Connexion by Boeing of Canada Company

February 2, 2007

Ms. Kirsten Embree
Frasier, Milner, Casgrain LLP
Suite 1490 99 Bank Street
Ottawa, Ontario
K1P 1H4

Dear Ms. Embree:

I refer to your letter of November 30, 2006, on behalf of Connexion by Boeing of Canada Company, concerning the decision to phase out the provision of the Connexion by Boeing (Connexion) mobile satellite service to commercial airlines, but to retain a limited service to certain government users. I also refer to our letter of December 12, 2003 granting an approval in principle for the provision of the service in Canada.

In accordance with the request in your letter, the number of terminal licences for the aeronautical service will be reduced to 10. Also, as requested, the developmental approval to test Connexion service on board maritime vessels will be cancelled.

As discussed with my staff, in view of this phase out of service to commercial airlines, we have reviewed the applicability of condition 11 of the approval in principle which sets out a requirement to provide lawful intercept capabilities. You will recall that since the service was implemented in Canada, the service was provided with a forbearance from fulfilling this requirement to allow Connexion to continue an exchange of information with Public Safety and Emergency Preparedness Canada (PSEPC) to permit PSEPC to determine whether the requirement to provide lawful intercept capabilities should remain a condition of licence for this mobile satellite service, and if so, the forbearance would also permit discussions on which capabilities must be implemented and then permit Connexion to bring their system into compliance.

Given the phasing out of the service, and in consultation with PSEPC, Industry Canada has determined that the condition of licence requiring lawful intercept capabilities is no longer required. Accordingly, condition 11 of our approval in principle is withdrawn. Revised conditions of licence are attached. Please note, however, that should the service to commercial aircraft be reinstated, the condition of licence requiring lawful intercept capabilities would also be re-instated and that forbearance from the condition may not be available.

Should you have any questions concerning this letter, please contact Richard Hiebert at 613-998-4333.

Yours sincerely,

Jan Skora
Director General
Radiocommunications and
Broadcasting Regulatory Branch

Attachment

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Attachment - Revised September  24, 2009

Connexion by Boeing of Canada Company
Conditions of Licence to Provide Aeronautical Mobile Satellite Services in Canada

1. Eligibility

Connexion by Boeing of Canada Company (Boeing) shall conform with the eligibility criteria as set out in section 10.1 of the Radiocommunication Regulations.

2. Licence Transferability

This radio 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

a) Boeing 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.

b) The operation of the facilities and services being provided shall be in conformity with relevant Canadian laws and regulations.

4. Research and Development

Boeing shall invest a minimum of 2 percent of its adjusted gross revenues resulting from the provision of aeronautical mobile satellite services in Canada on satellite-related research and development activities. This investment may be averaged over a second 5 year period beginning December 12, 2008.

Eligible research and development is that which meets the definition adopted by the Canada Customs and Revenue Agency. 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.

Licensees with less than $5 million in annual gross operating revenues are exempt from research and development expenditure requirements, except where they have affiliations with licensees that hold other licences with the research and development condition of licence and where the total annual gross revenues of the affiliated licensees are greater than $5 million.

5. Subscriber Earth Stations

a) Subscriber earth stations on board aircraft are authorized to operate in Canada only. Any operation in other countries must respect the licensing regimes of those countries. To ensure compliance, Boeing shall provide its subscribers with a copy of this condition.

b) Subscriber radio equipment shall meet all applicable Canadian radio equipment standards to be developed by Industry Canada and be certified for use in Canada.

c) The operation of subscriber earth stations must comply with Health Canada's Limits of Human Exposure to Radiofrequency Electromagnetic Fields in the Frequency Range from kHz to 300 GHz - Safety Code 6.

6. Operational Requirements

a) Subscriber earth station operations must respect all technical and operational requirements outlined in the International Telecommunication Union’s Recommendation ITU-R M.1643. Furthermore, the aggregate EIRP spectral density in the direction of the GSO arc emitted by all the Earth stations onboard aircraft shall not exceed the following limits:

For the co-polarized component:

co-polarized
Angle off-axis (°) Maximum EIRP in any 4 kHz band
1 ≤ θ < 7 15 - 25 log θ dBW
7 ≤ θ < 9.2 -6 dBW
9.2 ≤ θ < 48 18 - 25 log θ dBW
θ > 48 -24 dBW

For the cross polarized component:

cross polarized
Angle off-axis (°) Maximum EIRP in any 4 kHz band
1 ≤ θ < 7.5 - 25 log θ dBW
7 ≤ θ < 9.2 -16 dBW

b) Authority to operate subscriber earth stations on board aircraft using the 14.0-14.5 GHz band is granted on a no-protection, non-interference basis to stations of the fixed-satellite service operating in the band.

c) Should the operation of a licensed station cause interference, Boeing shall immediately take steps to mitigate the interference, including, if necessary, complete cessation of operation of all licensed stations.

7. Annual Reporting

Boeing must submit an annual report for each year of operation indicating continued compliance with these conditions, including:

  • an update on the implementation of the aeronautical mobile satellite service, including the growth of services provided;
  • an update on the satellites used in the provision of this service, the spectrum used, and the number of subscriber stations expected to be operating in Canada for the following year;
  • a statement of gross operating revenues and, where applicable, under condition 4 above a statement of adjusted gross revenues, and an audited statement of research and development expenditures;
  • a copy of any existing corporate annual report for your fiscal year with respect to this authorization.

These reports are to be submitted in writing within 120 days of your fiscal year end to the Manager, Satellite Authorization Policy, Directorate - Space Services, Engineering, Planning and Standards Branch.

8. Licence Fees

a) Boeing must obtain the necessary radio licences prior to installing or operating any mobile earth station onboard aircraft in Canada.

b) Boeing must pay the applicable annual licence fees on or before March 31 of each year.

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