Opponents say spectrum leasing serves the same purpose
By Ahmad Hathout
In an effort to maximize the use of a finite resource, Innovation Canada introduced Tuesday a long-expected policy for spectrum called access licensing, which would facilitate the migration of licenses not in use by holders toward other providers who will use them in smaller remote and indigenous territories.
The hotly debated policy will impact smaller Tier 5 areas and immediately target the 800 MHz (cellular) band, the Personal Communications Services band (1850-1910 MHz and 1930-1990 MHz), and the 900 MHz Land Mobile Radio (LMR) band. ISED said it will evaluate on a “band-by-band basis” further spectrum bands.
The framework will take effect for said bands in rural and remote areas with unused spectrum and will be done on a first-come, first-served basis.
That said, Tuesday’s announcement will also include an indigenous priority window for the access spectrum licenses, highlighting the “increasing importance of connectivity in Indigenous, rural and remote communities,” the department said.
The change comes after wireless service providers have complained about the lack of access to spectrum in rural and remote areas that they said is harming their ability to expand services to people and private enterprise, including mining and agriculture.
The policy comes as the federal government races to connect all areas by 2030 to its speeds of at least 50 Mbps download and 10 Mbps upload by any means – wireline or wireless. Despite 99.2 per cent of urban households having that speed, only 62 per cent of rural households have – meaning 1.2 million homes are without the speeds. And despite 99.4 and 87.8 per cent of Canadians having access to LTE and 5G mobile networks, respectively, far fewer people in rural and in First Nations reserve areas have that kind of access.
ISED has been implementing various policies to improve the use of spectrum, especially in rural areas where wireline technologies don’t always make financial sense. It has set-aside spectrum for smaller providers so they didn’t have to compete with deeper-pocketed rivals; capped the amount of spectrum that could be purchased; opened other bands to flexible use for fixed and mobile use; and has tightened the screw on its “use-it-or-lose-it” policy, which sets a certain timeframe for the spectrum’s deployment.
The majority of respondents during the comment period supported the policy, including Telus, Quebecor, Cogeco, Eastlink, Iristel, TerreStar, and wireless internet service provider association CanWISP. Quebecor, however, cautioned the department to carefully implement it without jeopardizing new and existing services.
Rogers, Bell, SaskTel and SSi Canada opposed the framework, with some being concerned about future deployments using the spectrum.
Bell complained that the new rules would add conditions that didn’t previously exist for its Tier 5 licenses. It also said that the existing mechanisms, including set-asides and spectrum caps, served the same purpose. It also urged the department to wait and see how private networks impact market forces before supporting their expansion.
Both Bell and Rogers said the existing subordination framework, which allows providers to enter commercial agreements to lease their licenses, effectively serves the same purpose. Rogers said this mechanism protects the rights of licence holders and their current and future deployments.
SSi argued that ISED should focus on improving the subordination framework, while SaskTel was concerned about future spectrum deployment.
But in response, the department said the subordination framework has been in place for years and yet there is still unused spectrum in rural and remote areas. It added that – anyway you slice it – the access licensing policy will fulfill its goals of forcing providers to actually use the spectrum.
“ISED…is of the view that incentivizing greater deployment in bands where access licensing is implemented is key in achieving the policy goals of facilitating deployment in rural and remote areas,” the department said in its decision.
“Implementing access licensing in rural and remote areas with unused spectrum may result in two potential outcomes: either existing licensees expand their current deployment, offering new or improved service to underserved communities, or the area becomes available for access licensing where it can be served by another entity planning to provide new or improved services.”
ISED will use the following principles to determine where the framework will apply:
- the potential to support wireless broadband, private networks, and/or industry vertical use cases
- an existing licensing framework for flexible or mobile use
- an available or clear path to an available equipment ecosystem
- sufficient amounts of unused spectrum in rural and remote areas
- the potential for coexistence between existing users and potential access licensees
- adequate time for existing licensees to deploy (e.g. initial licence term has lapsed), or time permitted to meet initial deployment requirement has lapsed in the case of bands that were auctioned
Screenshot of Innovation Minister Francois-Philippe Champagne.
