Letter to Inukshuk Internet Inc., 2004

Ottawa, Ontario
K1A 0C8

July 8, 2004

Inukshuk Internet Inc.
c/o Dean Proctor
Vice-President, Regulatory Affairs
Microcell Telecommunications Inc.
Suite 4000
800 de la Gauchetière Street West
Montreal, Quebec
H5A 1K3

Dear Mr. Proctor: 

I am writing in response to your letter dated March 31, 2004, requesting approval of your revised deployment plans for the MCS spectrum licences issued to Inukshuk Internet on January 1, 2002.

The objective of the spectrum usage requirement set out in the licence conditions is to ensure that spectrum, a limited public resource, is put to use by those who have been given the privilege of access to it. The Department also realizes that the nature of the fast-paced telecommunications industry requires that our licensees react to a changing market and must adjust their business plans accordingly to reflect the current environment.

In reviewing your submission we have taken into consideration Inukshuk's recent accomplishments in commencing deployment in Iqaluit, Yellowknife, Vancouver, urban and rural Ottawa as well as trial sites in Montreal and Toronto. With successful service deployment in Iqaluit and Yellowknife, Inukshuk has met its original deployment commitment for the two licence areas of Nunavut and Northwest Territories. We also note that Inukshuk has made considerable progress towards meeting its Learning Plan commitments.

While recognizing that the 2004 revised deployment plan varies from the previously approved plan, we are satisfied that the increased emphasis on rural areas is furthering the government objective of providing services to all Canadians. Hence the Department accepts your revised deployment plan.

The Department will continue to review Inukshuk's performance and compliance with all the conditions of licence, in particular the amended licence condition (i) which says that you "must substantially adhere to the MCS system rollout plans (with respect to this licence as well as with respect to every MCS spectrum licence held by you) in your detailed submission to the Department as amended in your letter to the Department March 31, 2004".

The Department will consider the following measures to determine whether Inukshuk has substantially adhered to the MCS system rollout plans (excluding Nunavut and Northwest Territories where the implementation commitments have been met):

• by March 31, 2005, service be established to a level satisfactory to the Department in at least five cities with a population greater than 100,000 and in at least 16 communities with a population less than 100,000. In addition, service must be established in at least 5 of the MCS spectrum licence areas licensed to Inukshuk;
  
  
• by March 31, 2006, service be established in at least 15 cities with a population greater than 100,000 and at least 32 communities with a population less than 100,000 and be established in all of the MCS spectrum licence areas licensed to Inukshuk; and
  
  
• by the end of the next two years ending March 31, 2008, service be established in at least 28 cities with a population greater than 100,000 and at least 44 communities with a population less than 100,000.

We will continue to require Inukshuk to submit annual reports outlining overall progress until March 31, 2008, as per condition (xv) of the spectrum licence. The reports should detail the actual frequency usage on the established systems.

As you are aware, the Department released a consultation paper Revisions to Allocations in the Band 2500-2690 MHz and Consultation on Spectrum Utilization on May 7, 2004, which discusses the addition of a mobile allocation to the Canadian frequency allocation table in this band as announced by the Minister November 16, 2001. This consultation raises issues regarding how to best reband the spectrum to maximize the potential for allowing the spectrum to move to the highest valued use while considering a number of other objectives of the spectrum management program. As the most significant licensee in this band in Canada, we expect that Inukshuk will participate in these consultations.

If you have any questions, please contact Heather Hall, Manager, Emerging Networks at (613) 990-4411.

Sincerely,

Jan Skora
Director General
Radiocommunications and
Broadcasting Regulatory Branch