Reduction of Licence Fees for Fixed Point-to-Point Systems

In November 2018, Innovation, Science, and Economic Development Canada (ISED) launched a consultation on Licence Fees for Fixed Point-to-Point Radio Systems.

Spectrum is a scarce and valuable natural resource. To promote both the effective use of spectrum and to earn a fair return, the Canadian Government imposes licence fees according to a fixed table rate.

The radiocommunication industry has evolved dramatically over the last 20 years and will continue to transform. With 5G technologies and the increased popularity of intelligent equipments, future applications will require an increasing volume of data. As to respond to this growing demand, innovative technologies have emerged. They will continue to develop, allowing for a more efficient use of the spectrum and transmitting transmit more over the same, or even less, spectrum than previously possible.

However, the previous revision of the table rate for radio licence fees happened in 1996. It then became imperative to modernize it to reflect the new realities of the market.

In July 2019, the Canadian Government published its Decision regarding the Licence Fee Framework for Fixed Point-to-Point Systems.

This Consumption-based fee model is calculated according to the amount of spectrum used (bandwidth) per link, instead of capacity. This will ensure better use of the spectrum and cost reduction.

This new model is based as follow:

Annual radio licence fee per link = consumption factor (MHz) × base rate ($/MHz)

whereby:

the consumption factor is based on the amount of spectrum assigned
the base rate is dependent on the frequency band and the physical location of the link’s stations (e.g. urban, rural, remote)

Frequency ranges and base rates for fixed point-to-point links

Frequency rangeUrban base rate ($/MHz)Rural base rate ($/MHz)Remote base rate ($/MHz)
≤ 890 MHz2,7502,2001,375
> 890 and ≤ 960 Mhz138110.4069.00
> 960 and ≤ 4200 MHz4536.0022.00
> 4.2 and ≤ 8.5 GHz3427.2017.00
> 8.5 and ≤ 15.35 GHz2419.2012.00
> 15.35 and ≤ 24.25 GHz1612.808.00
> 24.25and ≤ 52.6 GHz108.005.00
> 52.6 and ≤ 92 GHz0.500.40.25
> 92 GHz0.500.400.25

To learn more about this decision, you can visit the Government of Canada’s webiste:

Decision on the Licence Fee Framework for Fixed Point-to-Point Systems

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