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Notice No. DGRB-004-96
Radio Authorization Fees for Local Multipoint Communication Systems in the 28 GHz Range (LMCS)
Department of Industry Act, S.C. 1995, c.1:
Introduction
LMCS, Local Multipoint Communication Systems, provide a wide band
wireless telecommunications common carrier service in the 28 GHz range
that will be able to carry basic and advanced communications providing
such services as "wireless" cable TV, Internet access, video
teleconferencing and various other multimedia services.
On March 9,1996, the Department of Industry issued Gazette Notice
DGTP-003-96 announcing the release of the paper entitled
"Local Multipoint Communication Systems (LMCS) in the 28 GHz
Range: Policy, Authorization Procedures and Evaluation
Criteria" to announce the Department's policy and to
initiate a comparative selection and authorization process for these
systems.
In addition to calling for expressions of interest and, subsequently,
full detailed submissions, the paper sought comments on the proposed
radio authorization fees for prospective LMCS service providers.
Generally, interested parties were invited to comment, by April 1, on
the proposed annual authorization fee of $0.50 per household per 500
MHz spectrum block in each service area and other aspects of the fees.
The Department of Industry has defined 66 service areas in which two
500 MHz spectrum blocks are available now for authorization. The
above-noted paper provides maps of these areas and a table with the
corresponding number of households and authorization fee for each
service area.
The policy paper also states that this is an interim fee regime for
LMCS which will be adjusted as a result of market-based information
derived from the auctioning in 18 to 36 months of the remaining
frequency blocks reserved for LMCS.
In response to the Notice DGTP-003-96, 34 submissions were received
from interested parties. Of these, 20 submissions contained comments
concerning the proposed fees.
Several of the respondents fully support the Department's broad
policy objectives of facilitating the timely and orderly
implementation within Canada of wireless telecommunications in the 28
GHz range and fostering sustainable competition and innovative
services.
They acknowledge that fixing the fees for an interim period and
reassessing them after an auction of the remaining spectrum blocks is
a prudent and fair way to ensure that all Canadians receive a
reasonable return for the use of this valuable spectrum. Prospective
LMCS service providers are eager to offer new wireless services that
may compete with cable and local telephone services.
Of the respondents who expressed some reservations or opposition to
the interim fee proposal, few provided any analysis supporting an
alternative amount or showed how the proposal would adversely affect
them.
Revising the fee schedule to accommodate prorated entry fees and to
fix an annual renewal fee address concerns raised about lowering the
fee during the first year of operation and specifying the term of the
radio authorization fee. Complete details of the fees fixed for LMCS
are set out in the following fee schedule.
Fee Schedule
The Minister of Industry, pursuant to section 19 of the Department
of Industry Act, hereby fixes the following fees, effective April
30, 1996. The fees are applicable to radio authorizations issued by
the Minister pursuant to paragraph 5(1)(a) of the
Radiocommunication Act to establish local multipoint
communication systems (LMCS) in accordance with the terms of the
authorization.
Interpretation
1. For the purpose of this fee schedule,
"designated service area" means a
geographic area comprised of one or more Canada Post Forward Sortation
Areas that contains at least 10,000 households and where two FSAs form
part of the same service area when the FSAs are separated by less than
8 kilometres;
"Forward Sortation Area" (FSA) means a geographic area
designated by the first three characters of the Canada Postal
Code;
"household" has the same meaning as defined by
"Statistics Canada" in the 1991 Census;
"local multipoint communication systems" (LMCS) means a
wireless local broadband distribution system that uses efficient
frequency reuse techniques in the radio frequency band from 25.35 to
28.35 GHz to provide services such as video, data and telephony to
residential and business subscribers;
"non-designated service area" means a geographic area
outside the boundaries of a "designated service area";
"renewal fee" means the annual fee payable for the renewal
of a radio authorization before the radio authorization expires on
March 31 of each year.
Annual Radio Authorization Fee
Designated Service Areas
2. The annual radio authorization fee is the applicable fee set out
in column IV of Part I of the schedule for each 500 MHz spectrum block
in each applicable designated service area.
Non-designated Service Areas
3. The annual radio authorization fee is $0.50 per household per 500
MHz spectrum block in each non-designated service area.
Initial Annual Radio Authorization Fee
Payment
4. When the Minister issues an initial
annual radio authorization to the applicant, payment of
(a) 20 percent of the total value of the annual radio authorization
fee that corresponds to the 500 MHz spectrum blocks authorized in each
designated or non-designated service area is due within five business
days after the date of issuance of the radio authorization; and
(b) the balance of the initial annual radio authorization fee for the
500 MHz spectrum blocks authorized in each designated or
non-designated service area is due within 30 days after the date of
issuance of the radio authorization.
Initial Annual Authorization Fees
Adjusted for Prorated Entry
5. The month that the Minister issues the
initial annual radio authorization determines the applicable fee
adjustment factor used to prorate the initial annual authorization
fee.
Designated Service Area
6. The prorated entry fee for each 500 MHz spectrum block in each
applicable designated service area is the applicable annual radio
authorization fee set out in column IV of Part I of the schedule
multiplied by the applicable fee adjustment factor set out in column
II of Part II of the schedule.
Non-designated Service Area
7. The prorated entry fee for each 500 MHz spectrum block in each
applicable non-designated service area is the annual radio
authorization fee of $0.50 per household per 500 MHz spectrum block
multiplied by the applicable fee adjustment factor set out in column
II of Part II of the schedule.
Renewal Fee
8. The renewal fee is the applicable annual radio authorization fee
for each 500 MHz spectrum block authorized in each designated or
non-designated service area.
General Notes
All fees are rounded to the nearest dollar.
Maps of the designated service areas are in the document entitled
"Local Multipoint Communication Systems (LMCS) in the 28 GHz
Range: Policy, Authorization Procedures and Evaluation Criteria"
released February 29, 1996.
This is an interim fee regime for LMCS. The fees may be adjusted in
accordance with a market determined valuation as a result of a
competitive bidding process for the remaining frequency blocks
reserved for LMCS.
John Manley
Minister of Industry
Part I: LMCS Designated Service Areas
and Annual Radio Authorization Fees
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Item Column I: Designated Service
Area
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Column II: Forward Sortation Area
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Column III: Number of Households
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Column IV: Annual Fee
per 500 MHz ($)
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1. Barrie
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L4N, L4M
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24 010
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12 005
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2. Belleville
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K8P, K8R, K8V, K8N
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24 265
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12 132
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3. Brandon
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R7B, R7C, R7A
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14 695
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7 347
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4. Brantford
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N3P, N3R, N3S, N3T, N3V, N3L
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33 775
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16 887
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5. Brockville
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K6V, K6T
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11 410
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5 705
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6. Calgary
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T1Y, T2A, T2B, T2C, T2E, T2G, T2H, T2J, T2K, T2L, T2M, T2N, T2P,
T2R, T2S, T2T, T2V, T2W, T2X, T2Y, T2Z, T3A, T3B, T3C, T3E, T3G,
T3H, T3J, T3K, T3L, T4A, T4B, T1X
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266 370
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133 185
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7. Charlottetown
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C1A, C1B, C1C, C1E
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13 530
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6 765
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8. Chatham
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N7M, N7L
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17 815
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8 907
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9. Chicoutimi-Jonquière- Alma
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G7G, G7H, G7J, G7K, G7S, G7T, G7X, G7Y, G7Z, G8A, G8B, G8C, G7B
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61 130
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30 565
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10. Cobourg-Port Hope
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L1A, K9A
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11 750
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5 875
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11. Cornwall
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K6J, K6K, K6H
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18 500
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9 250
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12. Courtenay
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V9H, V9J, V9M, V9N, V9W, V9G
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24 175
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12 087
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13. Drummondville
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J2B, J2C, J2E, J2A
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21 585
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10 792
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14. Edmonton
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T5A, T5B, T5C, T5E, T5G, T5H, T5J, T5K, T5L, T5M, T5N, T5P, T5R,
T5S, T5T, T5V, T5W, T5X, T5Y, T5Z, T6A, T6B, T6C, T6E, T6G, T6H,
T6J, T6K, T6L, T6M, T6N, T6P, T6R, T6S, T6T, T6V, T6W, T6X, T7X,
T7Y, T7Z, T8A, T8B, T8C, T8E, T8G, T8H, T8L, T8N, T9E, T4X
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286 385
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143 192
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15. Fort McMurray
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T9J, T9K, T9H
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11 295
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5 647
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16. Fredericton
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E3A, E3B, E3C, E3E, E2V
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25 215
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12 607
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17. Granby
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J2H, J2J, J2G
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21 145
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10 572
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18. Grande Prairie
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T8W, T8X, T8V
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10 105
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5 052
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19. Guelph-Kitchener
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N1E, N1G, N1H, N1J, N1K, N1L, N1P, N1R, N1S, N1T, N2A, N2B, N2C,
N2E, N2G, N2H, N2J, N2K, N2L, N2M, N2N, N2P, N2R, N2S, N2T, N2V,
N3B, N3C, N3E, N3H, N1C
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156 275
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78 137
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20. Halifax
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B2V, B2W, B2X, B2Y, B2Z, B3A, B3B, B3G, B3H, B3J, B3K, B3L, B3M,
B3N, B3P, B3R, B3S, B3T, B4A, B4B, B4C, B4E, B4G, B2T
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106 050
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53 025
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21. Jolliette
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J6E
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13 370
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6 685
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22. Kamloops
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V1S, V2B, V2C, V2E, V2H, V1P
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25 170
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12 585
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23. Kelowna
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V1K, V1T, V1V, V1W, V1X, V1Y, V1Z, V4T, V1B
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54 050
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27 025
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24. Kingston
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K7L, K7M, K7N, K7P, K7K
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41 445
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20 722
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25. Lethbridge
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T1J, T1K, T1M, T1H
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25 180
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12 590
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26. London-Woodstock-
St Thomas
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N4T, N4V, N5C, N5L, N5P, N5R, N5V, N5W, N5X, N5Y, N5Z, N6A, N6B,
N6C, N6E, N6G, N6H, N6J, N6K, N6L, N6M, N6N, N4S
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150 140
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75 070
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27. Medicine Hat
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T1B, T1C, T1A
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17 000
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8 500
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28. Moncton
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E1B, E1C, E1E, E1G, E1A
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30 165
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15 082
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29. Montréal
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H1B, H1C, H1E, H1G, H1H, H1J, H1K, H1L, H1M, H1N, H1P, H1R, H1S,
H1T, H1V, H1W, H1X, H1Y, H1Z, H2A, H2B, H2C, H2E, H2G, H2H, H2J,
H2K, H2L, H2M, H2N, H2P, H2R, H2S, H2T, H2V, H2W, H2X, H2Y, H2Z,
H3A, H3B, H3C, H3E, H3G, H3H, H3J, H3K, H3L, H3M, H3N, H3P, H3R,
H3S, H3T, H3V, H3W, H3X, H3Y, H3Z, H4A, H4B, H4C, H4E, H4G, H4H,
H4J, H4K, H4L, H4M, H4N, H4P, H4R, H4S, H4T, H4V, H4W, H4X, H4Y,
H4Z, H5A, H5B, H7A, H7B, H7C, H7E, H7G, H7H, H7J, H7K, H7L, H7M,
H7N, H7P, H7R, H7S, H7T, H7V, H7W, H7X, H7Y, H8N, H8P, H8R, H8S,
H8T, H8Y, H8Z, H9A, H9B, H9C, H9E, H9G, H9H, H9J, H9K, H9P, H9R,
H9S, H9W, H9X, J2W, J2X, J2Y, J3A, J3B, J3E, J3G, J3H, J3L, J3M,
J3N, J3V, J3X, J3Y, J3Z, J4B, J4G, J4H, J4J, J4K, J4L, J4M, J4N,
J4P, J4R, J4S, J4T, J4V, J4W, J4X, J4Y, J4Z, J5A, J5R, J5Y, J5Z,
J6A, J6J, J6K, J6N, J6R, J6S, J6T, J6V, J6W, J6X, J6Y, J6Z, J7A,
J7B, J7C, J7E, J7G, J7H, J7J, J7K, J7L, J7N, J7P, J7R, J7V, J7W,
J7Y, J7Z, J8H, H1A
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1 268 660
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634 330
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30. Moose Jaw
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S6J, S6K, S6H
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13 385
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6 692
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31. Nanaimo
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V9P, V9R, V9S, V9T, V9V, V9Y, V9K
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41 600
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20 800
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32. Niagara-Ste.Catharines-
Welland
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L2G, L2H, L2J, L2M, L2N, L2P, L2R, L2S, L2T, L2V, L2W, L3B, L3C,
L3K, L2E
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106 610
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53 305
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33. North Bay
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P1B, P1C, P1A
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19 470
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9 735
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34. Orillia
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L3V
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11 390
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5 695
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35. Ottawa-Hull
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J8M, J8P, J8R, J8T, J8V, J8X, J8Y, J8Z, J9A, J9H, J9J, K1A, K1B,
K1C, K1E, K1G, K1H, K1J, K1K, K1L, K1M, K1N, K1P, K1R, K1S, K1T,
K1V, K1W, K1Y, K1Z, K2A, K2B, K2C, K2E, K2G, K2H, K2J, K2K, K2L,
K2M, K2P, K2R, K2S, K2T, K2V, K2W, K4A, K4B, K4C, K4K, K4M, K4R,
K7A, K7C, K7H, J8L
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338 295
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169 147
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36. Pembroke
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K8B, K8C, K8H, K8A
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12 070
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6 035
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37. Penticton
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V2A
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12 445
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6 222
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38. Peterborough
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K9J, K9K, K9L, K9H
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28 510
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14 255
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39. Prince Albert
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S6W, S6X, S6V
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13 670
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6 835
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40. Prince George
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V2K, V2L, V2M, V2N, V1H
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23 750
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11 875
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41. Québec
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G1B, G1C, G1E, G1G, G1H, G1J, G1K, G1L, G1M, G1N, G1P, G1R, G1S,
G1T, G1V, G1W, G1X, G1Y, G2A, G2B, G2C, G2E, G2G, G2J, G2K, G2L,
G2M, G2N, G3A, G3E, G3J, G3K, G6C, G6J, G6K, G6V, G6W, G6X, G6Z,
G7A, G1A
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234 330
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117 165
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42. Red Deer
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T4P, T4R, T4N
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21 460
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10 730
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43. Regina
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S4N, S4P, S4R, S4S, S4T, S4V, S4W, S4X, S4Y, S4Z, S4L
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67 820
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33 910
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44. Rimouski
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G5M, G5N, G5L
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14 515
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7 257
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45. Rouyn-Noranda
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J9X
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10 960
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5 480
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46. Saint John
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E2G, E2H, E2J, E2K, E2L, E2M, E2N, E2P, E2R, E2S, E2E
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35 835
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17 917
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47. Sarnia
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N7T, N7V, N7W, N7X, N7S
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28 195
|
14 097
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48. Saskatoon
|
S7J, S7K, S7L, S7M, S7N, S7P, S7R, S7S, S7T, S7V, S7H
|
71 855
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35 927
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49. Sault Ste Marie
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P6B, P6C, P6A
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30 650
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15 325
|
50. Sherbrooke
|
J1G, J1H, J1J, J1K, J1L, J1M, J1N, J1X, J1E
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57 535
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28 767
|
51. Sydney
|
B1H, B1L, B1M, B1N, B1P, B1R, B1S, B1V, B2A, B1A
|
33 055
|
16 527
|
52. Sorel
|
J3R, J3S, J3P
|
16 430
|
8215
|
53. St-Hyacinthe
|
J2T, J2S
|
16 055
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8 027
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54. St. John's
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A1B, A1C, A1E, A1G, A1K, A1L, A1N, A1S, A1W, A1X, A1A
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49 965
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24 982
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55. Stratford
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N5A, N5B, N4Z
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11 130
|
5 565
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56. Sudbury
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P3B, P3C, P3E, P3G, P3L, P3N, P3P, P3Y, P3A
|
46 270
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23 135
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57. Thunder Bay
|
P7B, P7C, P7E, P7G, P7J, P7A
|
43 210
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21 605
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58. Timmins
|
P4P, P4R, P4N
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13 680
|
6 840
|
59. Toronto- Hamilton- Oshawa
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L1C, L1E, L1G, L1H, L1J, L1K, L1L, L1N, L1P, L1R, L1S, L1T, L1V,
L1W, L1X, L1Y, L1Z, L3M, L3P, L3R, L3S, L3T, L3X, L3Y, L3Z, L4A,
L4B, L4C, L4E, L4G, L4H, L4J, L4K, L4L, L4P, L4S, L4T, L4V, L4W,
L4X, L4Y, L4Z, L5A, L5B, L5C, L5E, L5G, L5H, L5J, L5K, L5L, L5M,
L5N, L5P, L5R, L5S, L5T, L5V, L5W, L6A, L6B, L6C, L6E, L6G, L6H,
L6J, L6K, L6L, L6M, L6R, L6S, L6T, L6V, L6W, L6X, L6Y, L6Z, L7A,
L7B, L7C, L7E, L7G, L7J, L7L, L7M, L7N, L7P, L7R, L7S, L7T, L7V,
L8E, L8G, L8H, L8J, L8K, L8L, L8M, L8N, L8P, L8R, L8S, L8T, L8V,
L8W, L9A, L9B, L9C, L9G, L9H, L9J, L9K, L9L, L9N, L9P, L9T, M1B,
M1C, M1E, M1G, M1H, M1J, M1K, M1L, M1M, M1N, M1P, M1R, M1S, M1T,
M1V, M1W, M1X, M2H, M2J, M2K, M2L, M2M, M2N, M2P, M2R, M3A, M3B,
M3C, M3H, M3J, M3K, M3L, M3M, M3N, M4A, M4B, M4C, M4E, M4G, M4H,
M4J, M4K, M4L, M4M, M4N, M4P, M4R, M4S, M4T, M4V, M4W, M4X, M4Y,
M5A, M5B, M5C, M5E, M5G, M5H, M5J, M5K, M5L, M5M, M5N, M5P, M5R,
M5S, M5T, M5V, M5W, M5X, M6A, M6B, M6C, M6E, M6G, M6H, M6J, M6K,
M6L, M6M, M6N, M6P, M6R, M6S, M7A, M8V, M8W, M8X, M8Y, M8Z, M9A,
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1 614 405
|
807 202
|
60. Trois-Rivières
|
G8V, G8W, G8Y, G8Z, G9A, G9B, G9C, G9N, G9P, G9R, G9T, J3T, G8T
|
69 550
|
34 775
|
61. Val-D'Or
|
J9P
|
10 345
|
5 172
|
62. Vancouver
|
V2P, V2R, V2S, V2T, V2V, V2W, V2X, V2Y, V2Z, V3A, V3B, V3C, V3E,
V3G, V3H, V3J, V3K, V3L, V3M, V3N, V3P, V3R, V3S, V3T, V3V, V3W,
V3X, V3Y, V3Z, V4A, V4B, V4C, V4E, V4G, V4K, V4L, V4M, V4N, V4P,
V4R, V4S, V4W, V4X, V5A, V5B, V5C, V5E, V5G, V5H, V5J, V5K, V5L,
V5M, V5N, V5P, V5R, V5S, V5T, V5V, V5W, V5X, V5Y, V5Z, V6A, V6B,
V6C, V6E, V6G, V6H, V6J, V6K, V6L, V6M, V6N, V6P, V6R, V6S, V6T,
V6V, V6W, V6X, V6Y, V6Z, V7A, V7B, V7C, V7E, V7G, V7H, V7J, V7K,
V7L, V7M, V7N, V7P, V7R, V7S, V7T, V7V, V7W, V7X, V7Y, V1M
|
662 460
|
331 230
|
63. Victoria
|
V8L, V8M, V8N, V8P, V8R, V8S, V8T, V8V, V8W, V8X, V8Y, V8Z, V9A,
V9B, V9C, V9E, V9L, V8K
|
122 730
|
61 365
|
64. Victoriaville
|
G6R, G6S, G6T, G6P
|
13 370
|
6 685
|
65. Windsor-Leamington
|
N8M, N8N, N8P, N8R, N8S, N8T, N8V, N8W, N8X, N8Y, N9A, N9B, N9C,
N9E, N9G, N9H, N9J, N9K, N9V, N9Y, N8H
|
104 520
|
52 260
|
66. Winnipeg
|
R2E, R2G, R2H, R2J, R2K, R2L, R2M, R2N, R2P, R2R, R2V, R2W, R2X,
R2Y, R3A, R3B, R3C, R3E, R3G, R3H, R3J, R3K, R3L, R3M, R3N, R3P,
R3R, R3S, R3T, R3V, R3W, R3X, R3Y, R4A, R4H, R4J, R5A, R2C
|
243 975
|
121 987
|
Part II: Initial Annual Radio Authorization Fee Adjustment Factors for Prorated Entry
Item Column I:
Month of Issuance of the Initial Annual Radio Authorization
|
Column II:
Initial Annual Radio Authorization Fee Adjustment Factor
|
1. April
|
1.0
|
2. May
|
0.917
|
3. June
|
0.833
|
4. July
|
0.750
|
5. August
|
0.666
|
6. September
|
0.583
|
7. October
|
0.500
|
8. November
|
0.417
|
9. December
|
0.333
|
10. January
|
0.250
|
11. February
|
0.167
|
12. March
|
0.083
|
|