TORONTO — The Ontario government today reconfirmed its commitment to invest $150 million to improve broadband and cellular service in rural, remote and underserved areas of the province.
The funding was previously announced in July 2019 as part of the province’s $315-million initiative called Up to Speed: Ontario’s Broadband and Cellular Action Plan.
“As we carefully restart the economic engine of Canada, every region and every community will play a role in bringing jobs and prosperity back to our province,” said Ontario Premier Doug Ford, in today’s news release. “By investing in reliable broadband and cellular service, we are helping to create greater opportunity for our families, farmers and small business owners in rural and remote areas of this great province.”
Today the province announced the new Improving Connectivity in Ontario (ICON) program, which it says has the potential to result in an investment of up to $500 million in total partner funding. Telecom companies, municipal governments, First Nations communities, non-profits and other applicants will be invited to submit proposals and provide their investment, expertise and experience to improve connectivity in underserved and unserved communities across Ontario. The province will fund a portion of each approved project, says the release.
Access to broadband is a core component of the province’s Learn at Home initiative, which was launched due to the Covid-19 pandemic and the closure of schools across the province in mid-March. Ontario Minister of Education Stephen Lecce recently called on the federal government to do more to help improve Internet connectivity for Ontario students.
“Our government is taking action by connecting all schools to broadband, starting with high schools this September 2020 and elementary schools by September 2021. It is also why we are calling on the federal government to step up their investment to connect the next generation of thinkers and workers to the modern and digital economy,” said Minister Lecce.
Up To Speed also acknowledges the serious hurdles which remain in the way in its “barriers and challenges” section. Those include:
- Broadband and cellular gaps driven by low population density, expansive distance and tough terrain. Service providers simply face more challenges delivering broadband to rural, remote and northern communities than they do to urban locations. Even large telecommunications providers with construction divisions have limited economic incentive to expand into low-density communities. While smaller providers may have more incentive to grow their customer base, they may face high costs because of expansive geography and local terrain (such as rock and dense forest) that make construction difficult.
- Limited access to fibre-ready infrastructure: Connecting communities often requires running fibre optic cables long distances, typically buried in the ground or attached to hydro poles. Ontario has the highest hydro pole attachment rates in Canada and these costs are a financial barrier to expansion in rural, remote and northern areas.
- Co-ordinating construction activities: Permit requirements and lack of coordination of construction activities can add significant costs to build and upgrade networks. These costs could be reduced by co-ordinating network construction with other construction projects, such as roads.
- A complex landscape of government programs lacking unified direction: Multiple programs, criteria and jurisdictional responsibilities can create a complex environment. At the municipal level, there is also often a lack of resources to support funding applications for broadband expansion. Aligning broadband expansion programs across all levels of government can simplify operations for telecommunications providers and municipalities. Alignment can also provide more opportunity for innovative partnerships between government and the private sector.
Quoted in the news release are executives from several telecom companies, who were not present at the government’s announcement, which was made by Ford, Lecce, Deputy Premier and Minister of Health Christine Elliott, and Minister of Infrastructure Laurie Scott.
“While we continue to expand Bell’s own Wireless Home Internet program to more rural communities in Ontario, government programs such as this are crucial to helping close the remaining gaps,” said Stephen Howe, chief technology officer of Bell.
“We welcome today’s announcement which brings Cogeco Connexion… closer to having shovels in the ground on projects that will reach traditionally unserved and underserved communities,” said Philippe Jetté, president and CEO of Cogeco Inc. and Cogeco Communications Inc.
“We know how important it is for Canadians to have access to high-speed Internet connectivity no matter where they live. In less populated areas, the solution lies in a partnership between governments and network builders, and we welcome the Government of Ontario’s program,” said Jorge Fernandes, chief technology and information officer of Rogers Communications.
“In order for traditionally underserved communities to have access to the connectivity they need, governments and the private sector need to collaborate on an approach that leverages their respective strengths and uses the PPP model to get the job done. National carriers like Telus have the experience and expertise to complete projects quickly and cost-effectively, and to provide the type of connectivity that fits the specific needs of a community today and for future generations,” added Ibrahim Gedeon, CTO of Telus.
