Licensing Framework for Mobile Broadband Services (MBS) — 700 MHz Band

Posted on Industry Canada website: March 7, 2012
Updated: November 8, 2013
Table of Key Dates
EventTime Frames*
* Items and time frames may be updated from time to time. Refer to Industry Canada’s Spectrum Management and Telecommunications website at http://www.ic.gc.ca/spectrum.
Publication of DGSA-001-13, Licensing Framework for Mobile Broadband Services (MBS)—700 MHz BandMarch 7, 2013
Deadline for receipt of clarification questionsMarch 27, 2013
Publication of responses to clarification questionsMay 20, 2013
Deadline for receipt of applications to participate in the auction and 5% of the pre-auction financial depositsBy 12:00 noon on September 17, 2013
Publication of the list of applicants, beneficial ownership and associated entities informationSeptember 23, 2013
Publication of the list of provisionally qualified biddersOctober 22, 2013
Deadline for receipt of the remaining 95% of pre-auction financial depositsBy 12:00 noon on October 29, 2013
Publication of final list of qualified bidders
Mail-out packages sent to qualified biddersNovember 8-14, 2013
Information session for qualified biddersNovember 21, 2013
Qualified bidders are given access to a stand-alone winner and price determination toolNovember 21, 2013
Mock auctions for qualified bidders (up to three separate sessions)Start November 27, 2013
Auction start — opening of biddingJanuary 14, 2014
Cessation of biddingUnknown
Announcement and publication of provisional licence winnerswithin five business days following cessation of bidding
Submission of ownership and control documentation (where applicable)10 business days following the publication of provisional licence winners
Initial payment (20% of total final payment)10 business days following the publication of provisional licence winners
Final payment (80% of total final payment)30 business days following the publication of provisional licence winners

Footnotes

Footnote 1

See DGSO-002-12, Consultation on a Licensing Framework for Mobile Broadband Services (MBS) — 700 MHz Band (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10363.html).

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Footnote 2

See SMSE-002-12, Policy and Technical Framework: Mobile Broadband Services (MBS) — 700 MHz Band, Broadband Radio Service (BRS) — 2500 MHz Band http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10223.html).


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Footnote 3

See Spectrum Policy Framework for Canada
(http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf08776.html).

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Footnote 4

See SMSE-002-12, Policy and Technical Framework: Mobile Broadband Services (MBS) — 700 MHz Band, Broadband Radio Service (BRS) — 2500 MHz Band (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10121.html).

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Footnote 5

See Framework for Spectrum Auctions in Canada (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf01626.html).

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Footnote 6

Large wireless service providers are defined as companies with 10% or more of the national wireless subscriber market share, or 20% or more of the wireless subscriber market share in the province of the relevant licence area. The subscriber market share for Ontario will apply for the licence area 2-06, Eastern Ontario and Outaouais. For the Tier 2-14 licence area (Yukon, Northwest Territories and Nunavut), only the national market share criteria will apply.

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Footnote 7

SMSE-002-12, Policy and Technical Framework: Mobile Broadband Services (MBS) — 700 MHz Band, Broadband Radio Service (BRS) — 2500 MHz Band (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10121.html).

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Footnote 8

Service Areas for Competitive Licensing (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/h_sf01627.html).

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Footnote 9

See Mathematical Formulations for Winner and Price Determination in the Combinatorial Clock Auction for Mobile Broadband Services (MBS) — 700 MHz Band  (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf08697.html).

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Footnote 10

To determine the discount rate, Industry Canada considered the pre-tax nominal discount rates used by industry, which are available at www.crtc.gc.ca.

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Footnote 11

Population based on Statistics Canada 2011 Census information, adjusted to reflect the tier structure (http://spectrumgeo.ic.gc.ca/txt/download-eng.html).

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Footnote 12

The subscriber market share for Ontario will apply for the licence area 2-06, Eastern Ontario and Outaouais. For the Tier 2-14 licence area (Yukon, Northwest Territories and Nunavut), only the national market share criteria will apply.

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Footnote 13

Competition Act (http://laws-lois.justice.gc.ca/eng/acts/C-34/).

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Footnote 14

See paragraph 16(2)(c) and subsections 16(6) and 16(7) of the Telecommunications Act.

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Footnote 15

Refer to Section 5.2.1 of this Framework for a definition of typical roaming agreements.

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Footnote 16

SMSE-018-10 — Consultation on a Policy and Technical Framework for the 700 MHz Band and Aspects Related to Commercial Mobile Spectrum, November 2010.

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Footnote 17

See Canada Gazette notice DGSO-001-12 — Proposed Revisions to the Frameworks for Mandatory Roaming and Antenna Tower and Site Sharing (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10251.html).

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Footnote 18

Ibid.

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Footnote 19

The application forms will be available on request by sending an email to the following address: spectrum.auctions@ic.gc.ca.

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Footnote 20

The application forms will be available on request by sending an email to the following address: spectrum.auctions@ic.gc.ca.

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Footnote 21

Refer to the application forms which will be made available on request by sending an email to the following address: spectrum.auctions@ic.gc.ca.

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Footnote 22

As per subsection 5(1.3) of the Radiocommunication Act.

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Descriptions of Figures

Description of Figure 1 — CCA Process (Annex B, Section 1)

Figure 1 is a flowchart representing a visual description of the combinatorial clock auction (CCA) process and portraying the sequence of steps included in the process. The CCA is comprised of two stages, the allocation stage and the assignment stage.

The allocation stage includes two steps, the first of which is called the clock rounds and the second is called the supplementary round. The clock rounds are a series of rounds in which bidders submit bids on categories of licences. In any round, if there is excess demand in any category of licences, the price of those licences will increase and the clock rounds will continue until such a time as there is no excess demand in any category of licences. When there is no longer excess demand in any category of licences, the process will move to the supplementary round. The supplementary round is a single round where bidders have the opportunity to make additional bids.

At the end of the allocation stage, the winning bidders and the base prices are determined.

If there were no generic licences offered or won in the allocation stage, an assignment stage is not necessary and the auction ends at the conclusion of the allocation stage.

If there were any generic licences offered and won in the allocation stage, the process then moves to the assignment stage. At the end of the assignment stage, winning assignments and final prices are determined. This signifies the end of the auction.

Description of Figure 2 — Example of Calculating Base Prices (Annex E)

This figure is a graph illustrating the example in paragraph 9 of Annex E which demonstrates how to calculate base prices using a second‑price rule and why an additional payment beyond second prices is sometimes required.