Spectrum Management and Telecommunications

TerreStar Networks (Canada) Inc.(TerreStar Canada) Conditions to Obtain Authority to Operate a 2 GHz Space Station from the 111.1°W Orbital Position to Provide Mobile Satellite Services in Canada

Attachment

27 April 2007

1. Eligibility

TerreStar Canada shall conform on an ongoing basis with Canadian eligibility requirements as set out for a radiocommunication carrier in section 10(2) of the Radiocommunication Regulations.

2. Licence Transferability

This approval and any consequent licences issued to TerreStar Canada 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, and also includes any change which would have a material effect on the ownership or control in fact of TerreStar Canada.

3. Laws, Regulations, and Other Obligations

TerreStar Canada is subject to and must comply, as well as operate its satellite network, in conformity with the ITU Radio Regulations, the Canadian Radiocommunication Act, Radiocommunication Regulations, and spectrum and radio policies pertaining to its authorized radio frequency bands and satellite orbital position.

4. Coverage of Canada

TerreStar Canada shall make fair and reasonable efforts to provide MSS service to all regions of Canada within the coverage contour as described in its application.

5. Benefits to Public Institutions

TerreStar Canada shall direct a minimum of two percent of the gross adjusted revenues from the lifetime operation of this satellite, including any revenue derived from the advanced sale or lease of satellite capacity, at providing service to public institutions. TerreStar Canada and Industry Canada shall work jointly to develop the terms and conditions for access to this service by public institutions. Gross adjusted revenue is defined as total revenue less intercarrier payments, bad debts, third party commissions, and goods and services taxes collected.

6. Implementation Milestones

TerreStar Canada shall meet the following implementation milestones by the respective dates set out in the following table:

Table of Implementation Milestones
  Milestone Date
1 Submission of design specifications to Department for approval June 15, 2002
2 Signature of contract for the construction of the first of two satellites July 15, 2002
3 Placement of the satellite into its assigned orbital position November 30, 2007

6.1 Submission of Final Design Specifications

Prior to entering into a contract for the procurement of its satellite, TerreStar Canada must demonstrate to the Department that the satellite design 1) will meet the coverage and capacity set out in its application of May 17, 2001, 2) will comply with all technical and operational requirements as set out in Articles 21 and 22 of the ITU Radio Regulations, 3) will indicate what sub-bands will be used for the feeder links to be located in Canada, and that the use of feeder link spectrum will be implemented in accordance with the provisions and procedures of Appendix 30B of the ITU Radio Regulations. To this end, TerreStar Canada shall submit, by the Milestone 1 date above, the design specifications for the new satellite to the Department for approval. 1

6.2 Signature of Contract

Within 15 days of final signature of the Milestone 2 contract, TerreStar Canada must provide evidence satisfactory to the Department that TerreStar Canada is bound to a contractual agreement with a satellite manufacturer for the construction of the proposed satellite. 1

7. Capacity to Meet the Needs of Users and Service Providers in Canada

TerreStar Canada shall operate the satellite as a Canadian radiocommunication carrier and shall offer directly or through re-sellers the satellite services or capacity on a non-discriminatory basis in Canada.

8. Assigned Spectrum for Service to Subscriber Stations

TerreStar Canada will be authorized 10 MHz in each of the two bands (2000-2020 MHz and 2180-2200 MHz) for service to subscriber stations. This 10 MHz will consist of 7 MHz in each direction, with an additional 3 MHz in each direction available on the condition that it does not constrain the entry of another MSS operator into the Canadian market. The Department will retain full flexibility to adjust TerreStar Canada's assignment of 2 GHz service band spectrum in order to harmonize the assignment with other MSS assignments and with allocations for other services (eg., terrestrial mobile services) in the North American market.

TerreStar Canada's specific MSS assignment in these bands will be determined in consultation with the Department. After the assignment has been determined, TerreStar Canada may request that the Department initiate notification for the potential displacement of fixed systems in Canada in accordance with condition 9 below.

9. Displacement of Fixed Stations

Should displacement of fixed stations operating in the assigned service band spectrum be required to accommodate the offering of mobile satellite services, TerreStar Canada and Industry Canada shall work jointly to effect such displacement in accordance with the Department's spectrum transition policy to facilitate the introduction of MSS in the bands 1990-2025 MHz and 2165-2200 MHz. 2

10. Use and Domestic Coordination of Allotment Ku and Extended Ku Spectrum

Feeder link and telecommand, telemetry and control earth stations shall be coordinated with terrestrial fixed services.

TerreStar Canada shall endeavour to minimize the amount of allotment Ku and extended Ku spectrum needed to implement its satellite, and shall coordinate its use of this spectrum with Canadian satellites operating or approved to operate in this same spectrum.

Also, with respect to extended Ku spectrum, TerreStar Canada shall use a minimum earth station antenna diameter of 4.5 m for its telecommand earth station.

11. International Coordination of Satellite

The satellite must be coordinated internationally prior to commencement of operation, and be notified to the ITU . To this end, TerreStar Canada shall, at its own expense:

  • participate with the Department to successfully complete the procedures of Appendix 30B of the ITU Radio Regulations to incorporate the characteristics of the allotment Ku frequency assignments of the satellite network in the Appendix 30B List;

  • participate with the Department to successfully complete the procedures of Articles 9 and 11 of the ITU Radio Regulations to coordinate and notify the 2 GHz and extended Ku bands frequency assignments of the satellite network;

  • provide the Department, in a form acceptable to the ITU , with any required information,

  • and be responsible for the payment of all ITU processing charges related to the submission of this information.

TerreStar Canada shall fulfill all commitments made by Canada pursuant to all international coordination arrangements and agreements for the operation of its mobile satellite network in the 111.1°W orbital position.

12. Debris Mitigation

TerreStar Canada must deorbit the satellite at the end of its life. The satellite shall be removed from the geostationary satellite orbit region in a manner consistent with Recommendation ITU-R S.1003 Environmental Protection of the Geostationary Satellite Orbit.

13. Lawful Interception

TerreStar Canada shall 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 Solicitor General of Canada and the licensees.

You may request the Minister to forbear from enforcing certain assistance capability requirements for a limited period. The Minister, following consultation with the Solicitor General of 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.

14. Requirement to Hold Licences

Prior to commencement of operation of the satellite and the provision of mobile satellite service in Canada, TerreStar Canada shall obtain all necessary radio authorizations from the Department.

To this end, TerreStar Canada shall submit the administrative licensing information, set out in Annex B of Client Procedures Circular 2-6-02 (CPC-2-6-02), Licensing of Space Stations in Services other than the Amateur Satellite Service and the Broadcasting Satellite Service in Planned Bands, at least 90 days in advance of the anticipated launch date of the satellite. Additionally, all feeder link and telemetry, tracking and control earth stations communicating with the satellite must be licensed prior to operation pursuant to Client Procedures Circular 2-6-01 (CPC-2-6-01), Procedure for the Submission of Applications to License Fixed Earth Stations and to Approve the Use of Foreign Fixed-Satellite Service (FSS) Satellites in Canada.

15. Reporting

TerreStar Canada must submit a detailed annual report to Industry Canada. This annual report must include:

  • an update indicating progress made in all areas respecting this licence;

  • an update indicating continued compliance with all licence conditions;

  • an update on any coordination negotiations undertaken pursuant to conditions 10 and 11;

  • an update on activities related to the provision of capacity to public institutions in accordance with condition 5;

  • copies of any existing annual report for TerreStar Canada's fiscal year with respect to this authorization; and

  • a current listing of all satellite capacity being made available through this approval and consequent authorizations, the capacity assigned to Canadian service providers and others, including the parties to which it is assigned, and any unused capacity including the terms of its availability.

These annual reports are to be augmented with semi-annual interim reports providing an update on all aspects of the design, procurement, construction, coordination and launch of the satellite until the satellite has been put into service. The first interim report is due June 30, 2002, and the first annual report is due April 30, 2003. These reports are to be submitted, in writing, to the Director, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch.

16. Traffic Reports

TerreStar Canada must submit a traffic report for the satellite at the commencement of operations and every three months thereafter, indicating the channel capacity of each assigned feeder link transmit and receive frequency in terms of the number of telephone channels carried on each frequency, or telephone channel equivalencies as determined by application of section 58 of the Radiocommunication Regulations including all supporting information used to make this determination. These reports are to be submitted, in writing, to the Manager, Authorization Policy, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch.

17. Payment of Licence Fees

TerreStar Canada must pay the applicable annual radio authorization fees within 15days of acceptance in orbit of the satellite from the manufacturer, and on or before March 31 of each year thereafter. 3

Footnotes

1 TMI Communications and Company, L.P. , submitted the required documentation

2 This policy is set out in section 5.0 of Industry Canada's Spectrum Utilization Policy (SP 1-3 GHz), Amendments to Microwave Spectrum Utilization Policies in the 1-3 GHz Frequency Range.

3 Such fees are established as appropriate by application of the Radiocommunication Regulations and the Minister of Industry 's fee order, Notice No. DGRB -009-99 - Radio Authorization Fees for Mobile Satellite Services Using Radio Spectrum Above 1 GHz .