By Ahmad Hathout
OTTAWA – Two dozen applicants which have been denied Connect to Innovate money have yet to be notified of their status, despite the government’s intention to give them time to prepare applications for the CRTC’s Broadband Fund and the new Universal Broadband Fund.
Innovation, Science and Economic Development (ISED) has made it clear, according to a 2019 briefing note obtained by this publication, that it wanted to inform and prepare unsuccessful CTI applicants for other funding opportunities in the CRTC’s $750-million program, which has already closed a second round of applications, and in the government’s delayed $1 billion Universal Broadband Fund.
“To encourage applicants to apply for these broadband funding opportunities, we will be sending letters of notification to applicants,” the note said. “These applicants should be made aware there will not be additional project selections [for CTI] and be encouraged to apply [to the CRTC fund]. Notifying these applicants will also provide them with certainty to begin preparing applications for the upcoming Universal Broadband Fund.”
“Unsuccessful applicants who have yet to receive notification may continue to believe there is a possibility there could still be funding available,” ISED continued in the briefing note, alluding to a mistaken belief that an unnotified applicant may have about the fund.
This week, however, a department spokesperson confirmed that 24 applicants have yet to be notified that they won’t receive CTI money, as funding rounds close for some broadband programs and as the details and call for applications to the UBF, which were supposed to be announced earlier this year, looms.
It’s difficult to confirm whether or not the 24 applicants have already applied for the other funds because the government does not disclose the names, but different broadband funds will try to avoid funding the same project, so notification is imperative to help the failed applicants determine if another application to another fund is worthwhile.
“The CTI program kept applications ‘live’ for as long as possible to maximize the number of high-quality applications that could be funded,” ISED said in response to why it takes so long to notify unsuccessful applicants, adding “the program responds to queries from any applicants that wish to have an update.
“As remaining projects are finalized and negotiations completed, CTI will send out the balance of the notifications,” the ministry said.
The revelation shows the often slow pace at which the government evaluates projects and the long road to get fed money flowing — even as newer programs and additional funding pledges are thrust on the heels of older programs. Last week, for instance, the government pledged an additional $2 billion to broadband infrastructure projects, with scant details provided.
The government takes a hands-on approach to seeing selected broadband projects through, which means step-by-step reviews of feasibility and criteria eligibility and negotiations at the contribution agreement stage. In the case of notifications, if applicants don’t pass the first level of review, they would be notified of failure “quickly,” ISED said. Those who passed more detailed reviews were notified when the “bulk” of the $585-million CTI pool, including the $85-million top-up for the program made in budget 2019, was allocated, it added.
As of May, only 50 communities, representing 25,000 households, have been hooked-up with CTI money. But 610 of the 892 assessed applications were denied by the government, a number that stunned some members of parliament. Of the 892, 186 applicants didn’t pass “preliminary technical assessments” — which could include not meeting a speed target — and were notified as such in October 2018, according to the ministry.
ISED said all CTI money was allocated (not necessarily delivered) and successful applicants were notified as of September 6, 2019, just a few months shy of the three-year anniversary since its introduction in December 2016.
The department did not respond to follow-up questions about when it expects to send out all notifications and when it may finalize all CTI projects.
But even if all projects are finalized, the government cannot rest on its laurels. Some projects have seen their funding pledges withdrawn — the number of which the government will not disclose, it says, for “confidentiality” reasons. But one prominent case out of Northern Manitoba — a partnership between Wekitowak Communications, RFNow, and Mathias Colomb Cree Nation — saw its money pulled after delays in project progress.
While Covid has stunted the government, leading to delays in projects and program announcements, it’s still unclear what other factors are contributing to the delay in the UBF’s anticipated reveal.
The lagging notifications may hint at perhaps one reason why the details of the new program have yet to be announced. The notification letters, which were supposed to be sent in January of this year, according to the briefing note, include information about the CRTC and UBF funds and links pointing to additional information about them.
As for the CRTC’s Broadband Fund, spokeswoman Patricia Valladao said the regulator is “not in a position to comment on any future calls for applications at this time.” The CRTC received 593 applications requesting more than $1.5 billion in total funding during the second call for applications, which was opened to all kinds of applications across the country (the first call was limited to the northern regions and satellite-dependent communities).
The government has so far said UBF money will go toward supporting “whatever network infrastructure is needed to best meet rural and remote connectivity needs, including fibre, fixed wireless, and satellite technologies depending on the region.” It also said it has consulted with internet service providers, provinces, municipal and Indigenous organizations.
In January, ISED met with the largest ISPs, which provided the government with recommendations on what types of projects it should focus the money. Rogers and Bell, for example, recommended the government be flexible with the money so it can target back-bone, last-mile and transport infrastructure for internet delivery and not just one or the other.
The ultimate goal for the federal government is to bring speeds of 50 Mbps download and 10 Mbps upload to the entire population by 2030.
