Evidence of meeting #93 for Industry, Science and Technology in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was broadband.
A recording is available from Parliament.
Liberal
Frank Baylis Liberal Pierrefonds—Dollard, QC
A solution would be to be cognizant of this when these boundaries for spectrum sales auctions are being done, such that we don't grab an important city with rural....
Executive Vice-President, General Counsel, Xplornet Communications Inc.
We looked at it a number of years ago and tried to make some suggestions about how you could look at basically the 12 largest cities in Canada and carve those licences a little differently than they are today to take out a lot of the green space.
Quebec City falls into that, and Ottawa also falls into that category.
Liberal
Frank Baylis Liberal Pierrefonds—Dollard, QC
So if you happen to be around a big city but not in it, you're really in trouble.
Executive Vice-President, General Counsel, Xplornet Communications Inc.
Exactly.
That's why I alluded to Milton, which is one of my favourite little problem areas that we've been trying to deal with.
Executive Vice-President, General Counsel, Xplornet Communications Inc.
They are literally right at the end of the runway of Pearson International Airport. They're up on top of the escarpment. They can see the big city lights and have some of the worst service in the country, because they're in that Toronto licence and there is just no way of serving them.
Liberal
Executive Vice-President, General Counsel, Xplornet Communications Inc.
And are not interested in low density.
Liberal
Chief Executive Officer, Canadian Cable Systems Alliance
One of our proposals is a use-it-or-lose-it approach so that after a certain period of time, if—
Chief Executive Officer, Canadian Cable Systems Alliance
I don't necessarily have a time frame for it.
February 6th, 2018 / 4:50 p.m.
Liberal
Chief Executive Officer, Canadian Cable Systems Alliance
A reasonable time frame to roll out....
Liberal
Frank Baylis Liberal Pierrefonds—Dollard, QC
—that if it's not being used within a certain time, we can claw it back.
Chief Executive Officer, Canadian Cable Systems Alliance
Yes, and make it available to other players.
Liberal
Conservative
Maxime Bernier Conservative Beauce, QC
Thank you, Mr. Chair.
I want to go on, on these questions on spectrum. I'll give you an example. A couple of years ago, Quebecor bought a lot of spectrum and were not using it, so they decided to sell a part of that spectrum and they made a lot of money from it. If spectrum is available for Calgary, as you said, and more than Calgary, and a corporation doesn't want to serve an area other than Calgary, why not offer to buy part of the spectrum? Can you do that? Is it very difficult to do?
Chief Executive Officer, Execulink Telecom and Board Member, Canadian Cable Systems Alliance
There's a process whereby you could subordinate the licence, which I think you were talking about, which Quebecor did. There have to be willing partners on both sides. Quebecor was willing to do that in many areas, and London's my favourite area. London is well serviced, but I guess the doughnut around the doughnut hole isn't. Bell and Rogers are not willing to service or subordinate those licences to a third party because they have met the condition of licence as it was written when they acquired the spectrum.
Conservative
Maxime Bernier Conservative Beauce, QC
The answer would be to change the rules of the auction. What would be the best for you, to set aside for sure a smaller area or spectrum, as you just said? What would the best rules be to help you buy some spectrum?
Chief Executive Officer, Execulink Telecom and Board Member, Canadian Cable Systems Alliance
From my perspective, it would be to be able to participate in the auction upfront, but also a horizon perhaps two years afterwards, where if the spectrum is not being used the licensee could be required to give it back, and by requiring to give it back they would also be incented to subordinate it before they had to return it. It could be an effective way to ensure that the spectrum, the scarce commodity that's out there, is being used in the rural areas.
Executive Vice-President, General Counsel, Xplornet Communications Inc.
That would be consistent with our experience too. Likewise we have approached various larger carriers, trying to get some of those doughnuts, shall we say, and there generally isn't a willingness to do so. Their argument is always that we need it for the transportation corridors. That's why we said in our presentation you really have to say there has to be something for fixed connections to the home.
