Governance Model for a 700 Megahertz Broadband Interoperable Network for Public Safety in Canada. Workshop Results

Governance Model for a 700 Megahertz Broadband Interoperable Network for Public Safety in Canada Workshop Results DRAFT 4: March 30, 2012

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 i

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 nearto-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 1

(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 2

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 3

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 4

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 crossborder 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 5

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 6

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 7

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 8

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 9

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 10

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 11

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/correspondencefromprimeministerharpertocacppresident billblairre700mhz.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.drdcrddc.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 12

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 13

Acronyms AANDC CANNOR FedNor P3 Canada PPP Aboriginal Affairs and Northern Development Canada Canadian Northern Economic Development Agency Federal Economic Development Initiative for Northern Ontario Public-Private Partnerships Canada Public-Private Partnerships Report Draft v4 March 30, 2012 14