22. ISED is proposing that any deployment requirements arising from this consultation applicable to existing licences would be required to be met within five years from the date of the final decision resulting from the present consultation. All existing licensees subject to the conditions of licence I3, K3 or K6 will have to demonstrate that they meet the deployment requirement. The deployment must be maintained throughout the licence term, including at the end of the term, to ensure that spectrum is actively being used in ways that serve the public interest. Compliance checks will be administered to ensure that this deployment is maintained.

23. For any Cellular and PCS licences that are authorized in the future, the deployment requirement will apply five years after the issuance date. At that time, for those licences subject to the conditions of licence I3, K3 or K6, the licensee will have to demonstrate that they meet the deployment requirement. The deployment must be maintained throughout the licence term, including at the end of the term.

24. The five-year period will ensure that all licensees, regardless of licence issuance dates, have a minimum of five years to adapt to the proposed re-introduction of deployment requirements. ISED considers that five years is long enough for licensees to adapt to the reinstatement of deployment requirements.

25. Unfortunately, a significant connectivity gap can make it harder for Canadians in rural and remote areas to access important online services. Connectivity has also become increasingly important for rural economic development. In rural areas, resource extraction and other industries are major economic contributors. As new industrial applications for wireless services emerge, such as machine-to-machine communication, ensuring the availability of suitable spectrum resources will unlock the potential of these innovative uses, supporting economic development in rural areas. As such, ISED aims to set deployment requirements that will help deliver these types of services to the rural and remote regions of Canada.

26. Furthermore, given that spectrum in the Cellular and PCS bands is key for providing coverage to rural areas and that licences in these bands were first granted several decades ago, more ambitious deployment requirements than the original baseline (i.e. coverage of 50% of the licence area population) are warranted, in support of the deployment and expansion of service in rural areas of Canada. The significant amount of time elapsed since the last renewal (i.e. the 2011 Renewal Process) further supports the implementation of ambitious deployment requirements. Most licensees have had at least an additional 10 years with these licences.

27. As ISED plans to introduce new, ambitious deployment requirements, it is seeking stakeholder feedback on the most appropriate methodology for these licences. Depending on the type of service being provided, the methodology could be based on a single standard deployment requirement or a combination of requirements, or on a given metric associated with the licence area, such as population density.

28. ISED has employed a variety of deployment requirements in the past, depending on the band. For instance, ISED has typically employed deployment requirements based on a percentage of the population of the licence area, such as in the 600 MHz and advanced wireless service (AWS-1) bands.

29. To drive coverage into the rural and remote areas of Canada, ISED has also previously introduced deployment requirements at a lower tier level than that of the licence. While licences in the Cellular and PCS bands have primarily been granted on a Tier 2 level, measuring deployment requirements at a lower tier level is an approach that could further rural coverage. This approach has been used in the 600 MHz licensing process.

30. In both the 700 MHz and 3500 MHz bands, two deployment requirements were proposed. The first was a general deployment requirement for each licence area based on a percentage of the population. The second was an additional deployment requirement based on the extent of each carrier's mobile network coverage.

31. ISED recognizes that there may be other options to consider in developing deployment requirements. As such, ISED is seeking views from stakeholders on other potential deployment requirements that are more ambitious than the original requirements employed in the Cellular and PCS bands and that would encourage deployment across entire licence areas. Alternative proposals must also be applicable to all of Canada and promote the federal government's policy objectives. Submissions should include a rationale for the proposal, an explanation of how it satisfies ISED's policy objectives, and any other relevant information. Furthermore, this feedback will be taken into consideration in the design of deployment requirements resulting from the Consultation on New Access Licensing Framework, Changes to Subordinate Licensing and White Space to Support Rural and Remote Deployment.

32. ISED also recognizes that traditional deployment requirement approaches may not be suitable for new and emerging wireless applications that are further driving demand for spectrum, such as private broadband networks and Internet of Things (IoT) applications. Stakeholders, including industrial users such as mine and factory operators, agricultural users, as well as private broadband network service providers, have indicated that access to suitable spectrum is a significant challenge in unlocking the benefits of these emerging and innovative applications. As such, ISED is seeking views from stakeholders on potential new deployment requirements that are more appropriate for these novel applications.

33. ISED proposes that, at a minimum, any deployment requirements introduced must be at least as ambitious as the 20-year requirements established in SLPB-001-20, Policy and Licensing Framework for Spectrum in the 3500 MHz Band (see annex F). As such, levels equivalent to these deployment requirements, which are Tier 4 based or higher, will be applied five years from the date of the final decision resulting from the present consultation and throughout the licence term, including at the end of the term.

34. Regardless of the deployment requirement chosen, ISED will assess whether the requirement has been met based on the most recent census information available at the time of assessment. Deployment by a subordinate licensee will count towards the requirement of the primary licensee. To maximize the benefits that Canadians derive from the use of the spectrum, ISED encourages subordination in cases where the licensee does not plan to deploy services. It is proposed that, at the Minister's request, the licensee must provide the Minister with any relevant documentation or information related to deployment at any time, in addition to the already existing annual reporting requirement. The additional documentation will provide an update on the implementation and spectrum usage within the area covered by the licence.

35. As is the case with other spectrum licences, subordinate licence deployments could be counted towards the deployment requirements of the primary licence. Moreover, as is the case with all conditions of licence, the deployment requirements and time limits for the new licensee will continue to apply in the same manner in the case of a transfer, and ISED may invoke various compliance and enforcement measures at any point in the licence term if the licensee is not in compliance.