmouth, Vancouver and nearby coastal areas including those communities that are along the Strait of Georgia, may be susceptible to an increased potential of interference compared to the rest of Canada. The policy should have stated that affected tiers were 4-010, 4-152, 4-157 and 4-158; tier areas 4-151 and 4-156 are not subject to the increased potential of interference.
The Policy also stated that the FWA spectrum blocks in Tiers 4-153, 4-154 and 4-155 on Vancouver Island would not be available for licensing through the spectrum auction. The Policy should have stated that the affected tiers are 4-154, 4-155 and 4-156. Thus, in Tier 4-156 (Courtenay) the FWA spectrum blocks D, E, F, and G were made available for licensing when only spectrum block W should have been available. In Tier 4-153 (Hope) spectrum blocks D, E, F, and G should have been available for licensing. The Department will make available in the upcoming post auction licensing process spectrum blocks D, E, F, and G in Tier 4-153 (Hope). Please refer to Sections 4.3 (Geography) and 5.2.4 (Characterization of Radiolocation Systems) of the policy for further details.
This document is a revised version of the original document Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands published in September 2003.
The following Revision History summarizes all changes that have been made to the original policy and the Amendments and Supplements.
Revision History for the 2300/3500 MHz Policy Paper
| Type of Change | Reference | Explanation | Date of Change |
|---|---|---|---|
| Modification | Highlights | Replace
"A simultaneous multiple round auction will open mid-January, 2004." with "A simultaneous multiple round auction will open late January, 2004." |
December 5, 2003 |
| Modification | Highlights | Replace
"Applications to participate in the auction are due November 17, 2003." with "Applications to participate in the auction are due December 8, 2003." |
November 12, 2003 |
| Modification | Key Dates | Change Deadline for receipt of submitted questions from October 10, 2003 to October 17, 2003. | October 9, 2003 |
| Modification | Key Dates | Change Date on which answers to submitted questions will be posted from Early November to November 17, 2003. | October 9, 2003 |
| Modification | Key Dates | Change Deadline for receipt of applications to participate in the auction from November 17, 2003 to December 8, 2003. | November 12, 2003 |
| Modification | Key Dates | Change Date on which list of applicants will be published from November 18, 2003 to December 12, 2003. | November 12, 2003 |
| Modification | Key Dates | Change Date on which list of qualified bidders will be published from Early December to Late December. | December 2, 2003 |
| Modification | Key Dates | Change Mock auction for qualified bidders from Early January to Mid-January. | December 2, 2003 |
| Modification | Key Dates | Change Opening day of bidding from Mid-January to Late January. | December 2, 2003 |
| Modification | Section 4.3 | Replace
"Due to these radiolocation services FWA tiers on Vancouver Island (Tiers 4-153, 4-154 and 4-155) will not be available for licensing through the spectrum auction." with "Due to these radiolocation services FWA tiers on Vancouver Island (Tiers 4-154, 4-155 and 4-156) will not be available for licensing through the spectrum auction." |
July 2004 |
| Modification | Section 4.3 | Replace
"In addition, FWA tiers in Halifax, Dartmouth, Vancouver and nearby coastal areas including those communities that are along the Strait of Georgia (Tiers 4-010, 4-151, 4-156 and 4-157), may be susceptible to an increased potential of interference. Refer to Section 5.2.4 for further details." with "In addition, FWA tiers in Halifax, Dartmouth, Vancouver and nearby coastal areas including those communities that are along the Strait of Georgia (Tiers 4-010, 4-152, 4-157 and 4-158), may be susceptible to an increased potential of interference. Refer to Section 5.2.4 for further details." |
July 2004 |
| Modification | Section 5.2.4 | Replace
"Halifax, Dartmouth, Vancouver and Nearby Coastal Areas and Communities Along the Strait of Georgia (Tiers 4-010, 4-151, 4-156 and 4-157)" with "Halifax, Dartmouth, Vancouver and Nearby Coastal Areas and Communities Along the Strait of Georgia (Tiers 4-010, 4-152, 4-157 and 4-158)" |
July 2004 |
| Modification | Section 5.2.4 | Replace
"It should be noted that while the Department is auctioning 3500 MHz spectrum in Halifax, Dartmouth, Vancouver and nearby coastal areas (Tiers 4-010 and 4-151), including those communities that are along the Strait of Georgia (Tiers 4-156 and 4-157), all blocks of spectrum in these areas will be susceptible to an increased potential of interference compared to the rest of Canada." with "It should be noted that while the Department is auctioning 3500 MHz spectrum in Halifax, Dartmouth, Vancouver and nearby coastal areas (Tiers 4-010 and 4-152), including those communities that are along the Strait of Georgia (Tiers 4-157 and 4-158), all blocks of spectrum in these areas will be susceptible to an increased potential of interference compared to the rest of Canada." |
July 2004 |
| Modification | Section 5.2.4 | Replace
"Vancouver Island (Tiers 4-153, 4-154 and 4-155)" with "Vancouver Island (Tiers 4-154, 4-155 and 4-156)" |
July 2004 |
| Modification | Section 5.2.4 | Replace
"The potential for interference to FWA systems on Vancouver Island, including the Gulf Islands (Tiers 4-153, 4-154, and 4-155) is of particular concern." with "The potential for interference to FWA systems on Vancouver Island, including the Gulf Islands (Tiers 4-154, 4-155, and 4-156) is of particular concern." |
July 2004 |
| Modification | Section 7 | Replace
"The Department expects that the actual bidding will commence in mid-January, 2004." with "The Department expects that the actual bidding will commence in late January, 2004." |
December 5, 2003 |
| Modification | Section 7.3.1 | Replace
"Therefore, the Department has decided that the financial deposit will be equal to $500 per eligibility point for the first forty (40) points and $3,000 per eligibility point requested thereafter" with "Therefore, the Department has decided that the financial deposit will be equal to $500 per eligibility point for the first two hundred (200) points and $3,000 per eligibility point requested thereafter" |
November 12, 2003 |
| Modification | Section 7.3.3 | Replace
"The application form, the associated documents that may be required (as per the instructions provided on the various forms), and the financial deposit are to be physically delivered by 5: 00 p.m., Eastern Daylight Time (EDT), November 17, 2003, to the Manager, Wireless Networks (address provided in Section 1)." with "The application form, the associated documents that may be required (as per the instructions provided on the various forms), and the financial deposit are to be physically delivered by 5:00 p.m., Eastern Standard Time (EST), December 8, 2003, to the Manager, Wireless Networks (address provided in Section 1)." |
November 12, 2003 |
| Modification | Section 7.3.3 | Replace
"Any such amendments are to be physically delivered to the Manager, Wireless Networks at the address noted in Section 1, by 5: 00 p.m., Eastern Daylight Time (EDT), November 17, 2003." with "Any such amendments are to be physically delivered to the Manager, Wireless Networks at the address noted in Section 1, by 5:00 p.m., Eastern Standard Time (EST), December 8, 2003." |
November 12, 2003 |
| Modification | Section 7.4 | Replace
"The auction is expected to begin mid-January." with "The auction is expected to begin late January." |
December 5, 2003 |
| Modification | Section 7.4 | Replace
"A list of all qualified bidders, the licences for which they are eligible to bid, and their initial level of eligibility points will be made public via Industry Canada's Spectrum Management and Telecommunications Web site in early December 2003." with "A list of all qualified bidders, the licences for which they are eligible to bid, and their initial level of eligibility points will be made public via Industry Canada's Spectrum Management and Telecommunications Web site late December 2003." |
December 5, 2003 |
| Modification | Section 7.5 | Replace
"This request is to be physically delivered to the Manager, Wireless Networks prior to 5: 00 p.m. (EDT) on the business day preceding the opening of the auction." with "This request is to be physically delivered to the Manager, Wireless Networks prior to 5: 00 p.m. (EST) on the business day preceding the opening of the auction." |
December 5, 2003 |
| Modification | Section 7.7 | Replace
"Written questions are to be submitted to the Manager, Wireless Networks by 5: 00 p.m. (EDT), October 10, 2003 at the address provided in Section 1, by fax to (613) 991- 3514, or sent by e-mail to spectrum.auctions@ic.gc.ca." with Written questions are to be submitted to the Manager, Wireless Networks by 5:00 p.m. (EDT), October 17, 2003 at the address provided in Section 1, by fax to (613) 991-3514, or sent by e-mail to spectrum.auctions@ic.gc.ca." |
October 9, 2003 |
| Modification | Section 8.3 | Replace
"The financial deposit is $500 per eligibility point for the first forty (40) points and $3,000 per eligibility point requested thereafter." with "The financial deposit is $500 per eligibility point for the first two hundred (200) points and $3,000 per eligibility point requested thereafter." |
November 12, 2003 |
| Modification | Section 8.3 Example | Replace
"The financial deposit required is equal to $500 per eligibility point for the first forty (40) points and $3,000 per eligibility point requested thereafter. Bidder X therefore prepares a financial deposit in the amount of $17,684,000 (40 X $500+5888 X $3,000)." with "The financial deposit required is equal to $500 per eligibility point for the first two hundred (200) points and $3,000 per eligibility point requested thereafter. Bidder X therefore prepares a financial deposit in the amount of $17,284,000 (200 X $500+5728 X $3,000)." |
November 12, 2003 |
| Modification | Section 8.5 Example 1 | Replace
"Since the actual activity (288) level exceeds the required activity level (300), Bidder X will maintain its full 480 eligibility points for the next round." with "Since the actual activity (300) level exceeds the required activity level (288), Bidder X will maintain its full 480 eligibility points for the next round." |
November 12, 2003 |
| Modification | Section 8.6 | Replace
"The new bid price for that licence will be rounded up to the nearest two significant digits." with "The new bid price for that licence will be rounded up to the nearest three significant digits from the left." |
December 5, 2003 |
| Modification | Section 9.3 | Replace
"If the licence is not sold in a subsequent licensing process, then the selling price will be deemed to be zero and the penalty will be calculated accordingly. An additional amount of (a) 3% of the original forfeited bid; or (b) $100,000 for each forfeited bid will be charged, regardless of the eventual selling price." with "If the licence is not sold in a subsequent licensing process, then the selling price will be deemed to be zero and the penalty will be calculated accordingly. An additional amount of the greater of (a) 3% of the original forfeited bid; or (b) $10,000 for each forfeited bid will be charged, regardless of the eventual selling price." |
November 17, 2003 |
| Modification | Appendix 4 Part 4 (10) | Replace
"Calculate your required financial deposit by multiplying the value in Box A the appropriate dollar value. For the first forty eligibility points the deposit is equal to $500 per point and $3,000 per eligibility point requested thereafter." with "Calculate your required financial deposit by multiplying the value in Box A by the appropriate dollar value. For the first two hundred eligibility points the deposit is equal to $500 per point and $3,000 per eligibility point requested thereafter." |
November 12, 2003 |
| Modification | Appendix 7 | Change eligibility points listed for 4-159 (Merritt) from 10 eligibility points to 1 eligibility point per 25 MHz. | November 12, 2003 |
| Modification | Appendix 7 | Revised format of Appendix 7 | December 5, 2003 |
| Deletion | Appendix 7 | Delete 4-156 d Courtenay; 4-156 e Courtenay and 4-156 g Courtenay (See Preface on page (i) for further explanation.) | July 2004 |
| Addition | Appendix 7 | Add 4-153 d Hope; 4-153 e Hope; 4-153 f Hope; and 4-153 g Hope (See Preface on page (i) for further explanation.) | July 2004 |
| Checklist | Replace
"by 5: 00 p.m., Eastern Daylight Time (EDT), November 17, 2003." with "by 5:00 p.m., Eastern Standard Time (EST), December 8, 2003." |
November 12, 2003 | |
| Deletion | Checklist | Delete (See Appendix 7) | December 5, 2003 |
| Addition | Section 10 | Amendments and Supplements and Clarification Questions to the Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands | December 5, 2003 |
| Type of Change | Reference | Explanation | Date of Change |
|---|---|---|---|
| Modification | Section 10.5.4 Question 42 | Replace
"Yes the Department has the right to change the date of the auction after the financial deposits have been submitted on November 24, 2003" with "Yes the Department has the right to change the date of the auction after the financial deposits have been submitted on December 8, 2003". |
November 12, 2003 |
| Modification | Section 10.5.6 Question 48 |
Replace
"While the Department does not intend to publish the identify of the author's questions, requests for such information will be subject to the Access to Information Act and the Privacy Act." with "While the Department does not intend to publish the identify of the authors of the questions, requests for such information will be subject to the Access to Information Act and the Privacy Act." |
December 5, 2003 |
| Modification | Section 10.6.1 | Replace
"In Section 8.6 of the Policy which explains how the bid increments will be calculated, it is noted that the new bid price for the next round would be rounded up to the nearest two significant digits. The auction software will in fact round the new bid price up to three significant digits (e.g. a bid increment of 567,894 would be rounded up to 570,000 and a bid increment of 718.75 would become 719)." with "In Section 8.6 of the Policy which explains how the bid increments will be calculated, it is noted that the new bid price for the next round would be rounded up to the nearest two significant digits. The auction software will in fact round the new bid price up to three significant digits from the left (e.g. a bid increment of 567,894 would be rounded up to 568,000 and a bid increment of 718.75 would become 719)." |
December 5, 2003 |
| Addition | Section 10.5.4 Question 41 |
Please note that the deadline for receipt of applications (and financial deposits) to participate in the auction has been extended to December 8, 2003. | November 12, 2003 |
Highlights and Key Dates for the Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands
- The objective of this licensing process is to provide access to spectrum in the 2300 MHz and 3500 MHz bands to facilitate the implementation of new and innovative wireless services in urban and rural areas.
- A simultaneous multiple round auction will open late January, 2004.
- There are five spectrum licences available in 172 service areas across the country (with the exception of the 3500 MHz licences on Vancouver Island): one 15+15 MHz licence in the 2300 MHz band; three 25+25 MHz licences and one 25 MHz licence in the 3500 MHz band.
- The spectrum bands 2300 MHz and 3500 MHz have been characterized for interference potential, and the applicable transition and/or coordination requirements of the incumbents and auction winners have been outlined.
- All entities are eligible to apply to participate in the auction.
- Each entity, its Affiliates and Associated Entities will be subject to the spectrum aggregation limit of 100 MHz in each of the 2300 MHz and 3500 MHz bands, per service area.
- Licences have ten year terms.
- Licences are transferable and divisible in the secondary market.
- Licensees will have the maximum possible flexibility in determining the services they will offer and the technologies they will employ, within the spectrum allocations and policy.
- Applications to participate in the auction are due December 8, 2003.
- An on-line, on-demand audio/video Internet streaming presentation (Webcast) will be made available to provide a general overview of this licensing process in the weeks following the publication of this document. Interested parties are invited to visit the Industry Canada's Spectrum Management and Telecommunications Web site at http://www.ic.gc.ca/spectrumauctions to obtain further information on these sessions.
- Successful bidders in the auction must be eligible to become radiocommunication carriers and will need to comply with ownership and control requirements, as per Client Procedures Circular 2-0-15, Canadian Ownership and Control (CPC-2-0-15).
| Event | Time frames* |
|---|---|
| Release of Policy and Licensing Procedures for the Auction of Spectrum Licences in the 2300 MHz and 3500 MHz Bands. | September 20, 2003 |
| Publication of Canada Gazette Notice DGRB-003-03 | September 20, 2003 |
| Deadline for receipt of submitted questions | October 17, 2003 |
| Date on which answers to submitted questions will be posted | November 17, 2003 |
| Date on which last FWA FCFS application will be accepted | One month prior to the auction start date |
| Deadline for receipt of applications to participate in the auction | December 8, 2003 |
| Date on which list of applicants will be published | December 12, 2003 |
| Date on which list of qualified bidders will be published | Late December |
| Mock auction for qualified bidders | Mid-January |
| Opening day of bidding | Late January |
| Auction close | Unknown |
| Submission of ownership and control documentation | 10 business days after the close of the auction |
| Initial payment (20% of high bids / 100% of penalties) | 10 business days after the close of the auction |
| Final payment (80% of high bids) | 30 business days after the close of the auction |
*Please consult the Spectrum Management and Telecommunications Web site at http://www.ic.gc.ca/spectrumauctions for updates to this schedule.
- Date modified: