All systems are go for personal communications services in Canada.
The government issued a call for license applications, laid out its policy rules and expects to announce license winners by the end of 1995.
Industry Canada last month issued its new policy for broadband PCS, designating three 30-megahertz and three 10-megahertz spectrum blocks within the 2 GHz frequency range, while maintaining 20 megahertz for license-exempt devices.
The licensing process has three phases, said Pim Vanderveen of Industry Canada. Applicants have until July 17 to submit an expression of interest, their corporate ownership structure and general PCS plans. Industry Canada then will publish the list of players, Vanderveen said, so applicants are aware of their competitors. In the second phase, interested parties must submit detailed business plans by Sept. 15. Industry Canada then will determine license winners and announce them before the end of the year. Phase three calls for licensees to exhibit site specific plans for their operations.
“License applicants will be judged on the extent to which their proposals will provide innovative services, promote market competition and increase choice for Canadian consumers and businesses,” said Industry Canada.
Potential licensees also will be evaluated on their intentions and abilities to provide integrated, nationwide, end-to-end and universal services-including 911 services-ensuring security and privacy; rapid implementation, widespread coverage, financial capability, the promotion of jobs and investment in Canada and support of research and development to be distributed across Canada.
Industry Canada noted its policy also promotes harmonization of technologies and cross-border communications.
Among the larger Canadian entities expected to apply are Clearnet Communications Inc., MicroCell 1-2-1 Inc., TeleZone Corp., Mobility Canada, Rogers Cantel Inc. and LanSer Inc., a wireless data company.
Industry Canada has not yet determined how many licenses it will grant. This will depend on applicants’ specific plans and capabilities. Fern Leger, Industry director of radio spectrum and service policy, expects the companies that are awarded larger blocks of spectrum likely will build out nationwide networks. All licenses for radio spectrum, including future PCS licenses, are reviewed yearly, according to Vanderveen.
In the interest of promoting competition, existing cellular operators Cantel and Mobility Canada are eligible-upon successful licensing-to garner PCS spectrum for a maximum of 40 megahertz between wireless operations. Current cellular licensees already receive 25 megahertz of spectrum. This 40 megahertz cap would include operations of those companies’ affiliates, noted Leger. Vanderveen said the government will review and evaluate these guidelines in three years.
Foreign investors together can own up to 20 percent of a PCS venture, said Leger, or 33 percent if it is a holding company. Canada-based entities must retain at least 80 percent voting control.
