MSS-ATC Special Authorization Issued to TerreStar Solutions Inc.

July 19, 2010

Mr. André Tremblay
President, TerreStar Solutions Inc.
1035 Laurier Avenue W., 2nd Floor,
Outremont, QC H2V 2L1

Dear Mr. Tremblay:

This is in response to your application submitted on May 14, 2010. In Radio Policy RP-023 Spectrum and Licensing Policy to Permit Ancillary Terrestrial Mobile Services as Part of Mobile Satellite Service Offerings (RP-023), the Department indicated that it will accommodate the development of an Ancillary Terrestrial Component (ATC) mobile service as an integral part of Mobile Satellite Service (MSS) offerings.

As TerreStar Solutions Inc. currently holds a valid MSS licence, the Department indicated in its letter of April 23, 2010, to Mr. Jan Skora that it was prepared to licence the ATC on an interim site-by-site basis pending the establishment of an MSS-ATC spectrum licensing procedure as contemplated in RP-023.

By this letter and under the authority of the Radiocommunication Act, TerreStar Solutions Inc. is hereby granted this special authorization for the Ancillary Terrestrial Component of its Mobile Satellite Service for all regions of Canada within the serving area of the related TerreStar MSS satellite, subject to the conditions attached.

This special authorization is a privilege accorded by the Minister that authorizes TerreStar Solutions Inc. to provide Ancillary Terrestrial Mobile Services in the band 2000-2010/2190-2200 MHz as an integral component of its MSS offerings, noting that prior to deployment, site-specific radio licences for each radio installation will be required until such time as an MSS-ATC spectrum licensing process has been established. This process will be established after a public consultation which will include proposed conditions of licence and a proposed fee.

The applicable licensing fees for each site licence are referred to in Section 66 and set out in Schedule III, Part V, item 1(a) of the Radiocommunication Regulations. The annual fee 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 for each site licence.

As the ATC can only be offered in connection with MSS, this special authorization is conditional upon TerreStar holding a valid MSS licence. This special authorization is valid until the end of the term of the related MSS spectrum licence, the discontinuation of the Mobile Satellite Service or the issuance of a MSS-ATC spectrum licence, whichever comes first.

If you have any questions regarding this special authorization, please contact Heather Hall at 613-990-4411 or heather.hall@canada.ca.

Sincerely,
Fiona Gilfillan
Director General
Spectrum Management Operations Branch


Conditions of Special Authorization

The following conditions apply to the special authorization granted to TerreStar Solutions Inc. for the Ancillary Terrestrial Component of its Mobile Satellite Service offerings (MSS-ATC) in the band 2 GHz and the related radio licences issued under this special authorization.

1. Term

This special authorization will expire on the expiry date of the related Mobile Satellite Service spectrum licence, upon termination of TerreStar Solutions Inc.'s Mobile Satellite Service (MSS), or upon the issuance of a MSS-ATC spectrum licence, whichever comes first. This special authorization will continue upon annual renewal of the related MSS spectrum licence.

The Ancillary Terrestrial Component (ATC) mobile service must form an integral part of MSS offerings on an ongoing basis. A substantial level of MSS offerings (marketing and distribution capacity) must be provided with the ATC service. The ATC mobile service must cease operation, within a reasonable period, should the MSS be discontinued.

2. Transferability

TerreStar Solutions Inc. may apply in writing to transfer this special authorization in whole, or, as part of a subordinate agreement. Departmental approval is required for any proposed transfer of this special authorization. Both TerreStar Solutions Inc. and the transferee must provide attestations and other supporting documentation demonstrating that they meet the eligibility criteria and all other conditions, technical or otherwise, of this special authorization.

3. Eligibility Criteria

TerreStar Solutions Inc., operating as a radiocommunication carrier, must comply on an ongoing basis with the eligibility criteria in section 10(2) of the Radiocommunication Regulations. TerreStar Solutions Inc. must notify the Minister of Industry of any change which would have a material effect on its eligibility. Such notification must be made in advance for any proposed transactions within its knowledge.

For more information, refer to the Client Procedures Circular CPC-2-0-15, "Canadian Ownership and Control," as amended from time to time.

4. Radio Station Installations

Site-specific radio licences will be required for each radio station. TerreStar Solutions Inc. must ensure that each radio station is installed and operated in a manner that complies with Industry Canada's Client Procedures Circular CPC-2-0-03, Radiocommunication and Broadcasting Antenna Systems, as amended from time to time.

5. Compliance with Legislation, Regulations and other Obligations

TerreStar Solutions Inc. is subject to, and must comply with, the Radiocommunication Act, the Radiocommunication Regulations and the International Telecommunication Union's Radio Regulations pertaining to the authorized radio frequency bands. This special authorization is issued on condition that the certifications made in its application are true and complete in every respect. TerreStar Solutions Inc. must use the assigned spectrum in accordance with the Canadian Table of Frequency Allocations and the spectrum policy applicable to this band.

6. Technical Considerations

TerreStar Solutions Inc. must comply on an ongoing basis with the technical aspects of the appropriate Radio Standards Specifications and Standard Radio System Plans, as amended from time to time.

The frequencies used for the ATC system must be within the assigned spectrum of MSS system licensed to TerreStar Solutions Inc. and the ATC service will be limited to the satellite serving areas. The use of the MSS spectrum for ATC operation is subordinate to the spectrum being available for mobile-satellite service. The ATC operation must neither cause harmful interference to, nor claim protection from, MSS services and other primary radio services operating in adjacent bands. ATC operations will be subject to technical and operational requirements considered appropriate to mitigate potential interference.

In addition, TerreStar Solutions Inc. is to use dual-mode terminals capable of communicating with both the mobile satellite network and the terrestrial ATC system or make use of service and commercial arrangements that ensure the ATC service is an indefeasible part of the MSS service offerings.

7. General Technical and Operational Measures

TerreStar Solutions Inc. must comply with all technical and operational measures as specified in annexes Part A through Part D of Radio Systems Policy RP-023, Spectrum and Licensing Policy to Permit Ancillary Terrestrial Mobile Services as Part of Mobile Satellite Service Offerings, as amended from time to time, and which can be found at http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf08174.html.

8. International and Domestic Coordination

TerreStar Solutions Inc. must comply with the current and future agreements established with other countries.

TerreStar Solutions Inc. must use its best efforts to enter into mutually acceptable sharing agreements with other parties, which will facilitate the reasonable and timely development of their respective systems, where applicable, and to coordinate with licensed users in Canada and internationally, where applicable.

9. Lawful Interception

TerreStar Solutions Inc., operating as a radiocommunication carrier and if using spectrum for circuit-switched voice telephony systems must, from the inception of service, provide for and maintain lawful interception capabilities as authorized by law. The requirements for lawful interception capabilities are provided in the Solicitor General's Enforcement Standards for Lawful Interception of Telecommunications (Rev. Nov. 95). These standards may be amended from time to time.

TerreStar Solutions Inc. may request the Minister of Industry to forbear from enforcing certain assistance capability requirements for a limited period. The Minister, following consultation with Public Safety Canada, may exercise the power to forbear from enforcing a requirement or requirements where, in the opinion of the Minister, the requirement is not reasonably achievable. Requests for forbearance must include specific details and dates indicating when compliance to the requirement can be expected.

10. Mandatory Antenna Tower and Site Sharing

TerreStar Solutions Inc., operating as a radiocommunication carrier, must comply with the mandatory antenna tower and site sharing requirements set out in Client Procedures Circular CPC-2-0-17, Conditions of Licence for Mandatory Roaming and Antenna Tower and Site Sharing and to Prohibit Exclusive Site Arrangements, as amended from time to time.

11. Annual Reporting

TerreStar Solutions Inc. must submit an annual report including the following information:

  • a statement indicating continued compliance with all conditions of this special authorization;
  • an update on the implementation and spectrum usage within the area covered by this special authorization;
  • existing audited financial statements with an accompanying Auditor's Report; and
  • a copy of any existing corporate annual report for TerreStar Solutions Inc.'s fiscal year with respect to this special authorization.

All reports and statements are to be certified by an officer of the company and submitted, in writing, within 120 days of TerreStar Solutions Inc.'s fiscal year end, to the address below. Confidential information provided will be treated in accordance with section 20(1) of the Access to Information Act.

Manager, Emerging Networks
Spectrum Management Operations Branch
Industry Canada
300 Slater Street, 15th floor
Ottawa, Ontario
K1A 0C8

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