Spectrum transfer rules include review of ‘prospective’ deals

Industry Canada released new rules to review all proposed and “prospective” spectrum licence transfers to ensure they will not affect the ability of “existing and future competitors” to offer mobile services, the department said. In the policy released Friday, the Industry Department said it will consider eight factors when reviewing spectrum transfer applications, including the applicants’ other spectrum holdings in the region, the “overall distribution” of spectrum in the region, the availability of “alternative spectrum” in the region and the “relative utility” of the spectrum in question. “While Industry Canada will examine all Licence Transfers, those generally considered as having negligible or no impact—such as Licence Transfers made solely to effect an internal reorganization—will normally be approved,” the department said. It added that deals that would see a technical change in licence control, but that are primarily about financing or lending, would not trigger a review. Under the rules, companies that reach “prospective” or “option” deals to swap or sell spectrum licences would also be required to apply for a review within 15 days. Those deals, which allow companies to sell licences at a predetermined future date, would have to be withdrawn within 90 days if Industry Canada denies the licence transfer application, the department said. In March, Industry Minister Christian Paradis said that the department would release the new spectrum transfer rules, after Rogers Communications Inc. reached an option deal in January to acquire Shaw Communications Inc.’s AWS spectrum when a moratorium on incumbent carriers acquiring that spectrum expires in September 2014. Simon Lockie, chief regulatory officer for new entrant carrier Wind Mobile, said in an interview that Shaw and Rogers will not be required to put that deal up for review until September 2014 under the new rules, which are applied on a going-forward basis. Reviews will be handled within 12 weeks and on a case-by-case basis and will not be precedent-setting, the department said.

Spectrum transfer rules include review of ‘prospective’ deals

Brief | June 28, 2013

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