Archived—Approval in Principle Issued to Telesat Canada for New Anik F3 Satellite

Approval in Principle Issued to Telesat Canada for New Anik F3 Satellite
(PDF, 60 KB, 5 pages)

April 18, 2002

Mr. Larry Boisvert
President and Chief Executive Officer
Telesat Canada
1601 Telesat Court
Gloucester, Ontario
K1B 5P4

Dear Mr. Boisvert:

Thank you for your letter of April 2, 2002, in which you ask for modifications to Condition 5 of your Approval in Principle relating to implementation milestone dates for the submission of final design specifications, signing of contracts for construction and launch, and for the placement of the new Anik F3 satellite into the 118.7° W orbital position.

Through recent discussions with departmental staff, you are aware that with the passing of the December 21, 2001 date (Approval in Principle Milestone 2), Telesat forfeited its right to have a licence issued for the 118.7° W position. This, however, does not limit the Minister of Industry's discretion with respect to the licensing of this orbital position.

Your letter, seeking delay in the dates of Condition 5, focussed on the many and significant changes in the satellite and commercial marketplace that have occurred since your licence approval in June 2001. In particular, you note the severe economic impact of the terrorist attacks on the World Trade Center on September 11, 2001.

Taking into consideration the devastating consequences to the satellite marketplace to which you alluded, I believe your request warrants approval. Therefore, I hereby inform you that, on behalf on the Minister of Industry, I am amending the conditions of the Approval in Principle for the 118.7° W orbital position in relation to Condition 5 and, specifically, to the revision of the three implementation milestone dates as you have requested.

I trust that these modifications will ensure that you will be in a position to successfully launch a new satellite in this Canadian orbital position by 2005.

Yours sincerely,

V. Peter Harder

Conditions of Approval in Principle for Telesat Canada (Telesat) to obtain a C/Ku Space Station Licence for the 118.7°W Orbital Position

(1) Eligibility

Telesat shall conform on an ongoing basis 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 full review of the application by the Department and 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) Ka Band Payload

Telesat shall incorporate in its satellite, and operate, the Ka band payload as set out in its C and Ku band satellite application submitted to Industry Canada on March 15, 2001, or a Ka band payload otherwise acceptable to the Department. Operation of this Ka band payload will be permitted until such time as another Ka band satellite, to be operated by an entity authorized by Industry Canada, is ready to use the Ka band at the 118.7°W orbital position.

(4) Laws, Regulations, and Other Obligations

Telesat is subject to and must comply with the ITU Radio Regulations, the Radiocommunication Act and the Radiocommunication Regulations, and Canada's spectrum utilization policies pertaining to its licensed radio frequency bands.

(5) Implementation Milestones

Telesat shall meet all implementation milestones by the respective dates set out in the following table:

Table of Implementation Milestones
Milestone Date
1 Submission of final design specifications to Department for approval November 7, 2002
2 Final signature of contracts for (1) the construction of the satellite and (2) the launch of the satellite into its authorized orbital position by Milestone 3 January 7, 2003
3 Placement of the satellite into its authorized orbital position 2005

(5.1) Submission of Final Design Specifications

Prior to entering into a contract for the procurement of a new satellite to be operated at the 118.7°W orbital position, Telesat must demonstrate to the Department that the satellite design will meet the C, Ku and Ka band coverage and capacity capabilities set out in its application of March 15, 2001, and that the satellite will comply with all technical and operational requirements as set out in Articles S21 and S22 of the ITU Radio Regulations. To this end, Telesat shall submit, by the Milestone 1 date above, the final design specifications for the new satellite to the Department for approval.

(5.2) Final Signature of Contracts

Within 15 days of final signature of the Milestone 2 contracts, Telesat must provide evidence satisfactory to the Department that Telesat is bound to a contractual agreement with a satellite manufacturer and launch service provider for the placement of its satellite into the authorized orbital position by the Milestone 3 date above.

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

Telesat shall operate the satellite as a Canadian telecommunications common carrier and shall offer its satellite capacity at the 118.7°W orbital position on a non-discriminatory, first-come, first-served basis.

(6.1) Ku Band Capacity

Notwithstanding condition 6, Telesat shall offer its Ku band capacity at the 118.7°W orbital position on a non-discriminatory, first-come, first-served basis only to satellite users and service providers in Canada until January 1, 2004. Subject to contractual commitments already made to such users and service providers, a maximum of four Ku transponders per user or service provider will be permitted until January 1, 2004. Users or service providers in Canada may commit to more Ku capacity prior to January 1, 2004, but capacity above four Ku transponders will be conditional upon sufficient Ku capacity remaining available after all initial user and service provider needs have been met. This remaining Ku capacity will be allocated on a first-come, first-served basis, with no restriction or limit on the number of transponders contracted by a single entity; and at the completion of this process, any remaining Ku capacity may be made available to other entities.

(6.2) Call for Interest in C Band Capacity

Telesat shall initiate a public "call for interest" to determine Canadian needs for C band capacity prior to assigning such capacity to entities outside Canada. Should the C band capacity being made available by this licence exceed the identified Canadian requirements, Telesat may assign such excess capacity for service in other countries, subject to the approval of the appropriate regulatory authorities of the administration concerned.

(6.3) Additional C Band Capacity for Users and Service Providers

If a satellite user or service provider in Canada demonstrates a need for C band satellite capacity, or if such a need for capacity should arise as a result of government initiatives to encourage the deployment of broadband connectivity to underserved communities by 2005, and Telesat is unable to accommodate those needs on the satellite capacity being made available by this licence Telesat shall, until January 1, 2004, use reasonable commercial efforts to find and offer sufficient C band capacity to support these needs. These efforts are limited to the amount of C band capacity equivalent to the amount not committed to Canadian users on the satellite by the licensee.

(7) Capacity for Public Institutions

Telesat shall offer public institutions, at no charge, the use of two C-band transponders on this satellite, or on a satellite otherwise acceptable to the Department, throughout the life of the new satellite authorized by this licence by December 22, 2003. Furthermore, Telesat shall offer one C-band transponder on its Anik E2 satellite, or on a satellite otherwise acceptable to the Department, also at no charge, to public institutions commencing June 21, 2001, and terminating when the new satellite at the 118.7°W position is available for service. To this end, Telesat and Industry Canada shall work jointly to develop the terms and conditions for access to this capacity by public institutions.

(8) Industrial Benefits

Prior to entering into a contract for the procurement of a satellite, Telesat shall demonstrate to the Department that it has made fair and reasonable efforts to promote Canadian manufacturers, designers, and suppliers of telecommunications components in the construction of the satellite facilities, and must provide an accounting of any Canadian industrial benefits achieved as a result of this effort.

(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 must participate at its own expense 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 and notification information required by the ITU; and ensure that the operation of the satellite conforms with any arrangements and agreements undertaken by Canada with respect to the coordination of the satellite.

(10) Administrative Due Diligence Information

Telesat must submit the administrative due diligence information, as set out in the ITU's Resolution 49 (Rev. WRC-2000), Administrative due diligence applicable to some satellite radiocommunication Services, to the Department in a form acceptable to the ITU, within 60 days of completing Milestone 2 as set out in condition 5.

(11) Satellite Licensing Information

Telesat 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.

(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 or Radiocommunication Regulations, 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.

(13) Reporting

  1. Telesat 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 negotiations undertaken pursuant to condition 9;
    • an update on activities related to providing capacity to public institutions in accordance with condition 7;
    • copies of any existing annual report for Telesat's fiscal year with respect to this authorization; and
    • a current listing of all satellite capacity being 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.
  2. 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.
  3. The first annual report is due June 21, 2002, with the next semi-annual interim report due December 21, 2002. These reports are to be submitted, in writing, to the Director, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch.

(14) Traffic Reports

  1. Telesat must submit a traffic report for the satellite at the commencement of operations at the 118.7°W position, and every three months thereafter, indicating:
    • the transponders in use, and the date of bringing into use of each transponder;
    • the nature of the signals carried in each transponder; and
    • the channel capacity of each transponder in terms of the number of telephone channels carried in a transponder, or telephone channel equivalencies as determined by application of section 58 of the Radiocommunication Regulations including all supporting information used to make this determination.
  2. These reports are to be submitted, in writing, to the Manager, Authorization Policy, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch.

(15) Payment of Licence Fees

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

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