Starting in March 2014, the 3500 MHz spectrum licences that were auctioned between 2004 and 2009 began to expire. When these licences were issued, they included a condition requiring that the spectrum be put to use to provide services to Canadian consumers.

As announced in the November 2013 Decisions Concerning the Renewal of 2300 MHz and 3500 MHz Licences, 3500 MHz licences will be renewed on an annual basis where all conditions of licence have been met, including putting the spectrum to use.

The consultation announced today will provide an opportunity to quickly reissue the licences that have not been renewed and put the spectrum in the hands of those who want to provide service to rural Canadians. In addition, in order to meet the increased demand for mobile spectrum in urban areas while continuing to allow fixed services in rural areas, this consultation proposes to designate 3500 MHz licence areas as either "urban" or "rural" to support the differing requirements of these areas.

In rural areas, the government is now consulting on a new licensing process for fixed wireless services (broadband Internet to the home) and proposes a first-come, first-served licensing approach. These licences would be issued for the coverage area and amount of spectrum required to operate, which would permit more communities to be served and help to fulfill the government's commitment to extend and enhance broadband Internet services in rural and northern communities.

To help meet the increasing demand for mobile spectrum in urban areas, the government is proposing to reallocate the 3500 MHz band to allow mobile services in urban areas, as only fixed services such as broadband Internet to the home are currently permitted. A future consultation will be launched to determine the appropriate licensing framework for the implementation of these mobile services in urban areas.

src:news.gc.ca