Industry Canada has announced changes to the licensing framework for fixed-satellite service and broadcasting-satellite services in the country.
The business ministry is making three major changes to its policy, implementing a first-come, first-served…
Industry Canada has announced changes to the licensing framework for fixed-satellite service and broadcasting-satellite services in the country.
The business ministry is making three major changes to its policy, implementing a first-come, first-served licensing process; amending the fee regime that applies to satellite operators using Canadian satellite spectrum; and reducing the obligations associated with FSS and BSS satellite licences.
As part of its implementation of a first-come, first-served licensing process, Industry Canada will also replace radio licences with spectrum licences as the instrument used to authorise the use of FSS and BSS satellite spectrum. The licences will include all territory visible from the satellite.
The new regime establishes a single fee for all FSS and BSS spectrum. The ministry is proposing a level of C$120/MHz which would be applied in 25% increments over a three-year period, beginning at licence issuance.
The fee pricing structure would bring the licensing framework more in line with those in place in foreign jurisdictions.
As for the licence obligations, the public benefit condition has now been set at 0.5% of adjusted gross revenue for the particular satellite.
To speed up the licensing process, Industry Canada will also no longer evaluate the applicant’s performance as a Canadian satellite operator (or plans to become one), its financial plans and the benefits to Canadians that will result from the project.
The ministry will, though, undertake a strict enforcement of milestones, with a satellite required to be in operation within five years of the licence being issued and a limit of two pending applications from an operator at any one time. The term of satellite spectrum licences will be set at 20 years with a high expectation of renewal.
In addition, Industry Canada is to change its policy regarding submitting applications to the ITU for orbital filings. The ministry formerly conducted an annual consultation on what orbital positions are of interest to Canada. Instead, it will submit filings to the ITU only at the request of a licence applicant or Canadian operator.
It will also submit ITU filings and process applications for satellite spectrum at orbital positions outside of the Canadian arc (70W to 130W), as long as the applicants have at least one operational satellite serving Canada.
Industry Canada stated that, under the new FCFS licensing regime, ‘the onus should be on satellite operators to identify orbital positions and associated spectrum that are most appropriate for the development of their business plans.’
Commenting on the move, Dan Goldberg, president and CEO of Canadian satellite operator Telesat, said: “The decisions represent a clear statement that the government of Canada wants to ensure that Canadian satellite operators are not placed at a competitive disadvantage in relation to operators licensed in other jurisdictions.
“Today’s decisions, in the aggregate, reduce and streamline the regulatory burden faced by Canadian satellite operators and, in doing so, will speed the delivery to all Canadians of state-of-the-art satellite services.”
The implementation of the new framework will take place in two stages. Those elements related to the licensing process and the licence conditions will take effect when new policy and procedure documents are published, which is due to take place before the end of November.
The second stage is related to the new fee regime and is subject to the process established by the User Fees Act. The new fees will not be implemented until the UFA process is complete and a new fee order for satellite spectrum licences is in place. A comment period on this process will run until 6 December.
