3,000 have signed up to Connecting Families so far, too

OTTAWA – Following last month’s report from the Auditor General which said the connectivity needs of rural Canadians are too often going unmet, John Knubley, Canada’s Deputy Minister, Innovation, Science and Economic Development Canada, today said the ministry accepts the recommendations made in the report and are moving forward with plans to improve rural and remote internet connectivity.

“On strategy, we agree with the report, particularly in light of the CRTC‘s decision in December 2016 declaring broadband as a basic service,” Knubley said. “I believe the declaration has created a significant inflection point which has required us to move from an evolutionary step by step approach to a more collaborative, integrated approach to broadband.”

Knubley says because his department’s broadband approach actually pre-dates the 2016 proclamation of broadband as a basic service announcement, they sought to address specifics with respect to services, coverage and speed. “We focused on closing the gap in speeds between urban and rural areas and doing it in a way that carefully balances public interest and private investment,” he offered.

Acknowledging that connectivity and coverage continue to be moving targets – and that technology is constantly changing and improving, Knubley added coming up with a strategy containing specific goals was paramount. “Work is already well underway. This past spring, we established a provincial and territorial connectivity committee that worked to examine service levels, priorities, principles and gaps, as well as to co-ordinate plans of action. In June, the department launched a national digital and data strategy consultation where connectivity is a foundational component. And in September, Minister Bains released the economy strategy table reports, which focused on the importance of digital infrastructure for economic growth of the economy.”

This past October, ministers from the federal, provincial and territorial levels of government all pledged to work towards universal access to high-speed internet, agreeing to make broadband a priority, establishing connectivity principles and developing a long-term strategy to improve both high-speed Internet and mobile connectivity for all Canadians.

On the matter of spectrum in rural and remote areas, Knubley agreed that the impact in those specific regions is an important consideration as they develop a licensing framework and spectrum activities. “We are continuing to develop policies that encourage service in rural areas to help ensure all Canadians will benefit from high-quality services, coverage and affordable prices,” he said. “We just published a consultation on the development of similar geographic service areas, known as the Tier Five consultations. We are trying to drill down to a smaller geographic area so that we have a better understanding and mapping of what can be achieved.”

With the 600 MHz spectrum auction now just a few months away in March 2019, Knubley said ISED is confident the spectrum will be capable of providing expanded rural coverage as the government has set aside 40% of the spectrum specifically for regional service providers. In conjunction with the auction, the government has also put stringent deployment requirements in place to ensure the spectrum is used across the country.

Helping bolster rural and remote connectivity are low-orbit satellites, which Knubley says have significant potential to provide internet access to Canadians living in rural and remote areas, especially in the north. He also shared that approximately 3,000 families have signed up for Connecting Families, the broadband program that provides broadband service to low-income households for $10 per month. The program was officially launched last month.

In all, Knubley says more than $1 billion is being committed to help bring improved connectivity to Canadian households.

“We agree with the Auditor General concerning the need for a strategy pursuing value for money wherever we can and fully considering rural dimensions in the spectrum auction.” – John Knubley, ISED

“We recognize how important high-speed connectivity is for rural communities and Canadians. And we continue to work as hard as we can. We see connectivity as a critical enabler of economic growth, and that is why we agree with the Auditor General concerning the need for a strategy pursuing value for money wherever we can and fully considering rural dimensions in the spectrum auction.”

Also appearing in Ottawa at yesterday’s meeting was CRTC chairman and CEO Ian Scott, who said the commission has a limited, yet important, part to play in the connectivity puzzle.

“Our job as an independent regulator is to ensure Canadians have access to a world-class communication system that promotes innovation and enriches their lives,” Scott said. “The CRTC believes that all Canadians – no matter where they live – should have access to broadband Internet services, on both fixed and mobile networks.”

As the Auditor General’s report underlines, Scott emphasized connectivity is vital in today’s world, and that Canadians need access to an “unfettered” Internet experience. It is those beliefs, he said, which led the CRTC to establishing a universal service objective that calls for all Canadians to have access to fixed broadband services at download speeds of at least 50 Mbps and upload speeds of 10 Mbps, as well as access to an unlimited data option.

“By the end of 2021, we expect that 90% of Canadian households will have access to speeds matching the universal service objective. By our estimates, it will take another decade after that for the remaining 10% to join them.” – Ian Scott, CRTC

“By the end of 2021, we expect that 90% of Canadian households will have access to speeds matching the universal service objective. By our estimates, it will take another decade after that for the remaining 10% to join them,” Scott said.

According to Scott, 84% of Canadians have access to the Internet at the speed targets outlined by the CRTC already. However, he said many people living in rural and remote areas could “only dream” of this level of service. “As a result, 16% of Canadian households, or nearly two million Canadians, still don’t have access to the universal service objective speeds or unlimited data option. Fast, reliable, high-quality Internet is simply out of reach, whether physically or financially, in many parts of the country.”

During the CRTC’s public hearing on basic telecommunications services, Scott said they heard from more than 50,000 people of varying backgrounds and professions that said they feel they’re being left behind in the digital age.

“Coverage gaps vary by region. Smaller Maritime and Prairie communities often do not enjoy the high speeds of major urban centres. The worst off, and most in need, are almost always found in Canada’s North. Efforts to close these gaps need to be co-ordinated, as they are a shared responsibility among numerous players. Beyond the CRTC, this includes ISED, the provinces and territories, Indigenous governments, the telecommunications industry and non-governmental organizations.”

For its part, the CRTC announced a new Broadband Fund that will provide up to $750 million over five years to help pay for infrastructure to extend Internet and mobile wireless services to underserved areas. Its objective is to ensure that rural residents have comparable service to that available in urban areas. Of that fund, up to 10% of the annual total will be provided to improve services in satellite-dependent communities.

With the first call for applications expected in the new year, Scott says it will be important for potential applicants to know where the greatest needs are located.

“Last month, we published maps indicating the areas of the country that do not have access to broadband speeds of 50 Mbps for download and 10 Mbps for upload. The maps also identify communities without high-capacity transport infrastructure and where homes or major roads do not have access to LTE mobile wireless service. In short, the areas of the country that do not currently meet our universal service objective. We have asked Internet and wireless service providers to verify the accuracy of our maps.”

Scott says the CRTC will soon publish an update to its annual Communications Monitoring Report that will provide fresh data on broadband availability and other related information.

“We are committed to sharing information on broadband infrastructure to support evidence-based decision making,” he said. “We are also committed to working with all levels of government as part of a collaborative effort to provide broadband Internet service to underserved Canadians.

“The CRTC’s Broadband Fund is obviously just one part of the equation. It is meant to be complementary to – but not a replacement for – existing and future public funding and private investment. Having detailed, accurate and up-to-date information at the disposal of the public and policy-makers will ensure that funds are being directed to the most appropriate projects and communities.”

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