Globalstar Canada Satellite Co.

Spectrum Licence

Our File: 46208-1 (383542 AL)

April 1, 2014

Mr. Stephen Drew
Director of Finance
Globalstar Canada Satellite Co.
115 Matheson Blvd. W, Suite 100
Mississauga, Ontario
L5R 3L1

Dear Mr. Drew:

This letter constitutes a spectrum licence granting Globalstar Canada Satellite Co. (Globalstar) authority to use the following bands of radio frequencies to provide mobile satellite services to Globalstar’s subscriber earth stations in Canada via the Globalstar constellation of satellites.

Frequency Bands
Uplink Downlink
1610 - 1618.25 MHz 2483.5 - 2500 MHz

This is an annual licence, subject to the conditions listed in the attachment. This licence expires on March 31st, 2015.

Yours sincerely,

Suzanne Lambert
Director, Space Services Operations


Attachment

Globalstar Canada Satellite Co.
Conditions of Licence to Provide Mobile Satellite Services in Canada via the Globalstar Constellation of Satellites

1. Eligibility

Globalstar Canada Satellite Co. (Globalstar) must conform with the eligibility criteria as set out for a radiocommunication service provider in section 9 (1) of the Radiocommunication Regulations.

2. Licence Transferability

This spectrum licence may not be transferred or assigned without a full review of the application by the Department and authorization of the Minister. For clarification, and without limiting the generality of the foregoing, "transfer" includes any leasing, sub-leasing or other disposition of the rights and obligations of the licences.

3. Laws, Regulations and Other Obligations

  1. Globalstar is subject to and must comply with the ITU Radio Regulations, the Canadian Radiocommunication Act, Radiocommunication Regulations, and Canada’s spectrum policies pertaining to its authorized radio frequency bands and satellite orbital positions.
  2. The operation of the facilities and services being provided must be in conformity with relevant Canadian laws and regulations.
  3. Globalstar must make fair and reasonable efforts to promote Canadian manufacturers, designers, and suppliers of telecommunications components for use in the construction of the Globalstar network, and must make fair and reasonable efforts to promote the use of Canadian manufacturers in the provisioning of subscriber terminals.

4. Service to All Regions of Canada

Globalstar must make fair and reasonable efforts to provide mobile satellite service to all regions of Canada within the coverage contour and service availability of the Globalstar constellation of satellites.

5. Research and Development

Globalstar must invest, as a minimum, 2 percent of its adjusted gross revenues resulting from the use of this licence, averaged 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, as amended from time to time.

Adjusted gross revenues are defined as total service revenues, less inter-carrier payments, bad debts, third party commissions, and provincial goods and services taxes collected. Globalstar is exempt from research and development expenditure requirements if it, together with all affiliated licensees that are subject to the research and development condition of licence, has less than $1 billion in annual gross operating revenues from the provision of wireless services in Canada, averaged over the term of the licence. For this condition of licence, an affiliate is defined as a person who controls the carrier, or who is controlled by the carrier or by any person who controls the carrier, as per subsection 35(3) of the Telecommunications Act.

6. Lawful Interception

  1. Globalstar must provide and maintain lawful interception capabilities as authorized by law. The requirements for lawful interception capabilities are provided in the Solicitor General publication entitled Enforcement Standards for Lawful Interception of Telecommunications. These standards may be periodically amended following consultation with the Minister of Public Safety Canada and the licensees.
  2. Globalstar may request the Minister to forbear from enforcing certain assistance capability requirements for a limited period. The Minister, following consultation with the Minister of Public Safety 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. Forbearance requests must include specific details and dates when compliance to requirement(s) can be expected.

7. Subscriber Earth Stations

  1. Subscriber earth stations are authorized to operate in Canada only. Any roaming into other countries must respect the licensing regimes of those countries. To ensure compliance, Globalstar must provide its subscribers with a copy of this condition.
  2. Subscriber earth stations must meet the applicable Canadian radio equipment standards and be type-approved for use in Canada.
  3. The operation of subscriber earth stations must not cause harmful interference to the radio astronomy service operating in the same or adjacent frequency bands.
  4. Subscriber earth stations must comply with Health Canada’s Limits of Human Exposure to Radiofrequency Electromagnetic Fields in the Frequency Range from 3 kHz to 300 GHz — Safety Code 6.

8. Operational Frequency Requirements

Service link operations will be restricted to the 1610-1618.25 MHz and 2483.5-2500 MHz frequency bands. Globalstar is required to share the use of this spectrum in Canada with any other party licensed by Industry Canada to use the same spectrum in the provision of mobile satellite services.

9. Annual Reports

Globalstar must submit an annual report for each year of operation, including:

  1. a statement indicating continued compliance with all licence conditions;
  2. an update on the provision of mobile satellite service, including the relative growth of the services provided; and
  3. an update on the spectrum used, and the number of fixed and mobile subscriber earth stations operating within Canada;
  4. a statement indicating the annual gross operating revenues from the provision of wireless services in Canada and the annual adjusted gross revenues resulting from the use of this licence, as defined in condition 5;
  5. when applicable, a report and the description of research and development expenditures as set out in condition 5, signed by a duly authorized officer of Globalstar. Industry Canada may request an audited statement of research and development expenditures with an accompanying auditor’s report at its discretion; and,
  6. if Globalstar is claiming an exemption based on, having less than $1 billion in annual gross operating revenues as defined in condition 5, Globalstar must provide supporting financial statements duly authorized by an officer of Globalstar.

All reports and statements must be submitted in electronic format by March 31st of each year to the Manager, Satellite Authorization Policy, Space Services, Engineering, Planning and Standards Branch at satellitelicences@ic.gc.ca. Confidential information provided will be treated in accordance with subsection 20(1) of the Access to Information Act.

10. Licence Fees

Globalstar must pay the applicable annual authorization fees on or before March 31 of each year.

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