Inmarsat Canada Holdings, Inc.

SPECTRUM LICENCE

Our file: 46208-1 (379212 AL)

April 1, 2014

Mr. Leo Mondale
Director, Inmarsat Canada Holdings, Inc.
c/o Lori Ann Flowers
44 Chipman Hill, Suite 1000
Post Office Box 7289, Stn A
Saint John, NB  E2L 4S6

Dear Mr. Mondale:

This letter constitutes a spectrum licence granting Inmarsat Canada Holdings Inc. authority to use the following bands of radio spectrum to provide Broadband Global Area Network (BGAN) and Global Satellite Phone Service (GSPS) mobile satellite services to subscriber earth stations in Canada via the Inmarsat 4F3 satellite network located at 97.65°W.L. orbital position.

Frequency Bands
UplinkDownlink
1626.5 – 1660.5 MHz1525 – 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

Attachment

Inmarsat Canada Holdings Inc.
Conditions of Licence to Provide Inmarsat’s Broadband Global Area Network (BGAN) and Global Satellite Phone Services (GSPS) Mobile Satellite Services in Canada via the Inmarsat 4F3 Satellite Network

1. Eligibility

Inmarsat Canada Holdings Inc. (Inmarsat Canada) 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. Inmarsat Canada 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. Nothing in the issuance of this licence to Inmarsat Canada must be construed as granting to Inmarsat Canada a monopoly on the provision of domestic or international Inmarsat services in Canada. To this end, Inmarsat Canada must share the assigned spectrum with all other licensees authorized by Industry Canada to use the same spectrum to provide Inmarsat services in Canada.

4. Service to All Regions of Canada

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

5. Research and Development

Inmarsat Canada 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. Inmarsat Canada 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 carriers per subsection 35(3) of the Telecommunications Act.

6. Lawful Interception

  1. Inmarsat Canada 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. Inmarsat Canada 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 regime of those countries. To ensure compliance, Inmarsat Canada must provide its subscribers with a copy of this condition.
  2. Subscriber earth stations must meet all applicable Canadian radio equipment standards and be type-approved for use in Canada.
  3. The operation of subscriber earth stations must not cause harmful interference to the radio astronomy service operating in the same or 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 allotted to 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 this operating agreement, and,
    • 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. Service link operations must also be restricted to those band segments identified by Inmarsat Global Limited in its April 15, 2010 submission to Industry Canada in support of licence applications to provide Inmarsat Broadband Global Area Network services and Global Satellite Phone Services in Canada, or any subsequent amendment to this submission.
  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.

9. Annual Reports

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

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 ic.satelliteauthorization-autorisationsatellite.ic@canada.ca. Confidential information provided will be treated in accordance with subsection 20(1) of the Access to Information Act.

10. Licence fees

Inmarsat Canada Holdings Inc. must pay the applicable annual authorization fees on or before March 31st of each year.

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