ISED expands AWS-1 coverage requirements, licence terms

Innovation Canada is extending both licence terms and coverage requirements following a consultation on AWS-1 spectrum renewals, it said in a decision Friday. In 2008, ISED — then Industry Canada — auctioned off AWS-1 and other spectrum for a term of 10 years using Tier 2 and Tier 3 licence areas. Following a consultation in June, which saw Canada’s largest wireless providers request a longer term period, ISED said Friday it will expand the term for AWS-1 and G Block to 20 years — I Block for 10 years — and require those providers to cover additional areas serving 172 communities and cities making up Tier 4. That would encourage rural deployment, whereas its decision in 2008 did not, ISED said. Because of the “significant investment” required to achieve this, the department said it will apply a phased approach, meaning Tier 3 level coverage will be required in eight years, while Tier 4 will be required by the end of the 20-year term. “The 20-year licence term with two deployment milestones requires significant deployment but allows for flexibility of individual business cases,” the decision read, adding AWS-1 and G Block are well established and the new terms would incentivize investment. It added that if business plans fall short of the requirements, licencees are encouraged to team up with third parties to meet those goals. Those term conditions will be granted if all condition of licence are met, ISED said. ISED noted reasons for opposition to Tier 4 coverage included high cost deployment to rural areas compared to low-band spectrum and a risk of interference with established networks. Those opposed were Rogers Communications Inc., Shaw Communications Inc., Quebecor Inc., Xplornet Communications Inc. and Bragg Communications Inc.’s Eastlink. ISED also upheld a licence conditions mandating funding contributions for research and development, despite the largest carriers arguing against it. That condition requires licensees to invest a minimum of two per cent of revenues, obtained from its use, averaged over the term of the licence. Rogers had argued market forces already push companies to funnel money into research and development.

ISED expands AWS-1 coverage requirements, licence terms

Brief | February 16, 2018

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ISED expands AWS-1 coverage requirements, licence terms

Brief | February 16, 2018

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