L9 — AWS-4 (Ancillary Terrestrial Component) Spectrum Licences

Conditions of Licence for the Ancillary Terrestrial Component (ATC) Spectrum Licence

The following conditions apply to the initial term for Ancillary Terrestrial Component (ATC) spectrum licences issued through the process outlined in SLPB-008-14 Decision on a Policy, Technical and Licensing Framework for Mobile Satellite Service and Advanced Wireless Service (AWS-4) in the Bands 2000-2020 MHz and 2180-2200 MHz.

It should be noted that this licence is subject to the relevant provisions in the Radiocommunication Act and the Radiocommunication Regulations. The Minister of Industry has the power to amend the terms and conditions of spectrum licences per paragraph 5(1)(b) of the Radiocommunication Act.

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). Site licence fees will apply until a spectrum licence fee order is in effect and a spectrum licence has been issued.

3. Site Licences and Fees

Until a spectrum licence 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 and a spectrum licence issued, 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 with regard to this licence, subject to Industry Canada's approval.

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 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.

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 action 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 SLPB-008-14, Decision on a Policy, Technical and Licensing Framework for Mobile Satellite Service and Advanced Wireless Service (AWS-4) in the Bands 2000-2020 MHz and 2180-2200 MHz (2 GHz), 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, two 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.

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 of this Framework, within five to 10 years after 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 five 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, if 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:

  • a statement indicating continued compliance with all licence conditions;
  • an update on the implementation and spectrum usage within the area covered by the licence;
  • existing audited financial statements with an accompanying auditor's report;
  • 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;
  • 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);
  • 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;
  • a copy of any existing corporate annual report for the licensee's fiscal year with respect to this authorization;
  • 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
  • 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 ic.spectrumoperations-operationsduspectre.ic@canada.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.

Last revision date: Feb 10, 2015

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