3500 MHz Transition Manual

Through the release of this transition manual (the Manual), Innovation, Science and Economic Development Canada (ISED), on behalf of the Minister of Innovation, Science and Industry (the Minister), is outlining the procedures and requirements for the process of transitioning licensees to the new 3500 MHz band plan, as announced in Canada Gazette notice SLPB-001-20, Policy and Licensing Framework for Spectrum in the 3500 MHz Band (the Framework).

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

In 2014, ISED released DGSO-007-14, Decisions Regarding Policy Changes in the 3500 MHz Band (3475-3650 MHz) and a New Licensing Process (the 2014 Decision), which included a decision to implement a fundamental reallocation of the 3475-3650 MHz band to allow flexible-use of both mobile and fixed services. The 2014 Decision also recognized the importance of fixed wireless access services for the delivery of broadband in rural areas. It determined that the future licensing framework should permit fixed-use licensees that are in compliance with existing conditions of licence to continue to provide fixed wireless access services.

Further to the 2014 Decision, SLPB-001-19, Decision on Revisions to the 3500 MHz Band to Accommodate Flexible Use and Preliminary Decisions on Changes to the 3800 MHz Band (the 2019 Decision), released in June 2019, outlined the changes to the 3500 MHz band plan to accommodate flexible-use in the band. This included the decision to add a primary mobile allocation to the 3450-3475 MHz band and remove the radiolocation allocation in the 3450-3500 MHz band. The 2019 Decision also allowed for fixed-use licensees to retain a portion of their spectrum holdings (up to 60 MHz) to continue providing services.

Figure 1 below illustrates the new 3500 MHz band plan composed of 20 unpaired blocks of 10 MHz.

Figure 1: New band plan for the 3500 MHz band

The 2019 Decision also introduced a high-level transition plan that addressed two objectives: i) providing timely access to flexible-use spectrum to facilitate the introduction of 5G technologies for Canadians; and ii) accommodating the continued provision of fixed wireless broadband services to Canadians who rely on them. The transition plan applies to all new and existing fixed-use licensees in the 3450-3650 MHz band and is based on a "where and when necessary" principle that allows fixed-use licensees to continue operating where such operation does not prevent deployment by flexible-use licensees.

Subsequent to the 2019 Decision, ISED released the Framework in March 2020, which outlined a broad overview of a transition plan, stating that displacements will occur on a Tier 5 basis and according to the original fixed-use 25 MHz blocks. This decision was made in order to adhere to the "where and when necessary" principle, to maximize efficiency, and to provide a level of clarity and predictability for existing licensees and new licensees on the parameters for the transition and displacement processes.

The Framework committed to publishing specific procedures and requirements for the transition process in a future public release. As such, this document, henceforth referred to as "the Manual," provides further details on the transition process as outlined in section 4 below. Dates for major milestones leading up to the auction process, and post-auction steps for finalizing the auction process can be found in the Table of Key Dates as published in the Framework.

This Manual details the transition process from the previous fixed-use band plan to the new flexible-use band plan to ensure a smooth transition. As stated in the Framework, the transition process will progress across Tier 4 licence areas using a model based on the Tier 5 areas located within the Tier 4 areas. fixed-use licensees will be permitted to continue operations within each Tier 5 area until they decide to initiate a transition to the new band plan or until the end of the relevant protection period after a displacement letter is issued by ISED. Generally, when a fixed-use licensee first has a Tier 5 transition within a Tier 4, it will receive a single flexible-use licence for the Tier 4 area, the Tier 5 fixed-use licence will be cancelled, and its remaining Tier 5 fixed-use licences will be cancelled as the licensee expands its flexible-use services to other areas of the Tier 4. Grid cell and partial tier licensees will follow the same approach, albeit with partial tier areas.

Note that in order to preserve the integrity of the auction process, any communications from an applicant, its affiliates, associates or beneficial owners or their representatives that discloses or comments on bidding strategies, including but not limited to the intent of bidding and post-auction market structures, shall be considered contrary to the licensing framework and may result in disqualification and/or forfeiture penalties. Statements that indicate national or particular licence areas of interest will generally be found to be in contravention of the rules on prohibition of collusion. This will include communications with or via the media. This prohibition of communication applies until the public announcement of provisional licence winners by ISED.

After the conclusion of the auction, once final payment has been received and licences for the auction winners are being issued, fixed-use licensees will have their Tier 4 fixed-use licences converted into Tier 5 fixed-use licences for the same areas and amount of spectrum as their fixed-use licences. It is expected that this conversion will have little impact on licensees and existing coordination arrangements. See section 5 for details. While auctioned licences will be issued once final payments are received (see the Table of Key Dates), fixed-use licensees will not receive flexible-use licences for eligible fixed-use holdings until the date that they transition in accordance with this Manual. See section 7 for details.

At the conclusion of the auction, licensees will be able to submit requests to displace fixed-use licensees in large population centre+10 km buffer areas (hereinafter referred to as "large population centres" unless stated otherwise), with requests for displacements in other areas being possible later on in the process. See section 6 for details. To communicate deployment plans and start the displacement process, an applicant will be required to submit a Transition Application Form, which includes a commitment to installing flexible-use base stations in the Tier 5 areas to be served. See section 10 for details on the transition application process, timelines and submission requirements.

As laid out in the Framework, fixed-use licensees are protected from being displaced for certain periods of time. Flexible-use licensees are not permitted to begin operation on the new band plan in an area with existing fixed-use licensees until the relevant protection and notification periods have elapsed. However, voluntary agreements may be created between licensees to transition early and submitted to ISED for review. In such cases, licensees will not be constrained by the scheduled application timelines or protection and notification periods. See section 8.1 for details on voluntary agreements for early deployment. A flexible-use licensee that holds no fixed-use licences in an area can deploy immediately, without application to ISED, provided that the frequency blocks being deployed to have no existing fixed-use licensees anywhere in the Tier 4 area.

Once ISED approves a transition application, the applying licensee will receive a confirmation letter and affected fixed-use licensees will be notified of displacement; the respective Tier 5 area(s) will then be considered to be "in transition." The beginning of flexible-use operations and the cessation of fixed-use operations will be coordinated to occur on the same day, called the "coordinated system changeover date." Until all Tier 5 areas within a Tier 4 have completed the transition process, licensees must follow the co-existence rules as set out in section 9 of this Manual. ISED encourages voluntary agreements between licensees and will only allow deviation from the co-existence rules when such agreements for co-existence are in place. See section 8.2 for details on voluntary agreements that allow deviation from co-existence rules.

Any licence that is not a complete Tier 4 or Tier 5 area (namely those referred to in previous decisions as existing grid cells, protected grid cells, and partial tier licences) will be referred to as "grid cell and partial tier licences." Licensees holding fixed-use grid cell and partial tier licences will follow a similar but slightly different approach as detailed throughout the Manual.

Section 11 includes a hypothetical transition scenario that will demonstrate the transition concepts.

All licensees, fixed-use and flexible-use, are required to provide ISED with two points of contact in order to facilitate coordination of the transition process and potential displacement of fixed-use systems. Licensees must also provide a "stop name/number" that consists of a contact name and number of a person who can be reached 24 hours a day, 7 days a week, to immediately cease transmission if necessary. Contact information is to be sent via email to ic.3500mhzspectrumoperations-operationsduspectrede3500mhz.ic@canada.ca by the date indicated in the Table of Key Dates. Any modification to this contact information in the future must be provided to ISED as soon as it is known.

Figure 2 illustrates the transition process following the auction. Responsibilities of licensees and durations of each stage will vary depending on the geography, type of licensee, and any voluntary agreements that are established.

Figure 2: Transition process flow

As outlined in the Framework, ISED will convert Tier 4 fixed-use licences to Tier 5 fixed-use licences shortly after the auction has concluded. On the same day that auctioned licences are being issued, fixed-use licensees will automatically be issued new sets of Tier 5 licences based on their respective current licences and ISED will cancel the previous Tier 4 fixed-use licences at the same time. Annex G lists the Tier 5 areas that correspond with each Tier 4 area.

If a licence does not convert precisely to full Tier 5 licences (i.e. grid cell and partial tier licences), the new licence(s) will be defined as a subdivision of the applicable Tier 5 area. Furthermore, licensees with grid cell and partial tier licences that cross Tier 5 boundaries will receive multiple licences to cover their original licence area (see figure 3). The area numbering scheme will be similar to that traditionally used: a subdivision of a Tier 5 will have an associated sub-tier number added to the end of the area number. For example, a portion of a licensee's grid cell or partial tier licence that is contained within Tier 5-123 would get an area number such as 5-123-001. If another licensee has a portion of its licence in the same tier, it would be numbered 5-123-002, and so on. Annex H lists the post-conversion area numbers for grid cell and partial tier licensees.

Figure 3: Example of grid cell/partial tier licences after conversion to Tier 5 licences

Unless a licensee is contacted by ISED, the conversion process will occur automatically and will not require input from the licensee. Similarly, where there is an existing subordinate licence, ISED will automatically convert subordinate licences in all of the relevant Tier 5 areas.

Fixed-use licensees, including subordinate licensees, may continue to operate after conversion under their newly converted licences in the same geographic areas until those licences are subject to transition as described in section 6. Tier 5 licences and subordinate licences after conversion will be subject to annual expiry and renewal in the same manner as the current Tier 4 licences. Those wishing to renew subordinate licences will be required to file an extension request with ISED in the usual manner, as part of the annual renewal process. Fixed-use licences are eligible to be renewed but will be subject to any future consultation over their terms and conditions and renewal conditions.

Whether a current fixed-use licensee has a full tier, grid cell, or partial tier licence, provided that no Tier 5 licences are revoked or transferred prior to obtaining a flexible-use licence for the area, the flexible-use licence they will receive upon transition will cover their same original licence area that was in place prior to the conversion to the Tier 5 model. Where a licensee maintains all of the Tier 5 licences within a Tier 4 area, that licensee will be issued a flexible-use Tier 4 licence upon transition.

5.1 Tier 5 fixed-use licence conditions

As stated in the Framework, Tier 5 fixed-use licences issued through the conversion process will have similar conditions of licence as the Tier 4 fixed-use licences, but with certain differences in the deployment requirements to take into account the change in tier size and the processes set out in this Manual.

For Tier 5 licences, the reference to the minimum population percentage of coverage for the Tier 4 areas has been removed. The condition now requires that the licensee deploy the system(s) and provide coverage within the Tier 5 area in accordance with the level of deployment on March 31, 2021, and maintain such coverage throughout any subsequent licence terms. This applies to partial tier area fixed-use licensees as well. Expansion of service will be allowed; however, offering less service will be considered a breach of the licence conditions and may result in a revocation of licence. Notwithstanding the above, a reduction of service may be required and may be acceptable where co-existence rules (see section 9) require the fixed-use licensee to reduce its coverage. In rare cases where deployment decreases through no fault of the licensee, the licensee may apply to ISED for consideration and these situations will be treated on a case-by-case basis.

Conditions of licence for the forthcoming Tier 5 fixed wireless access spectrum licences can be found in annex B.

5.2 Transfers of Tier 5 licences

Although the transferability and divisibility condition remains the same, some special procedures and requirements will apply to applications for transfer and divisibility.

Note that transfer applications involving Tier 5 fixed-use licences before a Tier 4 flexible-use licence has been issued will be treated differently than requests to transfer Tier 5 licences after a Tier 4 flexible-use licence has been issued in the relevant Tier 4 area.

Before the issuance of a Tier 4 flexible-use licence, each individual Tier 5 licence area may be treated as having eligibility for conversion of licences in that Tier 5 area similar to the MHz of eligibility in the Tier 4 area. However, once the Tier 4 flexible-use licence is issued, the "eligibility" has been exercised. Although licensees will be able to continue to operate fixed-use services through the remaining Tier 5 licences in the areas within the Tier 4 area that were not required to be transitioned, individual Tier 5 licences would have no remaining flexible-use eligibility that could be transferred.

Prior to the issuance of a flexible-use licence

Licensees have the option of requesting that all or only certain Tier 5 licences within the Tier 4 area be transferred. As noted above, before the issuance of a Tier 4 flexible-use licence, each individual Tier 5 licence area may be treated as having eligibility for conversion of licences in that Tier 5 area similar to the MHz of eligibility in the Tier 4 area as set out in the 2019 Decision. For example, if a licensee was entitled to 60 MHz of flexible-use spectrum under the Tier 4 licence, it would similarly be entitled to 60 MHz of flexible-use spectrum under each Tier 5 licence. Therefore, ISED will treat requests to transfer Tier 5 licences in a similar fashion, as follows:

• Where all of a licensee's existing fixed-use licences are transferred in a given Tier 5 area, the entire eligibility to request flexible-use licences in that area through the transition process will also be transferred. However, where a transfer request involves a portion of a licensee's fixed-use holdings in a given Tier 5 area, the transfer applicant(s) will be required to stipulate the portion of the future flexible-use spectrum eligibility that will be available to each transfer applicant through the transition process. In the case of a division of the eligibility for a flexible-use licence through a transfer request, the future flexible-use licences will be treated as distinct licences. The stipulated amounts of flexible-use licences will be applied at the time of the transition process.
• To ensure an efficient process, flexible-use entitlement must be transferred in 10 MHz blocks, with a minimum of one block of flexible-use entitlement being transferred.
• In such a transfer, the existing Tier 5 licensee cannot retain more MHz of flexible-use eligibility than the amount of MHz in the fixed-use licences that it retains, nor can it transfer more MHz of eligibility than the amount of MHz of fixed-use spectrum that it transfers.
• If a Tier 5 licence is left with no eligibility for flexible-use spectrum after a requested transfer, that licence will be cancelled after the transfer, subject to any provisions in this Manual.

After the issuance of a flexible-use licence

Once an operator is issued a flexible-use licence that covers the relevant Tier 4 area (or grid cell/partial tier area):

• In Tier 5 areas within the Tier 4 where transition is complete, the Tier 5 fixed-use licence will be cancelled, and the current licensee will only be able to operate under the new flexible-use licence.
• In Tier 5 areas within the Tier 4 that have not been transitioned, the licensee will hold both the Tier 5 licences and the underlying Tier 4 flexible-use licence in the same geographic Tier 5 area. Until those Tier 5 areas are transitioned to flexible use, a licensee can only operate in those areas under the Tier 5 licences. If the licensee wishes to operate under the flexible-use licence, it may trigger transition in the relevant Tier 5 areas, or it may continue operating in the Tier 5 areas under its fixed-use licences until transition is effected in the Tier 5 areas.

ISED notes that once the Tier 4 flexible-use licence has been issued, the flexible-use licence eligibility related to the Tier 5 licences in the entire Tier 4 area will be exhausted.

After the issuance of a flexible-use licence and before the transition of the entire Tier 4 area, there will be some special rules regarding transfers of licence holdings. During this period of time, ISED will only allow transfers of licences where the whole amount of Tier 5 fixed-use and flexible-use licence holdings of a licensee within the Tier 4 are transferred together, with two exceptions:

1. Applications for subordinate licences may still be made in respect of the Tier 5 licences or the Tier 4 flexible-use licences in areas that have been transitioned.
2. ISED will entertain an application for geographical division of licence holdings in the Tier 4 area and a subsequent transfer, provided that in each new geographic area the whole amount of Tier 5 fixed-use and flexible-use licence holdings of a licensee within the Tier 4 will be part of any division and subsequent transfer. After an approved division, the holdings of the licensee will be treated like two grid cells and the rule that ISED will only allow transfers of licences where the whole amount of Tier 5 fixed-use and flexible-use licence holdings of a licensee must be transferred together will apply. ISED will consider issues relating to the transition process in making a decision regarding a request to geographically divide a licence and asks that such requests align with Tier 5 boundary lines. ISED will not entertain requests to divide licences by frequency during this period of time.

Note that after any transfer, the Tier 4 flexible-use deployment requirements (and other licensee obligations) will remain the same and the milestones will continue to be based on the original Tier 4 flexible-use licence issuance date.

In all cases (both before and after the issuance of a flexible-use licence)

• ISED recommends that any transfers be requested far in advance of any coordinated system changeover dates due to processing time required by ISED.
• To reduce the complexity of the transition process, during the intentions stage of the recurring 6-month regular process (see section 10), transfers for transitioning areas will not be accepted or processed until ISED has determined any cascade effects and has shared the final results of the intentions stage.
• Also to reduce the complexity of the transition process, prior to the completion of the transition from fixed-use to flexible-use in a Tier 4 area, ISED requests that transfer requests follow Tier 5 boundary lines; however, exceptions to this may be considered.
• In the case where a licensee applies to transfer a Tier 5 area where there is no current deployment, ISED will require the new licensee to deploy fixed-use services and will review the deployment plans as part of the transfer.
• Both Tier 5 fixed-use and Tier 4 flexible-use licensees must follow the procedures as outlined in Client Procedures Circular CPC-2-1-23, Licensing Procedure for Spectrum Licences for Terrestrial Services. Additionally, any transfer requests will be considered a transfer of commercial mobile spectrum and assessed according to section 5.6.4 of that CPC.

Any transferred licence is subject to all of the relevant conditions of licence, subject to the transition process, and subject to any representations/deployment promises made to ISED during the transition, as well as to fulfilling any directions or requests from ISED under this process.

A licensee that has either won spectrum in the auction or is an existing fixed-use licensee, can trigger a transition of fixed-use to flexible-use operation in a given Tier 5 area by submitting a transition application. Displacements will occur based on the original fixed-use 25 MHz blocks. Consequently, all licensees operating in the affected 25 MHz block will be displaced across the entire Tier 5 area.

Flexible-use frequency assignments may result in the displacement of the fixed-use licensee currently on that frequency, which in turn may affect another licensee on the displaced licensee's destination frequency. This sequential displacement of fixed-use licensees is referred to as the "cascade effect."

Those wanting to deploy on a flexible-use licence must submit a transition application and wait for the coordinated system changeover date before beginning to operate on the new band plan. The changeover date and the Tier 5 areas that were requested for transition under the flexible-use licence will be specified in the confirmation letter that will be sent to the applicant licensee following the approval of the transition application. This document is required in addition to the Tier 4 flexible-use licence in order to commence operations for the specified Tier 5 area(s).

In the rare situation where licensees are not required to submit a transition application prior to deployment, ISED will issue confirmation letters for the corresponding Tier 5 areas along with the issuance of the flexible-use licence. This only occurs in a very specific scenario where there is a frequency block that has no fixed-use licensees (including the deploying licensee itself) across an entire Tier 4 area, and the licensee that wishes to deploy has no fixed-use holdings within the Tier 5 on any other blocks.

Displaced licensees will have their Tier 5 fixed-use licences cancelled and will be required to cease fixed-use operations in the Tier 5 on the coordinated system changeover date. If the affected Tier 5 area is the first area for the fixed-use licensee to be transitioning or displaced within the Tier 4, it will receive the Tier 4 flexible-use licence on the coordinated system changeover date. However, in order to operate on the flexible-use licence, the displaced licensee must still submit a transition application. The displaced licensee will be given an opportunity to submit an application when it is informed of its impending displacement. To better coordinate potential cascade effects, displacements and transitions will follow a scheduled process (see section 10).

As part of the process, ISED will compile a list of the Tier 5 areas that licensees intend to transition, determine which licensees will be affected by a cascade, and request transition applications from both the licensees that initiated a transition and those licensees that are being displaced. Once applications have been reviewed and approved by ISED, licensees being displaced will be issued displacement letters and informed of the coordinated system changeover date, which will specify when the licensees are required to transition to their flexible-use frequency blocks and cease fixed-use operations in the area. The coordinated system changeover date may be proposed by licensees when creating a voluntary agreement for early deployment or will be set according to the scheduled transition application process (see section 10).

Multiple licensees may not operate flexible-use and fixed-use services in the same geographic area (within the same Tier 5 area) on the same frequency ("co-channel"), either as a primary licensee or through subordination, except for a short time during the transition period in a Tier 5 that contains both a 6-month and a 2-year protection period (see section 9). However, in rare cases, ISED may consider exceptions to ensure continued operations of fixed-use licensees in extremely remote areas.

6.1 Protection and notification periods

The 2019 Decision included minimum protection and notification periods to accommodate the continued provision of fixed wireless broadband services to Canadians who rely on them. Figure 4 below illustrates the notification and protection periods that correspond to different service areas. These periods apply to licensees holding either full tier or grid cell and partial tier licences.

Figure 4: Minimum protection and notification periods

• In scenario 1, fixed-use licensees in large urban population centres will be entitled to at least 6 months of protection from the initial licence issuance date but could be notified immediately that they are required to transition within 6 months.
• In scenario 2, fixed-use licensees in tiers with a population centre of 30,000 people or more would be protected for a minimum of 2 years from the initial licence issuance date and entitled to at least 1 year's notice before being required to transition.
• In scenario 3, fixed-use licensees in tiers without a population centre of at least 30,000 people would be protected for a minimum of 3 years from the initial licence issuance date and entitled to at least 1 year's notice before being required to transition.

Fixed-use licensees are protected from having to transition during the protection period that applies in their given Tier 5. As noted in figure 4, all protection periods will begin on the initial licence issuance date following the auction. However, notification requirements will continue to apply for new transitions after protection periods have ended.

As outlined above, to inform fixed-use licensees that they will be required to cease fixed-use operations in an area due to an approved transition application from another licensee, ISED will send affected licensees a displacement letter. Displacement letters will identify:

• the Tier 5 area being transitioned
• the coordinated system changeover date
• the new frequency assigned to the licensee (as determined by the auction assignment round)
• co-existence rules that apply to the licensee during the transition (see section 9)
• changes to the conditions of licence, if any
• the protection/notification periods applicable to each party
• any required actions by the fixed-use licence holder

For Tier 5 areas that have dual protection period zones, due to either Scenario 2 or Scenario 3 in section 9, the areas will be numbered and the displacement letter will indicate the coordinated system changeover date for each area.

Once displacement letters have been sent for a Tier 5 area, notification is considered complete for that area; any new fixed-use sites built in that Tier 5 area prior to the coordinated system changeover date must still be transitioned on the changeover date and will not receive any additional notification time.

At the same time, ISED will notify fixed-use licensees in other Tier 5 areas within the Tier 4 of the upcoming transition. These are adjacent tiers, being defined as any Tier 5 area with a fixed-use licensee outside the transitioning Tier 5 area but within the same Tier 4 area. These licensees may be required to follow co-existence rules as outlined in section 9. The adjacent tier notification will identify:

• the Tier 5 area that is transitioning
• the frequency blocks being transitioned
• co-existence rules that apply to the licensee during and following the transition
• changes to the conditions of licence, if any
• the protection/notification periods applicable to each party
• any required actions by the fixed-use licence holder

Minimum notification periods must be respected, unless there is a voluntary agreement between all the parties that are potentially affected within the transitioning Tier 5 area(s). Voluntary agreements may also be developed between the fixed-use licensees in adjacent Tier 5 areas and the transitioning flexible-use licensees to deviate from the co-existence rules at the Tier 5 boundaries. See section 8 for details on voluntary agreements.

In the absence of a voluntary agreement for early deployment, flexible-use licensees are not permitted to begin operation in areas that have fixed-use licensees until the coordinated system changeover date as discussed above.

Licensees should not submit requests to transition areas that cannot be transitioned until many years in the future. ISED requests that applicants follow the scheduled process and timelines described in section 10. Applications should be submitted in the round of the scheduled transition application process that corresponds to the appropriate notification period. For example, if a Tier 5 has a 3-year protection period, licensees should apply in the round that will lead to notifications being sent at the 2-year mark. If applications are submitted before the recommended round, those applicants will be required to reconfirm the validity of their application during the recommended round and, if any information has changed, to resubmit a new application.

Voluntary agreement submissions are not restricted by the scheduled process. ISED will endeavour to process transition applications under a voluntary agreement in an expedient manner.

The entitlement to Tier 4 flexible-use spectrum is based on fixed-use licence holdings as set out in the 2019 Decision, but may change if there is a change in the amount of fixed-use spectrum after the auction has been completed and before the Tier 4 flexible-use licence is granted. For instance:

• If a licensee transfers a portion of its fixed-use spectrum holdings away, as set out in section 5, it will be entitled to a correspondingly lower amount of flexible-use spectrum as specified in the transfer, and may be required to become a grid cell or partial tier licensee when its transition to flexible-use occurs.
• If a Tier 5 licence is revoked or a licensee voluntarily returns a licence, the licensee will forfeit the entitlement to flexible-use spectrum in the relevant area and will become a grid cell or partial tier licensee when its flexible-use licence is issued.

ISED will issue flexible-use licences following the auction, with timelines depending on whether the licensee:

• acquires the licence through a winning bid in the auction
• holds a fixed-use licence and requests to transition
• holds a fixed-use licence and is displaced

7.1 Auctioned licences

As per the Table of Key Dates, ISED will issue licences to auction winners as early as 45 business days after the publication of provisional licence winners, once final payment has been received.

If an auction winner has fixed-use holdings that are eligible for flexible-use licences, the flexible-use licences for those holdings will only be issued at the time of the coordinated system changeover date when the first transition occurs within the Tier 4, either by the licensee initiating the transition or by being displaced. If the auction winner is assigned spectrum in the same frequency as its existing fixed-use spectrum, it would not have to wait until the end of the protection period before sending a transition application to ISED for the area.

In addition, as the assignment round of the auction does not differentiate between licences won at auction or those to be transitioned, current licensees and provisional licence winners in this case will be given the opportunity to select which frequencies will be issued as won at auction or as licences to be transitioned. ISED will send out a letter to provisional licence winners and those that have licences that are eligible to be transitioned after the Minister’s announcement of provisional licence winners. The letter will note where current licensees/provisional licence winners can differentiate between licences won at auction and those to be transitioned as well as the process to indicate the differentiation to ISED. To ensure licences are issued in a timely manner, ISED will require a reply within 5 business days of receipt of the letter. In cases where a reply is not submitted to ISED, ISED will assign which licences are auctioned and which are eligible for transition.

Further, as noted in the decision D7 of the Framework, ISED will provide contiguous spectrum for grid cell and partial tier licensees where possible. However, it may not be possible to provide contiguous spectrum for grid cell or partial tier licensees if the corresponding encumbered Tier 4 licence/subdivided licence is assigned to two or more licensees that do not hold adjacent spectrum at the conclusion of the assignment round. ISED will protect the contiguity of the grid cell or partial tier licensee where encompassing licensees hold adjacent spectrum at the conclusion of the assignment round if it is able to do so.

If a new Tier 4 provisional licence winner or current licensee obtains more blocks than those that encompass any grid cell or partial tier licences, it will be able to choose which of its assigned frequencies will contain the grid cell or partial tier licences, and which of its frequencies will be unencumbered. In these cases, ISED will request that the current licensee/provisional licence winner of a partial tier or encumbered Tier 4 licence indicate which of its frequency blocks will be encumbered following the auction, after the Minister’s announcement of provisional licence winners. However, the current Tier 4 licensee/provisional licence winner will be required by ISED to maximize the continuity of the grid cell or partial tier licensee within its frequency assignments. Affected licensees/provisional winners will be able to indicate their choices in their response to the letter noted above, which will be sent after the Minister’s announcement of provisional auction winners. ISED will require a reply within 5 business days of receipt of the letter. In cases where a reply is not submitted to ISED, ISED will assign which licences are encumbered. ISED will inform the grid cell or partial tier licensee of its new frequency assignments.

7.2 Fixed-use licensees request to transition

Fixed-use licensees may submit an application as part of the process to transition to a flexible-use licence (this is considered the "initiation of transition"). ISED will review the transition application during the scheduled process and send appropriate notifications and confirmations as described in section 4.

If a fixed-use licensee is able to transition without affecting any other licensees, it has the option to transition early (i.e. before the end of the protection and notification periods). In this case, it may submit a transition application outside of the scheduled process (see section 8.1 for voluntary agreements for early deployment).

If the request to transition is approved, ISED will cancel the licensee's affected Tier 5 fixed-use licences on the coordinated system changeover date and issue a Tier 4 flexible-use licence (if this is the first transition in the Tier 4 area) along with a confirmation letter allowing operation in the approved Tier 5 area.

7.3 Fixed-use licensees are displaced

As described in section 6, a fixed-use licensee will be notified of a displacement via a displacement letter. If it is the licensee's first displacement in the Tier 4, it will be issued a single flexible-use licence corresponding to its entitlements within the Tier 4, provided that all of its licences within the Tier 4 are in good standing. ISED will issue the flexible-use licences at the time of the coordinated system changeover date for all affected licensees in the transitioning area(s). At the same time, all fixed-use licences for the transitioning Tier 5 area(s) and licensees will be cancelled.

7.4 Incremental transition for fixed-use licensees

Licensees will retain their Tier 5 (or grid cell/partial tier) fixed-use licences and will be permitted to operate fixed-use services in any Tier 5 areas that have not transitioned. However, as described in section 9, they will be required to abide by the co-existence rules for fixed-use licensees that are adjacent to transitioned flexible-use Tier 5 areas.

In the future, if licensees have already obtained their Tier 4 flexible-use licences and choose to expand their flexible-use operations to the un-transitioned Tier 5 areas within the Tier 4, they must submit a transition application.

Note that the full deployment requirements of the Tier 4 flexible-use (or grid cell/partial tier) licence apply whether the licensee has been displaced from all of its fixed-use areas or only a small number of areas within the Tier 4. It is the responsibility of the licensee to determine if and when it may have to initiate the transition of any remaining fixed-use areas in order to reach the deployment requirements of the flexible-use licence.

Regarding the timing of deployment requirements, all flexible-use licences are created on the initial licence issuance date and deployment requirements for all licensees begin at this time. However, as per the Framework, if a licensee receives its flexible-use licence later in the licence term due to the transition process, it may not have to report deployment for each deployment milestone. For example, if a licensee has the general deployment requirement milestones of 5/10/20 years, when receiving its flexible-use licence at year 6, it would not have to meet the 5-year or 10-year deployment milestones, but would be required to meet the 20-year requirement. Also, due to flexible-use deployment requirements beginning on the initial licence issuance date, any licensee that has not transitioned by the end of the licence term will have no flexible-use deployment in the Tier 4 and may be subject to revocation of its flexible-use licence.

7.5 Developmental licences

Licensees may request developmental licences if they require the ability to test on the new band plan in advance of the system changeover. Such developmental licences will be issued on a "no-interference, no-protection" basis, will be time limited, and will be subject to additional restrictions in order to ensure uninterrupted operation of fixed-use licensees. As such, testing flexible-use operations under the developmental licence will require consultation with fixed-use licensees. Licensees must provide a "stop name/number" that consists of a contact name and number of a person who can be reached 24 hours a day, 7 days a week, to immediately cease transmission and terminate testing if necessary.

Applications for developmental licences may be requested at any time by submitting an application through the Developmental Licence Playbook online resource.

Flexible-use licensees must always respect the protection periods and notification provisions set out in the 2019 Decision unless there are no fixed-use licensees in the area (as noted in section 6) or a voluntary agreement has been reached between all affected licensees. ISED encourages licensees to use such agreements as they provide an opportunity to establish mutually agreeable timelines and foster good working relationships between licensees, thereby facilitating the transition process.

ISED will support two types of voluntary agreements:

1. Agreements for early deployment, which allow new licensees to deploy earlier than the mandatory protection and notification periods.
2. Agreements to deviate from co-existence rules, which allow licensees to deviate from the technical co-existence requirements at boundaries between transitioning and adjacent licensees.

Since displacements will occur on a Tier 5 basis, voluntary agreements must encompass all sites and licensees in the Tier 5 areas that are affected by the agreement. The parties involved depend on the type of voluntary agreement that is established, as described in this section.

As stated in the Framework, communication regarding potential voluntary agreements that involve one or more potential bidders in the auction is not permitted at any time prior to the announcement of the provisional auction winners by ISED.

8.1 Agreements for early deployment

Agreements for early deployment allow flexible-use licensees to operate their systems before the protection and notification periods end.

In early deployment situations, flexible-use licensees must consult all fixed-use licensees on affected blocks in the Tier 5 area. Once all affected parties come to an agreement, all will submit their transition applications for review (unless one of the licensees in the cascade is choosing not to transition and returns its fixed-use licence to ISED), with one of the licensees also submitting an early deployment request to ISED for its approval. All such requests must include a Voluntary Agreement Form, which includes an attestation that all affected licensees are in agreement (see annex D for a sample of the type of information that is required). If the flexible-use licensee is the only affected licensee in the transitioning Tier 5 area, it can indicate a request for early deployment in the transition application.

If the early deployment and all transition applications are approved, ISED will send confirmation letters to the licensees, allowing operation in the affected area on the coordinated system changeover date. As stated in the Framework, ISED will post decisions on voluntary agreements for early deployment via its online resource for the 3500 MHz transition. The licensee must still comply with all protection/notification periods and co-existence rules that protect licensees in adjacent Tier 5 areas that are not part of the agreement.

8.2 Agreements to deviate from co-existence rules

Adjacent Tier 5 areas may have different protection and notification periods. Section 9 provides a set of "co-existence rules" that must be followed by licensees operating within the Tier 4 area.

However, licensees may coordinate voluntarily to deviate from the co-existence rules to establish mutually agreeable timelines and network adjustments, thereby facilitating the transition process. This type of agreement must include all co-channel licensees within the Tier 4 area and can only include deviations that pertain to the co-existence rules listed in this Manual; all technical requirements outlined in pertinent Radio Standards Specifications (RSS) and Standard Radio System Plans (SRSP) (including SRSP-303.4, Technical Requirements for Fixed Wireless Access Systems Operating in the Band 3475-3650 MHz, issue 3, and SRSP-520, Technical Requirements for Fixed and/or Mobile Systems, Including Flexible Use Broadband Systems, in the Band 3450-3650 MHz) must still be respected at all times.

All documentation pertaining to the voluntary agreement for deviation from co-existence rules must be kept by the participating licensees for the duration of the agreement, as ISED may request the information if an issue is identified. In addition, any network changes due to voluntary agreements must be reflected in the site upload database as quickly as possible.

Disputes must be resolved by the licensees themselves, and if resolution is not possible, the affected parties must revert to the co-existence rules communicated in this Manual.

As the transition progresses from fixed-use to flexible-use operations in Tier 5 increments, scenarios will exist where transitioning Tier 5 areas will be adjacent to other areas that have not been triggered for a transition or have notification time remaining. In these situations, there will be a need to manage interference across the large population centre or Tier 5 area boundaries. ISED encourages licensees to establish voluntary agreements between adjacent Tier 5 areas during the transition process. In the absence of such voluntary agreements, however, the following principles (as stated in the Framework) will apply:

• Once a large population centre plus the 10 km buffer has had its transition initiated, fixed-use licensees in adjacent areas may be required to adjust their network to not cause harmful interference to the flexible-use licensee; this can occur as early as 6 months after auctioned licences are issued.
• Prior to the end of the 2-year protection period, flexible-use deployments within the large population centre may not interfere with fixed-use licensees operating outside the 10 km buffer area. After the end of the 2-year protection period, fixed-use licensees outside the large population centre buffer area cannot claim protection from flexible-use licensees.
• In all other cases, fixed-use licensees will not be required to modify their network prior to the end of their protection period, with flexible-use licensees being required to adjust accordingly. After the relevant period has concluded, fixed-use licensees will not be permitted to cause interference into adjacent areas, and cannot claim protection from flexible-use licensees. Beyond the protection period, adjacent fixed-use licensees may choose to transition as a result of interference from adjacent flexible-use licence areas or may choose to accept the interference on their fixed-use deployments, as long as they are not causing any interference to flexible-use systems.
• All scenarios described above where a fixed-use licensee in an adjacent area may be affected will be subject to notification requirements.

In order to manage potential interference between fixed-use and flexible-use co-channel operations within the same Tier 4 area, the co-existence rules will be based on the requirement to limit power flux density (pfd) at the specified boundaries (see annex A). Both fixed-use and flexible-use licensees will need to abide by the pfd limits depending on the stage of the transition and the geography of the licensee's operations.

In general, at the beginning of the transition (i.e. during the notification period) the flexible-use licensee will be required to limit its pfd at the specified boundary. Following the conclusion of the notification period, the situation reverses, with the fixed-use licensee being required to limit its pfd. In most cases, the protection and notification period boundary lines correspond to the Tier 5 boundaries. However, two additional scenarios exist for large population centre areas where protection period boundary lines divide a Tier 5 area, or where the large population centre buffer extends into a neighbouring Tier 5. In these scenarios, fixed-use licensees may be required to adjust their networks sooner than the end of their protection or notification period, whichever comes later. Confirmation and displacement letters will indicate the coordinated system changeover dates for these areas.

The following describes the treatment of various co-existence scenarios with respect to the transition process. Figure 5 illustrates these four scenarios using a fictitious Tier 4 area.

• Scenario 1: Adjacent Tier 5 area has protection/notification time remaining
  This is the most common scenario, with an entire Tier 5 area consisting of a single protection period. In this scenario, the transitioned Tier 5 area may be adjacent to a Tier 5 area that has protection/notification time remaining.

• Scenario 2: 6-month and 2-year protection period zones within the same Tier 5
  In this scenario, a large population centre and its 10 km buffer area are completely contained within a Tier 5 area. In addition, the Tier 5 area consists of an area with a 6-month protection period (i.e. the large population centre+10 km buffer area) as well as an area with a 2-year protection period (i.e. the area outside the large population centre+10 km buffer area). In this scenario, the Tier 5 transition will occur in two stages to accommodate the two different protection period zones. The confirmation letters for the Tier 5 will indicate the dates on which the flexible-use licensees are able to begin operations in the large population centre+10 km buffer area and when they are able to begin operations in the surrounding area of the Tier 5. Conversely, the displacement letters will indicate the date on which fixed-use licensees must cease operations in the large population centre+10 km buffer area and when they must cease operations in the surrounding area within the Tier 5.

• Scenario 3: Large population centre's buffer extends into neighbouring Tier 5 areas
  In this scenario, the Tier 5 area consists of a large population centre whose 10 km buffer extends into a neighbouring Tier 5 area with a 2-year protection period. As stated in previous decisions, the flexible-use licensee is permitted to service the large population centre area plus the 10 km buffer. This may require fixed-use licensees in the neighbouring Tier 5 area to adjust operations at various stages of transition. Similar to Scenario 2, the confirmation and displacement letters will indicate where and when licensees are able to operate on their flexible-use licences, and where and when fixed-use licensees must cease operations, respectively.

• Scenario 4: Grid cell and partial tier licences
  In this scenario, a grid cell/partial tier licence is completely within a Tier 5 or dissected into multiple licences (in this case, three) by Tier 5 boundary lines. Grid cell and partial tier licensees are required to transition according to the same process as other full tier fixed-use licensees within the Tier 5 area. Operations by grid cell and partial tier licensees in other Tier 5 areas, contiguous or otherwise, require a separate transition application corresponding to the Tier 5 area in which they are situated. Thus, if a grid cell or partial tier fixed-use licensee is displaced within one Tier 5 area, it may choose to transition its corresponding licences in other Tier 5 areas. Furthermore, while some grid cell and partial tier licensees may have the only licence for an area ("existing grid cell"), and others may share their grid cell or partial tier area with another licensee ("protected grid cell"), the transition process will be the same for all grid cell and partial tier licensees.

Figure 5: Co-existence scenarios illustrated in a fictitious Tier 4 area

See annex E for detailed diagrams and explanations of each stage of the transition for each scenario.

The transition application process includes the high-level stages illustrated in figure 6 and detailed below.

Figure 6: Transition application stages

1. Intake of intentions by ISED: To determine the list of Tier 5 areas that will be transitioning, licensees will be contacted by ISED and asked to submit a list of the areas they intend to transition. As part of this first stage, grid cell and partial tier licensees will be asked if they will transition their other contiguous fixed-use licences if one of their licences is being transitioned. In order for ISED to determine cascade situations, licensees will be asked to indicate if they intend to transition and displace the operator in their destination frequency. ISED will then request that transition applications be submitted by those initiating a transition and those affected by a cascade situation.
2. Submission of transition applications by licensees: After the intentions are collected and shared with licensees, licensees that indicated that they will transition will need to submit a transition application.
3. Displacement and other letters sent by ISED: Once the transition applications are reviewed and approved by ISED, ISED will issue confirmation letters, displacement letters, and adjacent tier notifications as appropriate.
4. Coordinated system changeover: This is the date on which all fixed-use licensees in an area must cease operations or move to their designated flexible-use block, and flexible-use licensees may begin flexible-use operations.

ISED will undertake an accelerated transition application process for the initial transition of operations within large population centres (which can occur as early as 6 months after the initial licence issuance date). Transition applications received during the accelerated process will be handled on an expedited basis to minimize any deployment delays. See section 10.1 for details.

Following the accelerated process, the regular transition application process, which proceeds on a scheduled 6-month cycle, will begin. See section 10.2 for details.

Notes:

• Intention information given by licensees will only be used in the current round of the application process and will not be applied to future application rounds.
• Once transitioning areas and affected licensees have been identified and shared with all licensees, licensees should not change their intentions.
• Licensees will not be able to add areas for transition after the list of transitioning areas has been finalized during the intentions stage of the process; they will have to wait until the intake window of the next round of the 6-month scheduled process to submit areas to transition.
• Licensees should not begin preparations for displacement (such as buying new equipment) until they have received official displacement letters from ISED, since some licensees may not submit the required application, or may have an incomplete application rejected, causing other licensees in the cascade to not have to transition during that round of the process.
• Licensees in large population centres that do not submit an application during the accelerated process may do so during the subsequent regular process.
• It is the responsibility of licensees to ensure they do not miss the window of time allocated for the intake of intentions and transition applications. If the intake window is missed, or if the licensee's application is rejected as incomplete, the licensee must wait until the next intake window to submit an application to transition.

10.1 Accelerated process for large population centres

This section describes the timeline for the accelerated process for large population centres.

The accelerated process for transition applications for large population centres will begin following the Minister's announcement of the provisional licence winners. Licence issuance will then occur as early as 45 business days after the Minister's announcement, provided that final payment has been received. The initial licence issuance date has been chosen as "Day 0" in this section and the following subsections.

Figure 7 illustrates the timeline for the accelerated process for large population centres.

Figure 7: Timeline for the accelerated process for large population centres

Announcement of provisional licence winners: The Minister announces the provisional licence winners and the accelerated transition application process for large population centres begins. During the intentions stage, ISED sends an email to licensees requesting that they specify the large population centre(s) in which they intend to immediately use flexible-use licences. Fixed-use licensees in large population centres that do not intend to initiate flexible-use deployments will need to specify if they intend to transition following a displacement letter. Beginning here, licence transfer applications for large population centres should not be submitted until ISED has released the list of areas that are transitioning.

10 business days after announcement of provisional licence winners: Deadline to submit large population centre intentions.

Approximately 15 business days after announcement of provisional licence winners: ISED sends compiled information to licensees via email, which indicates the large population centres that are transitioning and fixed-use licensees that will be displaced. Licensees must then submit their transition applications supporting their intentions (see section 10.3 for submission requirements).

25 business days after announcement of provisional licence winners: Deadline to submit large population centre transition applications.

Approximately 45 business days after announcement of provisional licence winners (initial licence issuance date/Day 0):

• ISED sends displacement letters to affected licensees. The letter includes information regarding the coordinated system changeover process and the date on which it will occur.
• ISED sends confirmation letters to licensees with approved transition applications, with an effective date for the coordinated system changeover. As indicated in Scenarios 2 and 3 in section 9, there may be multiple system changeover dates for tiers with both 6-month and 2-year notification zones.
• ISED sends licensees in adjacent areas an adjacent tier notification regarding the transition and a reference to the co-existence rules as detailed in section 9.
• At this time, ISED will also:
  • issue auctioned flexible-use licences (upon receipt of final payment)
  • issue Tier 5 fixed-use licences to all fixed-use licensees
  • cancel Tier 4 fixed-use licences

The regular process will begin following the end of the accelerated process for large population centres.

10.2 Regular process

This section describes the timelines for the regular process, which will begin after the accelerated process for large population centres ends, following the initial issuance of licences.

As described below, this process follows a scheduled 6-month cycle and has the same stages as the accelerated process, albeit with longer timeframes and an extra round of communication with ISED during the intake of intentions stage of the process.

As discussed in section 7, ISED requests that applications be submitted in the appropriate round of the scheduled process. If an application is submitted far in advance of the intended transition date, the applicant will be required to reconfirm the validity of their application prior to the issuance of displacement letters and, if any information has changed, to resubmit a new application.

Figure 8 shows the transition application timelines for the 6-month, 2-year and 3-year protection period zones.

Figure 8: Summary of transition application timelines for each protection period zone

After the initial licence issuance date/Day 0: The regular process begins for all other areas outside the Tier 5 areas with large population centres, and any remaining large population centres that have yet to transition. During the intentions stage, ISED sends an email to all licensees requesting that they specify areas that they would like to trigger for transition to flexible-use. As part of this first stage, grid cell and partial tier licensees will be asked if they will transition their contiguous fixed-use licences if one of their licences will be transitioned. Beginning here, licence transfer applications should not be submitted until ISED determines the affected licensees and requests transition applications (mid-2nd month of the process, below).

End of 1st month of the process: Deadline to submit intentions to trigger transitions.

Mid-2nd month of the process: ISED sends the compiled list of upcoming transitioning Tier 5 areas to licensees via email, including a list of licensees potentially affected by a cascade situation. Licensees that may be displaced in these tiers must indicate whether they intend to transition and displace the licensee on their destination frequency.

End of 2nd month of the process: Deadline for affected licensees to submit their intention to transition and displace the licensee on their destination frequency.

Mid-3rd month of the process: ISED compiles the list of licensees affected by a cascade and requests transition applications from those that first initiated a transition and those that are transitioning in response (see section 10.3 for submission requirements).

End of 4th month of the process: Deadline to submit transition applications. This includes those licensees that initiated a transition and also those that are transitioning in response.

End of 6th month of the process:

• ISED sends displacement letters to affected licensees. The letter includes information regarding the coordinated system changeover process and the date(s) on which it will occur.
• ISED sends confirmation letters to licensees with approved transition applications, with an effective date for the coordinated system changeover.
• ISED sends licensees in adjacent areas an adjacent tier notification regarding the transition and a reference to the co-existence rules as detailed in section 9.
• At this time, ISED will also issue flexible-use licences to the fixed-use licensees that are transitioning following the accelerated process for large population centres.

The regular process for transition applications will then repeat following a scheduled 6-month cycle until 5 years have elapsed since the initial licence issuance date/Day 0. Transition requirements remain in effect even after the scheduled process ends at the end of year 5. For instance:

• Licensees initiating a transition in a new area must still submit transition applications to ISED for review and approval and follow the 6- or 12-month notification periods for any fixed-use licensees they wish to displace.
• Fixed-use licensees in adjacent Tier 5 areas will receive an adjacent tier notification as described in section 6 and the applicable co-existence rules will apply (see section 9).

10.3 Transition application submission requirements

Each applicant is responsible for providing required information as per the above timelines. If the information provided does not contain the mandatory data as specified in this subsection, the submission will be returned to the licensee. If the licensee is unable to resubmit a modified/complete application prior to the scheduled deadline, it will have to wait until the next intake period. ISED will not be responsible for procedural delays caused by incomplete or incorrect information.

ISED has created an online resource for the 3500 MHz transition, including maps, frequently asked questions (FAQs), and other items. The required format for submission of transition applications will be communicated at a later date through this resource. Annex C provides a sample of the type of information that will be required; note, however, that the format may change. Updates to the 3500 MHz online resource will be communicated to licensees via email.

All information submitted to ISED will be kept confidential, except as required to provide notification of transition to displaced and adjacent licensees, or to maintain the list of voluntary agreements for early deployment. Any applicant that is concerned about matters of confidentiality should contact ISED to discuss these concerns prior to submitting information in accordance with the transition application process.

To communicate deployment plans and start the displacement process, an applicant will be required to submit the following:

1. Transition Application Form: Only one Transition Application Form is required for the transition of multiple Tier 5 areas, which can be across multiple Tier 4 areas. The applicant will be required to confirm the intent to deploy (i.e. deliver service in the target Tier 5 area) within 18 months of the coordinated system changeover date. A sample of the type of information that will be required is located in annex C.
2. Pfd contours and attestation: As part of the application, pfd contours are required that illustrate the pfd contours that are intended to be in place within the first 18 months following the system changeover date. These contours must include an attestation by a Canadian certified professional engineer as to their accuracy. Details on the pfd requirements are found in annex A.
3. Voluntary agreements: When flexible-use licensees reach voluntary agreements to deploy prior to the end of the protection or notification period(s), a signed Voluntary Agreement Form must be submitted to ISED (see annex D for a sample of the type of information that will be required). Only one form needs to be submitted by one of the licensees involved in the voluntary agreement, with an attestation that all of the other licensees are in agreement.
   

   Note: Voluntary agreements that deviate from co-existence rules do not need to be submitted but must be kept on file by the licensees. See section 8 for details on voluntary agreements. Licensees can submit a voluntary agreement at any time, regardless of the ongoing accelerated or regular transition application process.

If fixed-use licensees being displaced choose to transition and in turn displace the licensee(s) on the destination frequency, they are also similarly required to follow the process and submit the forms as noted above. Note that displaced applicants must respond only to the transitioning Tier 5 area. Should they choose to trigger another Tier 5 area, they must submit a separate transition application as an initial applicant.

All Transition Application Forms must be signed by a duly authorized officer of the company or organization (and, where relevant, the representative acting on behalf of the applicant), and must contain all necessary supporting documents.

All relevant information related to deployments must be uploaded to the site upload database as quickly as possible.

To better illustrate how the concepts in the previous sections are applied, this section describes the conversion of licences and transition processes that occur within a hypothetical Tier 4 area as it transitions from fixed-use licensing to flexible-use licensing. Alternate scenarios are also presented to illustrate variances in the process depending on different circumstances.

11.1 Initial state

Figure 9 shows the initial state of the hypothetical Tier 4 area (Tier 4-XYZ) prior to auction. In this scenario, the area has only fixed-use licensees: three companies (labelled 1, 2 and 3) holding various blocks of spectrum, as shown in figure 10.

Figure 9: Initial state of hypothetical Tier 4 area (Tier 4-XYZ) prior to auction

Figure 10: Hypothetical Tier 4 fixed-use band plan

11.2 Pre-transition: Conversion from Tier 4 to Tier 5 fixed-use licences

As described in section 5, the fixed-use licences in the hypothetical Tier 4 area will automatically be converted to equivalent Tier 5 fixed-use licences in order to prepare for potential transitions as shown in figure 11. (For reference, annex G and annex H list the Tier 5 areas corresponding to the Tier 4 areas.)

Following the conversion process, the three companies will hold Tier 5 fixed-use licences that are equivalent to their previous Tier 4 holdings, as shown in figure 12.

Figure 11: Hypothetical fixed-use licensing after conversion from Tier 4-based to Tier 5-based areas

Figure 12: Hypothetical band plan after conversion from Tier 4 to Tier 5

11.3 Transition trigger

As per section 10, the intentions stage of the application process will identify which Tier 5 areas will be transitioning. In this hypothetical scenario, a flexible-use licensee, Company “New”: has won spectrum at auction and has indicated that it intends to transition Tier 5-003. The highlighted area in figure 13 will transition to flexible-use, while other adjacent tiers will remain on the old fixed-use band plan.

Figure 13: Transition to flexible-use triggered in hypothetical Tier 5-003 (while other Tier 5 areas remain un-triggered)

ISED will communicate to all licensees in the area that Company New will be transitioning Tier 5-003 and will ask those licensees if they will then also transition and displace the licensee on their destination block. This information will be used to determine all affected licensees. In this scenario, Companies 1, 2 and 3 will all be affected by a cascade situation.

Figure 14 illustrates how the block assignment from the old band plan to the new band plan will occur in this hypothetical scenario. Note that while in actuality, the results of the assignment round of the auction process will not be known until after the auction, in the interest of simplicity, licensees have been given destination blocks in the new band plan in order from left to right.

Figure 14: Hypothetical block assignment from old band plan to new band plan

As stated in the 2019 Decision and the Framework, once a Tier 5 area transitions (either by a licensee initiating the transition or through displacement), eligible fixed-use holdings will be converted to flexible-use spectrum such that:

• those with 75 MHz or more of fixed-use spectrum will receive 60 MHz of flexible-use spectrum
• those with 50 MHz will receive 50 MHz
• those with 25 MHz will receive 20 MHz

Accordingly, in this hypothetical scenario, Company 1 will receive 50 MHz of flexible-use spectrum, Company 2 will receive 50 MHz, and Company 3 will receive 60 MHz.

Since Company New's destination blocks in the new band plan are currently occupied by Companies 2 and 3 (as illustrated by the red arrows in figure 14, above), both Companies 2 and 3 will be displaced and must cease fixed-use operations (and return their respective fixed-use licences to ISED) on the coordinated system changeover date. In this scenario, both Companies 2 and 3 have applied to transition to their respective flexible-use licences and the new band plan.

Continuing the cascade effect, since the destination block of Company 3 is currently partially occupied by Company 1 (as illustrated by the blue arrow in figure 14, above), Company 1 is also required to transition or cease operations (and return its fixed-use licence to ISED) on the coordinated system changeover date. In this scenario, due to being displaced, Company 1 has also applied to transition to its flexible-use licence and the new band plan.

Once ISED reviews the transition applications, it will issue:

• displacement letters to Companies 1, 2 and 3
• confirmation letters to Company New and Companies 1, 2 and 3
• adjacent tier notifications to licensees in all other Tier 5 areas within the Tier 4

11.4 Transition

In this hypothetical scenario:

• all Tier 5 areas are 2-year protection period zones
• the trigger and notifications occur with 5 months of the 2-year protection period remaining
• there are no voluntary agreements

Thus, since the notification period of 1 year is longer than the remaining protection period of 5 months, all transitions within Tier 5-003 will occur 1 year later on the coordinated system changeover date. See section 6.1 for details on notification periods.

Following the transition of Tier 5-003, the Tier 4-XYZ area will consist of fixed-use (old band plan) and flexible-use (new band plan) licences and operations as illustrated in figure 15, below.

Figure 15: Band plan landscape of hypothetical Tier 4-XYZ following the transition of Tier 5-003

On the coordinated system changeover date 1 year later, the following would occur:

• Flexible-use licensee Company New: May begin flexible-use operations in Tier 5-003 with its licence won at auction. Note that since Company New was an auction winner, it would have received its Tier 4-XYZ flexible-use licence following the auction process (see section 7 for details). However, the confirmation of the transition application for Tier 5-003 had an effective date of the coordinated system changeover date, restricting active deployments until this time.
• Companies 1, 2 and 3: Flexible-use licences will be issued for Tier 4-XYZ, and Companies 1, 2 and 3 may begin flexible-use operations on the new band plan in Tier 5-003. The fixed-use licences will be cancelled in Tier 5-003, while fixed-use operation may continue in the other Tier 5 areas.

While Company New received its flexible-use Tier 4 licence at auction, and Companies 1, 2 and 3 receive their Tier 4 licences on the coordinated system changeover date, none may begin flexible-use operations in Tier 5-003 until the coordinated system changeover date. While newly issued flexible-use licences will be for the entire Tier 4-XYZ area, operation under the flexible-use licences will be only permitted in Tier 5-003, the area for which the transition applications have been reviewed and a confirmation letter has been issued. See section 7 and section 10 for details.

Following the transition of the Tier 5-003 area, flexible-use licensees within the area, as well as adjacent fixed-use licensees, must abide by the co-existence rules specified in section 9. The flexible-use licensees in Tier 5-003 will be permitted to transmit as required in order to completely serve Tier 5-003. The adjacent tier licensees will be required to constrain the pfd from their transmitters to the values specified in annex A at the boundary of Tier 5-003. They will also need to be prepared to accept interference from the flexible-use licensee.

It is important to note that these requirements are specific to the hypothetical scenario being discussed. Co-existence rules can be different based on different scenarios, including protection period zones and notification periods surrounding the transition. The responsibilities of both fixed-use and flexible-use licensees may also be different. See section 9 for details on co-existence rules in different scenarios.

Once a Tier 4-XYZ flexible-use licence is issued, the deployment requirements for the entire Tier 4 area will apply to the licensee, regardless of the number of fixed-use Tier 5 areas that have transitioned to flexible-use.

This section contains answers to some of the anticipated questions about the transition process.

If after reading this Manual, you have any outstanding questions, you may submit them to the following address: ic.3500mhzspectrumoperations-operationsduspectrede3500mhz.ic@canada.ca.

ISED has created an online resource for the 3500 MHz transition, including maps, frequently asked questions (FAQs), and other items. You may wish to consult this online resource as well.

12.1 Grid cell and partial tier licences

What will happen to my grid cell or partial tier licence when licences are converted into Tier 5 licences?

Grid cell and partial tier licences will also be converted. If your area is fully contained within a Tier 5 area, you will receive a single licence for the same area with the conditions of licence as listed in annex B of this Manual. If your area is crossed by Tier 5 boundary lines, you will receive a separate licence for each portion that falls within a different Tier 5 area, with the cumulative effect of retaining the same licence area as you had prior to the conversion.

If I receive multiple licences to cover my original grid cell or partial tier licence area, what will happen if only one of them gets transitioned to flexible-use but the others are in Tier 5 areas that don't transition?

When one of the multiple licences gets transitioned you will receive a single flexible-use licence for the original licence area that you held prior to the conversion of licences to the Tier 5 model (provided that none of the fixed-use licences that made up the original area have been revoked, or transferred to a different licensee). You will also receive a confirmation letter allowing flexible-use operation only in the area that has transitioned. During the intentions stage of the application process, grid cell and partial tier licensees will be asked if they will transition contiguous licences if one of their licences is affected by a transition. This will ensure that contiguous areas can be added during that round of the process if required, rather than licensees having to wait 6 months for the next intake period.

Note, however, that the full deployment requirements for the flexible-use licence apply even if only a portion of the licences within the Tier 4 have transitioned. In addition, note that the un-transitioned licences will have some borders that now neighbour a flexible-use Tier 5 area and must follow the appropriate power flux density (pfd) in those areas (see annex A).

If I have a grid cell or partial tier fixed-use licence, will licensees transitioning to flexible-use in the other areas of the same Tier 5 cause me to transition as well?

Yes. ISED has indicated that transitions will occur on the basis of Tier 5 areas and the original 25 MHz band plan. All subdivisions within the Tier 5, whether on the basis of frequency and/or area, will be included in the transition. After both parties have completed the transition, you would follow the pfd as laid out in SRSP-520 with the other flexible-use operator in the Tier 5, but you would follow the pfd as laid out in annex A of this Manual at any borders with fixed-use operators that you do not have a co-existence agreement with.

If I have a grid cell or partial tier fixed-use licence that contains a large population centre but not the entire 10 km buffer area, can I still transmit to the edge of the buffer?

No, you may only transmit in areas for which you have a licence. The buffer is a time-related concept that corresponds to the protection and notification periods; it does not increase the size of your licence area.

If I have a grid cell or partial tier fixed-use licence that is smaller than the remaining area in the Tier 5, can I initiate a transition of the tier?

Yes, any grid cell or partial tier fixed-use licensee can trigger a transition of their area, and thus, the entire Tier 5 as well.

12.2 Subordinate licences

What will happen to my subordinate licence when licences are converted into Tier 5 licences?

Where there is an existing subordinate licence, ISED will automatically issue new subordinate licences in all of the relevant Tier 5 areas as part of the conversion process described in this Manual. These fixed-use Tier 5 subordinate licences after conversion will be subject to annual expiry and renewal in the same manner as the current Tier 4 subordinate licences. Those wishing to renew subordinate licences will be required to file an extension request with ISED in the usual manner, as part of the annual renewal process.

Note that when the principal fixed-use licence comes to an end as a result of transition to a flexible-use licence, transfer or revocation, then any subordinate licence will automatically terminate. If the parties wish to have ISED issue a subordinate licence under the flexible-use licence, then a new application and approval will be required.

Current and prospective licensees should note that the collusion rules as described in the Framework apply. They, in part, read:

All applicants, including affiliated and associated entities, are prohibited from cooperating, collaborating, discussing or negotiating agreements with competitors, relating to the licences being auctioned or relating to the post-auction market structure, including frequency selection, bidding strategy and post-auction market strategy, until after the public announcement of provisional licence winners by ISED.

Can I keep my fixed-use licence while also holding a subordinate licence to operate under a flexible-use licence in the same area?

No. Licensees may only operate under one type of licence in any Tier 5 area; a Tier 5 fixed-use licence OR a flexible-use licence. This holds true regardless of whether or not the operation is under a regular licence or a subordinate licence.

If I hold a subordinate licence, will I be informed by ISED of a displacement?

No, ISED will only communicate with the primary licence holder.

12.3 Adjacent "fixed-use tiers"

Following the conversion from Tier 4 to Tier 5 licences, will fixed-use licensees also be required to adjust their networks to meet the Tier 4 power flux density (pfd) at the boundary of the new Tier 5 fixed-use licence areas?

No. However, adjustments may be required should adjacent Tier 5 areas initiate transitions to flexible-use.

If a flexible-use licensee causes interference in an adjacent Tier 5 area, but does not build any sites there, will it cause the adjacent tier to transition?

No, this will not transition the adjacent tier. The flexible-use licensee must respect the co-existence rules as outlined in section 9 respecting the pfd limits and the relevant notification periods. Following the conclusion of the notification period, the licensee may fully service its Tier 5 area, which may result in some interference to the neighbouring area. It is up to the affected fixed-use licensee in the adjacent Tier 5 area to decide whether to modify its fixed-use network, to seek a voluntary agreement with the flexible-use licensee, or to transition to flexible-use by triggering its own Tier 5 area.

What if I have sites in a Tier 5 that is beside another Tier 5 that is transitioning?

You will receive an adjacent tier notification informing you of the transition to flexible-use in an adjacent Tier 5 area; this will occur at the same time as the displacement letters are being sent out by ISED (see section 10 for details on timing). ISED recommends that you contact the adjacent flexible-use licensee that may be in a position to cause future interference. This contact should be initiated early to ensure that you have sufficient time to provide notice and transition your own Tier 5 area if you choose to do so.

Note that in the case where a 10 km buffer area of a large population centre area extends into a neighbouring Tier 5 area, special rules apply. See section 9 for details.

If a flexible-use licensee deploys in an "empty" Tier 5 area, will co-channel licensees in adjacent tiers be entitled to the 1-year notification period?

Yes. In a Tier 5 area that has no fixed-use licensees (i.e. an "empty" tier), the flexible-use licensee would be permitted to apply early and deploy immediately upon ISED approval of their transition application. An application is required in this case so that ISED can issue the adjacent tier notification, but the licensee would not be restricted to the 6-month application cycle. However, the flexible-use licensee would still be required to respect the pfd limits at the transitioning Tier 5 boundary as specified in section 9 in order to comply with the co-existence rules with adjacent tier co-channel operators.

What is the process for coordinating with services in adjacent bands?

As fixed-use systems transition to flexible-use operations, they may receive a new frequency assignment that could impact pre-existing coordination agreements with services in adjacent bands. Coordination requirements for flexible-use systems are outlined in SRSP-520.

12.4 Voluntary agreements

If my Tier 5 area is being transitioned, can I create a voluntary agreement to operate co-channel with the flexible-use licensee to avoid having to transition?

No. When a Tier 5 is transitioning, all fixed-use licensees on the same frequency as the transitioning flexible-use licensees within that Tier 5 are required to transition to the new band plan or cease operations. Operations by fixed-use and flexible-use licensees may not be conducted co-channel in the same Tier 5 at the same time, except during the transition timeframe of a Tier 5 area with dual protection period zones (see section 9), and otherwise in rare and exceptional circumstances. See section 6 for details.

Alternatively, if you would like to maintain operations in your vacated frequency you may approach the flexible-use licensee that is operating on your old frequency to request a subordinate licence.

If I have a voluntary agreement with another licensee to deviate from the co-existence rules at a particular boundary, do I have to inform ISED?

ISED does not need to be informed of coordination agreements between licensees. However, licensees must have details regarding the agreements available upon request, and any network changes must be reflected in the site upload database as quickly as possible.

12.5 Early deployments

Can I start operating flexible-use sites immediately if the current fixed-use licensee is not conducting any operations in the Tier 5 area?

In the case where a fixed-use licensee is not operating in the Tier 5 area, it retains the option to conduct operations on its fixed-use licence until the end of the notification period at its discretion. If a voluntary agreement for early deployment has not been submitted, flexible-use licensees are not permitted to begin operation on the new band plan until the coordinated system changeover date.

Can I deploy under my flexible-use licence immediately in an "empty" Tier 5 area where no displacements are necessary?

Yes. In a Tier 5 area that has no fixed-use licensees (i.e. an "empty" tier), the flexible-use licensee would be permitted to apply early and deploy immediately upon ISED approval of their transition application. An application is required in this case so that ISED can issue any adjacent tier notifications that may be necessary, but the licensee would not be restricted to the 6-month application cycle. However, the flexible-use licensee would still be required to respect the pfd limits at the transitioning Tier 5 boundary as specified in section 9 in order to comply with the co-existence rules with any adjacent tier co-channel operators.

During the auction, if I buy the same frequencies as I currently hold under my fixed-use licence, can I deploy early?

Yes. Similar to the scenario of an empty tier in the question above, you would be permitted to apply early and deploy immediately upon ISED approval of your transition application. An application is required in this case so that ISED can issue any adjacent tier notifications that may be necessary and to alert ISED that your fixed-use licence will need to be cancelled. But you would not be restricted to the 6-month application process cycle. However, you would still be required to respect the pfd limits at the transitioning Tier 5 boundary as specified in section 9 in order to comply with the co-existence rules with any adjacent tier co-channel operators.

Are there any scenarios where I could deploy immediately without needing to submit a transition application?

You may deploy without submitting a transition application if ISED does not have to displace any fixed-use licensees, cancel any of your fixed-use licences, and send any adjacent tier notifications to any other licensees. This only occurs in a very specific scenario: there is a frequency block that has no fixed-use licensees (including the deploying licensee itself) across an entire Tier 4 area, and the licensee that wishes to deploy has no fixed-use holdings within the Tier 5 on any other blocks.

ISED must be informed of deployment through the submission of a transition application in all other cases because:

• When there are fixed-use co-channel licensees in adjacent areas, ISED must issue adjacent tier notifications to those licensees.
• When there are no other fixed-use licensees in that area but you hold fixed-use licences on same frequency, ISED must cancel your fixed-use licences in the affected areas.
• When the block is empty but you hold fixed-use licences in other blocks, ISED must cancel those other blocks in the affected areas because fixed-use and flexible-use operation by the same licensee is not permitted in the same Tier 5.

This specifically refers to licensees; it does not include situations where there may be licensees but no deployment. If there are licensees with no deployment in the area you may not deploy immediately.

Note that although you may need to submit a transition application, you may not be restricted to the 6-month application process cycle.

If I make an agreement with another licensee to deploy early, can we immediately deploy?

Any agreements for early deployment must include all licensees on affected frequency blocks in the area, regardless of whether or not they have deployed sites, and must be submitted to ISED for approval. In addition, unless the agreement includes the adjacent Tier 5 areas within the Tier 4, adjacent tier licensees are still entitled to a period of 1 year (i.e. following the adjacent tier notification) to adjust their own networks if required, and to prepare to accept possible interference from your base stations. Therefore, the pfd technical limitation will apply at the transitioning Tier 5 boundary during the 1-year adjacent tier notification period or protection period, whichever ends later. See section 8.1 for details.

What if I am a fixed-use licensee and I want to transition before the end of the protection/notification periods?

Any licensee may initiate a request to transition a Tier 5 area to the new band plan. However, as noted above, any early deployment must be agreed upon by all licensees in the area on affected frequency blocks, regardless of whether or not they have deployed sites, and must be submitted to ISED for approval.

12.6 Un-transitioned areas

What will happen if my Tier 5 area does not transition for many years?

According to the "where and when necessary" principle, you may continue operating under your fixed-use licence. Note that fixed-use licensees could receive displacement notification at any time after the protection period and during the licence term (these are called "late transitions").

How long can I continue to renew my fixed-use licence?

Fixed-use licences are eligible to be renewed but will be subject to any future consultation over their terms and conditions and renewal conditions.

12.7 Conditions of licence

Will Tier 5 fixed-use licence conditions be the same as the Tier 4 fixed-use licence conditions listed in the Framework?

The Tier 5 fixed-use licence conditions will be very similar. See section 5.1 and annex B for details.

What will the required deployment levels be for my fixed-use Tier 5 licences?

See section 5.1 and annex B. The licensee must deploy the system(s) and provide coverage in accordance with the level of deployment at the time of conversion from Tier 4 to Tier 5 licences, and maintain such coverage throughout any subsequent licence terms. This applies to partial tier area licensees as well. Expansion of service will be allowed; however, offering less service will be considered a breach of the licence conditions and may result in a revocation of licence.

In the case where a licensee applies to transfer a Tier 5 area where there is no current deployment, ISED will require the new licensee to deploy fixed-use services and will review the deployment plans as part of the transfer.

If I am a fixed-use licensee adjacent to an area that transitions to flexible-use, and I have to adjust my network to avoid interference after the notification period, and the number of subscribers I can service goes down, will this mean I am not meeting my Tier 5 fixed-use deployment requirements?

In this specific scenario, ISED will not consider this to be a failure to meet your deployment requirement. Your new service contour would be submitted to ISED and would be the new standard against which future deployment levels are compared.

What if I can't meet my fixed-use licence deployment requirements due to forces outside my control?

In rare cases where deployment decreases through no fault of the licensee, it may apply to ISED for consideration and these situations will be treated on a case-by-case basis.

What if I reduce the number of sites I have but service the same population using different technology?

Maintaining current coverage with a lesser number of stations by using advanced antenna techniques such as massive MIMO (multiple-input multiple-output) is acceptable.

Does the rural deployment requirement for areas outside the large population centre begin at the buffer border?

No, buffers are meant to aid with the transition process only, they are not connected to the deployment requirements discussed in the Framework.

What if I am operating on spectrum that was divided based on frequency (MHz), and the licensee on the other portion of the divided spectrum has to transition but my frequency does not overlap with the flexible-use licensee's destination block?

ISED will be transitioning licensees according to the original 25 MHz blocks. If any portion of the original blocks are transitioning, the entire block must transition.

If one of my Tier 5 areas gets transitioned and I am given a Tier 4 flexible-use licence, do the flexible-use deployment requirements apply to me even though I may have Tier 5 areas remaining that have not transitioned?

Flexible-use deployment requirements start on the initial licence issuance date, for both full tier and grid cell or partial tier licensees; however, as per the Framework, you may be exempt from reporting deployment for each milestone if you have not yet transitioned to flexible-use. Once you obtain a flexible-use licence, the full deployment requirements continue to apply even if you have remaining fixed-use licences within the Tier 4. It is your responsibility to determine if you will have to transition the other fixed-use areas to flexible-use in order to satisfy the Tier 4 flexible-use deployment requirements.

If I receive a flexible-use licence as part of a transfer for an area that has not yet transitioned (the fixed-use licence is still in place) do I have to meet the next deployment milestone?

Yes. Any transferred licence is subject to all of the relevant conditions of licence, subject to the transition process, and subject to any representations/deployment promises made to ISED during the transition, as well as to fulfilling any directions or requests from ISED under this process.

Since the transferor would have been required to meet the next deployment milestone upon issuance of the flexible-use licence, regardless of the fact that some Tier 5 areas may have remained un-transitioned, that requirement would transfer to you. It is your responsibility to familiarize yourself with the requirements of the licence prior to requesting a transfer.

What will happen to my fees when my fixed-use licence is converted into multiple areas based on Tier 5 boundaries?

As per the Framework, once the Tier 5 licences are issued, they will be issued with a harmonized and simplified provision indicating that any new licences issued will be subject to fees once they are established through future consultation. Therefore, once the Tier 5 licences are issued, no existing fixed-use licensees will be subject to the fee order noted in DGRB-008-99, Radio Authorization Fees for Fixed Wireless Access Systems in Rural Areas in the Frequency Range 3400-3550 MHz.

12.8 Compliance

If I am going to service an area under my flexible-use licence and I request that the fixed-use licensees be displaced, how long after the coordinated system changeover date do I have to deploy my first site?

You must begin deployment within 18 months of the coordinated system changeover date.

If I have initiated the transition process in a Tier 5 area, can I change my mind and stop the transition?

No, you may not stop a transition once it is initiated.

What happens if I initiate a transition in a Tier 5 area but fail to deploy?

Your Tier 5 fixed-use licence will still be cancelled at the scheduled time. In addition, ISED may impose penalties or additional requirements prior to approving any future displacement requests.

12.9 Timing

When will I get my auctioned Tier 4 flexible-use licence? When will I get my Tier 4 flexible-use licence in exchange for my fixed-use spectrum holdings?

If you are successful in winning spectrum at auction, you will receive these Tier 4 licences as early as the initial licence issuance date, which is 45 business days following the announcement of provisional licence winners, contingent upon final payment.

Tier 4 flexible-use licences issued in exchange for fixed-use holdings will be created on the initial licence issuance date but will not be issued to licensees until the coordinated system changeover date of the first transitioning Tier 5 within each Tier 4 area. For example, if you hold fixed-use spectrum in a Tier 4 area where the first Tier 5 within the Tier 4 transitions 6 years after the auction, you will receive your Tier 4 flexible-use licence for that area at year 6.

What is my deployment requirement if I receive my flexible-use licence later in the licence term?

All flexible-use licences are created on the initial licence issuance date and deployment requirements for all licensees begin at this time. However, as per the Framework, if you receive your flexible-use licence later in the licence term you may not have to report deployment for each deployment milestone. For example, if you were an operator with general deployment requirements and milestone dates of 5/10/20 years, and you receive your flexible-use licence at year 6, you would not have to meet the 5-year or 10-year deployment milestones, but would be required to meet the 20-year requirement. Also, due to flexible-use deployment requirements beginning on the initial licence issuance date, any licensee that has not transitioned by the end of the licence term will have no flexible-use deployment in the Tier 4 and may be subject to revocation of the flexible-use licence.

How will I set up and test my flexible-use licence equipment prior to the coordinated system changeover date if I do not hold a flexible-use licence yet?

You may apply to ISED for a developmental licence in order to conduct testing prior to the coordinated system changeover date. Since a developmental licence is based on a no-interference, no-protection basis, you must still contact fixed-use licensees to coordinate any testing that you may wish to do prior to the changeover date. Applications for developmental licences may be requested at any time by submitting an application through the Developmental Licence Playbook online resource.

What if I have not finished preparing for the system changeover by the time the coordinated system changeover date comes?

You must vacate your fixed-use frequency on the changeover date as your Tier 5 fixed-use licence will be cancelled and you will no longer be licensed to operate on those frequencies.

What if I miss the intentions stage of the scheduled 6-month process?

You must wait for the next intake window to submit your transition application. Or, you may seek to create a voluntary agreement with the other licensees in the area, as voluntary agreements are not part of the scheduled process and may be submitted at any time.

Am I protected from having to make any changes to my network until the end of my notification period?

If you are adjacent to a flexible-use large population centre buffer area and are causing interference into the buffer area, and if you cannot voluntarily coordinate with the flexible-use licensee, you must adjust your network to avoid causing interference to the flexible-use licensee. In all other areas, you do not have to make network changes during theprotection/notification period.

12.10 Other questions

If a flexible-use licensee is building sites that are on the same frequency block but in a different area of the Tier 5 than my sites are, do I have to cease fixed-use operations?

Yes. If you have received a displacement letter, your fixed-use licence for that Tier 5 area will be cancelled and you must cease fixed-use operations at the coordinated system changeover date.

ISED is transitioning to the new band plan on a Tier 5 basis. Once a Tier 5 has its transition triggered, the entire area transitions regardless of geographic location of co-channel sites within the tier. This is also true for grid cell and partial tier licensees that are within the same Tier 5 area; they would have to transition. However, in rare cases, ISED may consider exceptions to ensure continued operations of fixed-use licensees in extremely remote areas.

If a flexible-use licensee is building sites that are on a different frequency block than mine, will I be displaced?

No. However, if there is a cascade effect, and the flexible-use licensee causes others to have to transition to your block, you would also be displaced. But if your blocks (including any portions of your blocks) are not affected by the flexible-use licensee or a cascade effect, you would not be displaced.

What if I have sites outside of a large population centre and buffer area, but within the same Tier 5? Do I have a 2-year protection period for those sites?

Yes, your sites in a 2-year protection period zone will have 2 years of protection even if part of the tier has a large population centre with a 6-month protection period. Once a transition has been triggered in a large population centre, it will include the transition of the entire Tier 5 area. The coordinated system changeover date will be at 6 months for the large population centre and at 2 years for the remaining areas.

As noted above, flexible-use licensees are not permitted to activate sites in the 2-year protection period zone before the protection period has elapsed unless they have contacted the fixed-use licensees in that area and have created a voluntary agreement for early deployment. Otherwise, licensees must wait until the notification period has ended before deploying in those areas.

The 10 km large population centre buffer often goes past the Tier 5 boundary; will deployment into this "overlap" zone by the large population centre licensee cause the adjacent Tier 5 areas to be displaced?

No, in these situations, transmission by large population centre licensees serving customers up to the edge of the buffer area will not cause the adjacent non-large population centre Tier 5 to transition. However, if a large population centre licensee wishes to have flexible-use sites in these overlap zones, then that licensee would have to transition the adjacent tier as well.

We are not allowed to operate on both a flexible-use and fixed-use licence in the same geographic area; what is meant by "same geographic area"?

As noted in the Framework, this is defined as operation within the same Tier 5.

What happens to my flexible-use entitlement if I'm a fixed-use licensee and my amount of spectrum changes after the auction but before I get my Tier 4 flexible-use licence?

See section 5.2 and section 7 regarding transfers and flexible-use entitlement.

Prior to obtaining a flexible-use licence, if a licensee transfers a portion of its fixed-use spectrum holdings away, it will be entitled to a correspondingly lower amount of flexible-use spectrum as specified in the transfer, and may be required to become a grid cell or partial tier licensee when its transition to flexible-use occurs. If a Tier 5 licence is revoked or a licensee voluntarily returns a licence, the licensee will forfeit the entitlement to flexible-use spectrum in the relevant area and will become a grid cell or partial tier flexible-use licence holder.

Do my remaining un-transitioned Tier 5 areas (within a Tier 4) retain any eligibility for flexible-use spectrum if I have already received my flexible-use licence for my fixed-use holdings in that Tier 4?

No, once the flexible-use licence is granted, the "eligibility" has been exercised, and remaining un-transitioned areas have no flexible-use eligibility associated with them.

Can I transfer part of (or all of) my flexible-use licence if I still hold a fixed-use licence in that area?

Yes. As per section 5.2, in this situation, a transfer may occur provided that all of the fixed-use and flexible-use holdings in the area are transferred. If you wish to transfer only a portion of your flexible-use holdings, you may divide your flexible-use licence and retain the holdings in one area while transferring all of the flexible-use and fixed-use holdings in the other area. Note that in the interest of reduced complexity, ISED requests that transfers during this stage of the transition be done along Tier 5 boundary lines.

Any transferred licence is subject to all of the relevant conditions of licence, subject to the transition process, and subject to any representations/deployment promises made to ISED during the transition, as well as to fulfilling any directions or requests from ISED under this process.

If I will be displaced due to a transition, do I have to submit a transition application immediately?

No. While you must cease operations on your fixed-use licence that is being cancelled on the coordinated system changeover date, you can choose to transition at a future time. Note that the full deployment requirements of the Tier 4 flexible-use licence apply regardless of when you choose to submit a transition application. Also, notification requirements and timelines continue to apply, so if you apply in the future, you would still have to wait for the 6-month or 1-year notification period.

What if I hold multiple licences of fixed-use spectrum in an area and I am displaced on one licence but not the others? Will all my fixed-use blocks be cancelled at the same time?

No. Upon displacement, only the fixed-use licence on which you are displaced is cancelled. However, once you transition to flexible-use operations in that Tier 5 area, then you may not operate under a fixed-use licence in the same area; consequently all your other fixed-use licences in that Tier 5 area will be cancelled on the associated coordinated system changeover date.

When being displaced in a Tier 5 area for the first time within a Tier 4 area, can I defer receiving a Tier 4 flexible-use licence?

No. The cancellation of your Tier 5 fixed-use licence and the issuance of the Tier 4 flexible-use licence is automatic following your displacement.

The Framework said that licensees can operate on both licences in the same area for a short period of time during the transition period; how long is this period of time?

This only applies to Tier 5 areas that have both a large population centre and a non-large population centre (6-month and 2-year protection period zones) within the same Tier 5 area, as described in section 9. Licensees in these tiers will be permitted to provide flexible-use services within the large population centre and buffer area, while maintaining their fixed-use licence to provide services in the non-large population centre areas until the end of the notification period. At this point, all affected fixed-use licences in the Tier 5 will be cancelled.

Can I submit displacement requests for many Tier 5 areas at once, or do I have to submit a request for each Tier 5?

You may request displacements for multiple Tier 5 areas, across multiple Tier 4 areas, in a single submission.

Am I allowed to build new sites under my fixed-use licence?

Yes, new fixed-use stations are permitted, provided that they comply with all requirements specified in SRSP-520, with the exception of the band plan, where they shall comply with the band plan specified in SRSP-303.4, issue 3. Note that once displacement letters have been sent for a Tier 5 area, notification is considered complete for that area; any new fixed-use sites activated in that Tier 5 area prior to the coordinated system changeover date must still be transitioned on the changeover date and will not receive any additional notification time.

Can I continue to use my equipment under my Tier 5 fixed-use licence?

Fixed-use stations operating under fixed-use spectrum licences issued prior to June 2019 may continue to operate under SRSP-303.4, issue 3. Continued operation under SRSP-303.4, issue 3, also applies to Tier 5 area fixed-use spectrum licences issued after June 2019 as a result of the conversion of existing Tier 4 area fixed-use spectrum licences issued prior to June 2019 to Tier 5 areas. Modifications to existing fixed-use stations are allowed as long as the modifications comply with SRSP-303.4, issue 3. Any modified station not in compliance with SRSP-303.4, issue 3, will be considered a new fixed-use station.

Can I salvage fixed-use equipment that I already own from a transitioned area and use it in an un-transitioned area?

Yes, this is permitted provided that:

• the equipment was purchased prior to June 2019 and certified based on Radio Standards Specification RSS-192, Flexible Use Broadband Equipment Operating in the Band 3450-3650 MHz, issue 3
• the deployment of this equipment complies with all requirements specified in SRSP-520, with the exception of paragraphs 16 and 17, where they shall comply with the band plan specified in SRSP-303.4, issue 3