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Heave Steve, for the good of the country
reply to El Quintron

Re: Okay, NOW Wind will definitely be foreign owned

said by El Quintron:

said by MaynardKrebs:

This is the year that ALL the new entrants have to have their mandated population coverage running in all markets where they bought spectrum.

What exactly does that mean?

Seeing as Wind has spectrum in every province except for QC, are they expected to have service there as well or do some of the "regions" cover more than one provice?

EQ's 8 years for install targets --- but 5 years for no buyouts by incumbents of new entrants.

It's expressed as a percentage of the population within the areas covered by the spectrum purchase, and an assessment of whether the holder is squatting on unused spectrum.

Competition Principles: Promoting a Competitive Post-Auction Marketplace
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In an effort to ensure that social and economic benefits are maximized from the use of the radio frequency spectrum, it will be important that licensees operate in a competitive marketplace post-auction. Measures available to the government to promote a competitive post-auction marketplace include restricting the participation of certain entities in an auction and/or placing limits on the amount of spectrum that any one entity may hold by using spectrum set-asides or spectrum aggregation limits. Industry Canada will consider the two guiding principles outlined below in choosing when and how to impose pro-competitive measures.

Principle 1: Restricting Participation in the Wireless Market

Industry Canada may decide that an entity that currently provides telecommunications services should be restricted from holding certain licences if:

(a) the entity possesses market power in the supply of one or more telecommunications services in a region covered by the licence to be auctioned;
(b) a new entrant is likely to use the licence to provide services in competition with the entity’s existing services; and
(c) the anti-competitive effects of the entity acquiring a licence are not outweighed by the potential economies of scope arising from the integration of the spectrum in question into the entity’s existing network.

Principle 2: Spectrum Aggregation Limits

It is the view of Industry Canada that, when multiple licences for the use of spectrum in a given geographic area are auctioned, and when these can be used to provide closely substitutable service, aggregation limits may be required on the amount of spectrum that any single bidder is allowed to acquire so as to ensure competitive markets. Spectrum aggregation limits may be imposed in the following circumstances:

(a) a bidder that acquires an amount of spectrum beyond a certain level would not face effective competition from providers of closely substitutable services; and
(b) the anti-competitive effects arising from the acquisition of an amount of spectrum beyond a certain level by a single bidder would not be offset by lower prices or higher valued services resulting from a single entity holding this amount of spectrum.

Roll-out Obligations, Licence Term and Renewal
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Roll-out obligations are normally used to ensure that the spectrum is used and to deter access to the spectrum either for speculation without use, or spectrum warehousing with no specific use intended. Roll-out obligations have been used in previous licensing processes. A further purpose of roll-out obligations may be to encourage the delivery of service in all regions of Canada.

Taking into account the overall policy framework for this auction, and the stated intentions of both incumbents and new entrants, the department is of the view that specific roll-out obligations are appropriate only in relation to roaming provisions for national new entrants. Allowing general flexibility in this respect will enable winning bidders to respond to market factors in determining infrastructure build-out decisions. Nonetheless, the department will take into account the roll-out targets in Annex 2, both in considering eventual renewal of AWS licences as discussed below and in considering any application from a national new entrant for extension of in-territory roaming beyond the initial 5 years.

The AWS licences will be issued for a 10-year term similar to other spectrum licences. AWS licence renewal will be subject to a public consultation process initiated in year eight, as proposed in the AWS consultation paper. The nature and details of this process will be developed through a separate consultation to be initiated by the department in the context of the Framework for Spectrum Auctions in Canada. The renewal process developed through that consultation may apply to all auctioned licences, including AWS.

The renewal process, which will form the basis of the follow-up consultation, will include consideration of:

the extent of geographic coverage across the licensed area;
whether there is interest in the licence from other parties;
whether licence fees should apply for a subsequent licence term; and
whether renewal in whole or in part supports the orderly development of radiocommunication in light of the policy objectives of the Telecommunications Act given known future factors, pressures and the spectrum environment.

Beyond consideration of the above factors, other reasons for non or partial renewal may include:

a fundamental reallocation of spectrum to a new service is required;
an overriding policy need or spectrum management concern arises;
national security, treaty or other international obligations or requirements;
a breach of licence condition;
the spectrum has not been deployed, or not sufficiently deployed over the licensed area;
whether there is interest from others for access to the spectrum; and
other relevant factors which might be raised in the public consultation.