Canada Case Study Allocation and Use of Scarce Resources

Transcription

1 2009/TEL39/LSG/WKSP1/018 Canada Case Study Allocation and Use of Scarce Resources Submitted by: Singapore APEC-WTO Capacity Building Workshop on Telecommunications Trade Rules and Regulatory Disciplines Singapore 6 11 April 2009

2 WTO Reference Paper Allocation and Use of Scarce Resources Canada a case study APEC TEL 39 WTO Trade Workshop on Telecoms Trade Rules & Regulatory Disciplines, 6-11 April 2009, Singapore Topics for Discussion WTO Reference Paper provisions Canada: a case study Allocation and use of frequencies Allocation and use of numbers Allocation and use of rights-of-way Allocation of frequency bands 1 1

3 WTO Reference Paper Text: 6. Allocation and use of scarce resources Any procedures for the allocation and use of scarce resources, including frequencies, numbers and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory manner. The current state of allocated frequency bands will be made publicly available, but detailed identification of frequencies allocated for specific government uses is not required. 2 Allocation and use of frequencies Are procedures for the allocation and use of frequencies carried out in an objective, timely, transparent and nondiscriminatory manner? 3 2

4 Allocation and use of frequencies Overview Spectrum allocation planning, its regulation and licensing are the responsibility of Industry Canada, the Ministry responsible for telecommunications policy and the Radiocommunications Act. The Spectrum Policy Framework for Canada sets out the core policy objective and enabling guidelines for spectrum management: Industry Canada has established Guidelines for Licensing Process and Spectrum Release Plan (RP-20) which outlines the processes for licensing spectrum and satellite orbital positions RP-20 establishes the spectrum demand trigger where more demand for a particular frequency band than supply triggers a competitive process such as auctions. Since 1999, some spectrum has been allocated through competitive licensing processes such as auctions. The Framework for Spectrum Auctions in Canada document outlines the approach that Industry Canada will take whenever spectrum is assigned by auction in the future. The decision to hold an auction is made on a band-by-band basis after public consultation. 4 Allocation and use of frequencies Spectrum Policy Framework: Objectives The Spectrum Policy Framework, established in 1992, revised in 2005 and renewed in 2007, guides the spectrum management program in Canada and provides the basis for more specific spectrum policies, practices and standards The framework (Objectives and Guidelines) guides the exercise of the regulatory powers under the Radiocommunication Act 5 3

5 Allocation and use of frequencies Spectrum Policy Framework: Contents The Framework consists of three elements, a Preamble, a Policy Objective and Enabling Guidelines Preamble: In managing the radiofrequency spectrum by the powers conferred by the Radiocommunication Act, and with due regard to the objectives of the Telecommunications Act and other related legislation, the Department will be guided by the following Policy Objective and Enabling Regulatory Guidelines. Policy Objective: To maximize the economic and social benefits that Canadians derive from the radiofrequency spectrum resource. 6 Allocation and use of frequencies Spectrum Policy Framework: Objectives Guidelines The Guidelines are intended to provide the necessary operational guidance for Canada s Spectrum Management Program The guidelines promote, among others: reliance on market forces to the maximum extent feasible; recognition that spectrum should also be made available to meet certain public interest needs; flexibility in the access and use of spectrum; regulatory measures, where required, should be minimally intrusive, efficient and effective; and clearly defining obligations and privileges in spectrum authorizations. 7 4

6 Allocation and use of frequencies Spectrum Policy Framework: Enabling Guidelines Market forces should be relied upon to the maximum extent feasible. a) Notwithstanding a), spectrum should be made available for a range of services that are in the public interest. b) Spectrum should be made available to support Canadian sovereignty, security and public safety needs. c) Regulatory measures, where required, should be minimally intrusive, efficient and effective. d) Regulation should be open, transparent and reasoned, and developed through public consultation, where appropriate. e) Spectrum management practices, including licensing methods, should minimize administrative burden and be responsive to changing technology and market place demands. f) Canada's spectrum resource interests should be actively advanced and defended internationally. h) Regulation should support the efficient functioning of markets by: permitting the flexible use of spectrum to the extent possible; harmonizing spectrum use with international allocations and standards, except where Canadian interests warrant a different determination; making spectrum available for use in a timely fashion; facilitating secondary markets for spectrum authorizations; clearly defining the obligations and privileges conveyed in spectrum authorizations; ensuring that appropriate interference protection measures are in place; reallocating spectrum where appropriate, while taking into account the impact on existing services; and applying enforcement that is timely, effective and commensurate with the risks posed by 8 non-compliance. Allocation and use of frequencies Guidelines for Licensing Process and Spectrum Release Plan (RP-20) Industry Canada has established Guidelines for Licensing Process and Spectrum Release Plan (RP-20) which outlines the processes for licensing spectrum and satellite orbital positions Establishes the spectrum demand trigger where more demand for a particular frequency band than supply triggers a competitive process such as auctions. In frequency bands where there is sufficient spectrum to meet or exceed demand, licensing is carried out on a managed first-come, first-served basis 9 5

7 Allocation and use of frequencies Framework for Spectrum Auctions in Canada The Framework for Spectrum Auctions in Canada outlines the approach that Industry Canada will take whenever spectrum is assigned by auction in the future. The decision to hold an auction is made on a band-by-band basis after public consultation. This framework guides further band-by-band consultation that establishes the most effective auction design (size of spectrum tiers to be auctioned, the bidding process etc.) 10 Allocation and use of frequencies The AWS Auction The AWS auction opened on May 27, 2008 with 27 applicants qualified to participate. A total of 105 megahertz (MHz) of radio spectrum was open for bidding, which includes 40 MHz of AWS spectrum for new entrants and another 65 MHz of spectrum for all bidders. The auction closed on July 21, 2008 after 331 rounds of bidding. Three incumbents and 12 new-entrants were successful in becoming provisional licence winners for 282 of the 292 licences. Total bids resulted in $4,254,710,327 billion CAD and penalties totalled $4,962,075 million CAD. 11 6

8 Allocation and use of frequencies The AWS Auction (continued) Within 10 business days of the cessation of bidding, successful bidders are required to pay 20 percent of their winning bids and 100 percent of any penalties incurred. They must also submit documentation demonstrating compliance with the Canadian ownership and control requirements. The remaining 80 percent of their winning bids must be paid within 30 business days of the cessation of bidding. Once these steps have been completed, Industry Canada will review the information submitted by each bidder and issue licences as appropriate. This process could take several months to complete. Information about each licence issued will be posted on the Industry Canada Web site at: 12 Allocation and use of frequencies AWS Auction - Policy Provisions Mandatory Roaming Automatic digital roaming must be offered Outside of the licensed area for at least 10 years In licensed area for a limited period of time 5 years for regional or local operators For an additional 5 years for national new entrants Mandated Tower Sharing Mandatory roaming and tower sharing are to be at commercial rates with disputes settled by binding arbitration using private sector arbitrators Roll-out will be evaluated at the end of the 10 year licence term Licences for set aside spectrum cannot be transferred for 5 years unless the new licensee meets the eligibility requirements of a new entrant (10% market share) 13 7

9 Allocation and use of frequencies Major Bands to be Auctioned Next Two major bands are being prepared for future auctions dates yet to be determined MHz The CRTC established August 2011 as the transition to Digital TV 80 MHz will be available for commercial mobile services MHz Current licences expire in MHz could be available for commercial mobile services 14 Allocation and use of numbers Are procedures for the allocation and use of numbers carried out in an objective, timely, transparent and nondiscriminatory manner? 15 8

10 Allocation and use of numbers With amendments to the Telecommunications Act in 1998, the CRTC acquired general powers over numbering in Canada. The Telecommunications Act gives the CRTC the authority to administer numbering services. Included within that power, the CRTC has the authority to issue orders with respect to numbering resources. 16 Allocation and use of numbers Canada s Telecommunications Act Telecommunications Numbering and Other Matters Administration by Commission 46.1 The Commission may, if it determines that to do so would facilitate the interoperation of Canadian telecommunications networks, (a) administer (i) databases or information, administrative or operational systems related to the functioning of telecommunications networks, or (ii) numbering resources used in the functioning of telecommunications networks, including the portion of the North American Numbering Plan resources that relates to Canadian telecommunications networks; and (b) determine any matter and make any order with respect to the databases, information, administrative or operational systems or numbering resources. 1998, c. 8, s

11 Allocation and use of numbers Canada s Telecommunications Act, continued Delegation of powers 46.2 (1) The Commission may, in writing and on specified terms, delegate any of its powers under section 46.1 to any person, including any body created by the Commission for that purpose. Decision of delegate (2) For the purposes of sections 62 and 63, a decision of a delegate is deemed to be a decision of the Commission. Decision of Commission (3) For greater certainty, a delegation of powers is a decision of the Commission. Revocation of delegation (4) The Commission may, in writing, revoke a delegation of powers. A revocation is deemed not to be a decision of the Commission. 1998, c. 8, s Allocation and use of numbers Canada s Telecommunications Act, continued Rates 46.3 (1) Subject to subsection (2), a delegate may charge rates for exercising delegated powers. Regulation of rates (2) The Commission may regulate the rates charged by a delegate, whether by requiring pre-approval of the rates or otherwise. Financial Administration Act does not apply (3) Notwithstanding the Financial Administration Act, money collected by a delegate is deemed not to be public money. 1998, c. 8, s. 6. Regulation of conditions and rates 46.4 The Commission may regulate (a) the manner in which any person provides services relating to any of the matters referred to in paragraph 46.1(a); and (b) the rates, whether by requiring pre-approval of the rates or otherwise, charged by the person. 1998, c. 8, s

12 Allocation and use of numbers Sciences Application International Corporation (SAIC), a neutral third party, performs the role of the Canadian Numbering Administrator (CNAC, assigning numbering resources in the Canadian portion of the NANP ( The CNA works under contract to the Canadian Numbering Administration Consortium (CNAC) and with the oversight of the CRTC. 20 Allocation and use of numbers Canadian Numbering Administration Consortium (CNAC) The CNAC was formed on June 15, 1998, under the regulatory authority of the CRTC, to oversee numbering administration activities in Canada. CNAC is an incorporated entity with a Board of Directors, and shares held by almost all Canadian Telecommunications Service Providers (TSPs). The primary function of CNAC is to oversee and fund the numbering administration activities of the Canadian Numbering Administrator (CNA). In the past the role of the CNA was performed initially by Telecom Canada/Stentor and individual ILECs, then Industry Canada, the CRTC and, finally, SAIC Canada

13 Allocation and use of numbers Canadian Numbering Administration Consortium (CNAC) In Canada, the CNA undertakes the primary administrative functions for all NANP resources and coordinates assignment and related activities with the NANPA on behalf of Canadian service providers and users. The CNA has been established as the sole interface between Canadian applicants/assignees and the NANPA. The CNA administers NANP resources in accordance with guidelines developed by the CSCN and approved by the CRTC. 22 Allocation and use of numbers Numbering Administration United States Canada FCC CRTC State Regulators North American Numbering Plan Administrator NANPA Central Office Code Administrators CNA Canadian Numbering Administrator (SAIC Canada) 23 12

14 Allocation and use of numbers North American Numbering Plan (NANP) The Canadian Numbering Plan and the Canadian Dialing Plan can be found at: This technical document defines a Standard that specifies the format and values of telephone numbers in Canada, called the Canadian Numbering Plan, and the associated Canadian Dialing Plan used on the Canadian portion of the worldwide Public Switched Telephone Network (PSTN). It also identifies other numbering resources that are used in the PSTN, and describes these uses in relation to the Canadian Dialing Plan. 24 Allocation and use of numbers North American Numbering Plan (NANP) Primary Responsibilities of the NANPA Administer numbering resources fairly and impartially to the mutual benefit of users and service providers in Country Code 1 Work cooperatively with standards bodies, industry forums, national and international organizations, and appropriate governmental agencies having an interest in the numbering issues Ensure that code conservation techniques are employed in utilization and assignment of NANP resources Maintain the availability of NANP resources 25 13

15 Allocation and use of numbers Canadian Industry Fora CISC CRTC Interconnection Steering Committee CSCN Canadian Steering Committee on Numbering AD HOC CISC Committees e.g., NPA Relief Planning Contribution Development Teams 26 Allocation and use of numbers CRTC Interconnection Steering Committee The CISC is a committee: Established by the CRTC to assist in developing information, procedures and guidelines as may be required in various aspects of the CRTC's regulatory activities Comprised of various public & industry representatives that facilitates the implementation of Telecom Decision CRTC 97-8, Local Competition and related Commission decisions The mandate of the CISC is to undertake tasks related to technological, administrative and operational issues on matters assigned by the CRTC or originated by the public that fall within the CRTC s jurisdiction On July 31, 1998 the Telecommunications Act granted authority to the CRTC to administer numbering resources in Canada 27 14

16 Allocation and use of numbers Canadian Steering Committee on Numbering (CSCN) The CSCN is an open public forum. The CSCN addresses numbering issues that fall under the jurisdiction of the CRTC. Any such numbering resources allocated to Canada by any entity become national public resources to be managed under numbering assignment guidelines developed or adopted by the CSCN, agreed to by the CISC, and approved or mandated by the CRTC. Specific tasks may be assigned by the CRTC, referred from other CISC Working Groups or originated by the public. The CSCN is responsible for: Developing number planning & implementation strategies for the Canadian telecommunications industry Ensuring the equitable assignment of numbering resources in a competitive Canadian telecommunications industry environment Ensuring that adequate and appropriate numbering resources are always available for Canadian public telecommunications services and customers 28 Allocation and use of rights-of-way Are procedures for the allocation and use of rights-of-way carried out in an objective, timely, transparent and nondiscriminatory manner? 29 15

17 Allocation and use of rights-of-way Under the Telecommunications Act the CRTC is empowered to arbitrate disputes regarding access to rights-of-way. The Act confers on carriers the right to enter on and break up any highway or public place for the purpose of constructing, maintaining or operating transmission lines with the consent of the municipality or other public authority having jurisdiction. 30 Allocation and use of rights-of-way Canada s Telecommunications Act Construction and Expropriation Powers Works ordered by Commission 42. (1) Subject to any contrary provision in any Act other than this Act or any special Act, the Commission may, by order, in the exercise of its powers under this Act or any special Act, require or permit any telecommunications facilities to be provided, constructed, installed, altered, moved, operated, used, repaired or maintained or any property to be acquired or any system or method to be adopted, by any person interested in or affected by the order, and at or within such time, subject to such conditions as to compensation or otherwise and under such supervision as the Commission determines to be just and expedient. Payment of costs (2) The Commission may specify by whom, in what proportion and at or within what time the cost of doing anything required or permitted to be done under subsection (1) shall be paid

18 Allocation and use of rights-of-way Canada s Telecommunications Act, continued Definition 43. (1) In this section and section 44, distribution undertaking has the same meaning as in subsection 2(1) of the Broadcasting Act. Entry on public property (2) Subject to subsections (3) and (4) and section 44, a Canadian carrier or distribution undertaking may enter on and break up any highway or other public place for the purpose of constructing, maintaining or operating its transmission lines and may remain there for as long as is necessary for that purpose, but shall not unduly interfere with the public use and enjoyment of the highway or other public place. Consent of municipality (3) No Canadian carrier or distribution undertaking shall construct a transmission line on, over, under or along a highway or other public place without the consent of the municipality or other public authority having jurisdiction over the highway or other public place. Application by carrier (4) Where a Canadian carrier or distribution undertaking cannot, on terms acceptable to it, obtain the consent of the municipality or other public authority to construct a transmission line, the carrier or distribution undertaking may apply to the Commission for permission to construct it and the Commission may, having due regard to the use and enjoyment of the highway or other public place by others, grant the permission subject to any conditions that the Commission determines. Access by others (5) Where a person who provides services to the public cannot, on terms acceptable to that person, gain access to the supporting structure of a transmission line constructed on a highway or other public place, that person may apply to the Commission for a right of access to the supporting structure for the purpose of providing such services and the Commission may grant the permission subject to any conditions that the Commission determines. 1993, c. 38, s. 43; 1999, c. 31, s. 204(F). 32 Allocation and use of rights-of-way Canada s Telecommunications Act, continued Applications by municipalities and other authorities 44. On application by a municipality or other public authority, the Commission may (a) order a Canadian carrier or distribution undertaking, subject to any conditions that the Commission determines, to bury or alter the route of any transmission line situated or proposed to be situated within the jurisdiction of the municipality or public authority; or (b) prohibit the construction, maintenance or operation by a Canadian carrier or distribution undertaking of any such transmission line except as directed by the Commission

19 Allocation and use of rights-of-way Where a carrier cannot, on terms acceptable to it, obtain the consent of the municipality or other public authority, the carrier may apply to the CRTC for permission and the CRTC may grant the permission subject to any conditions that it determines. 34 Allocated frequency bands How is the current state of allocated frequency bands made publicly available? 35 18

20 Allocated frequency bands Canada s Spectrum Management Online web site provides public access to information on frequency use within Canada via a variety of search tools. (