Archived—Canada's New Government Increases Canada's Access to Emerging Satellite Broadcasting and Telecommunications Services to Benefit Canadian Business and Consumers

OTTAWA, June 13, 2007 — The Honourable Maxime Bernier, Minister of Industry, today announced the results of a licensing initiative to authorize the development of new Canadian satellites that will increase and improve broadcasting and telecommunications services to Canadian entrepreneurs and consumers. The first satellites are expected to provide services as early as 2010.

"Canada needs to increase its satellite capacity to keep pace with the ever-increasing demand for satellite services," said Minister Bernier. "By awarding these new licences, we are helping the expansion of satellite capacity and services that will benefit Canadians for years to come. We're helping to foster an environment that will bring all the benefits of competition, including increased product and service offerings, choice in supplier, competitive prices and export revenues."

Canadian satellite operators Ciel Satellite LP and Telesat Canada have indicated their intention to invest several billion dollars in building and launching new Canadian satellites, which will provide the capacity needed to fully implement high-definition television in Canada and carry important new and advanced telecommunications services such as satellite Internet. These new satellites will also help connect all regions of Canada, especially in the North, where satellites are the vital link to providing public safety, national security and government services. This process represented the largest spectrum licensing initiative ever undertaken in Canada and will lead to Canadian consumers and businesses gaining access to emerging satellite broadcasting and telecommunications services such as high-definition TV, Internet Protocol Television (IPTV), satellite broadband and multimedia consumer applications.

Additional information regarding the results of this Call for Applications is available on the Industry Canada website. A backgrounder is attached to this news release.

For more information, please contact:

Isabelle Fontaine
Office of the Honourable Maxime Bernier
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502


Backgrounder
Results of the Call for Satellite Applications

Two key tenets of Industry Canada's mandate are to ensure that all Canadians have access to vital communication services and to ensure the growth of the telecommunications industry. Satellites are critical to providing broadcasting and telecommunications services, particularly in the North, where they are the key link to the delivery of public safety, national security, and government services.

To aid in meeting these requirements, the Minister of Industry launched a satellite licensing initiative with a Call for Satellite Applications in July, 2006. The primary purpose of this initiative was to ensure that sufficient satellite capacity would be available to make sure that Canadian satellite users, such as satellite television and satellite-based broadband service providers, can provide services that meet the communication needs of Canadians. A total of 29 satellite licences were available for assignment in the largest spectrum licensing initiative ever undertaken in Canada.

Industry Canada received applications from two Canadian satellite operators - Ciel Satellite LP (Ciel) and Telesat Canada (Telesat). Ciel and Telesat have been selected for a total of 12 satellite licences. Ciel has been selected for 7 licences through this process. Ciel, headquartered in Ottawa, is the newest competitor in the provision of satellite capacity in the Canadian market. Telesat has been selected for 5 licences through this process. Telesat, also headquartered in Ottawa, operates satellites providing telecommunications and broadcasting services throughout the Americas.

The two satellite operators plan to introduce 10 new satellites as a result of this process. A chOice of satellite operators means there will now be competition in the industry. It also means broadcasters will have the ability to deliver additional programming and fully implement high-definition television in Canada. Service providers will also be able to deliver broadband and innovative new services, such as Internet Protocol Television (IPTV) and the "Triple Play" 1 to consumers and businesses.

The process to award satellite licences has been very open, with consultations held in 2005 on the need for additional satellite capacity. In July 2006, Industry Canada published the Call for Satellite Applications, and applications were received in November. Applications were posted on Industry Canada's website and the public was invited to provide comments on the submissions. These public comments were reviewed by satellite operators, who provided their final responses in January, 2007.

Industry Canada will be working with the applicants over the next few months to ensure they comply with all regulatory requirements and conditions of licence for Canadian satellite operators, including Canadian ownership and control requirements. Once the applicants demonstrate compliance, radio licences can be issued authorizing the operation of the satellites.

All remaining unassigned licences, including licences not included in the Call for Satellite Applications 2006, will be available for assignment using essentially the same process identified in the Call. Interested parties should submit an application to Industry Canada using the same information requirements outlined in this Call. Industry Canada will issue a notice in the Canada Gazette indicating that an application was received and provide 30 days for other parties to notify the Department of their interest. An additional 60 days will be available to submit a complete application. The decision to award licences will be based on the same evaluation and selection criteria established in this ·Call. Additional details on this process will be posted on the Industry Canada website.

Industry Canada expects that some satellites launched as the result of this initiative may be providing services as early as 2010. A list of the licences to be awarded in the 2006 process follows:

Licences
Licence Frequency Band/Orbital Position Applicant
2 17 GHz BSS/72.5W Telesat
5 17 GHz BSS/82W Telesat
6 17 GHz BSS/86.5W Telesat
8 Ka FSS/91W Ciel
9 17 GHz BSS/91W Ciel
12 17 GHz BSS/103W Ciel
14 17 GHz BSS/107.3W Ciel
16 ka FSS/109.2W Cie
17 Extended Ku FSS/111.1W Cie
23 ka FSS/118.7W Telesat
24 17 GHz BSS/118.7 Telesat
28 12 GHz BSS/138W Ciel

1 In the telecommunications field, the Triple Play service is a marketing term for the provision of three services: high

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