Comments of Shaw Communications Inc. Consultation on Repurposing the 600 MHz Band

Comments of Shaw Communications Inc. Consultation on Repurposing the 600 MHz Band Canada Gazette, Part 1, Notice No. SLPB-005-14 February 26, 2015

I. Introduction and Executive Summary 1. Shaw Communications Inc. ( Shaw ) is pleased to submit these comments in response to Canada Gazette, Part I, dated 3 January 2015, Notice No. SLPB-001-14, Consultation on Repurposing the 600 MHz Band (the Consultation or Consultation Document ). 2. The Consultation Document invites interested parties to comment on proposals to repurpose the 600 MHz band for use by broadband mobile services through measures that include a repacking and relocation of over-the-air ( OTA ) television channels, including all those currently located in the 600 MHz band and those currently located in the remaining spectrum designated for OTA. 3. Shaw fully supports the goal of making more spectrum available on both a licensed and unlicensed basis in order to meet the growing demands of Canadians for broadband services. As the Department and industry are well aware, wireless data usage by Canadians, through mobile and Wi-Fi infrastructure, continues to grow rapidly as Canadians increasingly use the Internet wherever they go, whether it is for work, education, information or entertainment. 4. Shaw also supports the principle of aligning with US spectrum policy when it is in the interest of Canadian consumers to do so and when it results in a more efficient use of the public s spectrum resource. 5. In the US, the Federal Communications Commission ( FCC ) is planning to hold an incentive auction which is currently scheduled for early 2016. Broadcasters can voluntarily participate in the auction by agreeing to relinquish their current channel in a reverse auction, with the associated spectrum then tendered in a forward auction in which mobile providers will bid. Broadcasters that voluntarily surrender their current channel would receive a share of any associated auction proceeds. Broadcasters that choose not to participate in the auction but are nonetheless subsequently repacked to another channel would be reimbursed for the costs of moving to accommodate the new 1

mobile service. These relocation costs would be covered by a $1.75 billion fund that was established by the US Congress and funded out of auction proceeds. 1 6. While Shaw supports the policy goal of making 600 MHz spectrum available for use by broadband services, as an OTA broadcaster with 86 television transmitters across the country, Shaw will be directly impacted by the proposals contained in the Consultation Document, as will our OTA viewers. 7. In order to ensure that the broadcast industry and OTA audiences are not adversely impacted by the Department s proposals, this submission highlights certain considerations to take into account when repurposing the 600 MHz spectrum, and proposes a set of baseline operating principles and conditions to meet in advance of engaging in a cross-border spectrum coordination and channel repacking exercise with the US. Although these considerations and principles are discussed in greater detail below, they can be summarized as follows: broadcasters should be fully reimbursed for all costs incurred in changing from an existing digital channel to another digital channel, including: 2 o Engineering consultants o Tower work o Building and site preparation and reconfiguration o Equipment reconfiguration and/or replacement o Equipment installation o Project staff resources o Replacement of studio equipment o Consumer awareness campaign broadcasters should be compensated for any net loss in spectrum, signal quality, broadcast coverage or any other outcome of the repacking that negatively impacts OTA viewership or rights to signal substitution and mandatory carriage; 1 2 The US Spectrum Act establishes a $1.75 billion TV Broadcaster Relocation Fund to be used for reimbursement of eligible relocation costs. Middle Class Tax Relief and Job Creation Act of 2012, Pub. L. No. 112-96, 6402, 6403, 125 Stat. 156 (2012) (Spectrum Act) at 6403(d)(1); 47 U.S.C. 309(j)(8)(G)(iii)(I). A more fulsome description of these costs is set out in Attachment 1. 2

any channel assignments for digital channels under the new band plan should be in the same band as existing digital channel assignments; the regional coverage area of the new digital channel should not be less than the coverage area of the existing digital channel; for channels that are currently analog low band VHF, the new digital channel must be either high band VHF or UHF unless the broadcaster specifically requests otherwise; for channels that are currently analog switching to digital, the regional digital channel contours should be determined by first matching the analog signal contours and then adding an ERP of at least 8 db to the proposed digital allotment for that channel; and broadcasters should be given a realistic timetable for completion of channel changes, having regard to the cumulative impact of all channel changes required of OTA broadcasters, individually and collectively, in a given period. Responses to Consultation Document Questions 8. Set out below are Shaw s specific responses to the questions posed by the Department in its Consultation Document. Q1: Industry Canada is seeking comments on the overall proposal of repurposing the band to include commercial mobile broadband and the initial step of participating in a joint repacking process with the United States. a) Uncertainties Associated with the US Repacking and Auction Processes 9. It is a challenge to fully assess the implications of the repurposing and repacking exercise that is contemplated in the Consultation Document because much of this exercise depends on the timing and outcome of the incentive auction in the US, both of which are still very uncertain. 10. With respect to timing, there have already been a number of delays to the start date of the auction. In December 2013, shortly after FCC Chairman Tom Wheeler came into office, 3

the FCC pushed back the start date from 2014 to mid-2015 in order to give the agency more time to refine the repacking software and policy. 11. Then, following a petition to the US Court of Appeals filed by the National Association of Broadcasters ( NAB ) on 18 August 2014, the FCC further postponed the auction to early 2016. The NAB s petition challenges the FCC s proposal on how to calculate TV station coverage areas for the purposes of the auction and channel repacking exercise. If the NAB succeeds in its petition, this could further delay the auction because the FCC will need to revise the OTA TV coverage area calculations to be used for the auction. 12. In addition to timing issues, the actual outcome of the US auction is also unknown. In the Consultation Document, the Department states, The amount of spectrum that will be made available for mobile services will depend on the willingness of the U.S. broadcasters to relinquish their spectrum and that [t]he amount of spectrum to be made available is expected to be between 20 and 120 MHz, and the actual amount will depend on the results of the U.S. auction. The Department also recognizes that the specific band plan option to be used for the 600 MHz band will not be known until after the incentive auction in the US. Yet the Consultation Document asserts that it would be beneficial for Canada to adopt this framework, and to commit to harmonize with the band plan option to be adopted by the US. 3 13. Shaw recognizes the benefits of engaging in a joint repacking exercise with the US. However, we are concerned about agreeing to an uncertain outcome. The subject matter of the cross-border arrangement, namely the quantity of spectrum being repacked and the associated DTV allotment plan, is unknown. In addition, it is unclear how the operational challenges associated with the joint repacking exercise will be addressed, including, most significantly, cost recovery for digital OTA broadcasters that are displaced by the repacking exercise. 3 Consultation Document, para. 30. 4

b) Cost Reimbursement 14. Legislation passed by the US Congress in February 2012 requires that a portion of the proceeds from the FCC s incentive auction be used to compensate the broadcasters that voluntarily relinquish their current channel as part of the incentive auction process, and that another portion be used to reimburse the costs of broadcasters who do not participate in the auction but whose channels are nonetheless repacked following the auction process. In Shaw s view, some corresponding mechanism in Canada should accompany the repurposing of spectrum in the 600 MHz band. 15. The Consultation Document states that the policy and the technical and licensing rules pertaining to the repurposed mobile spectrum would be established in the context of a future separate consultation process. However, the proposal does not address how the more immediate challenges and costs arising from the repurposing exercise will be handled. By contrast, in the US all of these matters were addressed either before or at the time of the FCC s 15 May 2014 Report and Order on the incentive auction process. 4 16. The Canadian broadcast industry has recently incurred millions of dollars in costs in order to transition transmitter sites to DTV. Shaw is still transitioning some of its stations in small and medium-sized markets in accordance with a tangible benefits program approved by the Canadian Radio-television and Telecommunications Commission ( CRTC or Commission ). As discussed in greater detail below, it is expected that much of that investment and effort will need to be repeated if Shaw is required to move again to a new set of channels. 17. Accordingly, Shaw submits that the Government should establish a reimbursement arrangement which uses the proceeds of its spectrum auctions to allow OTA TV broadcasters with digital channels that are affected by the repacking exercise to recover their relocation costs. This reimbursement mechanism could be administered by either 4 See Federal Communications Commission, Expanding the Economic and Innovation Opportunities of Spectrum Through Incentive Auctions, Report and Order FCC 14-50 (GN Docket 12-268), adopted 15 May 2014. 5

Industry Canada or the Department of Canadian Heritage pursuant to their respective mandates. 5 18. Any impacted OTA TV broadcaster could seek reimbursement from the fund by providing estimates of its relocation expenses to the relevant Department which, in turn, could aggregate those estimates for inclusion in the Federal Government s Main Estimates. The Main Estimates would then be tabled by the President of the Treasury Board and included in one or more "Appropriation Acts, which provide the required legislative authority for the proposed expenditures. 19. Once this legislation has been passed, the reimbursements could be disbursed by the Department to the affected broadcasters based on all of their actual costs, including those discussed below and enumerated in Attachment 1 to this submission. Since it will take a number of years for OTA TV broadcasters to transition to all of their new channel assignments, supplementary estimates and appropriation processes could be established for each year of the transition process. 20. Specifically, Shaw notes that the Consultation Document states that most, if not all, current regular power channels and low power channels will be impacted. For Shaw, this means retuning, reconfiguring and/or replacing costly equipment at up to 86 separate transmitter sites. In Attachment 1, Shaw has provided a non-exhaustive list of costs that would be incurred by OTA TV broadcasters if they are required to relocate to different channels as a result of the repurposing and repacking exercise. 21. Of our 86 sites, 19 were converted to DTV at the direction of the CRTC and at our expense less than four years ago. The repacking proposal contemplated in the Consultation Document will necessitate that much of the replacement and reconfiguration work associated with this digital conversion be repeated. This would involve engineering and options analyses, preparing regulatory applications, renegotiating multiple lease agreements, sourcing and ordering millions of dollars in equipment and services, ordering and completing any building/tower/site modifications, completing equipment 5 See Department of Industry Act, s. 14(1)(c) and Department of Canadian Heritage Act, s. 7(a). 6

modifications and installations, testing transmission outputs and executing consumer awareness campaigns. 22. At another 51 transmitter sites, Shaw has either completed or has work in progress toward the conversion to digital. In order to accommodate the repacking contemplated in the Consultation Document, much of this work would need to be redone and equipment replaced, similar to the work described immediately above. 23. Shaw has 16 other transmitter sites that currently broadcast in analog format but are slated for digital conversion in accordance with a tangible benefits program that was approved by the CRTC in October 2010. Shaw would be required to carry out additional work at these sites. 24. If Shaw s channels were not repacked, there would be no anticipated reason to incur additional capital costs at any these sites for the next 10 to 25 years. 25. In addition to the costs of relocating to new channels, the Government must also ensure that broadcasters are reimbursed for the costs of replacing wireless microphones, cameras and other equipment that will be rendered obsolete by the repurposing of spectrum in the 600 MHz band. Shaw notes in this regard that equipment purchased by broadcasters for use within the 700 MHz band was recently rendered obsolete as a result of the Department s repurposing of spectrum in that band for mobile use. Broadcasters were reassigned to the 600 MHz band and purchased new equipment to align with that band. The proposals contemplated in the Consultation Document will result in the obsolescence of hundreds of thousands of dollars worth of this equipment purchased by broadcasters within the last four years. 26. Finally, Shaw submits that broadcasters should be compensated from the proceeds of the Department s spectrum auctions if they relinquish OTA TV spectrum, operate at reduced parameters, or accept greater interference to their existing operations. 7

Q2: Industry Canada is seeking comments on the future spectrum requirements for OTA TV broadcasting, taking into consideration the overall changes to the broadcasting industry, and noting that the CRTC Let s Talk TV hearing recently closed. 27. The Consultation Document explicitly acknowledges the role played by OTA TV broadcasters in Canada s broadcasting system and that any proposed repacking of their broadcasting stations must provide maximum opportunity for continuing all existing OTA TV transmitters while ensuring that the need for additional commercial mobile spectrum is carefully balanced with the current needs of the broadcast industry and the interests of Canadian consumers in being able to benefit from both services. 6 28. When the Department released the Consultation Document on 18 December 2014, the CRTC had recently concluded its Let s Talk TV proceeding in which one of the issues under consideration was whether broadcasters should be required to maintain their OTA operations. 7 That issue was clarified on 29 January 2015, when the CRTC released Overthe-air transmission of television signals and local programming, Broadcasting Regulatory Policy CRTC 2015-24 ( BRP 2015-24 ) in which it required conventional television licensees to maintain an OTA presence in order to retain the right for their signals to be distributed on the basic service and to request simultaneous substitution. 8 29. Approximately 8% of Canadians nationwide are dependent on over-the-air transmission to access television services. 9 This number has stayed consistent since at least 2009, with notable increases in some markets, including Vancouver/Victoria and Toronto/Hamilton. 10 Future growth trends are difficult to predict, but it is clear that OTA TV will remain a source of choice for the foreseeable future, particularly with the addition of new HD OTA channels and development in technologies such as Ultra HD and mobile broadcasting. 6 7 8 9 10 Consultation Document, para. 23. Broadcasting Notice of Consultation 2014-190, paras. 67 and 69. BRP 2015-24, para. 19. Numeris (BBM Canada), % A2+ universe, Total Canada, Broadcast Year 09-10 to 13-14. Ibid. 8

30. One of Shaw s concerns with any repacking of channels in the 600 MHz band is that it may undermine the ability of our OTA audiences to access our channels. Of equal concern is the expenditure required to transition to a new band plan. Under the Department s proposal, all of Shaw s current channels could change. Facilitating that change would require new equipment or reconfiguration of existing equipment at all of our sites. In addition, we may be moved to a less desirable frequency with diminished signal quality and coverage. 31. When Shaw began the process of converting our 86 analog transmitters to digital (a process which is still ongoing), we made a consistent effort to broaden coverage areas and optimize channel selection in order to provide consumers with the maximum coverage and signal quality reasonably and technically permitted under the current DTV channel plan. Shaw submits that not only is there is an ongoing role for OTA TV in Canada s broadcasting landscape, but also that every reasonable effort should be made to provide the best possible use of assigned channels. Q3: Industry Canada is seeking comments on the Department's proposal to: adopt the U.S. 600 MHz band plan framework; and commit to repurpose the same amount of spectrum as the United States, as determined in the FCC's incentive auction. 32. Shaw submits that the Department should articulate in advance of the coordination how competing priorities between Canadian and US interests will be fairly resolved. 33. For example, in a bi-national market location such as Vancouver/Seattle or Windsor/Detroit, there may be a limited number of optimal channels available in a redistributed and repacked channel plan. It is not clear what principles will be used to determine which country is assigned which channels and, in particular, which country receives the most optimal channel or channels. Although the Consultation Document contains a plan for determining priorities within the Canadian market, there is no indication of how those priorities will be advanced when they conflict with US priorities. 34. Any new channel plan must ensure that Canadian spectrum resource interests are actively advanced and defended internationally as contemplated by the Enabling 9

Guidelines that are set out in the Department s Spectrum Policy Framework for Canada. 11 Q4: Industry Canada is seeking comments on the size of the proposed guard band between the TV broadcasting and mobile services. Is the mobile service appropriately protected by the proposed guard band? Is the TV broadcasting service appropriately protected by the proposed guard band? If additional protection measures are needed, what alternatives (such as increasing the size of the guard band, adding a pass band/notch filter at the TV receiver port, etc.) could be used and what alternatives would be practical to deploy? 35. One issue of concern to Shaw is the potential burden that could be imposed on consumers to purchase new equipment or take extraordinary steps to maintain their current reception of OTA channels. This concern extends to any protection measures, such as a pass/band notch filter, that are dependent on the viewer s knowledge, initiative and cost responsibility to identify and implement. Consumers should not be required to incur any costs or take any extraordinary steps in order to continue to receive all of their current channels. 36. In addition, any measures (including the costs thereof) that are required to provide protection from interference should be the responsibility of the new users in the 600 MHz band, not the established providers of services. This is consistent with the practice when a new broadcast transmitter causes interference to an existing broadcaster: the new broadcaster bears the cost and responsibility of interference protection measures. 37. Shaw is not in a position to identify appropriate guard band protections because we do not have knowledge of any of the specifics of the new band, which will only be finalized after the close of the US incentive auction. 11 Industry Canada, Spectrum Policy Framework for Canada, June 2007, p 8. 10

Q5: Industry Canada is seeking comments on the proposed transition policy for the regular power TV stations, including but not limited to the design objectives for the development of the new DTV allotment plan; the methodology and parameters to ensure minimal impact to TV reception; the minimum notification period for the relocation to the new DTV assignments; and the overall timing for the transition to the new DTV allotment plan. Design Objectives 38. The Consultation Document lists the following design objectives for the new DTV allotment plan: 1) to be spectrally efficient, i.e., enable the repurposing of the maximum amount of spectrum for mobile broadband; 2) to ensure available channels for all operating regular power TV stations in Canada; and 3) to minimize impacts on OTA TV reception. 12 39. Shaw submits that the first and overarching priority should be to minimize any impacts on OTA reception by consumers. In order to ensure this outcome, not only will an available channel be required, but it must also be within the same band as the original channel 13 and have associated ERPs sufficient to provide consumers with an ability to receive the new channel as well and as easily as they receive the current channel. Methodology and Parameters 40. Taking the foregoing into account, Shaw offers the following considerations on the methodology and parameters needed to ensure minimal impact to TV reception: a) Coverage Contours 41. Shaw notes the Department s commitment to assign new channels based on the current operating parameters of existing channels so that the current population served with a 12 13 Consultation Document, para.40. With the exception of analog channels currently in low band VHF, addressed below in paras. 62 to 64. 11

defined level of service should remain the same as much as possible. 14 It should be noted, however, that assigning power levels strictly on the basis of matching contours between existing analog and new digital channels will not result in equivalent reception, as there are marked differences in reception capability when changing from analog to digital, and when changing between bands, particularly when changing from UHF to VHF. For analog to digital channel changes, with all else being equal, the first step should be for any new digital NLBC to be matched to the current analog B contours; secondly, an ERP increase of 8 db should be added to the proposed digital allotment. 15 This ERP increase is required in order for the digital reception capability to match the analog reception capability, as it would compensate for the cliff effect of lower digital reception thresholds at the fringes of coverage. 42. Again, while Shaw acknowledges the Department s objective to maintain current coverage contours, we wish to underscore the importance of this point because of the impact that any reduction of contours could have on simultaneous substitution and mandatory carriage rights. These rights are tied to the proximity of transmitter contours to nearby BDUs. Any reduction in coverage contours could compromise the required proximity to a BDU, thus impacting simultaneous substitution and carriage rights, with potentially significant impact to broadcaster revenues. 43. The Consultation Document also states that for the purposes of developing the new DTV allotment plan, the population served by an OTA TV broadcaster will be defined as the population within the protected area of the TV assignment as defined in BPR-10, 16 but excluding the areas where TV reception is not available due to interference from other primary TV assignments. 17 Since interference determinations are based on calculations, not field readings, it is possible that current viewers in the interference zone may 14 15 16 17 Consultation Document, para. 44. CBC presentation to CCBE, Pascal Marcoux, September 2009, Revisiting Field Strength Requirements for DTV. Field measurements were used to determine that up to an 8 db increase in transmitter power was necessary to replicate analog coverage. Broadcasting Procedures and Rules Part 10: Application Procedures and Rules for Digital Television (DTV) Undertakings ( BPR-10 ) Consultation Document, para. 44. 12

actually be able to receive a consistent signal. Given the complexity of confirming whether a consumer in the interference zone is actually receiving a signal, the determination of a new coverage area should include all consumers in the current interference zone, so as not to sever access to consumers who are in fact receiving the signal. 44. Finally, every reasonable effort must be made to ensure that any consumer with the current ability to receive a channel should continue to be able to receive the same transmission under the new channel plan with minimal disruption and little additional effort. b) Changing Bands (UHF to VHF) 45. The Consultation Document states that it is expected that Canadian stations would not be required to change the band that they are operating in whether it be UHF, High VHF or Low VHF. 18 46. Fulfilling this expectation is critical, particularly for broadcasters serving major markets, where the cost of changing bands and the associated impacts on viewers are most significant. In particular, UHF to VHF channel changes could require extraordinary cost and effort for consumers, particularly those in urban areas, to maintain access to their current channels. 47. Furthermore, in any UHF to VHF channel changes, new digital contours should be first made to match existing contours, and then 8 db of ERP added to the allotment. This would help to offset potential reception difficulties at the outer perimeters of coverage. c) No Allotment of Low Band VHF 48. Low band VHF digital allotments (channels 2-6) should not be made unless specifically requested by a broadcaster. 18 Ibid, para. 49. 13

49. Low band VHF is poor for digital television due to its high susceptibility to man-made noise interference and the unique requirements of low band VHF receive equipment. Low band reception requires the installation of large, exterior-mounted antennas, which is often not feasible due to building and zoning bylaws or impracticality. 50. In the 2008 DTV Post-Transition Allotment Plan, Shaw was assigned Channel 6 in two mandated markets: Paris (which serves southwestern Ontario) and Ottawa. The Department assigned Shaw these sub-optimal channels because no other suitable channel was available in these highly congested markets at the time. Without a suitable alternate choice, Shaw installed Ottawa and Paris DTV on Channel 6 in order to meet the mandated DTV transition deadlines. Both locations were subsequently converted to UHF channels at a later date when suitable allotments became available due to SunTV and CBC transmitter shutdowns. These low band VHF assignments not only caused additional costs to Shaw, but also caused confusion, frustration and inconvenience to consumers in those two markets. For these reasons, any assignment of low band VHF channels to broadcasters, unless specifically requested, should be avoided. Timing and Notification Issues 51. The Consultation Document does not propose a specific time frame for transitioning to the new DTV allotment plan. However, it does note that the timing and the transition to the new DTV allotment plan would need to be coordinated between Canada and the United States to avoid or manage cross-border interference and, therefore, suggests that timelines for Canadian licensees should be similar to the U.S. timelines. 19 52. Shaw notes that in the US, the FCC has mandated a deadline of 39 months after the conclusion of the incentive auction for the transition of all OTA TV stations to their new channels. 53. It is not clear from the Consultation Document whether the Department is proposing a similar timeline for the transition of Canadian OTA broadcasters to the new DTV allotment plan. If this is the case, Shaw does not believe that this approach is feasible. 19 Consultation Document, para. 52. 14

54. There are several timing complexities that must be taken into account when considering the transition to the new DTV allotment plan. First, before a broadcaster can relocate to another channel, it must evaluate the impact of the channel change on its transmission sites in order to determine what equipment replacements and modifications are required, and what reconfigurations to sites, buildings and towers will be needed. This could involve modifications to, or the complete replacement of, the broadcaster s transmitters, filters, combiners, antennas, antenna structures, transmission lines and building space in order to accommodate the channel change. In some instances, it may be necessary for the broadcaster to relocate its entire transmitter site in order to carry out operations on another channel. 55. Second, once a broadcaster has completed an evaluation of its transmission sites and technical options, engineering briefs must be prepared and applications reflecting the new channel parameters must be filed with and approved by Industry Canada and the CRTC. With nearly 900 regular and low power TV stations that are potentially affected by the repacking exercise, it is difficult to see how the Department and the Commission could process all, or even a substantial subset, of these applications in a timely manner. 56. Third, as noted above, broadcasters must rely on external vendors to assist them at almost every stage of each channel change. These vendors, who must have expertise specific to OTA broadcasting, have been declining in numbers over the years, and include engineering consultants, equipment suppliers, installation contractors, technicians and other expert tradespersons. Many of these specialized vendors are in high demand across North America. If broadcasters both north and south of the border must relocate to new channels within 39 months at a time when there are fewer vendors available, this will further prolong the process, as well as drive up costs. 57. In the Consultation Document, the Department states that [i]t is recognized that changing the channel of operation for a regular power TV station is a complex task, 15

requiring significant engineering resources, time for planning and equipment procurement, etc. 20 58. At the same time, however, the Department proposes that all regular power TV undertakings which need to relocate to a new channel assignment in the new DTV allotment plan be provided a minimum notification period of 18 months after the implementation plan is finalized. 21 59. According to the Department s proposal, any regular power TV undertaking operating in the 600 MHz range could be required to evacuate its channel as early as 18 months after the release of a channel plan. It is unclear what end date the Department is proposing for the completion of all regular power conversions, apart from the 39-month post-auction deadline contemplated by the FCC for US conversions. The Department proposes only that 18 months notice be given for transitions of individual regular power stations, with actual timetables for individual sites dependent on requirements of US mobile providers who have purchased US spectrum. 60. Shaw will have up to 86 sites to be transitioned. As many as 24 of those sites are within the spectrum to be potentially repurposed for mobile (11 are on channels 36-51 and 13 are on channels 26-35), and may be required to evacuate the 600 MHz band in 2017. Approximately 74 of the 86 are within the bi-national broadcast channel coordination zone. 22 Given the distribution of Canada s population, Shaw assumes that the vast majority of regular power OTA transmitter sites in Canada are similarly located close to the border. 61. In Shaw s view, the 18-month notification period proposed by the Department is not feasible. While a broadcaster may be able to complete a single channel change in 18 months, broadcasters could be subject to notification periods with respect to any number of channels, and therefore could be faced with completing anywhere from 20 to 40 or 20 21 22 Consultation Document, para. 54. Ibid, para. 54. Within 360 km of the Canada-US border for ATSC stations and within 400 km for NTSC stations. 16

more projects at the same time. 23 There is significant risk of those projects being inefficiently and inadequately executed, with multiple missed deadlines, disrupted OTA service and frustrated consumers. 62. To help avoid the foregoing scenario, any conversion timelines assigned by the Department should consider the full scope and cumulative impact of all pending conversion deadlines assigned to individual broadcasters and should do so in the context of regulatory approval timelines, broadcaster resources, the level of difficulty associated with each channel change, the on-site coordination and management required for each of an individual broadcaster s channel changes and the availability of the specialized labour and material supplies required. Q6: Industry Canada is seeking comments on the proposed transition policy for LPTV undertakings in the spectrum to be repurposed to mobile use. 63. Shaw does not have any LPTV operations in the 600 MHz band and therefore we reserve our comments on the transition of LPTV undertakings for Question 7. Q7: Industry Canada is seeking comments on the proposed transition policy for LPTV undertakings below the 600 MHz band. 64. Since 2013, Shaw has been replacing all of our LPTV analog transmitters with regular power digital transmitters as part of the process of fulfilling our CRTC tangible benefits obligations. Shaw is not aware of any other OTA TV broadcaster that has embarked on a similar replacement program for their LPTV transmitters. This commitment is unique to Shaw, borne out of our goal to ensure that viewers in all of the regions we serve are able to receive a digital signal. 65. In continuing our LPTV upgrade from analog to digital, Shaw wishes to maintain this practice of upgrading our LPTV transmitters to regular power and, to this end, we request that a regular power digital TV allotment (high band VHF or UHF) be assigned to each of our remaining LPTV transmitters. Shaw has 24 LPTV sites, 12 of which have been 23 In an extreme case, Shaw could receive 18 months notice to complete up to 62 regular power channel changes, and a concurrent two years notice to complete 24 low power channel changes, resulting in as many as 86 overlapping projects. 17

approved for or have applications in process for conversion to regular power. Shaw notes that the 12 remaining LPTV sites are located in rural and remote areas where there is, and should be, sufficient spectrum available for an additional regular power TV allotment, even after the spectrum repacking exercise contemplated in the Consultation Document is completed. Shaw believes that our request for a regular power digital allotment in these locations is in the public interest and notes that such an allotment assignment will not impinge upon the allocation of spectrum to mobile broadband. 66. Any notification period for displacement of LPTV undertakings, both in and outside of the 600 MHz band, must be reasonable having regard to the timing of all other channel changes required of that broadcaster and of the industry as a whole. Q8: Industry Canada is seeking comments on the proposed transition policy for RRBS. 67. The Consultation Document notes that it is expected that most of the RRBS would need to change parameters (channel of operation and/or transmitted power, etc.) as a result of the repacking exercise, but that virtually all will be accommodated with spectrum in the broadcasting frequencies. 24 In this regard, the Department has proposed the following transition policy for RRBS: the RRBS operating on frequencies outside the 600 MHz range would be impacted by the reorganization of the TV broadcasting assignments for regular and low-power TV stations. The details of these impacts would be driven by the implementation plan for TV repacking, which would be developed after the conclusion of the U.S. incentive auction Once the implementation plan has been established, RRBS licensees would be advised of the likely timelines for relocation and possible options for new frequencies. The Department would assist in finding new channels of operations for RRBS stations. It is expected that new channels of operation in the UHF TV band, providing a coverage level similar to the current one, would be available for the majority of RRBS stations. 25 24 25 Consultation Document, para. 67. Ibid, para. 69. 18

68. Shaw does not object to this transition proposal, provided that priority is given to LPTV stations that are impacted by the repacking exercise, including LPTV stations that are converting to regular power allotments as discussed in the response to Question 7 above. Q9: Industry Canada is seeking comments on the proposal to update the Canadian Table of Frequency Allocations by adding co-primary allocations to fixed and mobile services in the 512-608 MHz and 614-698 MHz ranges. 69. While Shaw acknowledges that the International Table of Frequency Allocations already Conclusion includes co-primary allocations to the fixed and mobile services in the 512-608 MHz and 614-698 MHz ranges, 26 the Canadian Table of Frequency Allocations (CTFA) should only be updated once a decision has been made to repurpose the band and, even then, only when the frequency range of the proposed band has been determined along with any associated guard band requirements. Since this information will not be known until after the completion of the US incentive auction, it would be premature to update the CTFA at this time. 70. Shaw thanks the Department for the opportunity to provide our input in this proceeding. Shaw supports initiatives to make more spectrum available on a licensed and unlicensed basis to address consumer demand for broadband data services. At the same time, the proposed repurposing and repacking of spectrum in the 600 MHz band could have an adverse impact on OTA TV viewers and OTA broadcasters. In order to address these concerns in a constructive manner, Shaw urges the Department to adopt the proposals and recommendations contained in this submission. 26 ITU, International Table of Frequency Allocations, Footnotes 5.293 and 5.297. 19

Attachment 1 Cost Categories Related to Channel Changes Set out below is a non-exhaustive list of the types of costs that would be incurred by OTA TV broadcasters that are impacted by the proposed repurposing of spectrum in the 600 MHz band, the associated channel repacking proposal, and the evacuation of broadcast equipment from use of the 600 MHz band. The cost of reconfiguring each transmitter site would be affected by many variables and not all cost items listed below would be incurred at all sites. 1. Engineering Consultants options analyses, engineering briefs and filings, Safety Code 6 analyses, compliance verifications and certification applications 2. Tower Work structural mapping / analysis, reinforcement materials and labour 3. Building and Site Preparation and Reconfiguration site management, site access / road clearance and restoration, HVAC and electrical materials and labour, leasehold changes 4. Equipment Reconfiguration / Replacement includes antenna, transmitter, and several costly RF equipment components 5. Equipment Installation antenna and transmission line, antenna system re-optimization, transmitter commissioning, combiner modifications, and HVAC, liquid cooling and remote control systems 6. Other Site-Related Items dismantling and disposal of legacy antenna equipment, lease renegotiations, building permits, helicopter rental for remote site and tall tower access, liability insurance and site drawing packages 7. Project Staff Resources management, budgeting, installation scheduling, sourcing and procurement, regulatory filings and communication, site partner coordination and stakeholder communications 8. Replacement of Studio Equipment wireless microphones, field cameras and associated equipment rendered obsolete by the repurposing of spectrum in the 600 MHz band 9. Consumer Awareness Campaign 1