Telus Mobility wants ESMR spectrum out of spectrum cap rules; greater flexibility

Telus Mobility wants Industry Canada to change the way it calculates spectrum aggregation limits, prior to a full scale review of the spectrum cap. The company has filed an application with the department asking it to either remove ESMR (Enhanced Specialized Mobile Radio) spectrum holdings from spectrum cap calculations or cap a company’s entire holdings at 10 MHz regardless of how much spectrum is held. Earlier this month, Industry Canada launched a public consultation on what may turn out to be a highly contentious issue (DGTP 003-02). The department is asking for comments on several aspects of the issue. It wants to know, among other things, if ESMR is sufficiently different from cellular or PCS services that it warrants special treatment under the spectrum cap. The department also asks, if the application is approved, how it should treat ESMR spectrum. Telus Mobility, which currently holds 10 to 15 MHz of the spectrum in various regions of the country, says that growth of its Mike services is increasing and that such a move would give the company more flexibility to meet demand. The table below illustrates where and by how much the national wireless operator is approaching its spectrum cap limits. Telus Mobility’s National Spectrum HoldingsMarketCellularPCSESMRESMR UsedTotal SpectrumUnused SpectrumVancouver25 MHz20 MHz10 MHz9.6 MHz54.6 MHz.4 MHzTorontoN/A40 MHz15 MHz14.3 MHz54.3 MHz.7 MHzCalgary25 MHz20 MHz10 MHz7.9 MHz52.9 MHz2.1 MHzMontrealN/A40 MHz15 MHz11.8 MHz51.8 MHz3.2 MHzThe above table demonstrates Telus Mobility’s current spectrum holding situation. The amount of spectrum available for the implementation of additional ESMR users appears to be limited. The company wants to be able to separate its ESMR spectrum holdings from its cellular and PCS resources in the calculation of the spectrum cap. Source: Telus Mobility application for a review of the treatment of ESMR spectrum under current spectrum aggregation limit rules, Nov. 27, 2001. ESMR, more commonly referred to in Canada as iDEN or Mike, offers the distinct "direct connect" feature that is unavailable on conventional PCS networks. It allows Mike handset users to initiate a "walkie talkie"-like session with other users. The feature has become popular among both the blue and white collar working communities. Demand for this service is likely to increase since Telus Mobility began offering its Wireless Office service (RoW, May 13/02). Using the WirelessConnect product from Ascendent Telecom, Telus Mobility can extend the wireline dial functionality of a corporate PBX to the wireless phone, including Mike handsets. Telus Mobility can’t wait for formal review of spectrum cap Industry Canada has previously stated that it won’t begin a full-scale review of current spectrum cap rules until 3G spectrum becomes available. It is still unknown when the department would initiate such a process, but it will likely follow on the heels of a similar announcement in the United States. But Telus Mobility says it needs more certainty before that review. "From what we know, this timeframe will significantly constrain Telus’ ESMR service offerings which will require spectrum in excess of the current cap in the near future in a number of areas in Canada," Serge Bertuzzo, Telus Mobility’s director of spectrum and regulatory affairs, writes in the Nov. 27, 2001 application. It bases its claim on three factors: • A complex spectrum planning process and engineering design are required to deploy an ESMR system because the spectrum is highly encumbered with other licensees; • The current cap, which requires Telus to rely heavily on cell splitting technology to achieve the additional capacity required, takes away valuable capital that could otherwise be used to provide expanded coverage; and • The Federal Communications Commission adopted an attribution rule (of a maximum of 10 MHz) for SMR spectrum in 1994 that recognized the unique licensing parameters of the service. Telus maintains that ESMR isn’t the same as PCS, and thus shouldn’t come under the same rules. Cellular and PCS spectrum is assigned in contiguous blocks, which presents numerous advantages. "These systems have a considerable advantage since they have been allocated in large blocks of spectrum that enables them to reuse channels freely anywhere within their serving territory," the company states. However, ESMR systems operate in a much different spectrum environment. Spectrum is not contiguous and is interspersed with many other users, Bertuzzo notes. As a result, the company needs to spend considerable financial resources to implement complex cell splitting techniques to add more capacity to the network. "Ideally, we would prefer to utilize available capital, to the extent possible, to expand and improve service coverage for our existing and future clients," he writes. The company indicates that it has already used this technique to increase capacity in its network and has budgeted for similar activities this year. "The deployment of these capacity sites, with the associated capital, consumed valuable dollars that could otherwise be used to expand coverage to under served areas of the country thereby providing Canadians with additional choices in wireless service offerings," Bertuzzo writes. "Telus submits that ESMR spectrum is only a partial substitute for either cellular or PCS spectrum due to various spectrum engineering complexities, such as the fact that it is not contiguous in nature and other users have been assigned spectrum throughout the 806-821 MHz band," Bertuzzo writes. Initial comments are to be submitted by June 10, 2002 and reply comments will be accepted until June 25, 2002.

Telus Mobility wants ESMR spectrum out of spectrum cap rules; greater flexibility

News | May 27, 2002

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