Canadian Association of Broadcasters (CAB) Hereby Files the Enclosed Submission

24 September 2001 Director General Telecommunications Policy Branch Industry Canada 300 Slater Street Ottawa, Ontario K1A 0C8 Dear Sir: Re: Canada Gazette Notice DGTP-004-01; Proposal to Introduce the Mobile Service on a Co-primary Basis with the Broadcasting Service in the Frequency Band 746-806 MHz In response to Canada Gazette Notice DGTP-004-01, the Canadian Association of Broadcasters (CAB) hereby files the enclosed submission. We would be pleased to discuss any aspects of this submission with Industry Canada, should further clarification be required. Sincerely yours, Michael McCabe President & CEO Canada Gazette Notice DTGP-004-01 Proposal to Introduce the Mobile Service on a Co-Primary Basis with the Broadcasting Service in the Frequency Band 746-806 MHz Comments submitted by The Canadian Association of Broadcasters/ L’Association canadienne des radiodiffuseurs 24 September 2001 Table of Contents Submission Summary Section Page 1. Introduction 1 2. Background 1 3. Rationale for Implementing Over-the-Air DTV Services 4 4. Factors Affecting the DTV Roll-out in Canada 6 5. The Private Broadcasters’ DTV Roll-out Proposal 8 6. Impact of the Current Proceeding on the DTV Roll-out 8 7. Current Sharing Opportunities for Mobile Services 10 8. Specific Recommendations on General Policy Issues 11 9. Specific Recommendations on Proposed Allocation Table Amendments 12 10. Concluding Remarks 13 Appendix 1: Technical Feasibility Report: Sharing of TV Channels 60-69 by Mobile Services Submission Summary TV broadcasters have a number of concerns with respect to any modifications that may be made to the existing spectrum allocation policies for the 746-806 MHz band (TV channels 60-69). They are especially anxious to ensure that the addition of Mobile as a primary service in this band does not have a negative impact on analog TV stations currently using it, on new analog TV stations that may be licensed before the industry fully converts to digital television (DTV) and on future transitional DTV implementations. Broadcasters clearly must plan to use over-the-air (OTA) channels to deliver DTV services. At present, 29%-35% of all viewing hours for local stations are still achieved through OTA reception. In Canada there is a substantial existing and projected use of Channel 60-69. Eleven regular analog UHF-TV stations are licensed. Almost ten percent of Canada’s DTV allotments are slated to use this band. An examination of current DTV allotment plan for Canada shows that three of our four largest TV markets depend heavily upon the use of Channel 60-69 for the roll-out of DTV services. Moreover, about 20% of Canada’s LPTV stations licensed in Canada are expected to implement DTV versions of their services using Channels 60-69, according to the 1999 Industry Canada Allotment Plan. Industry Canada’s decisions respecting future sharing of Channels 60-69 will affect the timing of the DTV roll-out that is being planned by the broadcasters. On the surface, it may seem reasonable to encourage broadcasters to implement new DTV services below Channel 60, leaving the higher channels for mobile use, as is being done in the USA. However, such a policy could lead to a longer DTV roll-out period rather than a shorter one, by creating an artificially high demand for the lower channels that could only be resolved through competitive public hearings. Moreover, adding Mobile as a primary allocation in 746-806 MHz may also reduce Industry Canada’s flexibility to modify the TV Allotment Plan, should this prove necessary as more information on the performance of the 8-VSB North American DTV standard becomes available. As part of its assessment of the issues connected with TV/Mobile sharing, the CAB has investigated the extent to which mobile services might actually be able to operate in Channels 60-69 during the DTV transition, without interfering with TV allotments and assignments. We find that there is virtually no opportunity for such sharing in those areas where the demand for both TV and mobile services is highest. In summary, the CAB makes the following recommendations and comments with respect to the allocation of the 746- 806 MHz band to the Mobile service: • Industry Canada should commission and release studies detailing the estimated demand for mobile spectrum in the subject band, along with engineering studies showing how any proposed sharing with TV could actually work. • Industry Canada should not institute a policy that would encourage or require broadcasters to use DTV channels above Channel 59 only as a last resort. • The preferred option of the broadcasters is that the band 746-806 MHz be identified for possible future use by mobile service, but that no operating licences be granted until the DTV transition is complete. • If proposals are to be made calling for TV/Mobile sharing prior to the termination of the DTV transition period, the CAB recommends that Industry Canada not propose band sharing throughout Canada, but rather restrict any such proposals to areas where it is technically feasible to do so. • If technical sharing rules are proposed, it is vital that they ensure at least the same degree of protection to TV as the US provides under its domestic rules. Part 3 of Notice DGTP-004-01 The CAB has several comments and recommendations on the proposed wording of amendments to the Canadian Table of Frequency Allocations and these are detailed at the end of this submission. ooOOOoo 1 1. Introduction 1.1. These comments in response to Canada Gazette Notice DGTP-004-01 are filed by the Canadian Association of Broadcasters (CAB), an industry association representing the vast majority of Canada’s private television and network broadcasting licensees. 1.2. Our members have a keen interest in the issues being discussed in this public process, since broadcast television is currently the sole user of the radio spectrum from 746-806 MHz (Channels 60-69) in Canada. 1.3. TV broadcasters have a number of concerns with respect to any modifications that may be made to the existing spectrum allocation policies for the subject band. The most important of these is that any changes be implemented in such a way that there is no adverse impact on: • analog TV stations that currently broadcast on Channels 60-69; • new analog TV stations that may be licensed in this band before the industry fully converts to digital television (DTV); and • future transitional DTV implementations in Channels 60-69. 1.4. The CAB appreciates that, at this time, Industry Canada (herein after referred to as “the Department”) is only asking for public input on the question of whether the mobile service should be added as a co-primary allocation in the band 746-806 MHz. Assuming that such a decision is in fact taken, it is our understanding that the Department will initiate a further public process to develop a spectrum utilization policy stipulating how the band may be used by new mobile licensees. 1.5. Notwithstanding this, the CAB believes that it is appropriate to consider some of the “how” issues as part of this initial consultation process. There is little value in proceeding to the next stage of such a process if the practicability of the concept is not considered right at the start. Consequently, the CAB’s comments in this submission will also address whether the objectives of this project, as stated by the Department, are reasonably achievable. 2. Background 2.1. The issue of allowing mobile services to have co-primary allocation status with TV broadcasting in Channels 60-69 has arisen in Canada primarily because such action has already been taken in the United States1. The CAB suggests that, had the US not already taken this step, it is extremely unlikely that Canada would have initiated such as policy proposal on its own. As a consequence, it is useful to examine the context in which the US decision was taken to see if parallel circumstances exist in Canada, thus warranting similar spectrum utilization policies in both countries. 1 The US Plan calls for the termination of all conventional TV broadcasting in Channels 52-69 (698-806 MHz), once this service has completed its transition to digital signal (DTV) delivery. With the exception of 24 MHz set aside for public safety services, all the spectrum that becomes available in the subject band will be auctioned. Efforts will be made in the US to clear TV services from Channels 60-69 (746-806 MHz) even before the DTV transition is complete. However, wherever TV services remain, they are to be protected against interference from incoming services. 2 2.2. It is important to recall that the rationale behind the US plan to introduce mobile services was two-fold. A key imperative in the US re-allocation plan is the anticipated accrual to the federal government of billions of dollars in revenues as a result of auctioning any TV spectrum that can be released for other services. This revenue was an integral part of long-range government budget planning by the previous US administration and in fact has become a major driving force behind that country’s DTV conversion strategy. In short, unless DTV moves ahead quickly, spectrum cannot be liberated for auctioning. 2.3. The US pre-occupation with budget-balancing was translated into a DTV policy for broadcasters that compels most private licensees to implement DTV versions of their analog transmissions no later than May 2002. Failing this, they may forfeit the DTV channels the FCC has allotted to them. As the US DTV conversion plan also calls for the termination of all over-the-air analog TV broadcasts by 31 December 2006 (subject to achieving acceptable receiver penetration), there is a powerful incentive for broadcasters to implement DTV sooner rather than later.

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