GATINEAU – So far, the CRTC’s basic service objective (BSO) hearing has been largely focused on broadband backbone network, speed and data caps, but on Thursday, the panel of commissioners were dealt doses of reality on the need to implement a low cost broadband service when the broad Affordability Access Coalition (AAC) making its appearance.
AAC is a collection of organizations including the Public Interest Advocacy Centre (PIAC), the Consumers Association of Canada (CAC), the Association of Community Organizations for Reform Now (ACORN) and others. The group argued that a minimum basic broadband should carry speeds of 10 Mbps download and 1 Mbps upload. It described this as “the new table stakes” for all of us.
They said that even though the pure number of Canadians without access to broadband may be very low, this percentage is considerably higher among low income Canadians. According to 2012 StatsCan data, only 58% of the lowest quartile of Canadians had access to the Internet. The CRTC’s own 2015 Communications Monitoring Report indicated 60% of the lowest quintile had Internet access.
The group argued, therefore, that the Commission’s goal of 5 Mbps up and 1 Mbps down (the 5/1 speed target was set in a 2011 decision) hasn’t been met for their members through targeted government funding initiatives and market forces.
“Leaving universal broadband to market forces and targeted government funding has failed to deliver 5/1 to all Canadians, let alone the higher speeds needed today. Continuing that approach will fail to live up to the telecommunications policy objectives of enriching and strengthening the social and economic fabric of Canada and its regions, and rendering ‘reliable telecommunications services of high quality accessible to Canadians in both urban and rural areas in all regions of Canada,’” said Geoffrey White, external counsel to PIAC.
Asked how the Commission might differentiate between a need and a want (viewing unlimited movies versus homework and job searching, for example), White added that “the gold standard of connectivity” is not the goal. But rather one that meets the needs of the average home.
“We’re talking about a level that lets not just one person do one application at a time on it, which would be a very limiting use of connectivity. We’re talking about the average household that may have more connected devices, kids coming home from school, hopping onto the Wi-Fi network to use that so that they can avoid the mobile bills, things like that; children doing homework with YouTube, things like that,” he explained.
AAC added that since the current approach has been ineffective, a new way of addressing this situation is needed. The group has proposed two new funding models that will help speed the rollout of broadband to all Canadians. The first is a Broadband Deployment Funding Mechanism. It would be funded through telecommunications service provider revenue, including that from Internet and paging. The total available would be as much as $190 million. It would be allocated by a third party which would allocate money based on a minimum subsidy auction.
A second, an important piece, of the ACC model is a subsidy for low income households. The Affordability Funding Mechanism would provide a base subsidy of $10.50 per household ($20.50 in an ambitious scenario) to affected families and would go towards the purchase of any “telecommunications service of their choice.” The total subsidy requirement would be capped at $70 million in the baseline scenario but could be as high as $410 million.
Commissioners were intrigued by the ideas and kept PIAC in front of them for some time on Thursday morning.
“Because I paid this bill I could not buy fruits or vegetables or meat for my family. I am taking money out of my food budget so I can for the Internet to find a job and support my family. It’s now a constant struggle every month.” Tina Ford, ACORN
As Thursday progressed into the afternoon, the panel got first-hand insight into how low income households deal with the sometimes high costs of broadband. Many members of ACORN appeared and told their stories – and at times, it was difficult to hear.
Tina Ford, a single mother of two young adults who also recently lost her job (she is a trained Housing First worker, working with the homeless in Ottawa), said she and her two sons rely on the Internet for a number of activities, including checking her employment insurance (EI) status, looking for jobs, registering for college courses and skills upgrading.
“My income now is $700 a month. I am on Ontario Works until May when my EI kicks in. My Internet bill last month was $170 and I could only pay half of it,” she said. “Because I paid this bill I could not buy fruits or vegetables or meat for my family. I am taking money out of my food budget so I can for the Internet to find a job and support my family. It’s now a constant struggle every month.”
Blaine Cameron, who is in a wheelchair, said he shares his broadband connection with a roommate. His share is about $20 per month, and while that may seem reasonable, its value is perhaps underestimated. Broadband allows him to fully participate in society.
“Having access to the Internet allows me to easily plan my bus trips so I can attend doctors’ appointments, get my wheelchair serviced, participate in power chair sports, socialize, and fully participate in organizations like ACORN,” he said. “Having access to the Internet allows me to be an informed individual and citizen. I am able to follow city, provincial, federal, and world issues and often can get in-depth knowledge.”
“It's kind of like a self-fulfilling or a cycle that you get trapped into and there's no getting out,” added another ACORN presenter, Michelle Rowland (pictured above in a CPAC screen cap). “It's very hard to — especially when you're a disabled person — to differentiate between a want and a need because we have mental health needs that people who are able-bodied and who have viable incomes can satisfy easily just in their normal ability to function in society with money and physical health.”
These are just three situations, among many others that painted a similar picture for the CRTC.
It will be interesting to hear the responses to this from the large carriers, who begin appearing next week, starting with Telus on Monday and Bell Canada on Tuesday, Cartt.ca will be back at the hearing then, but it can be heard on the CRTC web site and seen on cpac.ca
