ViaSat Canada Company (ViaSat Canada)

Conditions of Licence to Provide Service to Earth Stations Onboard Vessels (ESV) Using Ku Band Spectrum

May 11, 2009

1. Eligibility

ViaSat Canada shall conform with the eligibility criteria as set out in section 10.1 (3)(b) 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. ViaSat Canada is subject to and must comply with the International Telecommunication Union (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.
  2. The operation of the facilities and services being provided shall be in conformity with relevant Canadian laws and regulations.
  3. ViaSat Canada shall provide the Inter-American Telecommunication Commission (CITEL), in a form and manner acceptable to CITEL, with the information as set out in section 2 of the Annex to CITEL's Resolution PCC.II/RES. 33 (VII-06), Common Regulatory Basis for the operation of Earth Stations on Vessels (ESVs) in the Americas.

4. Service to all Regions of Canada

ViaSat Canada shall make fair and reasonable efforts to provide its satellite services to all regions of Canada within the coverage contour and service availability of the associated satellites.

5. Research and Development

ViaSat Canada shall invest a minimum of 2 percent of their adjusted gross revenues resulting from the provision of mobile satellite services on satellite-related research and development activities. This investment may be averaged over a 5 year period, with the first averaging period beginning with the commencement of subscriber earth station operations.

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 intercarrier 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.

6. Lawful Interception

  1. ViaSat 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.
  2. ViaSat Canada may request the Minister to forbear from enforcing certain assistance compatibility requirements for a limited period. The Minister, following consultation with 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 ESVs are authorized to operate in Canada and onboard Canadian licensed or registered vessels outside Canada.
  2. Any roaming of Canadian licensed ESVs into other countries shall respect the licensing regimes of those countries.
  3. Subscriber ESVs shall meet all applicable Canadian radio equipment standards and be type-approved for use in Canada.
  4. Subscriber ESVs 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.

8. Operational Frequency Requirements

  1. In keeping with ITU Recommendation 37 (WRC –03), Operational procedures for earth stations on board vessels (ESVs) use:
    • ESV operations permitted under these licences shall not cause unacceptable interference to the services of other concerned administrations. In the event that unacceptable interference occurs, ViaSat Canada shall eliminate the source of interference immediately upon being advised of such interference.
    • VIASAT Canada shall contact, in advance of ESV operations permitted under these licences within the minimum distance defined in ITU Resolution 902 (WRC –03), the concerned administration(s) to obtain agreements that will establish the technical bases for avoiding unacceptable interference to the terrestrial facilities of the concerned administration(s).
  2. ESVs shall not transmit with an antenna elevation angle below 6.65 degrees.
  3. Authority to use the 10.95-11.2 GHz and 11.45-11.7 GHz (downlink) bands is granted on a no interference, no protection basis.

9. Annual Reports

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

  • an update on the status of the mobile satellite service, including the relative growth of the services provided, and the numbers of ESVs operating within Canada and onboard Canadian vessels;
  • an update on the satellites used to provide services in Canada;
  • a statement of gross operating revenues and, where applicable, under condition 5 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 ViaSat Canada's 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 Services Authorization Policy, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch.

10. Licensing of Earth Stations Onboard Vessels

  1. ViaSat Canada shall obtain the necessary radio licences prior to installing or operating any earth stations onboard vessels while in Canada or onboard Canadian vessels.
  2. ViaSat Canada must pay the applicable annual authorization fees on or before March 31 of each year.
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