Industry Canada clearing the deck before the holidays

With the election over and the federal government now sitting again - we don't know for how long though - Industry Canada has gotten back to business, releasing a few notices in the past week or so. Tower sharing and roaming topped the list, but also came a decision to auction air-to-ground spectrum as well as a call for expressions of interest on broadcasting spectrum in two orbital slots.The tower and site sharing and roaming decision now gives the new entrant wireless players and the incumbent operators the rules of engagement to begin seriously negotiating agreements. (A more detailed assessment of the rules and reaction will come in the next few days.)The air-to-ground spectrum auction decision is interesting in that Industry Canada is now setting the rules for the eventual introduction of broadband Internet access on domestic flights in Canada. Air Canada is already offering the service on flights to the US because the US Federal Communications Commission has already licensed this service.The department will auction two national licences - one 3MHz and one 1MHz - and will also allow the use of package bidding since there are only two licences available. Given the low number of licences, the department is proposing to use what's known as a Vickery auction or a sealed-bid, second-price auction process.In this scenario, applicants submit their bid for each licence or package of licences in a sealed envelope. The highest bidder is required to pay the second highest bid. In the case of a single bidder, the reserve price is to be paid. In the event of a tie, bidders submit a second bid. This will continue until there is no tie.Additional satellite spectrum is also up for grabs after Telesat Canada expressed interest in the broadcasting satellite service (BSS) spectrum at the 111.1 degrees west and 113 degrees west orbital locations. Industry Canada is seeking expressions of interest from other satellite operators which may want to exploit these orbital resources.However, the department wants to license these two slots as a package rather than as single licences to two operators because the locations are so close together on the arc. Industry Canada notes that the BSS spectrum is for direct-to-home satellite TV and given the close proximity of each location, it may be advisable to license both slots as a package."As a result, rather than encouraging independent applications for each licence in this process, Industry Canada may invite applications for the two licences only as a single package and assign both to only one satellite operator. In this way, the successful operator could implement its satellite(s) at whichever position it achieves access, or could self-manage interference to use both positions to provide capacity in the Canadian market," reads the call for expressions of interest.

Industry Canada clearing the deck before the holidays

News | 12/03/2008 4:20 pm EST

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