Request for Proposal (RFP) Abstract: Study to determine the value of Cellular and Personal Communications Services (PCS) spectrum in Cana

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Study to determine the value of Cellular and Personal Communications Services (PCS) spectrum in Cana

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Header

	Reference Number	178050
	Solicitation Number	IC 400863
	Organization Name	Industry Canada / Industrie Canada
	Source ID	FD.DP.ON.6876.C64118
	Associated Components	Yes

Dates

	Published	2009-07-03
	Revised
	Closing	2009-07-23 02:00 PM Eastern Daylight Saving Time EDT

Details

	Category	Financial and Related Services
	GSINS	L099B: FINANCIAL MANAGEMENT
	Region of Delivery	National Capital Region
	Region of Opportunity	Canada
	Agreement Type	None
	Tender Type	Request for Proposal (RFP)
	Estimated Value	$100,001 - $250,000
	Solicitation Method	Open

Notice Description

	Study to determine the value of Cellular and Personal Communications Services (PCS) spectrum in Cana 1.0 PURPOSE Industry Canada requires the services of a contractor to undertake a study to determine the value of Cellular and Personal Communications Services (PCS) spectrum in Canada. The services will be required for a period of approximately two months after the contract has been awarded. 2.0 TITLE OF PROJECT Study to determine the value of Cellular and Personal Communications Services (PCS) spectrum in Canada. 3.0 BACKGROUND Radio frequency spectrum is a unique public resource from which all aspects of society benefit. It provides Canadians with access to a range of private, commercial, consumer, defence, national security, scientific and public safety applications. The Minister of Industry, through the Department of Industry Act, the Radiocommunication Act and the Radiocommunication Regulations (‘Regulations’), with due regard to the objectives of the Telecommunications Act, is responsible for spectrum management in Canada. As such, the Minister develops national policies for the use of the spectrum resource to ensure it is effectively managed and efficiently used. The Department’s policy objective in managing the spectrum is to maximize the economic and social benefits that Canadians derive from the use of the radio frequency spectrum resource. As such, fees for radio authorizations should promote the efficient assignment and use of this resource and earn a fair return for the Canadian public for the privilege of access to spectrum. When fees are set to reflect the economic (market) value of the spectrum, they: serve as an incentive for licensees to put spectrum to its highest valued use; encourage the roll-out of services to Canadians; and, dissuade anti-competitive behaviour that could impede access to spectrum by competitors. The Minister of Industry, pursuant to sections 18 through 20 of the Department of Industry Act, may fix fees for rights and privileges as well as services the Minister provides including spectrum authorizations (licences) issued pursuant to paragraph 5.(1)(a) of the Radiocommunication Act. Under this umbrella, authorizations to provide Cellular and Personal Communications services (PCS) have been issued by the Minister for systems operating in the bands 824 to 849 MHz and 869 to 894 MHz for Cellular and 1850 to 1910 MHz and 1930 to 1990 MHz for PCS. Authorizations were assigned through a comparative review process in 1985 and 1995. In addition, PCS spectrum licences were auctioned in 2001. All these licences will be up for renewal at approximately the same time, April 1, 2011, and will attract an annual licence fee for the next 10 year licence term. Since auctioned and non-auctioned licences had different conditions of licence, the Department established a policy in 2003 (DGRB-006-03) to transition legacy cellular and incumbent PCS licences, which had been based on radio apparatus, to spectrum licences, to simplify and harmonize the licensing and fee structure. The new spectrum licensing policy introduced licences with 10-year terms, as well as a single fee structure for all PCS and cellular carriers. This created a framework that was more efficient and fair. Concurrently, the Department released DGRB-005-03, Radio Authorization Fees for Wireless Telecommunication Systems that Operate in the Radio Frequency Bands 824.040 MHz to 848.970 MHz, 869.040 MHz to 893.970 MHz or 1850 MHz to 1990 MHz, which fixed the fees for spectrum licences issued to cellular and incumbent PCS licensees. The new fee and licensing regime came into effect on April 1, 2004, and new licences were issued. This fee order currently covers these frequency bands and sets the fee at $0.03512361/MHz/ person annually. With Gazette Notice DGRB-002-09, issued in March 2009, Industry Canada announced the Consultation on the Renewal of Cellular and Personal Communication Services (PCS) Spectrum Licences. The consultation on the renewal of these licences, excluding the consideration of the appropriate licence fee, is already underway with comments having been received on May 29, 2009. Following the consultation, the Department will publish its decision outlining the procedure for renewal and the applicable licence conditions. The Notice also stated that Industry Canada would undertake a formal study to assess the current market value of these spectrum licences and would launch a separate public consultation regarding the proposed fee for the renewed licences. The purpose of this request for proposal is to engage a contractor who will provide an estimate of the value of the Cellular and PCS Spectrum. The Department will take this value into consideration when determining a proposed fee for the next term that will apply to Cellular and PCS licences that expire on or after March 31, 2011, keeping in mind its objectives when setting fees, which is to promote the efficient assignment and use of this resource and earn a fair return for the Canadian public. 4.0 PROJECT REQUIREMENTS/OBJECTIVES The objective of this study is to determine the value for the Cellular and PCS spectrum licensed in the radio frequency bands 824.040 MHz to 848.970 MHz, 869.040 MHz to 893.970 MHz and 1850 MHz to 1990 MHz. Industry Canada will take this value into consideration when determining an annual fee that will be assessed for the renewed Cellular and PCS spectrum licences over the duration of their next licence term. A public consultation will be held regarding this proposed fee. This study will form part of that consultation. 5.0 SCOPE OF WORK The Contractor will be required to complete a study that determines the value of Canada’s Cellular and PCS spectrum in the radio frequency bands 824.040 MHz to 848.970 MHz, 869.040 MHz to 893.970 MHz and 1850 MHz to 1990 MHz. Industry Canada will take this value into consideration when it determines an annual fee for the renewal of Cellular and PCS spectrum licences. Industry Canada is aware that there are challenges when trying to determine the underlying value of spectrum. The study should give consideration to, but not be limited by, the following: different frequency bands, different geographic areas, prevailing economic conditions, method used to assign spectrum. The study should include a description of the proposed approach, data sources and methodology used as well as the rationale for the selection thereof. In so doing, a comparative review of differing valuation practices that could have been used and the rationale for rejecting them should be provided. The study should assess the relevance of auction results for similar spectrum, both national and international, as well as other relevant market transactions that might be used. The study must include an international fee comparison of similar services, including reference to, but not limited to the following jurisdictions: Australia, the United Kingdom and the United States of America. This comparative analysis should reference the policy objectives under which these fees have been determined as well as any potential developments that might steer the respective jurisdiction(s) away from their current strategy. A study outline and report delivery schedule, including status reports are required. 6.0 MANDATORY REQUIREMENTS 6.1 – The Bidder must provide a curriculum vitae (C.V.) for all proposed personnel who will participate in the project and identify the role each team member will play. The education and experience listed in the C.V.s must clearly demonstrate relevancy to the project. Furthermore, the Bidder must identify the C.V.s of each senior team member(s). The experience listed in their C.V.s must provide supporting data that describes where and how such experience was obtained. 6.2 – The total cost of the project must not exceed $150,000.00 Canadian dollars (including GST), and must include the costs for the optional meeting the Contractor may be asked to attend. Bidders are required to provide a full cost breakdown as per Section 12.0 below, Financial Proposal. 6.3 – The financial proposal must be submitted as a separate document to the technical proposal (NO FINANCIAL INFORMATION FROM THE FINANCIAL PROPOSAL MAY APPEAR IN THE TECHNICAL PROPOSAL).

Contact(s)

Contracting Authority

	Name	Linda Lafreniere
	Address	235 rue Queen
	City	Ottawa
	State / Province	ON
	Country	Canada
	Postal Code	K1A 0H5
	Phone	613-954-5523
	Fax	613-943-8114
	Email	lafreniere.linda@ic.gc.ca
	Website URL

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