OTTAWA – Use it or lose it. That was the gist of Industry Minister James Moore’s message to Canadian spectrum holders on Thursday.
Following up on a Throne Speech promise that Canadians living in rural areas have greater access to high-speed Internet services, Minister Moore said that Industry Canada will begin renewing 2300 MHz and 3500 MHz spectrum licences next March, but will deny extension requests from holders whose licence conditions – especially deployment – have not been met.
"Our government will only renew spectrum licences for those holders that have met all conditions of licence. Those that have not used the spectrum will lose it”, Moore said in the announcement. "Today's decision means Canadians will benefit from additional quality spectrum being deployed across the country, which will lead to dependable high-speed Internet services on the latest technologies at the best prices.”
Industry Canada said that any licences that are denied a renewal will be returned to the Government, and it will consider a new process for awarding them.
Wireless Communication Services and Fixed Wireless Access services operate in the frequency bands 2305-2320 MHz and 2345-2360 MHz (2300 MHz band) and in 3475-3650 MHz (3500 MHz band) respectively. Starting in March 2014, 2300 MHz and 3500 MHz spectrum licences that were auctioned between 2004 and 2009 will begin to expire. When these licences were issued, they included conditions requiring use of the spectrum within the initial 10-year period to provide more services to Canadian consumers.
Currently, 2300 MHz licenses are held by Inukshuk, Telus, Nextwave, YourLink and Chatham Internet Access. The decision said that licensees eligible for renewal could be issued a new 10-year term spectrum licence in the same applicable area through the renewal process.
Inukshuk, Telus, Tbaytel, ABC, Cintek, Cogeco, Chatham Internet Access, ccRoute, Netago, and Xplornet hold 3500 MHz licenses in Canada. The decision said that eligible licensees will be issued a new one-year term spectrum licence through the renewal process, and that a consultation will be held on the potential future use of the band, which may result in a reallocation.
Industry Canada also noted that deployment to date has been limited in the 3500 MHz band, despite the availability of equipment. Those service providers that have deployed are generally providing fixed wireless broadband to the home in rural areas.
The potential of more 3500 MHz spectrum is welcome news for the estimated 2.5 million Canadian households that fall outside of range of cable or DSL technology, and, the rural broadband providers eager to serve them. Canada’s largest rural broadband service provider, Xplornet Communications, was quick to praise the decision, noting that as a 3500 MHz spectrum holder, it has already deployed most of its spectrum and is anxious to acquire more.
“This is a tremendously important decision for rural Canada because it finally says ‘yes, we acknowledge that you need broadband, you need spectrum to do it, and we’re going to take steps in that direction’," said Xplornet executive vice president C.J. Prudham, in an interview with Cartt.ca.
But Prudham cautioned that this announcement is only the first step, and that Industry Canada also needs to ensure that spectrum is made available in a way that unbundles rural and urban areas. When large telecoms like Bell and Rogers bought spectrum for cities like Calgary and Toronto, she said, that spectrum encompassed associated rural areas like Banff and Uxbridge. But the big companies choose not to deploy there, and Xplornet has been unable to buy that spectrum to service those customers.
Prudham estimated that Inukshuk, an equally-owned joint venture between Bell and Rogers, holds about 75% of the 3500 spectrum, the majority of which is not being used.
“(Inukshuk) has been very candid in their submissions to the government that they have not used it and as a result of that, there is a huge chunk of this spectrum that has gone unused”, she added. “This has created this ecosystem of all the other folks trying very, very hard to provide broadband services on 25% of the spectrum, and we’re all saying that we really need some more. A lot of people really want to expand, provide more rural services, and grow their businesses, and there’s one party who holds a significant chunk of that spectrum, and its sitting unused.”
