Management’s Discussion and Analysis Licences and Changes to Wireless Regulation Companies must have a  spectrum licence to operate cellular, PCS and other radio- telecommunications  systems in Canada. The Minister of Industry awards spectrum licences, through  a variety of methods, at his or her discretion under the Radiocommunication Act . service bundles and customer contracts. The CRTC sought comments on proposed pricing restrictions on volume or term contracts for retail tariffed services. It issued an amended public notice on December 8, 2003. The record of this proceeding was completed with the filing of arguments on June 11, 2004 and reply arguments on June 25, 2004. If the CRTC determines the proposals are to be implemented as proposed, the Bell Canada companies will be required to increase the minimum prices they charge for regulated services. This would negatively limit their ability to compete. A decision is expected in the second quarter of 2005. There is a risk that the CRTC might decide to regulate VoIP services provided by the Bell Canada companies and other incumbent telephone companies but not the VoIP services provided by certain other competitors, cable companies in particular. These  proceedings could determine the rules for competition with other service providers and limit the ability of Bell Canada companies to compete in the future. The CRTC has included a “Proceeding on Regulatory Symmetry” in its 2005–2006 Work Plan. If cable  companies and the incumbent telephone companies are subject to different regulations for similar services, and specifically for similar bundles of services, the incumbent telephone companies would be at a com- petitive disadvantage which could have a material and negative effect on their revenues and profitability. On November 6, 2003, Bell Canada filed an appli- cation requesting that the CRTC start a public hearing to review how similar services offered by cable com- panies and telephone companies are regulated. This would allow consistent rules to be developed that  recognize and support the growing competition between these sectors. Bell Canada also requested that this proceeding address any rules that might be needed to govern VoIP services provided by cable companies and others. On November 18, 2004, the CRTC issued Broadcasting Decision CRTC 2004-496, which approved Bell Canada’s applications for licences to operate terrestrial broad- casting distribution undertakings, using its wireline facilities, to serve large cities in Southern Ontario and Québec. Bell Canada will be licensed under the same terms and conditions that apply to major cable oper- ators, without any delays or other conditions that would negatively affect its ability to compete with them. The licences will be issued once Bell Canada informs the CRTC that it is ready to commence operations and will expire on August 31, 2011. Bell Canada is required to have the terrestrial broadcasting distribution under- takings operational no later than November 18, 2006, unless an extension of time is approved by the CRTC. As a result of an Industry Canada decision, the cellular and PCS licences of Bell Mobility and of Aliant Telecom Inc. and MT&T Mobility Inc. (two subsidiaries of Aliant), which would have expired on March 31, 2006, will now expire in 2011. The PCS licences that were awarded in the 2001 PCS auction will expire on November 29, 2011. As a result, these Bell Canada companies’ cellular and PCS licences are now classified as spectrum licences with a 10-year licence term. While we expect that they will be renewed at term, On April 7, 2004, the CRTC invited comments on its preliminary views on the regulation of VoIP serv- ices and invited interested parties to participate in a public consultation on the regulatory framework for VoIP. The CRTC’s preliminary view is that VoIP serv- ices using telephone numbers that conform to the North American Numbering Plan (NANP) and allow subscribers to make or receive calls from any tele- phone with access to the PSTN are functionally the same as switched telecommunications services. The CRTC’s preliminary conclusion is that when incum- bent telephone companies provide VoIP services in their incumbent territories, they should be required to respect their existing tariffs or to file proposed tariffs where required, in order to conform with the regula- tory rules that apply. The CRTC also provided prelimi- nary views on 9-1-1 services, message relay service and privacy safeguards provided by local VoIP service providers. Bell Canada provided its comments to the CRTC on June 18, 2004. The CRTC held the public consultation on the regulatory framework for VoIP from September 21 to 23, 2004. Bell Canada filed reply comments on October 13, 2004. Application Seeking Consistent Regulation Licences for Broadcasting Licences and Changes to Wireless Regulation 74 Bell Canada Enterprises  2004 Annual Report