Industry Canada begins 3G spectrum licensing process; reviewing spectrum cap

Industry Canada has begun to lay the policy foundation for the licensing of spectrum for advanced wireless services, or 3G. The department is seeking comments in DGTP-007-03 on the proposed licensing of several bands, including the 1710-1755 MHz and 2110-2155 MHz pairing, two key bands identified by the International Telecommunication Union for IMT-2000. Industry Canada anticipates licensing the spectrum in 2005/2006. The department is seeking comments on whether licensing the 1710-1755 MHz and 2110-2155 MHz pairing is a good policy move. It also wants suggestions on the size of the spectrum blocks and the pairing and combination for the channelization of the paired bands. "The objective of the proposed changes to the Canadian Table (of Frequency Allocations) is to harmonize the North American public wireless infrastructure, thereby providing economies of scale and roaming benefits to subscribers and service providers," Canada’s spectrum regulator writes in the Gazette Notice. Last week, the Federal Communications Commission (FCC) unveiled its auction policy for these two bands, which were designated in November 2002. It has proposed two 10 MHz pairs, combined with two pairings of 20 MHz, and a single 30 MHz. The FCC has also decided to provide the maximum flexibility to eventual licensees to implement a variety of services, including mobile and fixed applications. But before Industry Canada can license the 1700 MHz and 2100 MHz bands, it has to add a mobile allocation to this spectrum by making changes to the Canadian Table of Frequency Allocations. The department also has to develop a transition plan for existing fixed users in the bands. According to the proposed changes, mobile service will become a priority designation on April 1, 2007, giving existing users ample time to migrate to other bands. "… The transition policy is based on releasing spectrum on a ‘where necessary’ basis; the existing fixed stations will be subject to displacement, with a minimum one-year notification period, if they affect deployment of advanced wireless services in urban areas or in specific geographic areas such as along major highway corridors. A two-year minimum notification period applies to fixed stations in all other areas," the department writes in its Gazette Notice. Also proposed in DGTP-007-03 are several other changes to the Canadian table that would align certain other spectrum allocations adopted by the FCC earlier this year. Industry Canada wants comments on the proposed licensing of spectrum previously allocated for licence-exempt PCS devices (LE-PCS, 1910-1920 MHz) and for mobile satellite services (MSS) for advanced wireless services. The MSS bands are 1990-2000 MHz, the 2020-2025 MHz and 2160-2180 MHz. Opening up the two 1900 MHz bands would add 20 MHz of additional spectrum for 3G. LE-PCS was previously the subject of an extensive consultation process in 1997/98 that led to an industry plan to clear existing users for applications such as wireless PBX. An advisory group of stakeholders came up with a clearing plan that included conciliation - a first for the industry at the time (RoW, Nov. 30/98). The government’s decision to explore the use of the MSS and the licence-exempt PCS devices bands is in response to policy decisions by the FCC to open those up for advanced wireless services, including 3G. Spectrum cap to be reviewed Canada is also revisiting its spectrum cap policy as part of this consultation on 3G. The spectrum aggregation limit, currently 55 MHz, will likely be raised because three of the four national players are at or approaching the cap. Bell Mobility, Telus Mobility and Rogers Wireless Inc. acquired additional spectrum in the 2001 auction of reserved PCS spectrum blocks (RoW, Feb. 5/01). Microcell Telecommunications Inc., which withdrew from the auction within the first week, still has room to acquire an additional 25 MHz of spectrum under current aggregation rules. "As a minimum, the spectrum cap limit of 55 MHz needs to be increased in order to permit wireless carriers to acquire new spectrum resources to expand their networks, and introduce new services until approximately the year 2010. The department believes that any changes to the spectrum cap policy should be announced in sufficient time before the licensing of new spectrum," reads Gazette Notice DGTP-007-03. Earlier this year, the department also changed the way it treats Enhanced Specialized Mobile Radio (ESMR) spectrum under the cap (RoW Update, April 7/03). In DGTP-004-03, Industry Canada capped the amount that ESMR spectrum holdings could count towards the overall spectrum cap. Telus Mobility, the only holder of ESMR spectrum in Canada, applauded the decision saying the ruling allowed the company to make better use of spectrum. The FCC made changes to its spectrum cap two years ago. In a 2001 ruling, the commission decided to harmonize its policy for urban and rural areas, setting the cap at 55 MHz, and then to completely rescind the cap effective January 1, 2003. Since that time, several major spectrum swaps have been completed, most notably by NextWave Telecom. The bankrupt carrier won the right to keep its licences after feuding with the FCC went to the land’s highest court. NextWave sold several licences to Cingular Wireless earlier this year for US$1.5 billion. Industry Canada wants to make sure whatever spectrum cap moves it makes are deemed to be in the public interest. "In moving forward with the spectrum cap review, the department needs to determine the public interest in retaining the mobile spectrum cap or any competitive benefits in rescinding the spectrum cap altogether. This consideration should take into account the general telecommunications objectives of the Telecommunications Act."

Industry Canada begins 3G spectrum licensing process; reviewing spectrum cap

News | October 21, 2003

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