Bill S-242: An Act to amend the Radiocommunication Act

R.S., c. R- 2 Radiocommunication Act 1 (1) The Radiocommunication Act is amended by adding the following after subsection 5(1.1): Condition of spectrum licences issued (1.11) It is a condition of every licence issued under subparagraph (1)(a)(i.1) that the holder (a) must deploy the spectrum to provide service to at least 50% of the population within the geographic area covered by the spectrum licence, within three years of the licence’s issuance; and (b) must, in respect of the utilization of radio frequencies within a Tier 1 to 4 service area as described in Canada Gazette notice DGSO-006-19, Decision on a New Set of Service Areas for Spectrum Licensing , published on July 23, 2019, deploy the spectrum to provide service to at least 50% of the population within any Tier 5 service areas located within the geographic area covered by the spectrum licence, within three years of the licence’s issuance. Sale of licence (1.12) If the holder of a licence issued under subparagraph (1)(a)(i.1) sells that licence within three years of the licence’s issuance, the holder must include the condition set out in subsection (1.11) as a condition of sale of that licence. (2) The Act is amended by adding the following after subsection 5(2): Revocation of spectrum licence (3) Despite subsection (2) and subject to subsection (4), the Minister may, if the Minister is satisfied that the holder of a spectrum licence has not complied with the condition set out in subsection (1.11), revoke the licence by providing a notice of revocation to the holder that specifies the effective date of the revocation as determined under subsection (5). Condition for revocation (4) The Minister must not revoke a spectrum licence under subsection (3) unless the Minister has given written notice to the holder and has provided the holder with a reasonable opportunity to make representations to the Minister with respect to the notice. Effective date (5) The effective date of a notice of revocation provided under subsection (3) is, (a) if the holder is not using the spectrum licence to provide any service to the population within the geographic area covered by the spectrum licence, the day on which the notice of revocation is sent by the Minister; or (b) in any other case, 180 days after the day on which the notice of revocation is sent by the Minister. Pending revocation (6) During the period, if any, between a notice of revocation provided under subsection (3) and its effective date, the Minister may consent to an arrangement under which the holder of the spectrum licence arranges for the provision of the service to the population within the geographic area covered by the licence, or any portion thereof, to be assumed by another person. Subordinate licence (6.1) The Minister may, pursuant to an arrangement referred to in subsection (6), issue a licence to a third party under subparagraph (1)(a)(i.1) that is subordinate to the licence that is to be revoked if (a) the Minister is satisfied that the issuance of the subordinate licence would allow for the condition set out in subsection (1.11) to be met within three years of the subordinate licence’s issuance; and (b) the holder of the licence that is to be revoked is in compliance with all the terms and conditions of their licence other than the condition set out in subsection (1.11) and with any other applicable prescribed requirements. Deeming provision (6.2) If the Minister issues a subordinate licence pursuant to subsection (6.1), the notice of revocation provided under subsection (3) is deemed never to have been provided and the period of three years referred to in subsection (1.11) applicable to that licence is deemed to have begun on the day on which the subordinate licence was issued. Civil liability (7) If the holder of a spectrum licence that is to be revoked under subsection (3) is unable to arrange for service to be assumed by another person, that holder is liable for any loss or damage suffered by any person within the geographic area covered by the licence and may be sued for damages in a court of competent jurisdiction unless that holder has surrendered the licence to the Minister by written notice. Despite subsection (2), a licence surrendered upon written notice is deemed to be revoked on the day the notice of surrender was sent. Reissuance of spectrum licence (8) If a spectrum licence has been revoked under subsection (3) or surrendered due to the holder’s inability to meet the condition set out in subsection (1.11), the Minister must, within 60 days of the effective date of the notice of revocation, use a system of competitive bidding or other reallocation process to select the person to whom the licence will be reissued. Ineligibility (9) Neither the person whose spectrum licence has been revoked under subsection (3) nor any of their affiliates is eligible to participate in the reallocation process used by the Minister under subsection (8). Transitional Provision Retrospective effect 2 (1) Subject to subsection (2), subsection 5(1.11) of the Radiocommunication Act applies in respect of any licence issued under subparagraph 5(1)(a)(i.1) of that Act that is in force immediately before this Act comes into force. Deemed issuance (2) A licence referred to in subsection (1) is, for the purpose of subsection 5(1.11) of the Radiocommunication Act , deemed to have been issued on the day on which this Act comes into force.