Governance Model for a 700 Megahertz Broadband Interoperable

Network for Public Safety in Canada

Workshop Results

DRAFT 4: March 30, 2012

i

Table of Contents

1 Introduction .......................................................................................................................................... 1

2 Rationale ............................................................................................................................................... 3

3 Mission .................................................................................................................................................. 4

4 Purpose Statement ............................................................................................................................... 5

4.1 National Entity .............................................................................................................................. 5

4.2 Regional Service Delivery Entities ................................................................................................. 6

5 Governance Overview ........................................................................................................................... 7

5.1 National Entity .............................................................................................................................. 8

5.2 Regional Service Delivery Entities ................................................................................................. 9

6 Cost Structure ....................................................................................................................................... 9

6.1 Potential Cost Savings ................................................................................................................. 10

7 Revenue Streams ................................................................................................................................ 10

8 Conclusion and Next Steps .................................................................................................................. 11

9 Key Reference ..................................................................................................................................... 12

Report Draft v4 – March 30, 2012 1

1 Introduction In January 2011, the Communications Interoperability Strategy for Canada (CISC) was approved by Federal,

Provincial and Territorial Ministers Responsible for Emergency Management. This strategic document identifies

key national priorities to improve voice and data communications interoperability for first responders across

Canada. Its Action Plan tasks Public Safety Canada (PS) to coordinate a 700 MHz spectrum strategy for public

safety use. The catalyst to the development of such strategy comes from the recent conversion of broadcast

television from analog to digital signals. This vacated spectrum has attracted significant interest from

commercial, private, and public entities. In particular, the Canadian public safety community, led by the

Canadian Association of Fire Chiefs (CAFC), Emergency Medical Services Chiefs of Canada (EMSCC, Canadian

Association of Chiefs of Police (CACP) and Canadian Interoperability Technology Interest Group (CITIG), has a

defined requirement for 20 MHz of the 700MHz band as described in numerous submissions to the Industry

Canada call for consultation (SMSE-018-10).

In February 2011, PS, Provincial, and Territorial Ministers Responsible for Emergency Management, as well as

first responder associations recommended to IC that 20 MHz be set aside for public safety purposes in the 700

MHz spectrum. In support of the request for 20 MHz, the Defence Research and Development Canada Centre

for Security Science (DRDC CSS) conducted a technical assessment of the 700 MHz spectrum requirements for

broadband mobile data communications for public safety and security. The goal was to determine how much

spectrum is required to meet the needs of the public safety community for mobile broadband wireless data

communications within a 20-year time frame. The data demand for recurring emergency situations was

modeled through an interactive process with active participation from Canadian public safety stakeholders. In

addition, the capabilities of LTE technology to support the data demands were also modeled. The results show

that the amount of bandwidth required to satisfy the needs of public safety is greater than 20MHz in the near-

to-mid-term, and likely to also exceed 20MHz in the long term, despite advances in technology.

On March 14, 2012, the Minister of Industry made an announcement regarding the 700 MHz spectrum

allocation for public safety use:

1) 10 MHz are designated for public safety broadband use. Consequently, these bands will not be part of the 700 MHz commercial auction; and

2) A decision on the use of another 10 MHz, called D block, will be made following a separate consultation.

While IC has allocated 10 MHz for public safety use, it anticipates further consultation before the Minister of

Industry makes a decision regarding D Block.

A second round of consultations led by IC will define the licensing framework, the fee structure and access

standards for the 700 MHz band. The Canadian public safety community will recommend policy guidance and a

governance model for public safety use of a dedicated 20 MHz of the 700 MHz spectrum. These

recommendations will be designed to ensure fully interoperable communications for first responders across

Canada and cross border with their US counterparts who recently received Congressional approval for 20 MHz

in the 700 MHz band. To this end, PS and the CSS hosted a four-day workshop in Montréal, Québec on

February 5-9, 2012.

Participants included F/P/Ts, tri-services (police, fire and paramedic), the Federation of Canadian Municipalities

Report Draft v4 – March 30, 2012 2

(FCM), the Canadian Interoperability Technology Interest Group and the Canadian Advanced Technology Alliance, along with subject-matter experts. IC also participated as an observer and provided an overview of the requirements to hold a spectrum licence. The goal was to achieve consensus on a proposed governance and business model, as well as on a charter of

incorporation for a not-for-profit organization. Members achieved consensus on the governance model. This

document represents the work and the consensus achieved by the workshop participants.

Report Draft v4 – March 30, 2012 3

2 Rationale

Responses to large-scale, complex emergencies require multi-jurisdictional coordination amongst emergency

responders. The level of communications interoperability, currently required by emergency responders in their

day-to-day operations, does not exist.

Securing dedicated 700 MHz broadband spectrum for mission critical public safety data would help overcome

this challenge and has significant benefits for Canadians, responders, all levels of government, cross border

security, and industry. First and foremost, this network is required for the safety and security of citizens and

responders during day-to-day operations, planned events and catastrophic/large scale incidents.

Fortunately, the recent transition from analogue to digital television broadcasting provides a rare and unique

opportunity to secure a portion of the 700MHz spectrum in order to develop and operate an interoperable

public safety broadband network across the country.

A dedicated national interoperable public safety broadband network would be inherently more reliable, more

robust, more functional and more resilient than current public safety communications systems. Availability of

such a network responds directly to the priorities identified in the CISC and its supporting Action Plan that was

endorsed by all levels of government and the emergency responder associations for improved interoperability

and integrated emergency management. This was reiterated during the response to IC consultation when

these same partners recommended that 20 MHz of the 700 MHz spectrum be set aside for public safety. In

addition, the Conservative policy platform Here for Canada also endorsed allocating spectrum for emergency

responders as part of the next spectrum auction.

Canadian police, fire, EMS and other emergency management professionals must have access to modern and

reliable communications capabilities, including high speed data and video, to communicate with each other

across agencies and jurisdictions during day-to-day operations and emergencies. Technological advances mean

Canadian agencies will increasingly require access to data and video networks during emergency incidents:

Law enforcement agencies need access to streaming video, surveillance networks capable of

identifying persons of interest through the use of video analytics, criminal records, automated license

plate recognition and biometric technologies including mobile fingerprint and iris identification to

prevent and respond to criminal activities;

Fire services need access to building blue prints, health-monitoring sensors and GPS tracking systems in

order to save lives;

Emergency medical services need access to telemedicine, high-resolution video and patient records to

reduce the time it takes to deliver medical services at the scene of an incident such as a car crash on a

highway;

Critical-infrastructure service providers need to coordinate their responses to restore power and

telecommunications services during large-scale incidents;

The Government of Canada and various other federal agencies need access to data networks during

large-scale incidents to coordinate federal assistance with provincial/territorial and local response and

recovery operations.

All these applications and services depend greatly on securing adequate spectrum and developing and

operating a dedicated national public safety broadband network with considerable bandwidth and speed that

Report Draft v4 – March 30, 2012 4

is currently not available. Moreover, in the near term, wireless broadband will complement “narrowband”

land mobile radio (LMR), not replace it. Investments in LMR will continue to be necessary now and well into

the future. Public safety is using broadband today for data applications, but not for mission-critical,

emergency-response voice communications. In the future, with solid timelines yet to be clear, broadband

could support mission-critical voice when technical requirements are met.

During the 700 MHz Governance Workshop, IC suggested two options the public safety community could

explore in terms of governance. Under the first model, a public safety entity would serve as a licensee and

could be comprised of either a national or regional primary licensee and subordinate licensees. The second

model would auction the licence to a commercial entity that would operate the network for public safety

entities upon meeting specific auctions conditions. Under this model, defining what constitutes an emergency

would be necessary to justify pre-emption.

No example of successful pre-emption currently exists to guarantee public safety access. Public safety needs a

secure and designated spectrum to in support emergency response operations that is simply not available

through commercial vendors. The public cannot have the same priority to commercial networks as first

responders for their network. During day-to-day operations, and especially during major events, responders

need timely access to data — seconds can save lives. In addition, a technical assessment by the Defence

Research and Development Canada Centre for Security Science (DRDC CSS) found that the amount of

bandwidth required to satisfy the needs of public safety is greater than 20 MHz in the near-to-mid term. As

such, 20 MHz constitutes the bare minimum for an efficient capability, which makes sharing with commercial

networks all the more difficult to justify. Public safety needs dedicated spectrum where responders have

priority and, better yet, exclusive rights to use, without data streams being congested by the public. Dedicated

public safety spectrum would enable the creation of a national interoperable wireless broadband network for

data and video transmissions.

Given the specifications listed above, the proposed governance model is based on the first option outlined by

IC. The proposed governance model fits into the Government of Canada’s commitment to a digital economy.

In addition to providing a more secure, interoperable, modern and resilient communication infrastructure for

public safety, a secure dedicated interoperable broadband network would also have the following benefits:

Cross-border alignment with United States (U.S.) to address critical communications gaps and enhance

cross-border communications interoperability during mutual aid events, as identified in the CISC and its

Action Plan;

Potential economic benefits such as the creation of public-safety related jobs , the development of

public safety specific applications, research and development (R&D) collaboration with industry

through access to discounted spectrum rates to test applications;

Potential impetus to deliver the “last mile” of connectivity to rural communities including First Nations

and Inuit communities; and

Potential for asserting Canadian sovereignty in the North.

3 Mission

To develop and operate a national interoperable public safety wireless broadband network.

Report Draft v4 – March 30, 2012 5

4 Purpose Statement The following purpose statements define the key functions required in support of the development and

operation of a national public safety broadband network.

4.1 National Entity

(1) to apply for, acquire and hold a licence(s) issued by Industry Canada for spectrum in the 700 Megahertz (MHz) band for a national public safety broadband network pursuant to the terms and conditions set forth by Industry Canada;

(2) to jointly apply for subordinate licences with regional service delivery entities to establish and operate a public safety broadband network;

(3) to provide stewardship over the public safety broadband spectrum;

(4) to represent the interests of all public safety entities to ensure that their interoperable broadband service needs are met in a balanced, fair, and efficient manner, and in the interest of the protection of life, property, and Canadian security and sovereignty;

(5) to advance the interests of an interoperable public safety broadband network, in part via training guidelines, education and awareness efforts;

(6) to work collaboratively with the Regional Service Delivery Entities related to strategic and governance decisions for the development and operation of the regional and national networks;

(7) to establish national standards for an interoperable public safety broadband network;

(8) to enter into and administer agreements with an entity or entities for the construction, maintenance, and operation of the national core components of an interoperable public safety broadband network;

(9) to enter into and administer roaming agreements with commercial/public safety owners/operators of 700 MHz broadband services and infrastructure for use by public safety users;

(10) to enter into and administer roaming agreements with the United States, as well as promote cross-border harmonization;

(11) to raise, invest and expend funds to finance the organization’s purposes and activities; and

(12) to establish and administer a cost allocation and recovery model for services rendered to and on behalf of the regional service delivery entities.

Report Draft v4 – March 30, 2012 6

4.2 Regional Service Delivery Entities

(1) to apply jointly with the national entity to hold a subordinate licence to establish and operate a public safety broadband network in its respective region;

(2) to represent the interests of all public safety entities within their region to ensure that their interoperable broadband service needs are met in a balanced, fair, and efficient manner, and in the interest of the protection of life, property, and Canadian security and sovereignty;

(3) to adhere to national standards for an interoperable public safety broadband network;

(4) to enter into agreements with an entity or entities for the construction, maintenance, and operation of a regional interoperable public safety broadband network;

(5) to raise, invest and expend funds to finance the Regional Service Delivery Entity’s purposes and activities;

(6) to establish and administer a cost allocation and recovery model for services rendered to and on behalf of users within their region;

(7) to work collaboratively with the National Entity and other Regional Service Delivery Entities for the development and operation of the regional and national networks;

Report Draft v4 – March 30, 2012 7

5 Governance Overview To achieve the overall mission and the purpose of the governance bodies required to develop and operate a

national interoperable public safety wireless broadband network, it is important to consider the national

landscape and the respective jurisdictional responsibilities of municipalities, provinces/territories and federal

governments. In particular, a large portion of public safety services are provided and funded at the local and

regional levels. As such, the governance model to achieve the mission must reflect this reality, yet include a

national entity that can ensure harmonization and national oversight, as well as representative of Canada’s

diversity. Accordingly, the governance model proposed consists of a National Entity and Regional Service

Delivery Entities, as depicted in the diagram below.

Report Draft v4 – March 30, 2012 8

5.1 National Entity The proposed national entity is a shared governance corporation registered as a not-for-profit corporation with

representative membership from key stakeholders, municipalities, national associations, and users. The

National Entity will represent the interest of federal, provincial, territorial and municipal, emergency responder

and users. The corporation is registered to its Members, which have a legislative, financial, operational and/or

technical stake in its activities and have voting rights in the corporation. The management of the activities and

affairs of the corporation are overseen and guided by its Board of Directors who also sets policy and strategic

direction for the delivery of the corporation’s operations. The Board is also responsible for selecting an

Executive Director to preside over the day-to-day operations of the corporation.

The following diagram summarizes the proposed model for overall governance and management of the

corporation.

Report Draft v4 – March 30, 2012 9

5.2 Regional Service Delivery Entities Respecting the constitutional authority and oversight of the provinces and territories and, considering their

diversity and the potential opportunities of leveraging existing structures, Regional Service Delivery Entities

may be legally constituted and governed in various ways. Some jurisdictions may choose to adopt a model

similar to the National Entity.

6 Cost Structure To deliver value to all stakeholders including Canadians, first responders, and all levels of government, a

significant investment must be made in order to build a core national infrastructure for the national

interoperable public safety wireless broadband network to specifically address public safety requirements. In

addition to a significant upfront investment, the network will incur ongoing operational and maintenance costs.

The following list of cost drivers specifically as they relate to the National Entity, have been identified

representing both capital and operational costs:

Spectrum (fixed)

o the commercial formula for spectrum is as follows: 0.035 x population (33.5M) x MHz (10 or

20) = $11.725M (10MHz); $23.45M (20MHz)

o it is desired that the commercial rates be discounted for public safety and the business case to

support a discounted rate is under development

o rates for public safety will form part of Industry Canada’s next round of consultations

Licencing fee (as of the moment the licence is issued (fixed)

Governance (variable)

Start-up Costs

Management / Day-to-to operations (fixed and variable)

Development of the core network and radio access network (fixed)

o Could be developed through the building of new structures, the leasing of existing structures or

a combination of both

o new structure = capital costs

o lease = operational costs

Operations of the core network and radio access network(fixed and variable)

Fees associated with ongoing roaming agreements (variable)

Cost of building out low population areas (fixed)

The network itself (owning vs leasing various components) (fixed and variable)

Activities associated with a prototyping lab (fixed and variable)

Opportunity costs

Population density and geography as a cost driver

Report Draft v4 – March 30, 2012 10

6.1 Potential Cost Savings A number of potential cost savings were also identified, for further review, as follows:

“Last mile” funding for capital investments (potential P3)

PPP Canada (25%)

Shared Services Canada (e.g. can host the core?)

A corporate ally / “good Samaritan”

Programs such as FEDNOR (IC program to roll out “last mile”

CANNOR

First Nation (AANDC)

Inclusion of radio infrastructure as part of the Infrastructure project

Tax credits for industry partners to incent them to reduce costs

An environmental scan could identify other potential cost savings opportunities

7 Revenue Streams The following revenue streams were identified as potential sources of funds to be further assessed:

Membership fees

User fees

Per device fees

9-1-1 surcharge (cellular and land line)

Taxation

Potential lease of spectrum in lower density areas for revenue (not for commercial)

“Branding” rights by a private sector ally

Report Draft v4 – March 30, 2012 11

8 Conclusion and Next Steps

The results of the workshop have laid the foundation for the second round of consultations to be led by IC later

this year to define the licensing framework, the fee structure and access standards for the 700 MHz band. The

Canadian public safety community has achieved great strides in recommending policy guidance and a

governance model for public safety use of a dedicated 20 MHz of the 700 MHz spectrum. These

recommendations are designed to ensure fully interoperable communications for first responders across

Canada and with our US counterparts allowing for better harmonization between our two countries to

facilitate interoperable networks and services for public safety agencies.

While the foundation is set, the next steps are critical to long term success. The following steps are

recommended to solidify the foundation and pave the path to success. Note that the next steps are not

provided in a precise sequence, as many of the steps can be undertaken in parallel.

1. Ongoing support and project coordination by the 700 MHz Project Management Team.

2. Seek endorsement from Senior Officials Responsible for Emergency Management (SOREM) of the proposed governance model prior to the second round of IC consultations.

3. Establish a Working Group for each of the four priority areas and develop terms of reference and work plans in each area, as follows:

a. Governance

b. Legal

c. Funding

d. Technology

4. Oversee the financial study commissioned prior to the workshop to finalize the business model and establish costing and revenue estimates, in consultation with P/Ts and subject matter experts. This document will serve as an input to the work of the funding model working group.

5. Engage the Information and Communications Technology (ICT) industry through a series of dialogue over a three day event.

6. Finalize the strategy and proposal(s) in response to the next round of IC consultations. The strategy, specifically as it pertains to the stakeholder’s approach to their response, should send a clear and comprehensive message to IC. Options to consider include the development and submission of one shared response endorsed by the stakeholder community; the submission of a common response supported by stakeholder specific responses (e.g. police, fire, EMS individual responses); or a series of individual responses with a shared and common message. IC has stated they prefer the first option in terms of submission.

7. Consider developing a provisional structure that would serve as a transition body until the National Entity is up and running.

Report Draft v4 – March 30, 2012 12

9 Key Reference

Communications Interoperability Strategy and Action Plan for Canada, Public Safety Canada, 2011: http://www.publicsafety.gc.ca/prg/em/cisapc-scicpa-eng.aspx

Communications Interoperability Technology Interest Group (CITIG) 700 MHz Broadband for Mission Critical Public Safety Data website: www.action700.ca

Letter from the Prime Minister Stephen Harper stating that the “government is committed to setting aside spectrum for emergency responders”, dated August 17, 2011: http://www.citig.ca/Data/Sites/1/action700/correspondencefromprimeministerharpertocacppresidentbillblairre700mhz.pdf

700MHz Spectrum Requirements for Canadian Public Safety Interoperable Mobile Broadband Data Communications, Defence R&D Canada, Centre for Security Science, February 2011: http://pubs.drdc-rddc.gc.ca/inbasket/mmgreene.110527_1407.DRDC%20CSS%20CR%202011-01.pdf

Responses to IC Consultation: http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf09997.html

Spectrum Policy Framework for Canada, Industry Canada, June 2007: http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf08776.html

Canada Not-for-profit Corporations Act (S.C. 2009, c. 23), amended on 2011-10-17: http://laws.justice.gc.ca/eng/acts/C-7.75/

Report Draft v4 – March 30, 2012 13

Lexicon

Canadian sovereignty

Canada’s right to jurisdictional control, territorial integrity, and non-interference by outside states.

Constitutional authority

In Canada, there are two orders of government: the federal government and provincial governments where the distribution of legislative powers is set.

http://www.pco-bcp.gc.ca/aia/index.asp?lang=eng&page=federal&sub=legis&doc=legis-eng.htm

Core network

A core network, or network core, is the central part of a telecommunication network that provides various

services to customers who are connected by the access network.

Public land mobile network identifier (PLMN ID)

PLMN ID supports the interoperability of the Long Term Evolution (LTE) deployments.

Primary Licence and Subordinate licence

Primary licensees may apply to Industry Canada jointly with a third party, requesting a subordinate licence. The

request would be reviewed, and subject to being satisfied with the application, Industry Canada may approve

the request and issue the third party a subordinate licence. The subordinate licence would include a subset of

the primary licence conditions as well as additional terms and conditions which may vary from those on the

primary licence. The primary and subordinate licence would be concurrent licences

http://www.ic.gc.ca/eic/site/smt-gst.nsf/vwapj/cpc2123i2e.pdf/$FILE/cpc2123i2e.pdf

http://www.ic.gc.ca/eic/site/smt-gst.nsf/eng/sf04589.html

Radio Access Network (RAN)

A radio access network is part of a mobile telecommunication system. It implements a radio access technology.

Conceptually, it resides between a device such as a mobile phone, a computer, or any remotely controlled

machine and provides connection with its core network.

Report Draft v4 – March 30, 2012 14

Acronyms

AANDC Aboriginal Affairs and Northern Development Canada

CANNOR Canadian Northern Economic Development Agency

FedNor Federal Economic Development Initiative for Northern Ontario

P3 Canada Public-Private Partnerships Canada

PPP Public-Private Partnerships