e-Policy Resources

Spectrum Management Policy

Defining the Spectrum

The radio spectrum is the band of frequencies in the electromagnetic spectrum used by all wireless communications such as broadcasting, mobile radio, microwave, satellite, cellular, public safety services and certain domestic electronic devices.

The radio frequency spectrum is vital for national security, public safety, research and individuals making use of the spectrum be it through cell phones, cordless phones or even garage door openers. This natural renewable and finite resource is shared with the world. Finite because the same part of the spectrum can be used again and limited because the spectrum is similar to a highway in that only a certain amount of traffic can be carried depending on the road and weather conditions and the type of traffic on the road.

Our policy approach

The radio spectrum is a natural resource of significant economic, social and cultural importance to Canadians. Managing this electromagnetic “highway” along with the telecommunications infrastructure is the responsibility of the department of Industry. The government’s broad mission in managing the spectrum and telecommunications infrastructure is to facilitate the development and use of world-class telecommunications infrastructure, technologies and services for the express purpose of enhancing Canada’s competitiveness, economic growth and quality of life. To achieve this, the department of Industry elaborates a regulatory and policy framework to ensure the continued evolution of the telecommunications and spectrum infrastructure and, oversees a federal program to manage and maintain the spectrum and telecommunications infrastructure. The spectrum/telecommunications program aims to achieve the following policy objectives:

Equitable and affordable access

Canada is a world leader with regards to the affordability, coverage and efficient management of our spectrum and telecommunications infrastructure. In order to attain this level of affordable access and coverage, the federal government has had to overcome certain challenges including ensuring the provision of services across a vast territory and varied climate to a dispersed population. Despite these challenges, 99.8% of Canadian households have telephones and access to hundreds of broadcasting channels. Expansion of the infrastructure, deregulation and privatisation has led to an increase in the quality of service and yet access to the spectrum and pricing for basic telephony services has remained relatively constant.

Whether it is for broadcasting – remote reporting of news events; or personal communications – cellphones, cameraphones, short message services; or for public safety – police, fire and ambulance services; the government’s policy regarding spectrum access is to ensure fair and equitable access to these resources by all users – government or non-government, large or small, corporate or individual.

Timely and effective service

The government is committed to providing services or activities that contribute to Canada’s economic development, efficient markets, and international competitiveness. To this end, the Spectrum/Telecom program continually seeks new ways to improve service delivery. The Department operates one of the world’s most sophisticated automated spectrum management systems to support current operations including license allocation, testing and administrative functions. Over the coming year, the Department will be refining the system to provide more services online including the submission of financial and technical data when requesting a license.

Evolution of the telecommunications and spectrum infrastructure

The government has ensured the continued evolution of the telecommunications and spectrum infrastructure by supporting research and development of new technologies and developing favourable policies and standards which create an enabling environment for the introduction of new technologies and services. The Communications Research Centre (CRC), a research agency within the Department, is mandated to explore new communications technologies, systems, standards and their trends to provide advice to the Department on their potential impact.

Competition and Regulation

Competition has been gradually introduced in the Canadian telecommunications service market over a number of years through policy and regulatory initiatives by the federal government and its regulator, the Canadian Radio-television and Telecommunications Commission (CRTC).

The CRTC has gradually and in an orderly manner opened up monopoly-based markets in the telecommunications and broadcasting sectors to competition over the years. The CRTC’s approach to opening up various market segments to competition is to weigh the potential advantages and disadvantages, and to strike a fair and reasonable balance between the often conflicting interests of all concerned, including incumbents, competitors and customers. The CRTC continues to remove obstacles to fair and sustainable competition, including eliminating barriers to access, and ensuring regulatory compliance. Throughout this process, a common guiding principle has been the recognition that the Canadian broadcasting system is a tool for protecting and promoting Canadian culture and achieving key social objectives.

Regulation of the marketplace is also within the jurisdiction of the Department of Industry as outlined in the Telecommunications Act and Radiocommunication Act. As such the Department has gradually introduced competition in the communications sector for the provision of certain services. For example, in 1995 through the licensing of Personal Communication Service (PCS) spectrum in 1995, two more competitors were allowed into the mobile telecommunications market. Regarding individual access to the radio spectrum and certification of spectrum using equipment, a larger pool of private sector operators is now providing these services. The private sector also has an increasingly important role in regulating interference within the radio spectrum.

International harmonization

Radio signals transcend national boundaries. For this reason, the government plays a vital role in securing Canada’s right to access the spectrum. Canada participates in international fora such as the International Telecommunication Union, the Inter-American Telecommunications Commission, and the World Trade Organization to influence, advance and promote Canadian interests for use of the radio spectrum. With access to spectrum becoming an increasingly crucial resource, Canada must respond to international pressures which have the potential to restrict Canadian access to the radio spectrum.

Each country has a degree of flexibility to decide on particular radio service allocations to meet domestic needs, among the services allocated internationally by the ITU. Consideration is given to mitigating interference with neighbouring countries. The Department reviews and reallocates specific frequency bands to services on a periodic basis normally abiding by standards from the ITU World Radiocommunication Conference.

The federal government negotiates international agreements, where appropriate, to ensure an efficient and orderly use of the spectrum at the national and international levels. By virtue of membership in the International Telecommunication Union, Canada is bound to certain treaty obligations under the ITU Constitution and Convention, and Radio regulations for stations which are capable of causing harmful interference to radio services of other countries. The federal government also negotiates bilateral agreements with many countries regulating the use of certain equipment and standards.

Standards

Standards and conformity assessment procedures facilitate compatibility and interoperability, avoid interference and promote efficient spectrum management and utilization. The objective is to align Canadian standards and conformity assessment procedures to the greatest extent possible with international standards. Harmonization of radio system standards is an important consideration in this process.

Public Consultation

The Department consults with the public, interested individuals, organizations, and affected parties on various policy issues regarding the development and formulation of policies, standards and procedures to realize the greatest public benefit. The use of notices, published in the Canada Gazette, has been the formal instrument employed by the Department in the past to initiate comment, to apprise or inform the public, and to obtain representation on significant issues. Over the last few years, the Department has greatly expanded the use of the Internet as a means of making announcements, as well as disseminating and collecting information. This has facilitated the public’s access to this information in a timely manner and expedited the process of transmitting public comment.

The Department also employs a systematic review process, which includes the public consultation mechanism discussed above. This process addresses all aspects of radiocommunication including national and international policy, allocations and licensing, and procedures and standards. In addition, the Department promotes the use of government/industry technical committees and has established ongoing relationships with major industry associations and user groups.

Legal framework

The Spectrum/Telecom program derives its statutory mandate in broad terms from the Department of Industry Act and more specifically, from the Radiocommunication, Telecommunications and Broadcasting Acts. Together these Acts provide the basis for managing Canada’s radio spectrum and establishing the policy and regulatory framework for communication services. Also through provisions developed under the Emergency Preparedness Act, the Ministry of Industry is required to ensure the integrity and functionality of the telecommunications infrastructure.

Managing the spectrum

Canada’s spectrum management program must reflect overall government objectives and priorities. To ensure coherence with the government’s national objectives, the Department develops spectrum management framework policies to orient a strategic plan for employees and partner organizations managing this resource. The usage of the radio spectrum is also subjected to multiple changing conditions such as the development of new technologies, current manufacturing standards, and importation and sales of spectrum using equipment. In addition, the technical and operational characteristics of spectrum using systems are becoming increasingly complex and diverse pointing to the need for more flexible policies, regulations, standards and enforcement mechanisms.

The spectrum/telecom program is essentially delivered through three branches: the Radiocommunication and Broadcasting Regulatory Branch responsible for licensing and enforcement, the Spectrum Engineering Branch responsible for spectrum engineering activities, and the Telecommunications Branch responsible for the formulation of Canadian radiospectrum policies. All three branches coordinate efforts with the Canadian Radio-television and Telecommunications Commission (CRTC) and are involved in policy development, regulation and implementation of the spectrum/telecom program.

Government guidelines and regulations regarding spectrum management are clearly communicated to the private sector and other stakeholders on the web site and through more direct media. Many of the documents published by the Department including policies, standards and regulations are published on the spectrum management web site.

The spectrum allocation table is an integral part of spectrum management. Canada’s national spectrum allocation plan must factor in technical issues, such as electromagnetic compatibility, as well as the government policy objectives which include ensuring that spectrum is efficiently and fairly allocated and, compliant with international standards.

Spectrum management requires a very complex technical infrastructure. The Department operates one of the world’s most sophisticated automated spectrum management systems. This system was designed to support current operations including issuing spectrum and radio licenses and conducting electromagnetic compatibility studies. The system also contains all required spectrum management information including administrative, financial and technical data.

The spectrum/telecom program operates on a cost recovery basis. Over the past years, the program has consistently managed to contain costs and at the same time provide a considerable dividend to the federal government. Through smarter regulation, administrative efficiencies and increased automation, the program successfully coped with increased demand for access to spectrum while generating revenue. Radio license fees also provide significant source of revenue.

Spectrum licensing

Each year the Department allocates and/or renews thousands of licenses to manage the spectrum in accordance with departmental policies and standards. Guidelines on the Licensing Process and Spectrum Release Plan are published on the departmental web site. The traditional means of radiocommunication development in Canada has been to allocate and designate bands of spectrum to particular radio services and applications and then to subsequently license applicants within each service category.

Processing and assigning of frequencies for radio applications is accomplished by an integrated spectrum management system according to existing spectrum utilization policies, licensing policies, general radio regulations and radio systems standards. Licensing policies are constantly adapting to changes in radiocommunication in order to respond effectively to the evolving competitive environment and user needs. A number of licensing mechanisms are available to the Minister to assign frequencies.

Previously only a radio license was issued, however with advances in technology and the increase in demand for spectrum licenses, the government may also issue spectrum licenses for block use rather than individual licences for a specific band of the spectrum. When issuing a license, the appropriate frequency must be allocated given the equipment and the use being made of the spectrum and for a specific location. Electromagnetic compatibility studies may need to be conducted to prevent interference. Radiocommunication Regulations prescribe the eligibility requirements for persons or entities, to be issued radio licenses as radiocommunication carriers/providers and radiocommunication users.

In certain cases the government may choose to exempt certain types of equipment, bands or users from obtaining a license as long as use of the equipment or spectrum does not cause interference with nearby spectrum users. Most licenses are issued on a first-come first-serve basis as long as there is sufficient spectrum to meet the anticipated demand in a given frequency band and where there is no additional measure required to advance particular telecommunication policy objectives. Licensing policies must ensure the achievement of a number of goals:

• Meet the underlying legislative, policy, economic, regulatory, technical, operational and social objectives;
• Fair treatment and consistency of policy application for licensees in all regions of Canada;
• Accommodation of as many users as possible without harmful interference;
• Administrative efficiency in dealing with applications;
• Imposition of the minimum regulatory requirements on the user; and
• Flexibility to respond to changes as they occur.

The Department may choose to initiate a competitive licensing process in situations where there is, or is likely to be, more demand for radio frequency spectrum than the supply of spectrum available for use in a given frequency band or, where there is a need to pursue certain telecommunication policy objectives. The government may choose to hold a spectrum auction in certain cases. There are three determining conditions which warrant a spectrum auction:

• Demand for spectrum exceeds the available supply.
• The government’s policy objectives can be fully met through the various means available.
• It is in the public interest to rely on the marketplace to select licensees.

Although various criteria are used to evaluate proposals, the highest bid is awarded to the particular spectrum and being auctioned. Prior to the auction, the Department clearly articulates and seeks public opinion on policies regarding the service/spectrum being auctioned. Based on their compliance with the policies, would be bidders are then qualified to participate in a remote-access, simultaneous, multiple round auction.

Spectrum licenses may also be issued as a result of a comparative review process. The process begins with a public consultation, leading to the development of a spectrum utilization policy for the bands concerned. The policy announces that a comparative review process will be used to allocate spectrum for a certain type of service, invites potential applicants to submit expressions of interest, and identifies the criteria that will be used to evaluate the detailed submissions.

In a second phase, a departmental committee reviews the submissions and compares them against the criteria. Compliance with the criteria is scored and a list of qualified candidates is forwarded to the Minister for consideration. In the third phase, the Department identifies the “winners” and issues licenses to the successful applicants. Each license comes with conditions that ensure that public interest priorities, land use provisions, health and safety considerations and technical regulatory requirements are satisfied.

Radio licenses are subject to annual renewal, while spectrum licenses are usually valid for ten years. Periodically spectrum licenses may need to be revoked or renewed as a result of changes to the spectrum allocation plan or inappropriate use of the spectrum. For this reason the government plays an active role in monitoring spectrum use even though the trend is to rely more and more on private sector intervention once spectrum licenses are allocated.

Current challenges

Managing the spectrum is becoming more complex and demanding as technology advances and new uses are made of the spectrum. Wireless, satellite and safety services are adopting new technology to enhance their communications systems. Today many applications are reaching the consumer directly such as Cellular phones, direct-to-home satellite television, Geographic Positioning Systems, wireless local area networks. Furthermore, transition from analog to digital, from narrowband to wideband, and from circuit switched telephony to voice over the Internet has led to an increased use of the radio spectrum. These technology leaps require that the government keep pace.

New technologies bring new challenges. Canada’s Information and Communications Technology (ICT) sector provides Canadians with the most advanced, lowest cost, most accessible communications in the world. However, technology is evolving at an astonishing rate. The challenge today is for policy makers to rebuild policy frameworks, both on a national and international level, that reflect the fundamental shift in the use and deployment of ICT.

Due to increasing spectrum demand and the desire to respond quickly to clients’ needs, efforts continue to simplify, streamline and develop innovative approaches to Spectrum Management. The Spectrum/Telecom program, has been planning and aggressively pursuing the transformation of its operations for several years. Using the possibilities offered by new technologies, and in consultation with its key clients, the Department is developing new ways of issuing and managing radio-communication licences in real time.

Currently the Department is addressing major changes in the communications industry due to the increase in telecommunication services using Internet Protocol. Internet Protocol (IP) is an efficient method of transmitting all forms of digital information, including voice, video and data. IP represents a major efficiency improvement over the older circuit-switched technology upon which the traditional telephone network was built. IP Technology is broadening the range of competitors in the communications market and is erasing the lines between telecommunication companies, cable companies and Internet Service Providers, each now providing similar services using IP networks. The Department policies and legal framework must factor in this shift.

For further information on Canada’s approach to spectrum management, please visit the web site

Additional resources:

Telecommunications Service in Canada: An Industry Overview

Report to the Governor in Council: Status of Status of Competition in Canadian Telecommunications Markets (November 2003): Deployment/Accessibility of Advanced Telecommunications Infrastructure and Services

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