Telus 2014 Annual Report Download - page 25

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Radiocommunications authorizations and spectrum licences
TELUS subsidiaries hold radio 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.
In March 2015, TELUS was successful in obtaining a national average of 15 MHz of 1.7
GHz/2.1 GHz spectrum in the AWS-3 auction. TELUS obtained spectrum in Ontario and
Quebec, and all of British Columbia, Alberta, Saskatchewan and Manitoba for $1.51
billion. TELUS also intends to participate in the spectrum auction in the 2500-2690 MHz
band which will begin on April 14, 2015.
See MD&A Section 10.4 Regulatory matters for further details related to regulation
generally and specifically in relation to AWS-3 spectrum auction framework, 2500-2690
MHz spectrum auction framework, AWS-4 spectrum licensing framework, policy
changes in the 3500 MHz band and consultation on repurposing the 600 MHz band.
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 and a broadcasting licence to operate a national terrestrial
pay-per-view service.
In September 2014, the CRTC concluded a review of the regulatory framework relating
to television broadcasting. A number of issues were discussed in this proceeding,
including the CRTC’s proposal to increase the ability of consumers to choose to
subscribe to programming services on a service-by-service basis, whether to require
contribution payments from currently exempted content providers and how to set
wholesale rates for programming services in an environment that promotes greater
choice for consumers. To date, five decisions related to this review have been issued. In
December 2014, the Commission released Broadcasting and Telecom Regulatory Policy
CRTC 2014-576 prohibiting 30-day cancellation policies, followed by January 2015
releases of Broadcasting Regulatory Policy CRTC 2015-24 relating to over-the-air
transmission of television signals and local programming, and Broadcasting Regulatory
Policy CRTC 2015-25 relating to measures to address issues related to simultaneous