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(3475-3650 Mhz) and a New Licensing Process in Rural Areas, DGSO-003-14

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(3475-3650 Mhz) and a New Licensing Process in Rural Areas, DGSO-003-14 October 8, 2014 SENT BY EMAIL: [email protected] Senior Director Spectrum Development and Operations Industry Canada 300 Slater Street (JETN, 15th) Ottawa, ON K1A 0H5 Re. Canada Gazette, Part I, August 2014, Consultation on Policy Changes in the 3500 MHz Band (3475-3650 MHz) and a New Licensing Process in Rural Areas, DGSO-003-14 ccROUTE Inc. is in receipt of DGSO-003-14 dated August 2014 and appreciates the opportunity to submit commentaries on this revised Consultation for the renewal of 3500Mhz Spectrum. In reviewing the Document, ccROUTE reads that the general purpose of DGSO-003-14 is to obtain feedback regarding best practices in enabling both fixed and mobile services to operate in the 3500 MHz band: (a) differentiate between urban and rural areas by reclassifying Tier 4 Service Areas; (b) a new licensing process to be used for fixed wireless access (FWA) licences; (c) a fundamental reallocation of the 3500 MHz band to introduce mobile services; and (d) a transition policy that could take effect pending decisions made following this consultation. In the following sections of this submission, ccROUTE has set out its position of the issues raised in the Consultation Document. Sincerely, Michael Fiorini VP & General Manager ccROUTE Inc. 16 Cable Road Fenelon Falls Ontario K0M 1N0 Toll Free 1-866-887-6434 Tel (705) 887-6433 Fax (705) 887-2580 [email protected] www.cablecable.net Introduction 1. ccROUTE Inc. was founded in1999 with the goal of providing ISP and data services, to residents and businesses in the Kawartha Lakes Region. In 2002 ccROUTE Inc. was granted a FWA License on a FCFS basis in the 3500Mhz range. In 2004 ccROUTE was awarded three Tier 4 Service Areas through the 3500Mhz FWA Auction. 2. ccROUTE is not unlike many other small, independent rural ISPs from across Canada. Rural FWA licensees are aggressive companies who work hard at servicing their customers. We invest millions of dollars annually to ensure rural Canadians have the best Internet experiences possible. 3. To maintain and grow our business we require policy consideration which is equally aggressive and agile in supporting the needs of independent, rural Licensees. Such a policy would envisage the following; a. A refined policy position on spectrum supply and consumer demand. Currently many licensees like ccROUTE require more spectrum to keep up with consumer demand for bandwidth. b. A refined policy position on unused spectrum where spectrum is repatriated if a Licensee does not launch and meet conditions of license within 6 months. c. A preferential licensing process for Incumbents seeking additional spectrum. First right of refusal should be afforded to Incumbents who can prove their need for additional spectrum. d. A preferential policy position on FCFS Licensing for Incumbents seeking to grow their operations to new areas. e. A refined policy on the Competitive Licensing Process in rural areas to use this type of Licensing as a last resort to First Rights of Refusal and FCFS for small, independent Incumbents. 4. To support the above preferred treatment I would like to point out that the CRTC recognizes smaller, independent cable operators and provides preferential treatment through “Small System Exemption Orders”. ccROUTE sees no reason why Industry Canada could not adopt a similar position regarding the treatment of small, independents; more specifically small, independents who are existing Licensees. 5. ccROUTE is thankful to Industry Canada for creating the initial opportunity to compete in the Licensee’s FWA marketplace. We look forward to having our opinions and feedback considered in moulding a fair and equitable renewal process. 16 Cable Road Fenelon Falls Ontario K0M 1N0 Toll Free 1-866-887-6434 Tel (705) 887-6433 Fax (705) 887-2580 [email protected] www.cablecable.net Commentary: Industry Canada proposal to re-classify Tier 4 Service Areas: 6. At first look, we do not agree with an urban vs rural distinction of Tier 4 Service Areas. ccROUTE over the past 10 years has spent millions of dollars towards infrastructure and ongoing operations in providing services to rural customers. Our whole approach to investing in 3500 Mhz FWA Spectrum was that it was a perfect fit for our rural area. Additionally, there were several viable equipment manufacturers to choose from. 7. The proposal as outlined in the Consultation Paper is in contradiction of Industry Canada’s Digital Canada 150 Policy. In this policy it is mandated that all citizens (including those in low density areas) have access to broadband connectivity of no less than 5 Mbps. 8. ccROUTE is extremely concerned that the resultant renewal process, if followed as written, would have services taken away from our rural customers for no other reason than an administrative label of lines on a map. An assessment of Tier 4 Service Areas and alternative options is required for this Consultation to remain fair and equitable for all players involved. 9. Most Tier 4 Service areas in rural Canada show an aggregate population which does not necessarily mean they are rural or urban. For instance, ccROUTE currently holds a license for the Tier 4 Service Area 4-074 (Peterborough) which shows a population of 151,081 however only the City of Peterborough can truly be classified as urban while the rest of this Service Area is comprised of hamlets, crossroads and cottage area clusters which clearly are not urban. 10. It would be a mistake to not identify Tier 4 Service Areas such as 4-074 Peterborough as predominantly rural with an urban component. This could be done on a grid cell classification and licensing allocation basis. 11. It makes sense to offer Licenses in Rural designated Service Areas on a grid cell basis where a Tier 4 boundary covers a geographic typology in which hamlets, villages and small residential clusters surround an urban population (medium and large as defined by Industry Canada). 12. In this instance this would allow for the reallocation of spectrum for mobile services within grid cells which overlay an urban population while allowing the outlying grid cells to maintain their FWA status. 16 Cable Road Fenelon Falls Ontario K0M 1N0 Toll Free 1-866-887-6434 Tel (705) 887-6433 Fax (705) 887-2580 [email protected] www.cablecable.net Rural Designated Service Area Licensing on a First-Come, First-Served Basis Incumbents: 13. Incumbents who have launched FWA services and have met their Conditions of License must be provided preferred access to additional spectrum. Licensees like ccROUTE are the FIRST to make use of 3500 Mhz spectrum and require special considerations. 14. As a first to deploy provider, ccROUTE has spent the past 10 years building infrastructure and delivering reliable services to residents and businesses in what is recognized as a rural, high cost serving area. Despite not receiving any government subsidies, it is first to deploy providers like ccROUTE (launched in early 2003) who have helped Industry Canada meet its rural broadband program mandates. 15. FCFS Licensing should be offered initially to those who were first to deploy and have met their conditions of license. After these Licensees are taken care of then we agree to further FCFS Licensing in rural areas. 16. ccROUTE is insistent on its position here for no other reason than our obvious need for additional Spectrum. It is no secret that consumer demand for bandwidth intense content is taking our networks to the point of exhaustion with no current process in place from Industry Canada to allow for expansion. 17. Contrary to the Consultation Paper, demand for service is exceeding supply. More spectrum is what ccROUTE requires and in order to ensure that the investments we have made to date are not threatened by a competitive come-one, come-all process, allocation for additional spectrum should be done on a first right of refusal basis for incumbents who have met their conditions of license. New Entrants: 18. FCFS Licenses should be issued to new entrants except where an Incumbent has made a similar application. In this case first right of refusal should be awarded to the Incumbent. Rural Service Area Licensing on an Annual, Grid-Cell, and Spectrum Need Basis: Annual Licencing Basis: 19. In order for any business to invest properly, a reasonably defined term is required. All issued Licenses must allow for the Licensee to go through the cycle of investment and benefit. Offering Licenses on an annual basis, especially without any renewal guarantees, provides no incentive for Licensees to make significant, ongoing investments in areas that have already been identified as rural, high cost serving areas. 20. Additionally, annual Licensing is contrary to the Spectrum Policy Framework for Canada (SPFC) in looking at spectrum allocation as an ecosystem in which all participants should benefit. Although a 5-year term in an urban area is reasonable in medium and larger urban centers, a longer 10 year term is needed for less densely populated rural area deployments to enable sustainability. 16 Cable Road Fenelon Falls Ontario K0M 1N0 Toll Free 1-866-887-6434 Tel (705) 887-6433 Fax (705) 887-2580 [email protected] www.cablecable.net Grid Cell Basis: 21. It is possible that without careful consideration in moving to a grid cell approach in rural areas that propagation of FWA systems will overdrive neighbouring grid cells. ccROUTE recommends that the grid cell approach within Tier 4 service areas only be utilized where there is an obvious urban population within a Tier 4 boundary. 22. It makes sense to offer Licenses in Rural designated Service Areas on a grid cell basis where a Tier 4 boundary covers a geographic typology in which hamlets, villages and small residential clusters surround an urban population (medium and large as defined by Industry Canada).
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