Telus 2013 Annual Report Download - page 21

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21
Radiocommunications authorizations and spectrum licences
TELUS subsidiaries hold radiocommunication spectrum licences and authorizations for a
variety of wireless services and applications, both mobile and fixed, including for 1.9
GHz personal communications services (PCS) spectrum throughout Canada, 800 MHz
SMR/ESMR spectrum in all of the major Canadian markets, and 25 MHz of cellular 800
MHz spectrum in Alberta, B.C. and Eastern Québec. TELUS also was 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, TELUS
holds 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.
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.
The Industry Canada auction for spectrum in the 700 MHz band was completed in
February 2014 with TELUS acquiring a national average of 16.6 MHz of spectrum for
$1.14 billion. On January 10, 2014, Industry Canada announced that the spectrum
auction in the 2500-2690 MHz band will begin on April 14, 2015. The government
capped the amount of 2500-2690 MHz spectrum any individual bidder can acquire at 40
MHz. TELUS looks forward to participating in the 2500-2690 MHz auction and is fully
committed to meeting all of the auction and subsequent licence conditions.
See MD&A Section 10.4 Regulatory matters for further details related to regulation
generally and specifically in relation to future availability and cost of wireless spectrum
and radiocommunication authorizations and spectrum licences regulated by Industry
Canada.
Broadcasting services
TCC holds Class 1 Regional broadcasting distribution licences to serve areas in each of
B.C., Alberta and Québec. TCC also holds a national licence to operate a video-on-
demand programming service. TCC has recently applied for a broadcasting licence to
operate a national terrestrial pay-per-view service. The CRTC has announced that the
application will be considered as a non-appearing item at a CRTC hearing scheduled for
April 8, 2014 as indicated in Broadcasting Notice of Consultation CRTC 2014-26.
See MD&A Section 10.4 Regulatory matters 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 vertically integrated companies which own
interests in both broadcasting distribution services and programming services.