sinon018 Why this finding matters Context hitphwww.oag-bv9.g¢calintemetEnglshipar_oag_201811_01, Report Connectivity in Rural and Remote Areas + Unmet demand for spectrum for fixed wireless broadband ‘+ Unused auctioned licensed spectrum in rural and remote areas + Challenges with accessing unused spectrum 163 This finding matters because many Canadians in rural and remote areas rely on fixed wireless broadband solutions for access to services that otherwise might not be available outside urban areas, such as health care, education, and banking services. 1.64 Wireless Internet service providers need access to radio frequency spectrum bands, which are publicly owned and are regulated by the Government of Canada, Devices such as radios, smart phones, tablets, smart appliances, and computers all use spectrum to send and receive data 4.65 Spectrum can be used for various purposes. In some cases, the use is dictated bya licence. A band can be licensed for a specific purpose, such as mobile (smart phone), fixed wireless (broadband Internet), or satellite; or else it can be licensed for flexible use. Service providers that hold a flexible use licence can decide how they use that spectrum, For example, a flexible use licence can be used for both mobile and fixed wireless services (Exhibit 1.2) 49199.nimlip78 1827sinon018 Report 1—Connectivty in Rural and Remote Areas 8 & ’ sett ers ain-zisine \ {BEES sores mn powe aw \ / fess 700-14 70-20 (mobile and i 1 f an (4-690 he | ll | I | Note: During our audit, consultations were under way on whether to convert the 3,475 to 3,650 megahertz (MHz) spectrum band to exible use 1 Exhibit 1.2—text version ‘The simplified representation of radio frequency spectrum bands shows frequencies from 614 megahertz to 25,000 megahertz The full range of radio frequencies is not shown, At the low end of the spectrum are low frequencies. At the higher end of the spectrum are the highest frequencies, Low frequencies have the ability to travel through trees and buildings and the ability to travel long distances. High frequencies have limited ability to travel through trees and buildings and have the ability to travel short distances. In Canada, some spectrum bands are intended for flexible use services~mobile and fixed wireless—for example, the 614 to £698 megahertz frequency band. Mobile also uses the frequency bands from 1,710 to 1,755 megahertz and from 2,110 to 2155 megahertz Fixed wireless uses the frequency band from 3,475 to 3,650 megahertz and from 3,650 to 5,700 megahertz, Which is licensed using an all-come-all-served approach, Satellite uses the frequency bands from 10,700 to 11,200 megahertz and from 17,700 to 20,200 megahertz, Note: During our audit, consultations were under way on whether to convert the 3,475 to 3,650 megahertz spectrum band to exible use, 4.66 Spectrum is finite and the demand to use it is high. Therefore, the government used auctions to allocate the right to use certain spectrum bands in certain geographic areas. The winners received licences that gave them the right to ‘transmit signals over those spectrum bands in a specific geographic area for a fixed period of time. Licence holders can make their unused spectrum available to a third party through a subordinate licence (also called a sub-licence). itp hwww.o8g-bvg.gecalntemetEnglshipar_oag_201811_01_¢_43198;himlip78 s7eT