Rural spectrum for backhaul should be cheaper than urban: telecoms

Telecom companies are largely supportive of Innovation Canada’s efforts to update how it sets licence fees for point-to-point systems, though some are calling for that process to be sped up and others are arguing fees in rural areas should be lowered. ISED launched a consultation on the changes affecting the spectrum, used by telecoms for wireless backhaul, in November. It proposed to implement a consumption-based model based on the bandwidth of the spectrum, instead of the current regime, which calculates fees based on capacity. It said the current system ends up setting higher fees for systems that use spectrum more efficiently, while under the new regime “the fees would be identical whether 10 Mbps or 300 Mbps is transmitted using the same channel width.” Comments were published by ISED Friday. BCE Inc. said that proposal “rectifies many issues with the current point-to-point licence fee structure,” but said the proposed licence fees should be lowered, and there should be a cap on the total amount of fees paid by the industry. “The Canadian wireless industry is about to make major investments in network equipment and spectrum to implement 5G technologies and services,” Bell argued. “By reducing licence fees for fixed point-to-point radio systems, the Department will be supporting innovation and the efficient use of spectrum.” Shaw Communications Inc. and Quebecor Inc. both called for the implementation date of the new system to be moved up, from April 1, 2020 to April 1, 2019. “This would ensure that the benefits of the new model are realized as soon as possible, as providers continue to make significant investments to facilitate the emergence of 5G,” Shaw said. Many of the submissions argued spectrum in rural parts of the country should be cheaper than in urban areas, with Telus Corp. citing “the already more difficult business cases for general rural wireless deployment.” The BC Broadband Association, which represents smaller providers in the province, had a similar request, writing that “a discounted rate structure in un-congested areas … will both reflect lower demand for frequency licences in rural areas, and encourage broadband deployments in rural and remote areas.” The Canadian Association of Wireless Internet Service Providers (CanWISP) said that discount should be 60 per cent. The Canadian Wireless Telecommunications Association (CWTA) was also in favour of reducing fees in less-populated areas, “provided that this does result in adding premiums to rates for more congested areas.”

Rural spectrum for backhaul should be cheaper than urban: telecoms

Brief | January 14, 2019

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Rural spectrum for backhaul should be cheaper than urban: telecoms

Brief | January 14, 2019

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