Telus 2012 Annual Report Download - page 19

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On March 14, 2011, Industry Canada released its decision concerning the Renewal
Process for Cellular and PCS Spectrum Licences. This decision confirmed that where all
conditions of licence for the current PCS/cellular licences have been met, licensees will
be eligible to be issued a new licence for a 20-year term. This decision also determined
that annual fees for these licences, including those spectrum licences from the 2001
PCS spectrum auction expiring in the 2011 timeframe, will be frozen at current rates.
In April and October 2012, the federal government initiated written consultations to
develop the rules for two spectrum auctions. On March 7, 2013, Industry Canada
announced that the auction spectrum in the 700 MHz band will begin on November 19,
2013, to be followed by the auction of spectrum in the 2500-2690 MHz band in 2014. In
its decision, the government capped the amount of prime 700 MHz spectrum any large
carrier can acquire at 10 MHz and capped the amount of 2500-2690 MHz spectrum any
individual bidder can acquire at 40 MHz. We look forward to participating in both the
700 MHz and 2500-2690 MHz auctions and we are fully committed to meeting the
conditions of licence associated with the deployment of service in urban and rural areas.
See MD&A Section 10.3 Regulatory for further details related to regulation generally and
specifically in relation to future availability and cost of wireless spectrum and
radiocommunication licences regulated by Industry Canada.
Broadcasting services
We hold Class 1 Regional broadcasting distribution licences to serve areas in each of
B.C., Alberta and Québec utilizing our IP facilities. We also hold a national licence to
operate a video-on-demand programming service.
See MD&A Section 10.3 Regulatory for further details related to regulation generally and
specifically in relation to TELUS’ broadcasting distribution undertakings and the CRTC’s
review of vertical integration in the broadcasting industry to address the potential for anti-
competitive behaviour by broadcasting companies which own interests in both
broadcasting distribution services and programming services.
COMPETITION
We expect continued strong competition in the wireline and wireless businesses in all
principal markets and geographic areas. See MD&A Section 4.1 Principal markets
addressed and competition for a summary of the competitive environment in each of our
principal markets and geographic areas. Also refer to MD&A Section 10.1 Competition
for further details on the risks associated with such competitive environment and
Section 9: General outlook for an assessment of our competitive position as it relates to
the telecommunications industry generally and specifically as it relates to the wireless
and wireline industries.