Telesat — Licence 5

Our file: 46215-1 (156304 RH)

June 27, 2008

Mr. Daniel S. Goldberg
President and Chief Executive Officer
Telesat Canada
1601 Telesat Court
Gloucester, Ontario K1B 5P4

Dear Mr. Goldberg:

This is further to Industry Canada's letter of June 15, 2007 advising you that Telesat Canada (Telesat) was selected to develop and operate several satellites pursuant to Industry Canada's 2006 Call for Applications to License Satellite Orbital Positions.

I am pleased to provide Telesat with the Department's approval in principle to develop and operate a 17 GHz broadcasting service satellite as indicated in the table below.

Licence Orbital Position Frequency Bands
5 82°W 17.3-17.8 GHz (space-to-Earth)
24.75-25.25 GHz (Earth-to-space)

This approval is subject to Telesat demonstrating compliance with Canadian ownership and control requirements. This approval is also subject to the attached conditions.

Please note that the onus is on Telesat to demonstrate to the Department at its own expense, prior to the issuance of radio authorizations and commencement of service, their compliance with the applicable regulatory requirements, conditions and milestones applicable to the licence. Failure to meet any of the applicable regulatory requirements or any of the established implementation milestones may result in the withdrawal of an approval in principle for the related licence.

In keeping with our commitment to open, fair and transparent licensing processes, this letter will be posted on Industry Canada's spectrum and telecommunications website. If you have any questions regarding this letter, please contact Richard Hiebert, Manager of Satellite Authorization Policy, at (613) 998-4333.

Sincerely,

J. K. Lindsey
Acting Assistant Deputy Minister
Spectrum, Information Technologies and Telecommunications


Attachment

Telesat Canada (Telesat)
Conditions to Obtain Authority to Operate a 17 GHz BSS Space Station at the 82°W Orbital Position

1. Eligibility

Telesat shall conform at all times with the Canadian ownership and control requirements as set out for a radiocommunication carrier in section 10(2)(d) of the Radiocommunication Regulations.

2. Licence Transferability

This licence may not be transferred or assigned without a full review of the application by the Department and without the 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 licence, and also includes any change which would have a material effect on the ownership or control in fact of Telesat.

3. Direction or Control of Spacecraft

Telesat shall ensure the satellite is under the direction or control of a Canadian entity as set out in section 3(3)(b) of the Radiocommunication Act. Telesat shall provide information to the Department demonstrating that the proposed satellite facilities will be under such direction or control prior to signing a contract for the procurement of the satellite.

4. Implementation Milestones

a) Telesat shall ensure that all implementation milestones and related requirements as set out below are met.

Milestone Date
1 Submission to Department for approval of final design specifications for a new satellite to be operated at the authorized orbital position. October 1, 2013
2 Final signature of contract for the construction of the new satellite. January 1, 2014
3 Placement of an interim satellite into the authorized orbital position. April 1, 2014
4 Final signature of contract for the launch of the new satellite into the authorized orbital position by milestone four. May 1, 2015
5 Placement and in-service of the new satellite into the authorized orbital position. August 1, 2016

b) Satellite Design Approval. Prior to entering into a contract for the procurement of the new satellite, Telesat shall demonstrate to the Department that the satellite design will meet all commitments made for serving Canada, and conform with the applicable provisions of the ITU Radio Regulations and with any applicable conditions of licence.

c) Contracts for Construction and Launch of Satellites. Telesat shall demonstrate to the Department by the applicable dates set out in the above table for milestones two and three, that it has entered into contracts for the construction and launch of the new satellite in a manner that is consistent with the placing of a satellite into the assigned orbital position and bringing spectrum into use by the date noted for milestone four.

d) Interim Satellites. Prior to entering into a contract for the procurement of an interim satellite, Telesat shall submit information to the Department demonstrating how any interim satellite to be used operates in conformity with all applicable technical and operational requirements as set out in the ITU Radio Regulations, arrangements and agreements undertaken with respect to the coordination of the satellite.

5. Laws, Regulations, and Other Obligations

Telesat and its use of the spectrum assigned in this licence are subject to and must comply with the ITU Radio Regulations, the Radiocommunication Act, the Radiocommunication Regulations, and Canada's spectrum utilization policies pertaining to the licensed radio frequency bands.

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

a) Telesat shall adhere to all commitments made in its application for providing satellite capacity and services, on a non-discriminatory basis, to users and service providers in Canada.

b) Prior to receiving approval by the Department of the final design specifications for the new satellite under Milestone 1, Telesat shall demonstrate to the Department's satisfaction that it has made reasonable efforts to make capacity on the new satellite available to Canadian satellite users and service providers. To this end, Telesat shall initiate a public "call for interest" to determine Canadian needs for capacity on the new satellite.

c) Notwithstanding condition 6(a) and 6(b), Telesat shall retain a minimum of fifty percent (50%) of the capacity of the new satellite for use by Canadian satellite users and service providers until December 31, 2008. Telesat shall initiate the "call for interest" referred to above within thirty (30) days of the date of this Approval in Principle, and such "call for interest" shall not close before December 31, 2008. Should the retained capacity exceed contracted Canadian requirements as of that date, Telesat may assign such excess retained capacity for service outside of Canada for the term of the licence.

d) Should Telesat apply to the Department to license a replacement for the new satellite, the Department may review the applicability of conditions 6(a), 6(b), and 6(c).

7. Capacity or Other Benefits for Under Served Communities

a) Telesat shall direct a minimum of 2 percent of adjusted gross annual revenues resulting from the operation of the new satellite, or, subject to the prior approval of Industry Canada, satellite capacity or services of an equivalent value to the foregoing, toward special initiatives, such as the National Satellite Initiative being delivered by Industry Canada, aimed at improving connectivity in under served areas of Canada. Such special initiatives will be developed with the Department.

b) The term "adjusted gross revenues" in this context is defined as those revenues attributable to the use of the space segment capacity, including any pre-sold capacity and revenues arising from any sale of transponders, less inter-carrier payments, bad debts, third party commissions, and provincial and federal sales, goods and services taxes.

8. Orbital Debris Mitigation

The satellite, at the end of its life, 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.

9. International Satellite Coordination

The satellite must be coordinated internationally prior to commencement of operation, and be notified to the ITU. To this end, Telesat shall participate at its own expense, including the payment of associated ITU filing fees, in the coordination of the satellite network with the satellite and terrestrial networks of other countries; provide the Department in a form acceptable to the ITU with the satellite coordination, notification and administrative due diligence information required by the ITU; and ensure that the operation of the satellite conforms with the technical parameters notified to the ITU for the satellite and conforms with any arrangements and agreements undertaken by Canada with respect to the coordination of the satellite.

10. Domestic Satellite Coordination

Telesat shall coordinate the satellite network with other potentially affected Canadian satellite and terrestrial services, and the satellite must be operated in a manner consistent with any arrangements made to facilitate domestic satellite coordination.

11. Satellite Licensing Information

Telesat shall submit the administrative licensing information, set out in Annex B of CPC-2-6-02, at least 60 days in advance of the anticipated launch date of the satellite. Telesat must also submit a traffic report for the satellite every three months thereafter.

12. Earth Station Licensing

All earth stations in Canada communicating with the satellite, except those exempted from the licensing requirement pursuant to the Radiocommunication Act and Radiocommunication Regulations, shall be licensed prior to operation pursuant to Client Procedure Circular, 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.

13. Reporting

a) Telesat shall provide the Department with a detailed annual report outlining progress made in all areas respecting the approved satellite project, including:

  • an update on all aspects of the design, procurement, construction, coordination and launch of the satellite until all proposed satellites have been put into service;
  • an update demonstrating continued compliance with all licence conditions;
  • a current listing of all satellite capacity made available through this authorization, 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; and
  • a copy of any existing corporate annual report for its fiscal year with respect to this authorization.

b) These annual reports are to be submitted, in writing, within 120 days of your fiscal year end, to the Director, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch. These annual reports are also 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 proposed satellites have been put into service.

c) In providing the reports set out in conditions 13 (a) and 13 (b), Telesat may amalgamate the reports with other reports required pursuant to other licences.

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