Important Information No. 2 for Participation in the Second Phase of theTwo Phase Residual Licence Auction in the 2300 MHz and 3500 MHz Frequency Bands

This notice confirms the timelines for the opening of Phase Two of the residual licence auction process and its preparatory components – a designated practice period, followed by a mock auction. The related mailings are also outlined.

Timelines

The second phase of the auction is for the assignment of licences where the demand for licences exceeds the available supply. An ascending, multiple-round auction, conducted over the Internet, will serve as Phase Two, which is scheduled to open on January 10, 2005.The Key Dates document outlines related steps, and is available online at http://strategis.ic.gc.ca/epic/internet/insmt-gst.nsf/en/sf01161e.html.

The Department has scheduled a two-day mock auction, for all qualified bidders, to take place on January 5 and 6, 2005. Designated bidders are strongly encouraged to participate in the mock auction, to become familiar with the software used to place bids securely. The mock auction will simulate most of the characteristics of the actual auction. It will follow the rules and procedures governing the actual auction, unless otherwise indicated. Bidders will use their individual PKI Profile (Public Key Infrastructure), as will be the case during the actual auction. Therefore, bidders must be fully registered to participate in the mock auction. Please refer to the Bidder Information Document for further details.

In preparation for the mock auction, bidders are strongly encouraged to consult the on-line, on-demand audio/video Internet streaming presentations (Webcasts), for training on auctions rules and procedures and the use of the Auction Management System (AMS). The documentation and Webcasts are available on the auction Web siteunder the heading Bidders’ Online Training at: http://strategis.ic.gc.ca/epic/internet/insmt-gst.nsf/en/sf06076e.html.

The AMS will be available prior to the mock auction, for participants to practice and to address any issues relating to informatics before joining the auction. The practice session will be one continuous round, available during the designated practice period, from December 6 to December 17, 2004. Please ensure that you are able to place a practice bid successfully once during this period and once during the mock auction. (You will first need to activate your PKI profile, as outlined below.)

Mailings

Three mailings to participants are anticipated for fall 2004.Qualified bidders and authorized representatives will soon receive the Bidder Information Document. It provides detailed information on the mock auction, the schedule for the first week of the auction, and other instructions and information pertinent to the auction. This first mailing will also include the Qualified Bidder Certificate and AMS User Name.

The second mailing will include the Telephone Transaction Code Keys and Contact Sheet – the telephone and fax numbers for the Auction Room at Industry Canada are included, in the event that back-up bidding by telephone is required. (Refer to the Bidder Information Document for details on contingency planning.)

The final mailing will include the AMS Shared Secret and instructions on activating and recovering the PKI profile, which is required to participate in the designated practice period, the mock auction and the actual auction. It is strongly recommended that you activate your PKI profile immediately upon receipt of the AMS Shared Secret, using it and the AMS user name included in the first mailing. The AMS User Manual should also be consulted, during the designated practice period, as it contains important information on hardware and software requirements, including Internet browser configuration settings. The User Manual will be available once the AMS is activated under the link ‘AMS User Manual’, found on the AMS home page at: http://forum.ic.gc.ca.

Please note that correspondence for authorized representatives and their designated bidders will be sent to the address provided in the Bidder Application to Participate in the Two Phase Residual Licence Auction in the 2300 MHz and 3500 MHz Frequency Bands form and the Designated Bidder form. It is the authorized representative’s responsibility to contact Marie-France Marquis, Manager, Wireless Networks, by phone at (613) 990-4805 or by e-mail at: spectrum.auctions@ic.gc.ca, if these mailings have not been received by November 15, 2004.

Updates

The Frequently Asked Questions section of the Two Phase Residual Licence Auction in the 2300 MHz and 3500 MHz Frequency Bands Web page will be updated several times, leading up to the auction. It is recommended that you visit the FAQ page regularly, as it will reflect the common questions that arise relating to the auction process. The FAQ page is available at: http://strategis.ic.gc.ca/epic/internet/insmt-gst.nsf/en/sf08203e.html.