notice no. slpb-005-14 · 2015-04-09 · 600mhz spectrum made available for mobile wireless...

Notice No. SLPB-005-14

Canada Gazette – Part 1, Vol. 149, No. 1

(published January 3, 2015, as amended January 24, 2015)

Consultation on Re-purposing the 600MHz Band

Reply Comments

of

WIND Mobile Corp.

March 26, 2015

March 26, 2015 WIND Mobile – Reply Notice No. SLPB-005-14 Page 1 of 13

INTRODUCTION

1. Pursuant to the procedures set out in Notice No. SLPB-005-14, as amended in Notice No. SLPB-001-

15, WIND Mobile Corp. (“WIND”) is pleased to provide these reply comments in Industry Canada’s

(the “Department”) proceeding to consider the issues outlined in Consultation on Re-purposing the

600MHz Band (the “Consultation”).

2. Having considered the comments of other interested parties in this proceeding, WIND concludes

that there are two key elements that will determine the extent to which the Government of Canada

will succeed in its stated policy objective of “maximising the economic and social benefits”1 flowing

from the use of radio frequency spectrum resources. The first such consideration is the amount of

600MHz spectrum made available for mobile wireless broadband deployment. The second is

limiting auction distortion by certain wireless providers which also happen to be the largest over-

the-air (“OTA”) television broadcasters.

3. Maximization of 600MHz Spectrum for Mobile Broadband Use: WIND reiterates its strong support

for the Department’s proposal to re-purpose the 600MHz band currently occupied by OTA

television broadcasting stations. The demand for mobile broadband continues to grow at a rapid

and accelerating pace, while the demand for and significance of OTA television broadcasting

continues to decline. Generally speaking, it is imperative that mobile wireless carriers have access

to spectrum to meet this demand. This is particularly true for new entrant mobile wireless carriers

such as WIND, which are at a relative spectrum deficiency as compared to companies who have

been gifted enormous swaths of prime spectrum (including low-band spectrum), and which have

1 Spectrum Policy Framework for Canada. DGTP-001-07, June 27 at 8.


approximately twice as much spectrum as their American counterparts, but only service

approximately one-fifteenth of the customers.

4. As noted in WIND’s initial Comments in this proceeding, Rogers Communications Partnership

(“Rogers”), Bell Mobility Inc., and TELUS Communications Company (“TELUS”) (collectively, the

“Incumbents”) control virtually all the valuable low-frequency spectrum bands used in Canada for

commercial mobile telecommunications purposes. Their extreme advantage in spectrum holdings

below 1GHz provides the Incumbents with an undue competitive advantage over the new entrants.

Given the superior propagation characteristics and suitability of sub-1GHz spectrum for the

provision of data-intensive mobile broadband services in both urban and rural areas, the need for

low-frequency spectrum such as 600MHz spectrum is particularly acute for new entrants like WIND,

and is thus particularly important for wireless competition and the benefit of all Canadian

consumers. This unique opportunity to re-purpose spectrum in the 600MHz band, coupled with

carefully-considered pro-competitive measures to ensure that its utility to Canadians is maximized,

will allow new entrants like WIND to access much-needed, high value spectrum to enhance the

speed, capacity and quality of their services and compete more effectively with the Incumbents.

While of course WIND will have more to say on this topic in the coming policy consultation, in this

Reply WIND emphasizes that the Department should be alert to the built-in incentive of

Incumbents and other entities with related OTA television interests to price new entrant wireless

providers out of contention for newly-released spectrum.

5. WIND supports re-purposing the maximum amount of spectrum in the 600MHz band in Canada,

where appropriate and feasible. In order to ensure that the greatest amount of 600MHz spectrum

is re-purposed for mobile wireless telecommunications use, WIND supports a joint re-packing

process with the United States. This will result in a more efficient reassignment of broadcasting


channels and mitigate interference concerns. To this end, WIND also supports the Department’s

proposal to develop a new allotment plan that will re-pack OTA television broadcasting stations

more tightly in lower frequencies and enable spectrally-efficient operation of the television

broadcasting system.

6. Limit Auction Distortion by Entities that Simultaneously control OTA Television and Mobile

Wireless Undertakings: The second key policy consideration is the need to curb the incentive of

mobile wireless carriers which also operate OTA television broadcast undertakings to inflate the

price of 600MHz spectrum in the case of an auction. WIND does not object, in principle, to the

notion of reimbursing television broadcasters for some reasonable portion of legitimate costs

directly associated with re-packing and relocating television stations, provided that these measures

do not inflate the cost paid by bidders for the spectrum in an auction scenario. In other words, the

Department should be wary of compensation schemes proposed by mobile wireless carriers that

have an incentive to inflate spectrum cost, which they can recover through so-called compensatory

schemes for their related OTA television broadcasting undertakings. Carriers should not be

permitted to take money out of one pocket and slip it into another, or to introduce undue delay.

Moreover, WIND does not support the demands for compensation from television broadcasters for

moving to a more spectrally-efficient allotment plan.

SPECIFIC REPLY COMMENTS

7. The vast majority of parties, including television broadcasters, recognise that there is tremendous

demand for mobile wireless broadband services in Canada and that this demand is expected to

Question 1: Industry Canada is seeking comments on the overall proposal of re-purposing the

band to include commercial mobile broadband and the initial step of participating in a joint re-

packing process with the United States.


grow in the future.2 WIND, along with all mobile wireless carriers, supports the Department’s

proposal to re-purpose the 600MHz band for commercial mobile wireless telecommunications use

to meet this growing demand.3 The need for low-frequency spectrum such as 600MHz spectrum is

particularly great for new entrant wireless carriers such as WIND, given the superior propagation

characteristics and suitability of sub-1GHz spectrum for the provision of data-intensive mobile

wireless telecommunications services in both urban and rural areas.

8. WIND supports a joint re-packing process with the United States. As noted by many parties in this

Consultation, a joint re-packing exercise with the United States is necessary and beneficial for

Canadian operators.4 Coordination will result in a more efficient reassignment of broadcasting

channels and, by mitigating interference concerns in border areas, will maximise the amount of

600MHz spectrum that can be made available for mobile wireless telecommunications services.

Coordination also ensures that Canadians will have access to a device and equipment ecosystem for

the band and will benefit from the economies of scale associated with the larger United States

market. WIND agrees with SaskTel that the re-packing process is too complex for Canada and the

United States to complete separately and that failure to coordinate may result in service gaps being

created on both sides of the border due to interference issues.5

2 All references to “Comments” in this reply are to first round comments filed by parties in response to the

Consultation as posted by the Department on Thursday, 12 March 2015 at http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf10962.html. Bell Mobility Inc. and Bell Media Inc. (together, “Bell”), Comments, paragraph 12; Rogers, Comments, page 10; Shaw Communications Inc. (“Shaw”), Comments, paragraph 3; Small Market Independent Television Stations Coalition (“SMITS Coalition”), Comments, paragraph 10; MTS Allstream (“MTS”), Comments, paragraph 3; Saskatchewan Telecommunications (“SaskTel”), Comments, paragraph 16; TELUS, Comments, paragraph 16; Cogeco Cable Inc. (“Cogeco”), Comments, page 2; Quebecor Media Inc., Comments, paragraph 7. 3 Bell, Comments, paragraphs 12 and 13; Rogers, Comments, page 10; MTS, Comments, paragraph 5; SaskTel,

Comments, paragraph 16; TELUS, Comments, paragraph 4; Quebecor, Comments, paragraph 7. 4 Bell, Comments, paragraph 20; Canadian Association of Broadcasters (“CAB”), Comments, paragraph 37; Rogers,

Comments, paragraph 15 ; Shaw, Comments, paragraph 13; MTS, Comments, paragraph 5 ; SaskTel, Comments, paragraph 12 ; TELUS, Comments, paragraph 7. 5 SaskTel, Comments, paragraph 16.

March 26, 2015 WIND Mobile – Reply Notice No. SLPB-005-14 Page 5 of 13 9. The majority of Canadian OTA television broadcasters has expressed support for the Department’s

proposal to re-purpose the 600MHz band. However, their support for re-purposing and re-packing

is conditioned on a panoply of demands that greatly concern WIND (and others). Television

broadcasters, including entities that simultaneously control both OTA television broadcasting

undertakings and mobile wireless carrier undertakings, focused their Comments on their

entitlement to the proceeds of any spectrum auction resulting from the re-packing process.6 For

example, television broadcasters suggested that their support for the Department’s proposal was

conditional on obtaining:

Reimbursement: The Department must reimburse television broadcasters for 100% of

the costs resulting from re-packing and migrating the television stations. It is proposed

that the television broadcasters should be reimbursed from the proceeds of the

spectrum auction.

Compensation: The Department must compensate television broadcasters for 100% of

any diminution of value or degradation of their television services as a result of a new

allotment plan, including any net loss or reduction in spectrum, signal quality, or

geographic broadcast coverage. It is proposed that the television broadcasters should be

compensated from the proceeds of the spectrum auction.

Local Television Fund: The Department should consider setting aside proceeds from the

spectrum auction to support local television.

Sufficient Channel Capacity: A new allotment plan must accommodate all existing

television stations at current operating parameters and provide vacant allotments to

meet future needs and technologies.

10. WIND does not object, in principle, to the use of proceeds from any auction of 600MHz spectrum to

reimburse television broadcasters for some reasonable portion of the legitimate costs directly

6 Bell, Comments, pages 7 and 8; CAB, Comments, paragraph 18; Rogers, Comments, paragraph E5; Shaw, Comments,

paragraph 7; SMITS Coalition, Comments, paragraph 51.


associated with re-packing and relocating the television stations, provided that this does not inflate

the price to be paid by the winning bidders for the spectrum. WIND notes that a number of the

television broadcasters are (or are related to) mobile wireless carriers that may have an incentive to

inflate spectrum auction prices, which they would then be entitled to recover through claims for

reimbursement and other compensation by their OTA undertakings for transitioning to a new

allotment plan (e.g., net reductions in spectrum or small changes to broadcast coverage areas).

Such carriers want to have their cake and eat it too, a desire exacerbated by their clear incentive to

raise the prices of spectrum for differently-situated companies, such as WIND. The Department

must be alert to this incentive and carefully employ measures to address it. Otherwise, Canadians

simply will not benefit to the degree they deserve from increased competition and choice in

downstream mobile wireless broadband services markets.

11. WIND thus encourages the Department to keep this consideration in mind when evaluating any

reimbursement or compensation scheme proposed by entities that simultaneously control mobile

wireless carriage and OTA television broadcasting undertakings, or industry groups that represent

these interests.

12. Reimbursement of some reasonable portion of costs associated with re-packing and relocating

television stations is distinct from the “compensation” demanded by certain television broadcasters

for moving to a more spectrally-efficient allotment plan. The notion of compensating television

broadcasters for the implementation of a more spectrally-efficient allotment plan is clearly

inappropriate. The Department’s proposal to re-purpose spectrum in the 600MHz band is intended

to promote the efficient use of this spectrum through more compact reuse of the television

channels, in both frequency and geographic terms.7 As noted by the Department, most of the

7 Consultation, paragraph 42.


regular power television stations in Canada operate below the maximum levels permitted by the

current Digital Television (DTV) Post-Transition Allotment Plan (the “Plan”).8 Television

broadcasters should not be compensated for relinquishing spectrum allocations that are being used

inefficiently or not at all.

13. WIND also does not believe that this Consultation is the appropriate forum to establish a local

television fund to support local television. Television broadcasters should make the case to the

Canadian Radio-television and Telecommunications Commission and to the Government directly if

they feel local television requires greater subsidies from the public purse. Such subsidies must not,

however, be connected to spectrum auction revenues, since this would create auction distortions.

14. TELUS and Cogeco share WIND’s position that OTA broadcasting will become less relevant over

time as consumers shift their viewing habits and increasingly access media and content over fixed

and mobile broadband networks.9 In fact, the CRTC recently stated in Let’s Talk TV – A World of

Choice that innovative Internet-based services and devices are leading to changes in the

consumption behaviour of many Canadians (e.g., to mobile viewing).10 This migration to digital

media and mobile broadband platforms shows no signs of abating and will naturally come at the

expense of more traditional methods of viewing content.

15. There are some who deny this trend. Bell, Shaw and Rogers all project that the future demand for

OTA broadcasting will remain stable at current levels for the foreseeable future, particularly with

8 Consultation, paragraph 43.

9 TELUS, Comments, paragraph 11 ; Cogeco, Comments, page 4.

10 Broadcasting Regulatory Policy CRTC 2015-96, Let’s Talk TV. A World of Choice – A roadmap to maximize choice for TV

viewers and to foster a healthy, dynamic TV market, 19 March 2015, paragraph 6.

Question 2: Industry Canada is seeking comments on the future spectrum requirements for

OTA TV broadcasting, taking into consideration the overall changes to the broadcasting

industry, and noting that the CRTC Let’s Talk TV hearing recently closed.


new technologies such as Ultra HD on the horizon.11 The CAB, the Canadian Association of

Community Television Users and Stations (“CACTUS”), and the Public Interest Advocacy Centre

(“PIAC”), among others, believe that while the national percentage of OTA television viewing has

remained stable at approximately 8% over the last five years, this figure does not account for the

increasing demand for OTA broadcasting in major urban markets, such as Toronto and Vancouver,

and regional differences in OTA usage.12 PIAC and CACTUS in particular focused on the future

potential and the technological promise of OTA broadcasting.13

16. However, according to the Department’s Consultation, “TV licensing data shows that the number of

TV undertakings in Canada has been static in recent years.”14 In fact, the Department expressly

states, and WIND agrees, that OTA television service is not growing and that current OTA television

stations are not utilizing their entire allotted spectrum.15 At best, future growth in OTA

broadcasting remains uncertain and speculative. What is absolutely certain is that the future

demand for mobile broadband will significantly outpace the demand for OTA television

broadcasting. According to the Department’s analysis, “strong growth in demand for mobile data

services is resulting in continued pressure for more spectrum to be made available for mobile

services.”16 Arguments that seek to reserve or maintain spectrum in the hands of OTA television

broadcasting undertakings, and which hinge upon speculative future spectrum requirements of

OTA television broadcasting, should be given little weight, given the undeniable need and demand

for mobile broadband services.17

11

Shaw, Comments, paragraph 29; Rogers, Comments, paragraph 25; Bell, Comments, page 8. 12

PIAC, Comments, paragraph 23; CAB, Comments, paragraph 39; CACTUS, Comments, paragraph 40. 13

CACTUS, Comments, paragraph 39 ; PIAC, Comments, paragraph 48. 14

Consultation, paragraph 41. 15

Consultation, paragraphs 41 and 43. 16

Consultation, paragraph 41. 17

Consultation, paragraph 41 ; TELUS, Comments, paragraph 11; Xplornet Communications Inc., Comments, paragraphs 15 and 16 ; Cogeco, Comments, p. 4.

March 26, 2015 WIND Mobile – Reply Notice No. SLPB-005-14 Page 9 of 13 17. There are also substantial spectral efficiency gains to be had if OTA television stations implement

channel multiplexing. In their comments, Dr. Gregory Taylor and Dr. Catherine Middleton discussed

the spectral efficiency of multiplexing and noted that “the ATSC digital television standard was

designed so that multiple channels can be broadcast on one 6 MHz channel.”18 They also noted that

the Canadian broadcasting industry is lagging in this regard. Whereas multiplexing is common

practice in the United States, where it is used by the overwhelming majority of broadcasters, “this

is not the case in Canada where few if any OTA broadcasters use this key element of digital

television broadcasting.”19 The availability of television channel multiplexing technology is also a

strong counter to the demands of television broadcasters that additional spectrum be allocated or

retained for OTA television broadcasting uses.

18. The Department has correctly focused on maximizing efficient use of the 600MHz band spectrum in

this Consultation. Considering that demand for OTA television service is not growing, WIND submits

that it would be beneficial and efficient to re-purpose more rather than less 600MHz band

spectrum for mobile wireless telecommunications use.20

19. The majority of the parties to the Consultation, including WIND, supports the Department’s

proposal to re-purpose at least as much 600MHz spectrum as the United States, as determined in

the United States Federal Communications Commission’s (the “F.C.C.”) incentive auctions.21 This

18

Dr. Gregory Taylor and Dr. Catherine Middleton, Comments, page 2. 19

Dr. Gregory Taylor and Dr. Catherine Middleton, Comments, pages 2-3. 20

TELUS, Comments, paragraph 11; Cogeco, Comments, page 4. 21

Rogers, Comments, paragraph 29; SaskTel, Comments, paragraph 24.

Question 3: Industry Canada is seeking comments on the Department’s proposal to:

Adopt the U.S. 600MHz band plan framework; and

Commit to re-purpose the same amount of spectrum as the United States, as

determined in the FCC’s incentive auctions.


will ensure that the same spectrum frequencies will be allocated for mobile wireless service in both

Canada and the United States. The majority of the parties to the Consultation, including WIND,

support the Department’s proposal to adopt the United States 600MHz band plan. Harmonization

will help to manage cross-border interference and ensure that Canadian operators and Canadian

consumers can benefit from the United States wireless device and television equipment

ecosystem.22

20. WIND, like Shaw, TELUS and Cogeco, is concerned that that the amount of spectrum in the 600MHz

band that will be re-purposed is tied to the United States auction process. The unpredictable nature

of the incentive auctions may result in much less than 120 MHz of spectrum being made available

for commercial mobile use, particularly along Canada’s border with the United States and in key

urban markets.23 As a result, WIND supports Cogeco’s recommendation that the Department re-

purpose the maximum amount of spectrum in the 600MHz band in Canada, where appropriate and

feasible, regardless of the results of the United States incentive auction.24

21. WIND continues to believe that the proposed guard bands between television broadcasting and

mobile wireless telecommunications services that range from 7 MHz to 11 MHz are sufficient to

protect mobile wireless telecommunications services from high-power broadcast operations.

22

Bell, Comments, page 8; SaskTel, Comments, paragraphs 21 and 22; TELUS, Comments, paragraph 20; CAB, Comments, paragraph 49; Rogers, Comments, paragraph 27. 23

Shaw, Comments, paragraph 13; TELUS, Comments, paragraph 20; Cogeco, Comments, page 5. 24

Cogeco, Comments, page 5.

Question 4: Industry Canada is seeking comments on the size of the proposed guard band

between the TV broadcasting and mobile services.

Is the mobile service appropriately protected by the proposed band?

Is the TV broadcasting service appropriately protected by the proposed guard band?

If additional protection measures are needed, what alternatives (such as increasing the

size of the guard band, adding a pass band/notch filter at the TV receiver port, etc.)

could be used and what alternatives would be practical to deploy?


Additional protection measures are not necessary. A number of parties in the Consultation noted

that the F.C.C. thoroughly investigated the matter and provided extensive evidence to support the

conclusion that a guard band of 7 MHz would be sufficient to prevent harmful interference.25 WIND

is confident in these F.C.C. determinations.

22. WIND does not support Shaw or CAB’s proposal that new users in the 600MHz band should bear

100% of the costs of any additional protection measures that television broadcasters may need to

adopt to address interference.26 The Department is responsible for establishing the appropriate

guard band between mobile wireless operations and television broadcast stations.

23. As stated above, the Department should maximize the amount of 600MHz spectrum available for

commercial wireless telecommunications services to effectively meet current mobile broadband

usage trends, particularly considering that new entrants have virtually no spectrum holdings below

1GHz. And there is no basis to conclude that demand for OTA television will expand in the future.

Thus, the re-purposing of the 600MHz band spectrum should be implemented in a manner that

maximizes the amount of spectrum available for commercial mobile telecommunications purposes.

24. WIND therefore supports the Department’s proposal to curtail guard bands, vacant allotments, and

future allotments for OTA television. WIND supports a new allotment plan that will re-pack OTA

television broadcasting stations more tightly in lower frequencies. WIND also supports TELUS’

25

Rogers, Comments, paragraph 35; SaskTel, Comments, paragraph 26; TELUS, Comments, paragraph 28. 26

CAB, Comments, paragraph 54; Shaw, Comments, paragraph 36.

Question 5: Industry Canada is seeking comments on the proposed transition policy for the

regular power TV stations, including but not limited to

the design objectives for the development of the new DTV allotment plan;

the methodology and parameters to ensure minimal impact to TV reception;

the minimum notification period for the relocation to the new DTV assignments; and

the overall timing for the transition to the new DTV allotment plan.


position that the allotment plan should be based on current operating parameters for television

broadcasters as opposed to the maximum parameters permitted by the current Plan.27 Maximizing

the amount of re-purposed spectrum for mobile wireless telecommunications will result in

spectrally-efficient outcomes.

25. On a final note, WIND notes that the parties to the Consultation have proposed wildly divergent

timelines for the transition of regular power television stations to a new DTV allotment plan.

26. WIND supports the position taken by Cogeco in this Consultation that the Department should

award the spectrum from the 600MHz auction no later than one year after the conclusion of the

United States incentive auction.28 There is reason to believe that the F.C.C. will strongly incent or

even require deployment of 600MHz on an aggressive timeline, or at least employ measures to

ensure that 600MHz ends up in the hands of parties who are motivated to deploy quickly. Thus, one

year is plenty of time for Canadian mobile wireless operators to understand where the device

ecosystem is headed and for appropriate network equipment to become available. Putting this

much-needed low-band spectrum to competitive use should be a paramount objective of the

Department. Following the United States process quickly will also allow mobile wireless operators

to properly value the spectrum while at the same time allowing for an orderly transition of OTA

television stations. A further extension to the transition period can be accommodated where the

mobile wireless operators that actually obtain spectrum in the auction anticipate roll-out delays.

27. WIND has no comment on Question 6.

27

TELUS, Comments, paragraph 34. 28

Cogeco, Comments, page 6.

Question 6: Industry Canada is seeking comments on the proposed transition policy for LPTV

undertakings in the spectrum to be re-purposed to mobile use.





*** END OF DOCUMENT ***

Question 7: Industry Canada is seeking comments on the proposed transition policy for LPTV

undertakings below the 600 MHz band.

Question 8: Industry Canada is seeking comments on the proposed transition policy for RRBS.

Question 9: Industry Canada is seeking comments on the proposal to update the Canadian

Table of Frequency Allocations by adding co-primary allocations to fixed and mobile services

in the 512-608 MHz and 614-698 MHz ranges.

notice no. slpb-005-14 · 2015-04-09 · 600mhz spectrum made available for mobile wireless...

Documents