ORBCOMM Canada Inc.

SPECTRUM LICENCE

Our file: 46208-1 (380925 AL)

April 1, 2014

W.H. Sonnenfeldt
ORBCOMM Canada Inc.
44 Chipman Hill, 10th Floor
Post Office Box 7289, Stn A
Saint John, New Brunswick
E2L 4S6

Dear Mr. Sonnenfeldt:

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

Frequency Bands
Uplink Downlink
148.000 - 149.900 MHz 137.1825 - 137.3175 MHz
137.3750 - 137.4050 MHz
137.6550 - 137.7450 MHz
137.7975 - 137.8125 MHz
400.0910 - 400.1090 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


ORBCOMM Canada Inc.
Conditions of Licence to Provide Mobile Satellite Services
in Canada via the ORBCOMM Satellite Network

1. Eligibility

ORBCOMM Canada Inc. (ORBCOMM) 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. ORBCOMM 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 parameters.
  2. The operation of the facilities and services being provided must be in conformity with relevant Canadian laws and regulations.

4. Service to all Regions of Canada

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

5. Research and Development

ORBCOMM 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.

ORBCOMM 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. 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, ORBCOMM must provide its subscribers with a copy of this condition.
  2. Subscriber earth stations must meet all applicable Canadian radio equipment standards and be type-approved for use in Canada.
  3. The transmitter duty cycle of each subscriber earth station must not exceed one percent of any 15 minute period.
  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.

7. Operational Frequency Requirements

  1. ORBCOMM must employ the interference avoidance techniques as described in its letter of intent and supplemental information in order to avoid causing interference to fixed and mobile radio systems operating in the 148-149.9 MHz band. In addition, ORBCOMM must notify the Department of any changes made to the network that will affect the interference avoidance techniques. ORBCOMM may be required to demonstrate, from time to time, that they continue to comply with footnote C26 to the Canadian Table of Frequency Allocations.
  2. ORBCOMM is authorized to use the entire 148-149.9 MHz band. However, should other mobile satellite service providers be authorized to use the same band, ORBCOMM’s spectrum licence could be amended in accordance with any band sharing arrangement required by the Department.
  3. ORBCOMM must successfully coordinate and notify the operation of the subscriber earth stations in accordance with the relevant procedures outlined in the ITU Radio Regulations prior to the commencement of their commercial operations.

8. Annual Reports

ORBCOMM 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 ORBCOMM. Industry Canada may request an audited statement of research and development expenditures with an accompanying auditor’s report at its discretion; and,
  6. if ORBCOMM is claiming an exemption based on, having less than $1 billion in annual gross operating revenues as defined in condition 5, ORBCOMM must provide supporting financial statements duly authorized by an officer of ORBCOMM.

All reports and statements must be submitted in electronic format by March 31st of each year to the Manager, Satellite Authorization Policy, 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.

9. Licence Fees

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

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