Letter to TerreStar regarding Interim Licence Fees for MSS-ATC

April 23, 2010

Mr. Jan Skora
Vice-President, Regulatory Affairs
TerreStar Solutions Inc.
1035 Laurier Avenue W., 2nd Floor,
Outremont, QC H2V 2L1

Dear Mr. Skora:

I am writing in response to your letter of March 4, 2010 regarding implementation of an interim Mobile Satellite Service – Ancillary Terrestrial Component (MSS-ATC) licence fee. The document Spectrum and Licensing Policy to Permit Ancillary Terrestrial Mobile Services as Part of Mobile-Satellite Service Offerings (RP-023), indicated that the Department will carry out a public consultation regarding the spectrum fees to be applied to ATC mobile systems. However, given the nascent implementation of MSS-ATC, the Department is of the view that developing a fee order for MSS-ATC spectrum licences is premature at this time and will defer the consultation until such time as the service matures.

After reviewing your recent submission, the Department is prepared to licence the ATC on an interim site-by-site basis pending the establishment of a spectrum licence fee at a future date.

The following approach will apply to licence ATC stations on an interim basis:

  • Each site will be required to be licensed separately.
  • The prescribed annual fee referred to in Section 66 and indicated in Schedule  lll, Part V, item 1(a) of the Radiocommunication Regulations will be $116 per transmit and receive frequency per site in metropolitan areas as defined in Schedule IV of the Radiocommunication Regulations or $53 per transmit and receive frequency per site in areas outside of these metropolitan areas (i.e. in non-metropolitan areas). This equates to $232 per "channel" in the metropolitan areas and $106 per "channel" in the non-metropolitan areas.
  • In the case of MSS-ATC systems, the Department defines a "channel" as being based on the necessary bandwidth of the system, which will be determined at the time of application.

This interim licensing process and related fee will be applied to all applicants for MSS-ATC systems and will remain in effect until such time as Industry Canada holds a consultation and sets a new fee applicable to spectrum licences as indicated in RP-023. The licensing process and fees will be subject to change at that time.

I trust this will allow TerreStar to move forward with its plans related to the implementation of its MSS-ATC system.

If you have any questions, please contact Heather Hall at 613-990-4411.

Yours sincerely,

[Original signed by]

Peter Hill
Senior Director
Spectrum Management Operations
Spectrum Management Operations Branch