Telus 2012 Annual Report Download - page 18

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18
REGULATION
General
The provision of telecommunications services and broadcasting services in Canada is
regulated by the CRTC pursuant to the Telecommunications Act and the Broadcasting
Act, respectively. In addition, the provision of cellular and other wireless services using
radio spectrum is also subject to regulation and licensing by Industry Canada pursuant
to the Radiocommunication Act.
The Telecommunications Act gives the CRTC the power to regulate the provision of
telecommunications services, and to forbear from regulating (i.e. not subject to rate
regulation) certain services or classes of services if they are subject to a degree of
competition which is sufficient to protect the interests of customers. However, even when
the CRTC forbears from price regulation in respect of a service, it can continue to
regulate these services in other respects, such as for the purposes of ensuring network
access and interconnection.
See MD&A Section 10.3 Regulatory for further details related to regulation generally and
specifically in relation to regulatory developments that could have a material impact on
TELUS’ operating procedures, costs and revenues.
Regulation of wireless services
The use of radio spectrum is subject to regulation and licensing by Industry Canada
pursuant to the Radiocommunication Act. All of our wireless telecommunications
services depend on the use of radio frequencies. While economic regulation of wireless
services falls under CRTC jurisdiction, wireless services have, generally, been subject to
regulatory forbearance.
The Minister of Industry has the authority to suspend or revoke radio spectrum licences
if the licence holder has contravened the Radiocommunication Act, regulations or terms
and conditions of its licence and after giving the holder of the licence a reasonable
opportunity to make representations. Licence revocation is rare; licences are usually
renewed upon expiration. See MD&A Section 10.3 Regulatory for further details related
to regulation generally and specifically in relation to radiocommunication licences
regulated by Industry Canada.
Radiocommunications spectrum licences
We hold radiocommunication spectrum licences and authorizations for a variety of
wireless services and applications, both mobile and fixed. We hold significant 1.9 GHz
personal communications services (“PCS”) spectrum throughout Canada, are the
leading holder of 800 MHz SMR/ESMR spectrum in all of the major Canadian markets,
and hold 25 MHz of cellular 800 MHz spectrum in Alberta, B.C. and eastern Québec. We
also were successful in obtaining AWS spectrum licences for an average of
approximately 16 MHz covering a national footprint in the Industry Canada spectrum
auction in 2008. In addition, we hold various radio spectrum licences in the 2.3 GHz, 3.5
GHz and 24/38 GHz bands throughout Canada, as well as other spectrum licences used
for the provision of paging and other miscellaneous wireless services.