Consultation on a Policy, Technical and Licensing Framework for Use of the Bands 2000-2020 MHz and 2180‑2200 MHz

Posted on Industry Canada website: May 21, 2014


1. Intent

Through the release of this paper, Industry Canada is hereby initiating a consultation on a policy, technical and licensing framework for use of the bands 2000-2020 MHz and 2180-2200 MHz, hereinafter referred to as the 2 GHz band, for mobile-satellite service (MSS) and ancillary terrestrial component (ATC).

The need for a consultation on the use of this band was raised in the Commercial Mobile Spectrum Outlook: 2012-2017, and represents one of Industry Canada’s efforts to meet its target of allocating a total of 750 MHz of spectrum for mobile wireless services by 2017.

Recent changes in the United States with respect to the band plan and operational requirements for the use of the 2 GHz band for MSS have removed regulatory barriers and increased flexibility for terrestrial mobile broadband services in the band. These decisions will likely have a bearing on the equipment ecosystem and therefore on the provision of services in Canada.

The consultation addresses the following areas:

  1. a proposed new band plan for the 2 GHz band that modifies the uplink/downlink pairing;
  2. spectrum policies to govern the use of the band;
  3. licensing considerations, including conditions of licence, for both the MSS and the ATC service; and
  4. technical rules for deployment in this band.

2. Policy Objective

The Minister of Industry, through the Department of Industry Act, the Radiocommunication Act and the Radiocommunication Regulations and with due regard to the objectives of the Telecommunications Act, is responsible for spectrum management in Canada. This responsibility includes developing national policies and setting goals for spectrum utilization and ensuring effective management of the radio frequency spectrum resource.

In developing a policy and licensing framework, Industry Canada takes into consideration the need to provide spectrum access for new services and technologies, such as mobile broadband, the impact of such a framework on all stakeholders and the Spectrum Policy Framework for Canada (SPFC). The SPFC objective is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum. In support of this objective, Industry Canada identified specific objectives in its 2012 Policy and Technical Framework, which will also guide decisions for the use of the 2 GHz band:

  • robust investment and innovation by wireless telecommunications carriers so that Canadians benefit from world-class networks and the latest technologies;
  • sustained competition in the wireless telecommunications services market so that consumers and businesses benefit from competitive pricing and choice in service offerings; and
  • availability of these benefits to Canadians across the country, including those in rural areas, in a timely fashion.

Industry Canada has often aimed to harmonize rules pertaining to wireless services within North America. Harmonization leads to larger markets and lower manufacturing costs of wireless handsets and equipment due to economies of scale, which results in reduced costs and increased availability for Canadian consumers.

Industry Canada has demonstrated its continued commitment to robust investment and sustained competition in wireless telecommunications for the benefit of consumers. As a result, in many areas of Canada, consumers have access to multiple options for wireless coverage from different service providers. The Department is of the view that making this spectrum available for the provision of commercial mobile broadband services by providing increased flexibility to the existing licensees would allow for further investment and competition in wireless services.

Given the geography, demographics and other factors, the availability of wireless telecommunications services vary from region to region. Industry Canada is committed to facilitating access to telecommunications services for Canadians in all regions of the country. Combining MSS and ATC offers the best opportunity to achieve this goal.

The Department is proposing measures that support all of the above objectives. This band has the potential to further the objective of providing reliable mobile services in remote areas with handheld devices comparable to those available in urban areas. MSS is currently the only technology available to enable mobile communications in a large portion of the Canadian territory that is out of reach of terrestrial networks. Because of the unique potential for MSS to reach rural and remote areas, the Department considers that the provision of MSS in this band should be maintained and protected. In the past, spectrum sharing between mobile and satellite systems has been avoided due to the difficulty of managing interference. The Department is of the view that sharing is still impractical for different operators, but that those technical difficulties could be resolved if the same operator manages both systems.

3. Background

In 2004, Industry Canada published RP-023Spectrum and Licensing Policy to Permit Ancillary Terrestrial Mobile Services as Part of Mobile-Satellite Service Offerings. RP-023 established a set of spectrum and licensing policy principles to oversee the implementation of ATC as an integral part of the MSS offering. The principles provide guidance for the deployment of terrestrial ATC mobile applications in conjunction with any MSS network operating in the various satellite spectrum bands. Under this policy, ATC systems are required to be offered as an integral part of the MSS. The frequencies used for the ATC systems must be within the assigned spectrum of the MSS network and the ATC service must be limited to the satellite serving areas in Canada. ATC operations are to be subordinate to the MSS and the ATC operator is currently required to offer only dual-mode terminals that are capable of communicating with both the mobile satellite network and the terrestrial ATC system. Allowing the MSS industry the flexibility to introduce ATC services supports the Canadian telecommunications policy objectives by increasing the efficient use of spectrum, and fostering competition and choice of services for Canadian consumers.

In February 2007, Industry Canada issued the Consultation on a Framework to Auction Spectrum in the 2 GHz range including Advanced Wireless Services (AWS Consultation). That consultation identified spectrum for AWS and reduced the MSS spectrum from 35 + 40 MHz to 20 + 20 MHz in the bands 2000-2020/2180-2200 MHz in order to harmonize the MSS spectrum allocation with the United States. The consultation also designated the paired block 1915-1920/1995-2000 MHz for PCS (H block), but held these blocks in reserve until technical issues related to the narrow duplexing gap between the bands and potential interference to the MSS were resolved.

Currently, two geostationary satellites are in orbit and have the capability to provide MSS in the 2 GHz band in Canada and the United States. Both satellites, EchoStar G1 (previously DBSD G1) and EchoStar T1 (previously TerreStar-1), are owned by DISH Network Inc. (DISH).

Gamma Acquisition Canada ULC (Gamma Canada), a subsidiary of DISH, is the satellite operator for EchoStar T1 and holds a licence to provide MSS in Canada in the band 2000-2010 MHz paired with 2190-2200 MHz. TerreStar Solutions Inc. (TerreStar Solutions) also holds a licence as an MSS provider in Canada in the same frequency band, using the EchoStar T1 satellite through a commercial agreement with Gamma Canada. TerreStar Solutions also has a special authorization to operate ATC in the band, which allows the deployment of terrestrial operations in order to complement the satellite component.

While rules in the United States set out by the Federal Communications Commission (FCC) used to be similar to those currently in place in Canada, in its Report and Order (R&O) published on December 17, 2012, the FCC rescinded the ATC rules in the 2 GHz band and authorized terrestrial mobile services (that it named AWS-4), on a co-primary basis with MSS. The FCC now allows the deployment of a stand-alone mobile service offering, independent of the MSS, with the condition that AWS-4 operations not cause harmful interference to 2 GHz MSS operations and accept any interference received from duly authorized 2 GHz MSS operations. The FCC modified the licences of Gamma Acquisitions L.L.C. (Gamma) and New DBSD Satellite Services G.P. (New DBSD), two wholly owned subsidiaries of DISH, to authorize the provision of terrestrial services.

On December 20, 2013, the FCC published a Memorandum Opinion and Order, granting waivers requested by DISH. The FCC provided the flexibility to use the band 2000-2020 MHz either for terrestrial downlink or uplink operations. DISH was given a period of up to 30 months to make its decision, which will be irrevocable and apply to all of the United States. The AWS-4 final build-out milestone was also extended by one year, to the end of 2020. In exchange for the waivers, DISH committed in bidding at least the reserve price of $1.564 billion in the H block auction. The auction concluded on February 27, 2014, and DISH acquired the H block across the United States.

The Department is now evaluating the implications of the recent changes in the United States on the Canadian regulatory framework. This consultation will enable Industry Canada to make decisions related to the current band plan, the technical rules and the related licensing framework.

Part A — Band Plan

4. Band Plan and Block Pairing

The bands 2000-2020 MHz and 2180-2200 MHz are allocated to the fixed, mobile and mobile-satellite services on a co-primary basis, with a moratorium regarding new systems in the fixed services.Footnote 1 To date, these bands have been paired, using the band 2000-2020 MHz for MSS uplink and the band 2180-2200 MHz for MSS downlink. Currently, the blocks are paired as follows: 2000-2010/2190-2200 MHz and 2010-2020/2180-2190 MHz. See Figure 1 below.

Figure 1 — Current Canadian Band Plan at 2 GHz
 Figure 1 — Current Canadian Band Plan at 2 GHz  (The image description is below the image)

This figure shows the current Canadian band plan at 2 GHz. There are two 10 + 10 MHz paired blocks, labelled A (2000 – 2010 MHz) and A’ (2190 – 2200 MHz), and B (2010 – 2020 MHz) and B’ (2180 – 2190 MHz), with blocks A and B being Earth-to-space direction, and blocks A’ and B’ being space-to-Earth direction.

In the United States, these bands are also allocated to the fixed, mobile and mobile-satellite services on a co-primary basis. Prior to 2012, the United States had the same band plan as the Canadian band plan shown in Figure 1. In its 2 GHz decision of 2012, the FCC adopted the same uplink and downlink pairing designations for AWS-4 as was used for the MSS. The FCC noted that adopting the same uplink/downlink pairing approach for AWS-4 as for MSS may facilitate the continued use of existing satellites.Footnote 2

The FCC however changed the block pairing of the mobile and satellite spectrum pairing of block 2000-2010 MHz with 2190-2200 MHz and 2010-2020 MHz with 2180-2190 MHz to pairing of 2000-2010 MHz with 2180-2190 MHz and 2010-2020 MHz with 2190-2200 MHz. In changing the block pairing, the FCC emphasized that the new pairing would allow for a duplex spacing consistent with the 3rd Generation Partnership Project (3GPP) standard for this band (Band Class 23), thereby facilitating the deployment of terrestrial AWS-4 services.Footnote 3

Subsequent to the 2 GHz decision, the FCC allowed DISH the flexibility to use the lower 20 MHz band for either uplink or downlink.Footnote 4 The direction will be decided by the AWS-4 licensees.

Industry Canada proposes to use the same block pairing as currently used in the United States, as shown in Figure 2, including providing flexibility to use the band 2000-2020 MHz for either uplink or downlink. Harmonizing the Canadian and U.S. band plans and block structures would allow the Canadian market to take advantage of the larger U.S. wireless ecosystem and will ensure that satellites licensed to provide services in Canada can continue to operate in Canada.

Figure 2 — Proposed Block Pairing
 Figure 2 — Proposed Block Pairing (The image description is below the image)

This figure shows the proposed block paring at 2 GHz. There will be two 10 + 10 MHz paired blocks, labelled A (2000 – 2010 MHz) and A’ (2180 – 2190 MHz), and B (2010 – 2020 MHz) and B’ (2190 – 2200 MHz), with blocks A and B being Earth-to-space or space-to-Earth direction, and blocks A’ and B’ being space-to-Earth direction.

A-1 Industry Canada proposes to adopt the 2 GHz band plan and the block pairing shown in Figure 2

Comments are being sought on these proposals. In providing responses, include supporting arguments for or against these proposals.

Part B — Spectrum Policy Considerations

5. Spectrum Policy Changes Regarding MSS/ATC

To meet the growing requirements of mobile broadband and encourage innovation, investment and deployment, the FCC rescinded its ATC rules and adopted service, technical and licensing rules to enable the deployment of stand-alone terrestrial mobile services in the 2 GHz band. MSS operations continue to be protected from AWS-4 operations, which must not cause harmful interference to, and must accept any interference received from, duly authorized 2 GHz MSS operations.

In Canada, there is also a growing demand for mobile broadband services. When assessing bands for which changes to the regulatory framework could help to address the growing demand for mobile broadband services, Industry Canada considers the following: (1) the current use of the band in Canada; (2) the projected technological developments and the expected availability of equipment — i.e. technology ecosystem; (3) international trends and (4) whether the proposed use of the band is compatible with Canada’s international obligations.

The available technology ecosystem in Canada is mainly guided by the U.S. market, as the Canadian and U.S. allocations differ from other countries. Ensuring that devices designed to operate in the United States are also usable in Canada can lower manufacturing costs due to economy of scale, and increase choice for consumers. Hence, the Department generally aligns its band plans and policy to support the availability of a device ecosystem.

Even though there is a co-primary allocation to the mobile service in the 2 GHz band, under the existing policy in Canada (and the U.S. policy prior to December 2012) any deployment of terrestrial mobile service in the band must be an integral part of an MSS offering, using only dual-mode terminals.

To date, there has been no deployment of either the MSS or the ATC service in Canada in the 2 GHz band, and there is a limited MSS offering in the United States. However, the Department believes that MSS offerings can be beneficial in areas of the country that are not easily covered by other technologies. The Canadian geography includes large areas with low population density, and the majority of its territory is not covered by terrestrial networks. These areas could effectively be served by MSS. Industry Canada is of the view that, in this particular instance, departmental policy should differ from the recent decisions in the United States. Specifically, the Department’s policy should continue to require MSS offerings in conjunction with the terrestrial services in order to encourage increased coverage.

The obligation for ATC licensees to provide dual-mode terminals increases the cost of the terminals compared to terrestrial-only phones and hinders the ability of MSS offerings to compete with cellular mobile systems. Aligning with the United States by removing regulatory barriers to allow for the deployment of terrestrial-only and dual-mode terminals could provide more options for consumers who do not require the satellite service. This could increase the economic viability of the overall MSS and terrestrial business case, thus fostering the provision of mobile services in rural and remote areas. However, as stated above, the Department believes that the authorization to deploy a stand-alone terrestrial network should still be tied to the provision of MSS in Canada.

The spectrum and licensing policy principles on the implementation of ATC mobile services are listed in RP-023. Industry Canada believes that removing regulatory barriers currently imposed on ATC services in the 2 GHz band would promote use of the band for mobile broadband and foster competition. Industry Canada therefore proposes to eliminate the dual-mode handset requirement and allow ATC licensees to provide terrestrial-only terminals in the bands 2000-2020 MHz and 2180-2200 MHz.

As MSS is important to Canada, the satellite service should be protected from harmful interference from terrestrial services. Industry Canada proposes that the deployment of ATC not constrain the deployment of MSS. This proposal would apply regardless of whether the lower 2 GHz band is used for uplink or downlink operations. The operation of both MSS and ATC networks by the same entity would facilitate interference mitigation.

B-1 Industry Canada proposes to maintain the provision of MSS in this band.

B-2 Industry Canada proposes to remove the dual-mode requirement in the 2 GHz band, and to modify RP-023 and RSS-170 accordingly.

B-3 Industry Canada proposes to modify the spectrum and licensing policy principles on the implementation of ATC mobile services in RP-023 with regard to the 2 GHz band.

B-4 Industry Canada proposes that the deployment of ATC service not constrain the deployment of MSS.

Comments are being sought on these proposals. In providing responses, include supporting arguments for or against these proposals.

Part C — Licensing

6. Licensing Considerations

6.1 Current Situation

The geostationary satellite EchoStar T1 was launched by TerreStar Networks Inc. in 2009 and operates at the 111°W latitude. The satellite covers Canada and the United States and has the capability to operate in the range 2000-2020/2180-2200 MHz, using a maximum bandwidth of 10 + 10 MHz at any given time. It operates under a Canadian filing at the ITU.

There is a second geostationary satellite, EchoStar G1, which has been in orbit at 93°W since April 2008. The satellite, which covers Canada and the United States, has the capability to operate in the range 1980-2025/2170-2200 MHz band, using the entire bandwidth at any given time. It is now operated by DBSD North America Inc. (DBSD) and operates under a filing from the United Kingdom at the ITU.

As discussed in Section 3, DISH owns both the EchoStar T1 and EchoStar G1 satellites. Gamma Canada is the satellite operator for EchoStar T1 and holds a licence to provide MSS in Canada in the band 2000-2010 MHz paired with 2190-2200 MHz. TerreStar Solutions, which is owned by Trio Capital Inc. and Gamma Canada, also holds a licence as an MSS provider in Canada in the same frequency band as Gamma Canada, using the EchoStar T1 satellite through a commercial agreement with Gamma Canada. TerreStar Solutions also has a special authorization to operate ATC in the band.

6.2 Current Situation in the United States

As described in Section 3, as a result of the FCC’s R&O on the use of the AWS-4 band, DISH has access to two 20 MHz blocks of contiguous spectrum, which can be used for MSS and/or stand-alone terrestrial operations. Even though DISH indicated intentions to provide MSS, the R&O provides no stated requirement to do so.

The FCC also imposed a two-step build-out requirement for the deployment of an AWS-4 terrestrial network. The licensees are required to provide terrestrial signal coverage and offer terrestrial service to at least 40 percent of the population in each of the 176 licence areas by 2016 and to at least 70 percent by 2020.

6.3 Licensing Approach

To promote the policy objectives stated in Section 2 for the use of this band, Industry Canada considered several factors for licensing the 2 GHz band, for both the MSS and the ATC services.

As stated in Section 2, one key objective for this band is the provision of wireless communications services to Canadians in all regions of Canada, including rural and remote areas. The licensing approach should also support the provision of voice and data communications to Canadian consumers using MSS handheld devices.

Any fundamental change or difference from the United States could substantially delay the provision of voice and data services to Canadians in these areas. The Department recognizes that aligning the MSS and terrestrial spectrum with the United States increases the likelihood of a handset ecosystem capable of operating in Canada. As described earlier, due to changes in the United States, spectrum acquired by DISH may result in terrestrial devices that use 20 + 20 MHz. Because of the uncertainty regarding the characteristics of the ecosystem, Industry Canada is of the view that licences should align with those issued in the United States, in order to ensure availability of devices. Furthermore, as explained in RP-023, the Department believes that to prevent interference, the ATC licence must be awarded to an MSS licensee, or an entity with business agreements with an MSS licensee. This approach is consistent with the decision in the United States to award DISH both the satellite and terrestrial licences.

In view of the above, Industry Canada proposes to extend the spectrum assigned in the existing MSS and ATC authorizations to cover the entire 2 GHz band. New spectrum licences would be issued to Gamma Canada and TerreStar Solutions on April 1, 2015, reflecting the proposed revisions to the band plan and new conditions of licence. The new proposed licences would include both the A and B spectrum blocks, allowing the flexibility to operate the Canadian licensed EchoStar T1 satellite anywhere within the 20 + 20 MHz. The Department also proposes that the terrestrial service have access to the full 20 + 20 MHz of spectrum.

The ATC licensee would also be granted the flexibility to use the band 2000-2020 MHz for either uplink or downlink operations provided that, by May 20, 2016, it must identify whether it will use the band for uplink or downlink for the rest of the licence term throughout the licence area, and notify Industry Canada, in writing, of its decision. This date coincides with the uplink/downlink election deadline in the United States.

The new MSS and ATC licences would be issued only if the Department receives applications from Gamma Canada and TerreStar Solutions indicating interest within 30 days of the publication of the policy decision. If no interest is expressed, Industry Canada would initiate another consultation on the policy and licensing framework for the 2 GHz band.

Under these proposals, the 2 GHz band would be licensed to Gamma Canada for the operation of the satellite and for the provision of MSS, noting the commercial agreement with TerreStar Solutions. TerreStar Solutions would be licensed for the provision of the MSS and the ATC services. The Department is of the view that this approach would best meet the objectives outlined in Section 2 and would ensure the most efficient use of the spectrum. Because it involves the management of both the satellite and ATC spectrum by the same entity, the approach would also facilitate interference-free operations between the MSS and ATC portions of the network. This supports competition in the mobile wireless services industry and encourages investment in the provision of wireless services to virtually all of Canada with its MSS and ATC networks.

As ATC licences will be considered commercial mobile spectrum licences, the Department’s approach to any request for a transfer will be subject to the Framework Relating to Transfers, Divisions and Subordinate Licensing of Spectrum Licences for Commercial Mobile Spectrum. As outlined in Annex B, the conditions of licence regarding Deemed and Prospective Transfers, as defined in Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, would also apply.

The Department has considered dividing the spectrum into two blocks, A and B, and auctioning one of the blocks for the provision of terrestrial mobile broadband services. However, in view of the above considerations, the Department considers that this approach does not support the policy objectives for the band and that it could jeopardize the provision of both MSS and mobile broadband services in Canada.

C-1 Industry Canada proposes to extend the spectrum assigned in existing 2 GHz MSS licences and ATC authorization to 2000-2020 MHz and 2180-2200 MHz.

C-2 Industry Canada proposes to issue new spectrum licences to incumbent 2 GHz licensees, with terms commencing on April 1, 2015, that reflect the proposed revisions to the band plan and new conditions of licence if a letter indicating interest is received from both incumbents.

C-3 Industry Canada proposes that the ATC licensee be allowed to decide if the use of the band 2000-2020 MHz will be for uplink or downlink operations and notify Industry Canada by May 20, 2016; and further proposes that the decision apply to all of Canada and for the rest of the licence term.

Comments are being sought on these proposals. In providing responses, include supporting arguments for or against these proposals.

6.4 Licence Service Areas

Industry Canada’s 2006 document entitled Service Areas for Competitive Licensing outlines the general service areas for licensing auctioned spectrum. The defined geographic areas are categorized under service area tiers that are based on Statistics Canada’s Census Divisions and Subdivisions. The definition of the service areas and accompanying maps and data tables are available on Industry Canada’s website.

Tier 1 (national) and Tier 2 (generally divides along borders between provinces and territories) licences have typically been used for mobile services, whereas the smaller Tier 3 and Tier 4 have typically been used for licensing fixed services.

The Department is of the view that accommodating high-speed mobile applications operating on a wide-area basis requires large tier sizes. The propagation characteristics of the 2 GHz band are conducive to high mobility applications. Larger geographic service areas enable efficient large-scale networks due to economies of scale.

As mentioned in Section 2, MSS is currently the only technology available to enable mobile communications in a large portion of the Canadian territory that is out of reach of terrestrial networks. Additionally, existing MSS licences require the provision of service in all regions of Canada. The Department therefore proposes that a Tier 1 service area be used to license the 2 GHz band. However, this does not preclude satellite operations beyond Canada that are consistent with the associated ITU filing and with approvals received from other jurisdictions. Given that the proposed licensing approach for MSS and ATC is aligned, the service area for the ATC licence should also be Tier 1.

C-4 Industry Canada proposes a Tier 1 Service Area for the MSS and ATC spectrum licences.

Comments are being sought on this proposal. In providing responses, include supporting arguments for or against this proposal.

6.5 Conditions of Licence

In consideration of the above, Industry Canada proposes that new and amended conditions of licence for MSS and ATC spectrum licences take effect on April 1, 2015. The complete list of proposed conditions can be found in annexes A and B. The following are conditions of licence that differ from the existing conditions for assigned licences.

6.5.1 Eligibility

The ATC and MSS licensees must comply on an ongoing basis with the applicable eligibility criteria in the Radiocommunication Regulations. The ATC and MSS operator licensees are also considered to be a telecommunications common carrier, as defined in the Telecommunications Act.

On July 2010, the Telecommunications Act was amended to lift foreign investment restrictions for satellite operators. On June 29, 2012, the Telecommunications Act was further amended to lift foreign investment restrictions for telecommunications companies with annual revenues from the provision of telecommunications services in Canada that represent less than 10% of the total annual revenues from such services in Canada, as determined by the Canadian Radio-television and Telecommunications Commission (CRTC).Footnote 5 On March 12, 2014, the Radiocommunication Regulations were also amended to remove the definition of radiocommunication carriers.

6.5.2 Licence Terms

The revised Framework for Spectrum Auctions in Canada, published in March 2011, states that Industry Canada is now adopting a flexible approach in determining licence terms (up to 20 years) based on the specific spectrum being offered and subject to a public consultation preceding the specific auction or renewal process.

This decision was based on the recognition that licence terms in excess of 10 years would create greater incentive for financial institutions to invest in the telecommunications industry and for the industry itself to further invest in the development of network infrastructure, technologies and innovation.

The 2 GHz band has the potential to facilitate the offering of high-capacity broadband services to Canadians. Given that this band is also used for mobile services in the United States, there is little risk that there will be any usage changes to this spectrum in the foreseeable future. It is also unlikely that any developments in technology would result in a change to another use that is incompatible with mobile broadband.

The Department is of the view that the licence terms for MSS operations should be linked to the life of the satellite. The expected life for the EchoStar T1 satellite, the only satellite currently authorized in Canada to provide MSS in the 2 GHz band, is expected to be 20 years. Considering that the satellite was launched in 2009 and that such satellites often exceed their expected life, Industry Canada proposes that the MSS licence term in the 2 GHz band be 20 years, up to March 31, 2035. As terrestrial spectrum licences in the 2 GHz band are tied to the provision of MSS, the Department proposes the same licence term for the ATC licences.

6.5.3 Transferability

As ATC licences will be considered commercial mobile spectrum licences, the transferability and divisibility provisions outlined in Section 5.6.4 of Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, will apply to any transfers. The Department’s approach to the approval of transfers in commercial mobile spectrum licences is outlined in the Framework Relating to Transfers, Divisions and Subordinate Licensing of Spectrum Licences for Commercial Mobile Spectrum. The related conditions of licence regarding Deemed and Prospective Transfers, as defined in CPC-2-1-23, would also apply.

Further, being mindful of the impact that a change in spectrum concentration levels can have on the ability of all competitors (existing and future) to provide services, the Department proposes that the licensees not be permitted to transfer any of the spectrum to a large wireless service providerFootnote 6 for the term of the licence.

Licensees must apply to Industry Canada for the issuance of subordinate licences prior to the implementation of any spectrum sharing agreements or any other similar agreement. For further information on these requirements, refer to CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

6.5.4 Deployment of the MSS

One of the objectives of the Telecommunications Act is "to render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural areas in all regions of Canada."Footnote 7 Industry Canada has taken measures in the past to support this objective, such as imposing rollout conditions to provide services to a specific percentage of the population.

Due to the majority of the Canadian population being located in the southern region of the country and the very low population density outside main population zones, terrestrial networks currently provide service to 99% of the population, but to only 20% the geographic area.Footnote 8This leaves approximately 1% of the population and 80% of the territory with little or no option for mobile communication services. MSS is currently used to provide voice and low data rate applications, mainly in Northern regions. Satellite systems allow for a large coverage surface and require little ground installation, which is well suited for remote areas. For these reasons, the use of MSS has the potential to make mobile services accessible to 100% of the Canadian population.

ATC systems are currently limited to operating within the mobile satellite coverage and serving areas in Canada.Footnote 9 Industry Canada still believes that the deployment of a terrestrial network in this band should be tied to the offering of MSS on an ongoing basis.

To encourage the deployment of MSS throughout Canada in the near term, Industry Canada proposes to include a condition on MSS licences to ensure that MSS in the 2 GHz band is available and being offered throughout Canada within 5 years of issuance, namely, by March 31, 2020. Further renewals of these licences are contingent upon compliance with that condition of licence. Specifically, the MSS licensees should be able to demonstrate that:

  1. MSS handheld devices are being actively marketed and purchased by Canadians. These handheld devices must support voice and data transmissions;
  2. Canadians can subscribe to the MSS; and
  3. the service is operational over the entire licensed service area.

In case of an emergency leading to lack of availability of a satellite for MSS in Canada, such as a catastrophic failure of the satellite, the Department proposes to give the operator 48 months to replace the satellite in order to continue MSS operations. Back-up arrangements with foreign satellite operators could be made, with appropriate authorization. Failure to replace the satellite service within the given period could lead to a revocation of the MSS licence.

The Department also proposes a condition requiring the ATC licensee to demonstrate within a 5-year period that MSS is being offered in the 2 GHz band. Moreover, once MSS is deployed, the Department proposes a condition of licence requiring that the licensee demonstrate to the Minister of Industry on an ongoing basis that MSS in the 2 GHz band continues to be offered across the entire service area. Except in the case discussed in paragraph 63, where the EchoStar T1 (or its replacement) satellite is not operational or no longer being used to provide MSS in Canada, the ATC licensee will be required to demonstrate to the Department’s satisfaction that alternate MSS is being offered across the entire licensed area on an ongoing basis.

Reporting requirements on an annual basis are proposed to ensure that these conditions are met on an ongoing basis.

6.5.5 Deployment of the ATC Service

The objective of this condition is to ensure that the spectrum is deployed in a timely manner with similar conditions of licence to those applied to existing spectrum licences. In the AWS auction,Footnote 10 levels were set for each Tier 2 licence area based on the population of the main urban centres for that particular licence area. This same approach was used in the recent 700 MHz band auction.Footnote 11

Although only a Tier 1 licence is being proposed under this consultation, it is proposed that these same Tier 2 levels be used as deployment levels for the ATC licence (see Annex C), within 10 years of the licence issuance, namely by March 31, 2025. The deployment requirement would be assessed on a Tier 2 level consisting of 14 geographic areas. A failure to meet the deployment requirements in any of the 14 areas could lead to a revocation of the national ATC licence.

In addition, to help encourage the use of the spectrum in a timely manner, Industry Canada proposes to include a 5-year deployment requirement of 30% of the population of the Tier 1 licence area (see Annex C), to be met by March 31, 2020. This aligns with the timing of the MSS deployment requirement. Unlike the final deployment requirement, the population coverage could be achieved anywhere in the country, irrespective of the 14 geographic areas.

This two-step approach encourages deployment and allows the markets to continue to determine the best pace of deployment. This approach is also similar to that imposed by the FCC, as stated in paragraph 35.

Where a licence is transferred during the initial 10 years, the requirement for the new licensee to deploy will continue to be based on the initial licence issuance date.

6.5.6 Research and Development

Currently, MSS and many long-term licences are subject to a condition of licence which requires licensees to invest a percentage of their adjusted gross revenues in research and development (R&D). In February 2014, Industry Canada published its 2014 decision document SLPB-002-14, Decisions on Conditions of Licence Regarding Research and Development and Learning Plans, which modified the condition. Industry Canada considered that increasing the revenue level for an exemption from the R&D requirement would continue to promote R&D expenditures by companies that are well positioned to invest, while reducing the administrative burden, particularly for small and medium-sized enterprises. The proposed wording of this condition of licence reflects this recent decision.

6.5.7 Mandated Roaming

In March 2013, Industry Canada published DGSO-001-13, Revised Frameworks for Mandatory Roaming and Antenna Tower and Site Sharing, in which it indicated that all licensees in the Cellular, PCS, AWS, MBS and BRS bands would be subject to a mandatory roaming condition of licence. Under this condition, the licensee must provide roaming on all of its networks in the Cellular, PCS, AWS, MBS and BRS bands in all of its licensed service areas to any other licensee in these bands.

Industry Canada proposes to mandate roaming in the 2 GHz band in accordance with this decision and with CPC-2-0-17, Conditions of Licence for Mandatory Roaming and Antenna Tower and Site Sharing and to Prohibit Exclusive Site Arrangements.

6.5.8 Interim Site Licences and Fees

Noting that a spectrum licence fee order does not yet exist for ATC spectrum in this band, Industry Canada proposes to continue to require site-specific radio station licences and related fees prior to deployment for each installation until such time as a spectrum licence fee has been established. Once the spectrum licence fee order is in effect, the site-specific radio station licences will be cancelled.

The applicable licence fees for each site licence will continue to be based on the relevant section of the Radiocommunication Regulations. As per the existing special authorization, this fee is $232 "per channel" in the metropolitan areas and $106 "per channel" in the non-metropolitan areas.Footnote 12 In the case of 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 and be limited to a maximum of 5 MHz.

The licensee must pay the annual licence fee for each site licence before March 31 of each year for the subsequent year (April 1 to March 31).

6.5.9 Spectrum Licence Fees

The Department’s authority to set spectrum licence fees is pursuant to the powers granted to the Minister of Industry in section 19 of the Department of Industry Act. The Act states that the Department may establish fees following a public consultation. On March 31, 2004, the User Fees Act came into effect, with the aim of strengthening the elements of accountability, oversight and transparency in the management of user fee activities. The latter Act formally outlines requirements for the setting of new and amended fees.

The 2007 Spectrum Policy Framework for Canada (SPFC) states that the Department’s policy objective is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum resource. Market forces are relied upon to the maximum extent feasible to promote the efficient assignment of spectrum and to earn a fair return for the Canadian public for the privilege of access to spectrum, which is a public resource. In the context of setting of regulatory fees, this is accomplished through the establishment of fees that estimate the market value of the spectrum licences.

In 1999, the Department adopted spectrum licence fees for the MSS using spectrum above 1 GHz.Footnote 13 These fees have been applied to the existing 2 GHz MSS licences issued to Gamma Canada and TerreStar Solutions and will continue to apply to the licences issued under this process.

A separate consultation will be launched to determine the spectrum licence fees that will apply to the ATC licence issued through this process. The consultation will propose the alignment of the spectrum licence fees for ATC spectrum with the fees for spectrum licences in other commercial mobile spectrum bands.

C-5 Industry Canada proposes that spectrum licences in the 2 GHz band have a licence term of 20 years.

C-6 Industry Canada proposes that the licensees not be permitted to transfer any of the ATC spectrum to a large wireless service provider for the term of the licence. For any other transaction, the transferability and divisibility provisions outlined in Section 5.6.4 of CPC-2-1-23 will apply to any ATC spectrum transfers.

C-7 Industry Canada is proposing deployment obligations for MSS licensees, within 5 years, to ensure that MSS is available and being offered throughout Canada.

C-8 In case of an emergency leading to the lack of availability of the satellite for the provision of the MSS, Industry Canada proposes to give the satellite operator 48 months to replace the satellite in order to continue MSS operations.

C-9 Industry Canada proposes that the ATC licensee be required to demonstrate that, within 5 years, MSS is available and being offered in the Tier 1 area; this condition would apply for the term of the licence provided that the EchoStar T1 satellite or its replacement is operational.

C-10 Industry Canada is proposing deployment obligations for ATC licensees, within 5 years and 10 years, as specified in Annex C.

C-11 Industry Canada proposes that an interim site licensing procedure be used for radio stations operated by the ATC licensees until a spectrum licence fee is finalized.

Comments are being sought on these proposals and on the proposed conditions of licence in annexes A and B, as well as the deployment requirements proposed in Annex C. In providing responses, include supporting arguments for or against these proposals.

Part D — Technical Rules

7. Technical Rules for the 2 GHz Band

The Department intends to harmonize its technical rules with those of the United States to the extent feasible. Technical requirements will be identified in an applicable Standard Radio System Plan (SRSP). As well, modifications will be made to Radio Standards Specification RSS-170, Mobile Earth Stations and Ancillary Terrestrial Component Equipment Operating in the Mobile-Satellite Service Bands. Both will be done in consultation with stakeholders, including the Radio Advisory Board of Canada. A summary of the proposed technical rules can be found in Annex D.

7.1 Technical Rules Below 2020 MHz

7.1.1 Background on U.S. Technical Rules

In the AWS-4 R&O, the FCC adopted technical rules for the bands 2000-2020 MHz/ 2180-2200 MHz that largely follow Part 27 flexible use rules, which govern other commercial mobile bands. However, the FCC put technical rules in place for the sub-band 2000-2005 MHz which, in effect, limit the use of this sub-band by requiring the AWS-4 licensees to accept interference from future H block operations in the band 1995-2000 MHz and not cause interference to these operations.

The FCC acknowledged that placing the AWS-4 uplink band (2000-2020 MHz) adjacent to the Upper H block (1995-2000 MHz), which at the time was envisioned as a future downlink band, would lead to mobile-to-mobile and base-to-base interference. The FCC underscored that the public interest benefit would be best served by a fully usable downlink spectrum band at 1995-2000 MHz, as wireless service providers tend to use more downlink than uplink spectrum. As a result, the FCC required that the AWS-4 licensees manage potential interference via power and out-of-band (OOB) emission limits.

In the waiver granted to DISH,Footnote 14 the FCC laid out changes to its technical rules for both the H block and the AWS-4 spectrum that would apply if DISH uses the band 2000-2020 MHz for downlink. If the band is used for uplink, the technical rules laid out in the AWS-4 R&O and the H Block R&O would continue to apply.

7.1.2 Mobile-to-mobile Interference

If the band 2000-2020 MHz is used for uplink operations, the spectral proximity of downlink and uplink bands creates the potential for mobile-to-mobile interference. This type of interference is difficult to manage, as it is probabilistic (i.e. the likelihood of interference depends on the proximity of user terminals to one another at any given moment and the magnitude of wanted vs. unwanted signal levels). As it is not possible to enforce separation distances between mobile stations, mobile-to-mobile interference can be managed by requiring more stringent OOB emissions filtering, lower transmit power levels and/or the establishment of a guardband.

To allow for a more equitable sharing of interference management between future licensees in the PCS H block and the 2 GHz bands, Industry Canada considered relaxing both the OOB emissions and power limits on handsets operating in the 2 GHz band. Such measures would not limit the usability of the band 2000-2005 MHz for commercial mobile services.

However, adopting less stringent technical specifications in the absence of a guardband would increase the probability of mobile-to-mobile interference. Implementing a guardband in either the PCS H block or part of the 2 GHz band would reduce the amount of spectrum available for mobile broadband services, as outlined in the Commercial Mobile Spectrum Outlook.

If Canada were to adopt different technical specifications for mobile terminals operating in the 2 GHz band, a different equipment ecosystem would have to be developed for the Canadian marketplace, which could result in higher-cost and/or limited availability of terminal equipment. When implementing new radio services, Canada has often harmonized its radio equipment specifications with U.S. specifications, for both network infrastructure and handsets. Harmonizing equipment specifications allows for economies of scale and leads to lower cost equipment for Canadian consumers, facilitates cross-border coordination and supports the efficient use of the radio spectrum.

In light of the above, Industry Canada proposes to harmonize Canadian technical requirements for OOB emissions and radiated power with those mandated in the United States for uplink operations in the band 2000-2020 MHz. Doing so would ensure that Canadians have access to regionally harmonized equipment.

Industry Canada also proposes that downlink operations in the lower 2 GHz band be subject to similar technical rules as those in the United States.

7.1.3 Base-to-base Interference

The adjacency of the H block (base transmit) and 2 GHz band (base receive) also gives rise to potential base-to-base interference. This type of interference is more easily managed than mobile-to-mobile interference and can be addressed by antenna placement, additional radio frequency filtering and/or frequency separation.

As with the case of mobile-to-mobile interference, more stringent OOB emissions filtering of unwanted emissions and lower in-band transmit power levels would diminish the risk of receiver desensitization and blocking.

If the band 2000-2020 MHz is used for uplink operations, interference management between base stations can be shared between licensees in both bands. For example, adding radio frequency filtering to a base station once it has been deployed can have performance implications, such as reduced cell coverage. By requiring additional filtering for both transmitting and receiving base stations, interference management responsibilities and the resulting performance impacts would be shared by both licensees.

As this consultation addresses only the proposed rules for MSS and ATC operations in Canada in the band 2000-2020 MHz, technical specifications for H block transmitters will be laid out in a future consultation on the PCS H block. Nevertheless, if the band 2000-2020 MHz is used for uplink operations, then Industry Canada proposes that both ATC and future PCS H block licensees be required to manage base-to-base interference through mutually acceptable coordination agreements. To further address base-to-base interference, Industry Canada will also develop, in consultation with stakeholders, specific mitigation measures, such as antenna polarization and additional filtering on transmitters/receivers.

If the band 2000-2020 MHz is used for downlink operations, then the stricter power and OOB emissions that would have been required to mitigate base-to-base interference between the Upper H block and Lower MSS/ATC block would no longer be necessary.

7.1.4 Interference to MSS Operations

The spectral adjacency of the H block to MSS uplink operations at 2 GHz also gives rise to the potential for interference to MSS operations. These concerns were noted in the AWS Consultation in 2007, in which the Department designated the bands 1915-1920 MHz paired with 1995-2000 MHz for licensed PCS, but announced that they would be held in reserve until technical issues such as the potential for interference to MSS operations from operations in the band 1995-2000 MHz, are resolved.

In the United States, the FCC acknowledged the potential for interference to MSS operations at 2 GHz, but declined to adopt specific technical rules. The FCC argued that since the satellites were launched well after it initiated the first H block proceeding in 2004, they should have been designed to address this type of scenario. As a result, there should be no impact to the satellites from future operations in the Upper H block.

Industry Canada has independently assessed the potential of interference to the MSS satellites and in the Department’s view, the satellite protection criteriaFootnote 15 would not be exceeded. As a result, Industry Canada proposes that no measures be required of future PCS H block licensees to protect MSS operations in the 2 GHz band.

7.2 Technical Rules Above 2020 MHz

For the band 2180-2200 MHz, Industry Canada proposes to adopt the same equivalent isotropically radiated power (e.i.r.p.) limits for ATC base stations in the downlink band at 2180-2200 MHz, as outlined in the FCC rules. For OOB emissions above 2020 MHz, below 2180 MHz and above 2200 MHz, Industry Canada proposes to adopt the same OOB emission limits for ATC operations as specified in the FCC rules.

D-1 Industry Canada proposes to develop technical rules for the 2 GHz band, harmonizing with the U.S. rules to the extent feasible and to issue the applicable SRSP and RSS.

Comments are being sought on this proposal and the proposed technical rules in Annex D. In providing responses, include supporting arguments for or against this proposal.

8. Next Steps

Industry Canada will review the comments received and publish a decision on the questions raised in this consultation paper. Radio Systems Policy RP-023 and Radio Standard Specification RSS-170 will be modified accordingly.

9. Submitting Comments

Respondents are requested to provide their comments in electronic format (Microsoft Word or Adobe PDF) to the following email address: Spectrum.Engineering@ic.gc.ca.

In addition, respondents are asked to specify question numbers for ease of referencing.

All submissions should cite the Canada Gazette, Part I, the publication date, the title and the notice reference number (SMSE-011-14). Parties should submit their comments no later than June 23, 2014, to ensure consideration. Soon after the close of the comment period, all comments received will be posted on Industry Canada’s Spectrum Management and Telecommunications website at http://www.ic.gc.ca/spectrum.

The Department will also provide interested parties with the opportunity to reply to comments from other parties. Reply comments will be accepted until July 8, 2014.

Following the initial comment period, the Department may, at its discretion, request additional information if needed to clarify significant positions or new proposals. In such a case, the reply comment deadline would be extended.

10. Obtaining Copies

All spectrum-related documents referred to in this paper are available on the Spectrum Management and Telecommunications website at www.ic.gc.ca/spectrum.

For further information concerning the process outlined in this document or related matters, contact:

Senior Director
Spectrum Planning and Engineering
Engineering, Planning and Standards Branch
Industry Canada
300 Slater Street
Ottawa, Ontario K1A 0H5
Telephone: 613-998-4367
Fax: 613-941-1399
Email: Spectrum.Engineering@ic.gc.ca


Annex A — Proposed Conditions of Licence for Mobile-Satellite Service (MSS) Spectrum Licences

1. Licence Term

The term of this licence is 20 years. At the end of this term, the licensee will have a high expectation that a new licence will be issued for a subsequent term through a renewal process unless a breach of licence condition has occurred, a fundamental reallocation of spectrum to a new service is required, or an overriding policy need arises.

The process for issuing licences after this term and any issues relating to renewal, including the terms and conditions of the new licence, will be determined by the Minister of Industry following a public consultation.

2. Licence Fees

The licensee must pay the applicable annual licence fee on or before March 31 of each year for the subsequent year (April 1 to March 31).

3. Eligibility

The licensee must conform to eligibility criteria as set out in subsection 9(1) of the Radiocommunication Regulations.

4. Licence Transferability

This licence may not be transferred or assigned without a full review of the request by Industry Canada and is subject to the 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 licence, and also includes any change which would have a material effect on the ownership or control in fact of the licensee.

5. Compliance with Legislation, Regulations, and Other Obligations

The licensee is subject to, and must comply with the International Telecommunication Union (ITU) Radio Regulations, the Canadian Radiocommunication Act and the Radiocommunication Regulations, as amended from time to time. The licensee must use the assigned spectrum in accordance with the Canadian Table of Frequency Allocations and the spectrum policies applicable to this band, as amended from time to time. The licence is issued on condition that all representations made in relation to obtaining this licence are all true and complete in every respect.

6. Implementation of Spectrum Usage

The licensee must demonstrate to the Minister of Industry that the MSS has been deployed in Canada, within 5 years of the issuance of this licence. Specifically, the licensee must demonstrate, on an ongoing basis, that:

  1. MSS handheld devices are being actively marketed and purchased by Canadians. These handheld devices must support voice and data transmissions;
  2. Canadians can subscribe to the MSS; and
  3. the service is operational over the entire Tier 1 licensed service area within the coverage contour and service availability of the EchoStar T1 satellite.

The licensee must also notify the Department of any material changes to arrangements for providing mobile satellite services in Canada.

7. Force Majeure

In case of a force majeure leading to lack of availability of a satellite for MSS in Canada, such as a catastrophic failure of the satellite, the satellite must be replaced within 48 months in order to continue MSS operations and the provision of MSS. Back-up arrangements with foreign satellite operators may be utilized, with appropriate authorization.

8. Research and Development

The licensee 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. The licensee 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 carrier, as per subsection 35(3) of the Telecommunications Act.

9. Lawful Interception

The licensee using the spectrum for 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.

The licensee may request the Minister of Industry to forbear from enforcing certain assistance capability requirements for a limited period of time. 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(s) is (are) not reasonably achievable. Requests for forbearance must include specific details and dates indicating when compliance with the requirement(s) can be expected.

10. Subscriber Earth Station

  1. Subscriber earth stations are authorized to operate in Canada only. Any roaming into other countries must respect the licensing regimes of those countries. To ensure compliance, the licensee shall provide its subscribers with a copy of this condition.
  2. Subscriber earth stations must meet all applicable Canadian radio equipment standards and be certified for use in Canada.
  3. 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.

11. Environmental Protection of the Geostationary Orbit (satellite operator only)

  1. At the request of the Department, the licensee must provide a report on the health of the satellite.
  2. The satellite, at the end of its life, must be removed from the geostationary satellite orbit region in a manner consistent with Recommendation ITU-R S.1003-2: Environmental Protection of the Geostationary Satellite Orbit, as amended from time to time.

12. International Coordination

The satellite must be coordinated internationally prior to commencement of operation, and be notified to the ITU. To this end, the licensee must, at its own expense:

  1. participate with the Department to successfully complete the procedures of Articles 9 and 11 of the ITU Radio Regulations to coordinate and notify the 2 GHz band frequency assignments of the satellite network;
  2. provide the Department, in a form acceptable to the ITU, with any required information;
  3. be responsible for the payment of all ITU processing charges related to the submission of this information; and
  4. participate on an ongoing basis in the coordination of the satellite to protect the rights of Canada to this orbital location.

The licensee must fulfill all commitments made by Canada pursuant to all international coordination arrangements and agreements for the operation of its mobile satellite network.

13. Annual Reporting

The licensee must submit an annual report for each year of the licence term, including the following information:

  1. a statement indicating continued compliance with all licence conditions;
  2. an update on the implementation and spectrum usage within Canada, including a coverage map (satellite footprint) indicating the MSS service area and a statement indicating the number of subscribers utilizing the service within Canada;
  3. a statement indicating the annual gross operating revenues from the provision of wireless services in Canada, and, where applicable, the annual adjusted gross revenues resulting from the use of this licence, as defined in these conditions of licence;
  4. a report of the research and development expenditures for licensees whose annual gross operating revenues exceed $1 billion (the Department reserves the right to request an audited statement of research and development expenditures with an accompanying auditor’s report);
  5. supporting financial statements where a licensee is claiming an exemption based on, together with all affiliated licensees that are subject to the Research and Development condition of licence, it having less than $1 billion in annual gross operating revenues from the provision of wireless services in Canada, averaged over the term of the licence;
  6. a copy of any existing corporate annual report for the licensee’s fiscal year with respect to this authorization; and
  7. other information related to the licence as specified in any notice updating the reporting requirements as issued by Industry Canada.

All reports and statements are to be certified by an officer of the company and submitted, in electronic format (Microsoft Word or PDF), within 120 days of the licensee’s fiscal year-end, to the Manager, Satellite Authorization Policy, Engineering, Planning and Standards Branch, at satellitelicences@ic.gc.ca. Confidential information provided will be treated in accordance with subsection 20(1) of the Access to Information Act.

14. Amendments

The Minister of Industry retains the discretion to amend these terms and conditions of licence at any time.


Annex B — Proposed Conditions of Licence for the Ancillary Terrestrial Component (ATC) Spectrum Licence

1. Licence Term

The term of this licence is 20 years. At the end of this term, the licensee will have a high expectation that a new licence will be issued for a subsequent term through a renewal process unless a breach of licence condition has occurred, a fundamental reallocation of spectrum to a new service is required, or an overriding policy need arises.

The process for issuing licences after this term and any issues relating to renewal, including the terms and conditions of the new licence, will be determined by the Minister of Industry following a public consultation.

2. Licence Fees

The licensee must pay the applicable annual licence fee based on all applicable site licences or a spectrum licence fee on or before March 31 of each year for the subsequent year (April 1 to March 31).

3. Site Licences and Fees

Until a fee order is established under the Department of Industry Act, the licensee must obtain site-specific radio station licences for each installation prior to deployment. Once an applicable fee order is in effect, the site-specific radio station licences will be cancelled and the licensee will be required to pay the annual fee in accordance with Condition 2.

The applicable licence 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, as amended from time to time.

4. Eligibility

The licensee must conform to eligibility criteria as set out in subsection 9(1) of the Radiocommunication Regulations.

5. Licence Transferability and Divisibility

This licence is transferable in whole or in part (divisibility), in both bandwidth and geographic dimensions, subject to Industry Canada’s approval. A Subordinate Licence may also be issued in regard to this licence, subject to Industry Canada’s approval. However, for the duration of the licence term, this licence is not transferable to any large wireless service provider or its affiliate, agent or representative. 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 as described in the most recent annual CRTC Communications Monitoring Report.

The licensee must make the Transfer Request in writing to Industry Canada. The Transfer Request will be treated as set out in Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

The licensee must apply in writing to Industry Canada for approval prior to implementing any Deemed Transfer, which will be treated as set out in CPC-2-1-23. The implementation of a Deemed Transfer without the prior approval of Industry Canada will be considered a breach of this condition of licence.

Should the licensee enter into any Agreement that provides for a Prospective Transfer with another holder of a Licence for commercial mobile spectrum (including any Affiliate, agent or representative of the other licence holder), it must apply in writing to Industry Canada for review of the Prospective Transfer within 15 days of entering into the Agreement, which will be treated as set out in CPC-2-1-23. Should Industry Canada issue a decision indicating that the Prospective Transfer is not approved; it will be a breach of this condition of licence for a licensee to remain in an Agreement that provides for the Prospective Transfer for a period of more than 90 days from the date of the decision.

In all cases, the licensee must follow the procedures as outlined in CPC-2-1-23.

All capitalized terms have the meaning ascribed to them in CPC-2-1-23.

Upon request, the licensee must provide updated information demonstrating ongoing compliance with this condition of licence.

6. Radio Station Installations

The licensee must comply with Client Procedures Circular CPC-2-0-03, Radiocommunication and Broadcasting Antenna Systems, as amended from time to time.

7. Provision of Technical Information

When Industry Canada requests technical information on a particular station or network, the licensee must provide the information in accordance with the definitions, criteria, frequency and timelines specified in the request. For further information, refer to Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services, as amended from time to time.

8. Compliance with Legislation, Regulations and Other Obligations

The licensee is subject to, and must comply with, the Radiocommunication Act and the Radiocommunication Regulations, as amended from time to time. The licensee must use the assigned spectrum in accordance with the Canadian Table of Frequency Allocations and the spectrum policies applicable to this band, as amended from time to time. The licence is issued on condition that all representations made in relation to obtaining this licence are all true and complete in every respect.

9. Technical Considerations and International and Domestic Coordination

The licensee must comply on an ongoing basis with the technical aspects of the appropriate Radio Standards Specifications (RSS) and Standard Radio System Plans (SRSP), as amended from time to time. Where applicable, the licensee must use its best efforts to enter into mutually acceptable agreements with other parties for facilitating the reasonable and timely development of their respective systems, and to coordinate with other licensed users in Canada and internationally.

The licensee must comply with the obligations arising from current and future frequency coordination agreements established between Canada and other countries and shall be required to provide information or take actions to implement these obligations as indicated in the applicable SRSP.

The operation must not constrain the deployment of the MSS satellite networks associated with this licence.

The licensee must comply with all applicable technical and operational measures as specified in 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.

10. Lawful Interception

The licensee using the spectrum for 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.

The licensee may request the Minister of Industry to forbear from enforcing certain assistance capability requirements for a limited period of time. 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(s) is (are) not reasonably achievable. Requests for forbearance must include specific details and dates indicating when compliance with the requirement(s) can be expected.

11. Research and Development

The licensee 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 IncomeTax 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. The licensee 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 carrier, as per subsection 35(3) of the Telecommunications Act.

To facilitate compliance with this condition of licence, the licensee should consult Industry Canada’s Guidelines for Compliance with the Radio Authorization Condition of Licence Relating to Research and Development (GL-03).

12. Mandatory Antenna Tower and Site Sharing

The licensee 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.

13. Mandatory Roaming

The licensee must comply with the mandatory roaming 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.

14. Implementation of Spectrum Usage

The licensee must demonstrate to the Minister of Industry that the licensed spectrum has been put to use, in accordance with the levels set out in Annex C, within 5 and 10 years of the initial date of issuance of the licence.

15. Deployment Related to Provision of MSS

The licensee must demonstrate to the Minister of Industry, within 5 years of the issuance of this licence, that MSS is being offered in the 2 GHz band across the entire service area indicated on this licence. After MSS is available, the licensee will be required to demonstrate that MSS in the 2 GHz band continues to be offered within the licensed area on an ongoing basis.

With the exception of cases of force majeure resulting in the inability of the MSS licensee to fulfill its obligation to maintain MSS, where the EchoStar T1, or its replacement satellite is not operational or no longer being used to provide MSS in Canada, the licensee must demonstrate to the Department’s satisfaction that alternate MSS is being offered across the entire licensed area on an ongoing basis.

16. Annual Reporting

The licensee must submit an annual report for each year of the licence term, including the following information:

  1. a statement indicating continued compliance with all licence conditions;
  2. an update on the implementation and spectrum usage within the area covered by the licence;
  3. existing audited financial statements with an accompanying auditor’s report;
  4. a statement indicating the annual gross operating revenues from the provision of wireless services in Canada, and, where applicable, the annual adjusted gross revenues resulting from the use of this licence, as defined in these conditions of licence;
  5. a report of the research and development expenditures for licensees whose annual gross operating revenues exceed $1 billion (the Department reserves the right to request an audited statement of research and development expenditures with an accompanying auditor’s report);
  6. supporting financial statements where a licensee is claiming an exemption based on, together with all affiliated licensees that are subject to the Research and Development condition of licence, it having less than $1 billion in annual gross operating revenues from the provision of wireless services in Canada, averaged over the term of the licence;
  7. a copy of any existing corporate annual report for the licensee’s fiscal year with respect to this authorization;
  8. a coverage map (satellite footprint) indicating the MSS service area and a statement indicating the number of subscribers utilizing the service within the licensed area; and
  9. other information related to the licence as specified in any notice updating the reporting requirements as issued by Industry Canada.

All reports and statements are to be certified by an officer of the company and submitted in electronic format (Microsoft Word or PDF), within 120 days of the licensee’s fiscal year-end, to the Manager, Emerging Networks, Spectrum Management and Operations Branch, at spectrum.operations@ic.gc.ca. Where a licensee holds multiple licences, the reports should be broken down by service area. Confidential information provided will be treated in accordance with subsection 20(1) of the Access to Information Act.

17. Amendments

The Minister of Industry retains the discretion to amend these terms and conditions of licence at any time.


Annex C — Proposed Deployment Requirements

Five-year deployment requirement

* Based on most recent census information available at the time of assessment.

Service Area Name Minimum Population Coverage*
1-01 Canada 30%
Ten-year deployment requirement

* Based on most recent census information available at the time of assessment.

Service Area Name Minimum Population Coverage*
2-01 Newfoundland and Labrador 30%
2-02 Nova Scotia and P.E.I. 30%
2-03 New Brunswick 40%
2-04 Eastern Quebec 50%
2-05 Southern Quebec 50%
2-06 Eastern Ontario and Outaouais 50%
2-07 Northern Quebec 30%
2-08 Southern Ontario 50%
2-09 Northern Ontario 50%
2-10 Manitoba 50%
2-11 Saskatchewan 40%
2-12 Alberta 50%
2-13 British Columbia 50%
2-14 Yukon, NWT and Nunavut 20%

Technical Rules Below 2020 MHz

1. If the band 2000-2020 MHz is used for uplink operations, Industry Canada proposes that the power of emission at and below 2000 MHz be attenuated below the transmitter power (P) in watts by at least 70 + 10 log10(P) dB.

2. If the band 2000-2020 MHz is used for uplink operations, Industry Canada proposes a radiated power limit of 5 mW e.i.r.p. in the band 2000-2005 MHz and a limit of 2 W e.i.r.p. in the band 2005-2020 MHz.

3. If the band 2000-2020 MHz is used for downlink operations, Industry Canada proposes to adopt an out-of-band (OOB) emission limit of 43 + 10 log10(P) dB at the band edges 2000 MHz and 2180 MHz.

4. If the band 2000-2020 MHz is used for downlink operations, Industry Canada proposes that fixed and base stations may operate up to a maximum 1640 watts/MHz e.i.r.p. (i.e., no more than 1640 watts in any 1 MHz band segment). Fixed and base stations located outside of large or medium population centres,Footnote 16 may increase e.i.r.p. to a maximum of 3280 watts/MHz (i.e., no more than 3280 watts in any 1 MHz band segment).

5. Industry Canada proposes to allow 2 GHz licensees to exceed the limits in rules 2 and 3 above if they can arrive at private operator-to-operator agreements with licensees in the band 1995-2000 MHz. However, the power of the mobile station must not exceed 2 W e.i.r.p.

6. Industry Canada proposes that operators in the 2 GHz band and the H block be required to manage base-to-base interference through mutually acceptable agreements, if necessary.

7. Industry Canada proposes that no mitigation measures be mandated to protect MSS operations at 2 GHz from harmful interference resulting from future PCS H block operations.

Technical Rules Above 2020 MHz

8. Industry Canada proposes that in the band 2180-2200 MHz, fixed and base stations may operate up to a maximum 1640 watts/MHz e.i.r.p. (i.e., no more than 1640 watts in any 1 MHz band segment). Fixed and base stations located outside of large or medium population centres may increase their e.i.r.p. to a maximum of 3280 watts/MHz (i.e., no more than 3280 watts in any 1 MHz band segment).

9. Industry Canada proposes to adopt the OOB emission limits of 43 + 10 log10(P) used for commercial mobile applications at the band edges of 2020 MHz and 2180 MHz.

10. Industry Canada proposes to adopt OOB emission limits of –100 dBW/4 kHz at the 2200 MHz band edge.

Footnotes

Footnote 1

Industry Canada. April 2014. Canadian Table of Frequency Allocations — Provision C36
(http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/h_sf01678.html)

Return to footnote 1 referrer

Footnote 2

Federal Communications Commission. December 2012. Report and Order and Order of Proposed Modification. Paragraph 39. (http://transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0111/FCC-12-151A1.pdf)

Return to footnote 2 referrer

Footnote 3

Federal Communications Commission. December 2012. Report and Order and Order of Proposed Modification. Paragraph 44. (http://transition.fcc.gov/Daily_Releases/Daily_Business/2013/db0111/FCC-12-151A1.pdf)

Return to footnote 3 referrer

Footnote 4

Federal Communications Commission. December 20, 2013. Memorandum Opinion and Order, WT Docket No. 13-225. (http://apps.fcc.gov/ecfs/document/view?id=7520963931)

Return to footnote 4 referrer

Footnote 5

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

Return to footnote 5 referrer

Footnote 6

Large wireless service provider is defined as a company 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 as described in the annual CRTC Communications Monitoring Report. This term also includes an affiliate, agent or representative of such a company.

Return to footnote 6 referrer

Footnote 7

Canada. June 2012. Telecommunications Act. Subsection 7(b) (http://laws-lois.justice.gc.ca/eng/acts/t-3.4/).

Return to footnote 7 referrer

Footnote 8

CRTC. September 2013. Communications Monitoring Report 2013. Section 5.5. (http://www.crtc.gc.ca/eng/publications/reports/policymonitoring/2013/cmr2013.pdf)

Return to footnote 8 referrer

Footnote 9

Industry Canada. May 2004. RP-023. Page 7 — Spectrum and Licensing Policy to Permit Ancillary Terrestrial Mobile Services as Part of Mobile-Satellite Service Offerings. (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf08174.html)

Return to footnote 9 referrer

Footnote10

Industry Canada. November 2007. Policy Framework for the Auction for Spectrum Licences for Advanced Wireless Services and other Spectrum in the 2 GHz Range. Annex 2. (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf08997.html)

Return to footnote 10 referrer

Footnote 11

Industry Canada, March 2013. Licensing Framework for Mobile Broadband Services (MBS) — 700 MHz Band (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10572.html)

Return to footnote 11 referrer

Footnote 12

Canada. February 2014. Radiocommunication Regulations. Shedule III, Part V, item 1(a). (http://laws-lois.justice.gc.ca/eng/regulations/sor-96-484/index.html)

Return to footnote 12 referrer

Footnote 13

Industry Canada. July 1999. Notice No. DGRB-009-99 — Radio Authorization Fees for Mobile Satellite Services Using Radio Spectrum Above 1 GHz. (http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf01888.html)

Return to footnote 13 referrer

Footnote 14

Federal Communications Commission. December 20, 2013. Memorandum Opinion and Order, WT Docket No. 13-225. (http://apps.fcc.gov/ecfs/document/view?id=7520963931)

Return to footnote 14 referrer

Footnote 15

An I/N of –12 dB was used for the studies as per ITU-R Recommendation M.1183.

Return to footnote 15 referrer

Footnote 16

Population centres are defined in Statistics Canada Census Dictionary. A large urban population centre is defined as an area with a population of 100,000 or more and a population density of 400 persons or more per square kilometre. A medium population centre is defined as an area with a population between 30,000 and 99,999, and a population density of 400 persons or more per square kilometre.

Statistics Canada. 2012. 2011 Census Dictionary, Statistics Canada Catalogue no. 98-301-XWE, February 8. (http://www12.statcan.gc.ca/census-recensement/2011/ref/dict/geo049a-eng.cfm) Accessed September 16, 2013.

MapInfo files describing boundaries of these centres are available at: (http://spectrumgeo.ic.gc.ca/txt/download-eng.html).

Return to footnote 16 referrer

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