Fixed Point-to-Point Radio Fee Reform

Summary#

The Regulations Amending the Radiocommunication Regulations: SOR/2021-40 change how fees are charged for many fixed point-to-point radio links. The rules move from a capacity-based fee to a consumption-based fee (charges tied to the amount of spectrum used), add shorter licence options, and reduce fees for rural and remote areas. The amendments came into force on April 1, 2021.

What it does#

• Creates a new service category called the fixed point-to-point service and charges fees based on the amount of spectrum (in MHz) shown on the licence rather than on data capacity.
• Sets different base rates depending on frequency band and location: lower rates for rural areas (about 20% lower) and remote areas (about 50% lower) compared with urban rates.
• Adds clear area categories using the Map of Radiocommunication Areas (urban / rural / remote) to decide which rate applies.
• Introduces flexible licence lengths:
  • Renewable radio licence = up to one year, expires on March 31, and can be renewed for another year.
  • Temporary radio licence = up to 11 months, not renewable.
  • Licences shorter than a year are billed using monthly rates.
• Removes some obsolete fee rules for older licence types and updates wording to current drafting standards.
• Sets specific fee schedules (monthly and annual rates and minimums) in the Regulations’ Schedule III. The regulations took effect on April 1, 2021.

Who's affected#

• Businesses that operate fixed point-to-point radio links, including national, regional and local telecommunications providers.
• Organizations in sectors such as broadcasting, energy, resource extraction, and transportation that use point-to-point links (for backhaul or linking sites).
• Government bodies and Crown corporations that hold licences for fixed links.
• Smaller operators: about 256 small businesses are among the impacted licence holders.
• Overall, the government estimated around 815 licensees would be affected; roughly 650 expected net fee decreases and about 165 expected net increases (based on 2020 data). The baseline used about 18,700 in-scope licences.

Why it matters#

• The new fee model rewards using spectrum efficiently. Operators who upgrade to newer, more spectrally efficient equipment can pay less for the same service.
• Lower rates in rural and remote areas are meant to encourage network build-out and better internet access outside cities. That aims to help connect more Canadians in underserved places.
• Some operators that use spectrum inefficiently (older equipment or designs) may pay more. That could encourage equipment upgrades but raise costs for those who don’t change.
• The change shifts how public revenue from radio licences is collected: while many licensees will pay less, the federal government expects a reduction in licence revenue overall (the regulatory analysis quantified that loss, but actual impacts will depend on how operators respond).
• Licence-term flexibility can make it easier to get short-term authorizations without monthly renewals, which helps when equipment or projects change quickly.