ISED unveils spectrum licensing and fee updates

The Department of Innovation, Science and Economic Development (ISED) will replace radio licences with spectrum licences and has set forth fees for different stations, according to its updates on the licensing and fee framework for earth stations and space stations. A timeline of standards has also been issued. The 52-page document features 19 decisions on the granting of licenses and the fees assessed to satellite service providers. Interventions were filed from 22 companies and organizations. Three years ago, the federal government released two papers on the subject, Canada’s Digital Charter: Trust in a Digital World and High-Speed Access for All: Canada’s Connectivity Strategy. Under the latter document, download speeds of 50 megabits per second (Mbps) and upload speeds of 10 Mbps were mandated. ISED asked for comments on replacing radio licences with spectrum licences for the authorization of Earth stations, including fixed earth stations, transportable earth stations and earth stations in motion (ESIMs). The department proposed two types of licences, spectrum licences requiring site approval and generic spectrum licences. Comments were generally favourable although BCE Inc., Rogers Communications Inc. and Telus Inc. raised concerns about the use of spectrum licences to authorize ESIMs in some bands, saying it could increase the risk of interference. Respondents were supportive of licencing Tier 1 service areas but the Canadian Space Agency, Global VSAT Forum (GVF), Inmarsat Solutions (Canada) Inc., Radio Amateurs of Canada, SES S.A. (a Luxembourgish satellite and terrestrial telecommunications network provider), Shaw Communications Inc., Space Exploration Technologies Corp. (SpaceX), and SSi Micro Ltd. said smaller tiers should also be considered with lower fees. SES, Shaw and SSi added that lower fees could be important in rural and remote areas. SpaceX suggested removing the research and development (R&D) condition of licence and the waiver of certification requirements for equipment. “ISED has considered the comments related to licencing for the Tier 1 service area and is of the view that issuing licences for smaller tier sizes is neither necessary nor appropriate for satellite services,” the department said. In response to SpaceX’s proposal, the ministry pointed out that the R&D condition only applies to mobile-satellite service (MSS), not fixed-satellite service (FSS) or broadcasting-satellite service (BSS). ISED will adopt a spectrum licence model to authorize fixed and transportable earth stations and ESIMs, with multiple earth stations authorized under a single licence. The department proposed two types of earth station spectrum licences. The first is a licence for which each individual earth station site requires approval from ISED before deployment. The second would authorize generic earth stations. On the first proposal, GVF, SES, Shaw and Xplornet Communications Inc. said the ministry should have clear definitions and explanations for the types of stations that would require site approvals. Support for the second proposal was strong but several stakeholders said the definition of identical earth stations was unclear. Bell, Rogers, Shaw and Telus also worried about interference. Another decision requires ESIM licence holders to provide a contact that will be available for consumers 24/7. ISED will issue spectrum licences rather than approvals in principle for MSS satellites with licences issued immediately after an application has been accepted and fees due only once the satellites are launched and operational. MSS satellite licences will have a 20-year term. The department will issue separate licences for satellites and earth stations, with a fee attached to each one. Fees have been set for the spectrum licences. The department is assigning a consumption-based fee to earth station spectrum licences, where site approval is required, as follows: below or equal to 1 GHz will cost $2,000/MHz; 1 GHz to 3.4 GHz will be $100/MHz; 3.4 GHz to 7.075 GHz is pegged at $20/MHz; 7.075 GHz to 17.3 GHz will be $10/MHz; 17.3 GHz to 51.4 GHz is set at $5/ MHz; and above 51.4 GHz will be $1/MHz. ISED will also assign a consumption-based fee of $5/MHz to generic earth station spectrum licences for fixed earth stations, transportables and ESIMs. For MSS earth stations the fees are set at $1500/MHz at or below 3GHz and $5/MHz for operations above 3 GHz. The department will assess a consumption-based fee of $124.84/MHz to all space station spectrum licences in all services and frequency bands. The fee is not payable until the satellites are launched and operational. There will be a two-step fee for space station spectrum licences for constellations of non-geostationary satellite orbit (NGSO) satellites for any service that is subject to phased deployment milestones. The first step fee of $62.42/MHz will apply from the launch of the first satellite until full deployment, usually in year nine. Afterwards, the fee will double to $124.84/MHz and will remain until the licence expires. ISED will introduce a minimum annual spectrum licence fee of $160 per year for earth stations and $300 a year for space stations for each frequency band. There will be a flat annual fee of $160 a year for earth station licences for radio astronomy sites. The department will also bring in developmental spectrum licence fees of $160 per year for earth stations and $300 a year for space stations. The ministry will issue temporary licences for less than a year. Fees will be assessed on a prorated monthly basis, with the lowest fee possible being $160 for earth stations and $300 for space stations. The timelines for service standards have been set at 77 days for spectrum licences for earth stations requiring site approval; 49 days for site approvals of earth stations under a spectrum licence; 126 days for generic earth stations; 126 days for space stations; and 49 days for additional sites under an existing spectrum licence for earth stations requiring site approval. The major telecoms have long complained that spectrum licence fees are too high. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

ISED unveils spectrum licensing and fee updates

News | May 9, 2022

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ISED unveils spectrum licensing and fee updates

News | May 9, 2022

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