Industry Canada considers new rules to ensure licence compliance

Industry Canada is looking at cutting of the red tape companies face in proving their eligibility before they can apply for additional radio spectrum. The department says it has established effective mechanisms to ensure companies have complied with most conditions of their licence, but the problem arises in applying that same mechanism to other conditions. "While the Department occasionally discovers licensees who are not compliant with Category 1 and 2 licence conditions, it has, over the years, developed various tools and practices for effectively resolving such occurrences," states Gazette Notice No. DGRB-002-01, released Feb. 17. "However, with respect to licensees who are not compliant with Category 3 licence conditions, the Department’s tried and true techniques have proven to be less effective." Category 3 includes such things as R&D commitments, service implementation and network deployment. The issue was raised during consultations on the policy for the recently completed PCS spectrum auction (RoW, Feb. 5/01). Most intervenors suggested at the time that the government hold a separate consultation to deal with the issue, considering its significance. Dawn Hunt, VP of regulatory affairs at Rogers Wireless Inc, says the issue centres around the ability of Industry Canada to determine the compliance of a company so that it can acquire additional spectrum. "(…) how do you ensure that carriers are living up to the promises either they made in a beauty-type contest where they got spectrum or even in a PCS auction situation where there are licence conditions regarding roll out," she asks. Breaking the rules, it seems, isn’t common. As such, Industry Canada questions whether it makes sense to "impose an administrative burden" on so many in cases where a single applicant, or even an affiliate company, is applying for additional spectrum. The department is asking whether changes should be made to the current mechanism of measuring compliance and is seeking comment on an alternative proposal that would limit application of the compliance mechanism to any party which Category 3 licence conditions pertain. "Specifically, the department seeks comment on the desirability of avoiding a measure of administrative burden, by limiting the application of this procedure, versus the desirability of maintaining its symmetrical and universal application to all licensing situations," the department writes. For example, Industry Canada says it could require licensees to swear an affidavit or agree to some other mechanism that holds the company accountable to the government. Hunt says one of the key issues that will come out of this debate will be the effect of non-compliance on affiliate or related companies. If a carrier is found to be in a situation of non-compliance, how far does that inability to acquire new spectrum reach? "Do you apply it just to the company or to affiliates," she asks. "How far does the scope go?"

Industry Canada considers new rules to ensure licence compliance

News | March 5, 2001

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