Telesat Canada Conditions of Licence for Direct Broadcast Satellite (DBS)

1. You must invest as a minimum 2 percent of your adjusted gross revenues resulting from the operation of the DBS facility on satellite-related research and development activities averaged over the next 5 years. Eligible research and development is that which meets the definition adopted by Revenue Canada. Adjusted gross revenues are defined as total service revenues less intercarrier payments, bad debts, third party commissions, and provincial and goods and services taxes collected.
2. You must honour all commitments relating to industrial benefits as outlined in your application dated February 28, 1997, notwithstanding other conditions herein.
3. You must make fair and reasonable efforts to promote Canadian manufacturers, designers, and suppliers of telecommunications components for use in the construction of the satellite facility.
4. You must comply with the eligibility criteria as set out in section 16 of the Telecommunications Act and the Canadian Telecommunications Common Carrier Ownership and Control Regulations. You must notify the Minister of any change which would have a material effect on your ownership or control in fact. Such notification must be made in advance for any of the proposed transactions within your knowledge.
5. You must provide DBS satellite service to all regions of Canada.
6. You must provide any technical or other support necessary to assist the Department to effect the successful modification of the BSS frequency assignment plans of Appendix 30/30A of the ITU Radio Regulations.
7. You must fulfill all commitments made by Canada pursuant to all international coordination arrangements for the operation of a direct broadcast satellite facility in the 91 degree West longitude orbital position.
8. You must operate the satellite within the provisions of the ITU Radio Regulations and departmental policies.
9. You must make transponders available on a first-come, first served, non-discriminatory basis.
10. You must submit an annual report for each of the first five years indicating continued compliance with these conditions including:

    - an update on the implementation of the DBS satellite service;

    - an update on the usage and status of each transponder;

    - an update on the status of any negotiations carried out under conditions 6 and 8 above.

    - a audited statement of research and development expenditures as required under condition 1 above; a description of Telesat's research and development activities including their distribution across Canada;

    - an update on the actual direct and indirect jobs created with respect to the satellite facility including their distribution across Canada;

    - a description of direct investments undertaken with respect to the satellite facility; and

    - copy of any existing corporate annual report for your fiscal year with respect to this authorization.

    These reports are to be submitted, in writing, within 120 days of your fiscal year end, to the Director, Space and International Regulatory Activities, Radiocommunication and Broadcasting Regulatory Branch.

11. The transfer of this authorization to another party will not be permitted without full review of the application by the Department and approval by the Minister. In the absence of exceptional circumstances, no transfer of authorization will be permitted in the first three years after the award of this authorization to implement a DBS facility.
12. You must pay the applicable annual radio authorization fees within 15 days of your acceptance in orbit of the satellite from the manufacturer, and on or before March 31 of each year thereafter.