OuterLink Canada Corporation

SPECTRUM LICENCE

Our File: 46208-1 (383413 AL)

April 1, 2014

Mr. Steven J. Durante
Chief Executive Officer
OuterLink Canada Corporation
c/o Neil Hazan
Borden Ladner Gervais LLP
1000 de la Gauchetière Street West, Suite 900
Montréal, Québec   H3B 5H4

Dear Mr. Durante:

This letter constitutes a spectrum licence granting OuterLink Canada Corporation (OuterLink) authority to use the following bands of radio frequencies to provide mobile satellite services to OuterLink’s subscriber earth stations in Canada via the MSAT-2 satellite.

Frequency Bands
Uplink Downlink
1626.5 - 1660.5 MHz 1525 - 1559 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

cc. Neil Hazan, Borden Ladner Gervais LLP

Attachment


OuterLink Canada Corporation
Conditions of Licence to Provide Mobile Satellite Services in Canada via the MSAT-2 Satellite

1. Eligibility

OuterLink Canada Corporation (OuterLink) 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. OuterLink 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 position.
  2. The operation of the facilities and services being provided must be in conformity with relevant Canadian laws and regulations.
  3. OuterLink must have in place a valid arrangement with SkyTerra Corp., to use the satellite capacity for the provision of mobile satellite service in Canada.

4. Service to all Regions of Canada

OuterLink must make fair and reasonable efforts to provide mobile satellite services to all regions of Canada within the coverage contour and the service availability of the MSAT-2 satellite.

5. Research and Development

OuterLink 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. OuterLink 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. OuterLink 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. OuterLink 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, OuterLink must provide its subscribers with a copy of this condition.
  2. Subscriber radio equipment must meet all applicable Canadian radio equipment standards and be certified for use in Canada. Notwithstanding this requirement, subscriber radio equipment brought into Canada by visitors for use while temporarily located in Canada must:
    1. meet any applicable Canadian radio equipment standards and be certified for use in Canada; or
    2. be type approved by an administration that is a signatory to the Global Mobile Personal Communications by Satellite-Memorandum of Understanding (GMPCS-MOU) and must carry the GMPCS-MOU mark.
  3. Subscriber earth stations must not cause harmful interference to the radio astronomy service operating in 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

  1. Service link operations must be restricted to those band segments as allotted to SkyTerra Corp. and Inmarsat by means of:
    • the 1999 Operating Agreement for Geostationary Mobile-Satellite Systems Operating in the Bands 1525-1544/1545-1559 and 1626.5-1645.5/1646.5-1660.5 MHz, originally established at Mexico City, Mexico, in June 1996, or any subsequent amendment to that operating agreement as agreed by all affected operators.
    • the 2008 Understanding between the Department of Industry (Canada), the Federal Communications Commission (USA) and the Office of Communications (UK) for the Coordination of Satellite Networks Operating in the L Frequency Band.
  2. OuterLink operations in Canada will be limited to the frequencies specified in its application dated May 2, 2001.
  3. In accordance with No. 5.357A of the ITU Radio Regulations, in the bands 1545-1555 MHz and 1646.5-1656.5 MHz, stations of mobile satellite systems must give priority to accommodating the spectrum requirements of the aeronautical mobile-satellite (R) service providing transmission of messages with priorities 1 to 6 as described in Article 44.
  4. In accordance with No. 5.353A of the ITU Radio Regulations, in the bands 1530-1544 MHz and 1626.5-1645.5 MHz, maritime mobile-satellite distress, urgency and safety communications must have priority access and immediate availability over all other mobile-satellite communications. Communications with stations not participating in the global maritime and distress and safety system (GMDSS) must not cause unacceptable interference to, or claim protection from, distress, urgency and safety communications of the GMDSS.
  5. OuterLink must use the Inmarsat spectrum in accordance with and subject to a continued commercial arrangement between SkyTerra Corp. and Inmarsat, and subject to SkyTerra Corp. being authorized to use this spectrum in the U.S. and on the continued concurrence of Inmarsat. Should it arise, OuterLink must expeditiously mitigate any interference to the Inmarsat system.

9. Annual Reports

OuterLink 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. further to condition 8 (a) above, 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 OuterLink. Industry Canada may request an audited statement of research and development expenditures with an accompanying auditor’s report at its discretion; and,
  6. if OuterLink is claiming an exemption based on, having less than $1 billion in annual gross operating revenues as defined in condition 5, OuterLink must provide supporting financial statements duly authorized by an officer of OuterLink.

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

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

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