OTTAWA – After consulting with the space players over the past eight months, Industry Canada today called for applications to fill satellite slots over Canada.
The launch of this licensing initiative to authorize the development of Canadian satellites says that up to 29 satellite licences may be assigned. It will be the largest spectrum licensing initiative ever undertaken in Canada. A comparative competitive licensing process will be used in which applicants will be required to submit proposals to Industry Canada but license winners will be expected to have birds operational in the 2008-10 time frame.
"We need to increase satellite capacity over the next few years, and this announcement is about securing and allocating satellite orbital resources," said Maxime Bernier, Minister of Industry, in a press release. "This initiative will lead to new investments in Canada, and to new and more accessible telecommunications services for Canadians of all regions."
As a part of their application, Canadian commercial satellite operators are expected to provide the capacity needed to fully implement high-definition television and to carry new and advanced telecommunications services that are essential for connecting all regions of Canada, especially in the North. There, satellites are expected to continue to be the vital link to provide public safety, national security and government services, says the release.
"The satellite industry will invest several hundred million dollars in building, launching and insuring satellites for each licence issued. Selected applicants are expected to direct 2% of their future operating revenues to fund special initiatives to improve access to telecommunications services in underserved communities," says the release.
Also, Industry Canada will invite comments from the Canadian satellite industry – particularly Canadian satellite users, i.e., those that would use the new satellites to deliver their value-added services – on plans from applicants for serving the Canadian market. Applicants will be selected based on the proposals that best benefit Canadians, and other criteria.
The licensing initiative will proceed shortly with the publication of a call for applications through a link on Industry Canada’s Strategis website (http://strategis.ic.gc.ca/spectrum).
Industry Canada continually works within the International Telecommunication Union’s (ITU’s) regulatory processes to secure rights to key satellite orbital positions and radio spectrum in order to meet the needs of satellite stakeholders. Canadian access to these orbital positions through this licensing process is time-limited, and is subjected to bringing satellites into operation within certain time frames. As it takes two to five years to build and launch a satellite, sufficient lead time is required to ensure Canada does not lose access to these resources.
The ministry consulted extensively with Canadian satellite industry stakeholders, including Canadian satellite users, their associations and commercial satellite operators, during 2005 and early 2006. "There is a pressing need for additional satellite capacity in order to address communication requirements including the full development of Canadian high-definition television services, satellite broadband and other essential and advanced telecommunications services in the North," says the Ministry.
This licensing process will make 29 licences available and Bell ExpressVu, Ciel Satellite Communications Inc., Eutelsat SA and Telesat Canada have all indicated an interest in using orbital and spectrum resources being made available in this initiative. Notable perhaps by its absence from this list is Shaw Communications’ DTH company, Star Choice.
Some of the positions are sought by more than one applicant – because not all slots are created equal as some have a full coast-to-coast footprint and others do not – and therefore a comparative licensing process will be used.
This initiative involves a Call for Applications, followed by an opportunity for the public, including Canadian satellite users, to comment on the applications. In choosing between applications, the criteria to evaluate and compare applications include qualifications to participate in the process, benefits to Canadians, financial commitment to the project, satellite plans showing the feasibility of commitments and competencies of applicants to carry out the project.
"Industry Canada continually strives to be fair, open and transparent in conducting its licensing processes. In terms of transparency, two new measures are being introduced in this process. First, Industry Canada will post all applicant plans for serving Canada on Strategis for comment. Second, Canadian satellite users will be able to participate directly in this licensing process. Industry Canada will facilitate communications between applicants and Canadian satellite users to ensure applicants understand future Canadian requirements. These satellite users will also be able to provide comments on applicant plans for serving Canada. Applicants will be provided with the opportunity to reply to any comments provided by satellite users. In keeping with transparency, all comments and reply comments received will be posted on Strategis," says today’s release.
The timeline for all of this is set out below. "While plans to launch satellites are not yet available, it is expected that selected applicants will have satellites in service during the 2008-2010 time frame," concludes the release
1. Publish Call for Applications. July 15, 2006.
2. Receive and publish a list of registered users. August 15, 2006.
3. Receive applications and publish plans for serving Canadian requirements. November 15, 2006.
4. Receive and publish public comments on plans. December 15, 2006.
5. Publish reply comments from applicants. January 15, 2007.
6. Evaluate applications and announce the results. Spring 2007.
7. Follow-up with activities such as demonstrating compliance with regulatory requirements, issuance of licenses and commencement operations. As required
