Thank you, Madam Chair.
My name is Eric Dagenais and I am the senior assistant deputy minister of the spectrum and telecommunications sector of the Department of Innovation, Science and Economic Development, or ISED.
I'm joined by my colleague Adam Scott, who is the director general for the spectrum licensing policy branch. Thank you for inviting us.
The Minister of Innovation, Science and Industry is empowered by the Radiocommunication Act, with due regard to the Telecommunications Act, to govern the use of spectrum. As such, he may take into account all matters that he considers relevant for ensuring the orderly development and efficient operation of wireless communications in Canada. That's why we were invited today.
On the matter before us today, I would argue that the minister's most relevant power is the power to issue spectrum licences. That power includes reviewing and approving the transfer of commercial mobile spectrum between parties.
Access to sufficient spectrum is a precondition to provision of wireless services. This access is crucial to the digital economy and the expansion of next-generation connectivity.
In carrying out this work, we are guided by the spectrum licence transfer framework—I'll just call it the “framework” from here on in—that supports the government's policy objective, which is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum resource, including the efficiency and competitiveness of the Canadian telecommunications industry and the availability and quality of services to consumers. The intent of the framework is to provide guidance to licensees as to how transfers of spectrum licences will be reviewed, as well as introduce additional conditions of licence regarding the transfer of control of spectrum licences.
In making a determination as to the impact of a licence transfer on the policy objective, ISED analyzes, among other factors, the change in spectrum concentration levels that would result from the licence transfer. Also, ISED examines the ability of the applicant and other existing and future competitors to provide services, given the post-transfer concentration of commercial mobile spectrum.
As part of our determination, we would normally take into account the current licence holdings of the applicants in the licensed areas; the overall distribution of licence holdings of all commercial mobile spectrum bands; the services to be provided and the technologies available in the spectrum bands; the availability of alternative spectrum; the characteristics of the region, including urban and rural status, population levels and density or other factors that impact spectrum capacity or congestion; and, any other factor relevant to the policy objectives that may arise from the licence transfer.
As stated in the framework, all parts of the application and all supporting materials are treated confidentially. Once a decision has been made, we will publish it on ISED's website.
I'm happy to take your questions.