The CRTC last week informed TerreStar via letter that the commission was denying the Montreal-based mobile satellite and cell services provider’s request for a stay of its June 2023 decision not to allow the company to reduce its regulatory fee obligations by deducting its spectrum leasing revenues.
TerreStar has argued the revenues generated from the sale or leasing of spectrum did not qualify as a telecommunications-related expense, which would have reduced its obligation to the National Contribution Fund (NCF), which is used to fund broadband infrastructure in Canada.
TerreStar filed a review and vary application in August appealing the CRTC’s decision and asking for a stay, arguing among other things the commission’s decision was made with unsupported evidence that all providers report their spectrum sale proceeds to the regulator, which is required for the CRTC to determine how much providers owe to the NCF.
In its letter denying TerreStar’s requested stay of its June 2023 decision, the commission says a decision regarding the review and vary application will be issued later this year.
TerreStar’s application to have spectrum sale and leasing revenues deducted from its operating revenues in order to reduce its regulatory fee obligations has received support from Telus, who argued in an intervention submission to the CRTC in late September that spectrum revenues have traditionally not been filed under total operating revenues when using the generally accepted accounting principles (GAAP) for financial reporting.
