Bell says licensees should pay less if restrictions are permanent
By Ahmad Hathout
Canada’s big telecoms said they are surprised by an Innovation Canada decision to restrict the use of the 3.5 GHz spectrum in areas where there are interference possibilities, principally around 26 major airports, which they say will affect the ability of Canadians’ living in the surrounding areas to get 5G services.
ISED proposed the restrictions in an August consultation document.
Bell said in its submission to the consultation the decision came after the June spectrum auction and the federal minister gave no indication there was an asterisk on use before then.
The company argued that the department already had reservations about interference issues with the 3.8 GHz spectrum band before the 3.5 GHz auction but did not restrict the former frequencies even though the 3.8 GHz radio waves are closer to radio altimeters used at airports, which operate in the 4.2 to 4.4 GHz band.
“ISED’s decision [on no 3.8 GHz interference risk] was issued about one month before the start of the 3500 MHz auction,” Bell’s submissions said. “Therefore, it was reasonable for the industry to conclude, entering the 3500 MHz auction, that ISED did not intend to impose restrictions on using 3500 MHz spectrum in the foreseeable future.”
Canadian telecoms spent a record $8.9 billion this summer on the 3.5 GHz spectrum, said to be the primary mid band radio waves for 5G, some of which were converted from exclusively fixed wireless to flexible use.
Aircraft rely on altimeters to tell the pilots how high the airplane is flying and sometimes sophisticated radio guidance systems to help aircraft navigate to the runway, called the instrument landing system.
In an email, ISED told Cartt.ca that despite these exclusion zones around airports, indoor deployments in airport terminals will be permitted. It also noted that certain protection zones will allow for 5G operations but at a specific power limit.
But Bell said the restrictions will “devalue” the spectrum and proposed that in the event the restrictions are temporary, the telecoms affected should only pay half of the spectrum cost at first and then the remaining amount when the restrictions are revoked.
If the restrictions are permanent, then an “impairment discount” should be applied, Bell said. The impairment discount should be based on the population number that is impacted, expenditures to make up for restrictions, and reductions in revenue potential. Bell said the first two factors could amount to over $140 million over the next decade and “significantly more over the 20-year licence term,” with further analysis anticipated to increase the impairment “well into the hundred of millions of dollars.”
The Montreal-based company had internal experts analyze the restrictions and said the total impact of proposed restrictions will affect areas with high economic activity and large volumes of vehicle traffic, including over 150 highways.
“The population impacted will not only be the residents living in those zones but the guests of numerous hotels around the airports, the workplaces in those zones and the traffic that flows within and around these zones,” Bell said in its submission.
Bell added that the restrictions will negatively impact fixed wireless services in underserved communities, 5G services for first responders, enhanced video surveillance technologies using wireless cameras, vehicle-to-vehicle and vehicle-to-infrastructure communications, and drone technology for industrial and public safety use.
It will also impact business customers in office towers, residential customers in high rise multiple-dwelling units, and businesses and residences located on mountains, Bell said.
Bell acknowledged ISED issued an “exceptionally brief” bulletin about it studying the issue of mitigating possible interference with the 3.5 GHz band – citing other countries’ use of exclusion zones – but said the bulletin gave no indication of any restrictions that would be imposed.
Rogers and Telus have also filed concerns with ISED about the restrictions. All note the alleged inadequate consultation process, which included a short deadline for comments, an alleged lack of evidence that preceded such restrictive measures, and the “significant” negative impact on the ability of Canadians to get 5G services in all areas.
On September 22, ISED released an addendum to the proposed restrictions with studies that justified the measures and asked the industry for comment by Oct. 15. But Bell noted the deadline for comment did not afford time to “retain one or more expert aeronautical industry consultants who could assist the industry in reviewing the available international studies that have been carried out on the interference potential to radio altimeters” and insufficient for field trials to determine interference potential of the spectrum.
Bell added in its submission that it believes there is enough separation between the 3.5 GHz frequencies and the ones used by altimeters to give the two breathing room to operate simultaneously at regular power levels, and that the proposed restrictions may apply more to the C-band. It also claimed that other countries do not have the same level of restrictions as Canada, making the country an outlier.
Bell said “we will do what we can” to compensate for the measures but that some 5G applications will not be possible with the restrictions, which will incur additional expenditures to densify and augment the network, including accessing the C-band spectrum to maintain the level of expected service.
ISED told Cartt.ca the department became aware of the possible interference consequences from flexible use 5G operations last year, noting that France and Japan had implemented mitigation measures.
“ISED will continue to study the issue in this band, as well as in the 3650-3900 MHz band,” the department said. “It is expected that as new information and studies become available and as new radio altimeter standards are developed internationally, these measures may be modified or relaxed well within the 20-year term of ISED’s 3500 MHz auctioned licences.
“ISED is working collaboratively with both the telecommunications and aviation industries to ensure that appropriate final rules are in place to protect the critical operations of radio altimeters, without unduly constraining flexible use deployments.”
