Question Period Note: UNIVERSAL BROADBAND FUND

What is the status of the Universal Broadband Fund (UBF) that was announced in Budget 2019?

• The Government of Canada has made billions of dollars available for rural and remote Internet infrastructure to help ensure all Canadians have access to fast and reliable Internet, no matter where they live.

• Budget 2021 proposes to provide an additional $1 billion over six years, starting in 2021-22, for the Universal Broadband Fund to support a more rapid rollout of broadband projects.

• In total, including proposed Budget 2021 funding, $2.75 billion will be made available through the UBF to support Canadians in rural and remote communities.

• The government’s investments will connect 98 per cent of Canadians across the country to high-speed Internet by 2026, with the goal of connecting all Canadians by 2030.

SUPPLEMENTARY MESSAGES

• The government recognizes the urgency of bridging the digital divide for Canadians and is please that announcements of successful Rapid Response stream projects are already underway.

• The COVID-19 pandemic has shifted much of our lives online and transformed how we live, work, learn, and do business. This makes it more important than ever that Canadians, including Canadian small businesses in every corner of this country, have access to fast and reliable high-speed Internet.

• This would mean thousands more Canadians and small businesses will have faster, more reliable internet connections.

• To assist in COVID-19 recovery efforts, the government has set aside up to $150 million through a Rapid Response Stream for UBF projects that can be completed during the 2021 build season. 574 applications were received under this stream.

• The government is also improving mobile Internet for Indigenous peoples by setting aside $50 million for UBF projects that connect roads and communities that demonstrate value in terms of Indigenous socio-economic development or Indigenous public safety.

• Thanks to the recent announcement of federal and provincial investments, Highway 16 in British Columbia, more commonly known as the Highway of Tears, will soon have cellular coverage along the entire route, fulfilling a critical recommendation in the National Inquiry into Missing and Murdered Indigenous Women and Girls’ calls for Justice.

• The government will keep Canadians up to date on these investments and the progress made towards connecting all households in the country through online reporting, updated quarterly.

Universal Broadband Fund

In Budget 2019, the government set a national target for 95 per cent of Canadian homes and businesses will have access to speeds of at least 50/10 Megabits per second (Mbps) by 2026 and 100 per cent by 2030, regardless of where they are located in the country. To help reach this target, Budget 2019 committed funding to support the launch of the Universal Broadband Fund as well as secure new, Low Earth Orbit satellite capacity to serve remote and northern communities and top-up the Connect to Innovate program.

Budget 2021 proposes to provide an additional $1 billion over six years, starting in 2021-22, to the UBF to support a more rapid rollout of broadband projects in collaboration with provinces and territories and other partners. This would mean thousands more Canadians and small businesses will have faster, more reliable internet connections.

Launched in November 2020, the UBF dedicated $1.75 billion, up from the original $1 billion in Budget 2019, towards connecting Canadians living in rural and remote areas of the country. This includes:
• Up to $150 million for a Rapid Response stream to assist in building projects that must be completed in 2021;
• Up to $750 million for large, high-impact projects that are transformative in nature, for example connecting large numbers of households or large geographic areas, or will substantially improve speeds being offered;
• Up to $50 million for mobile Internet projects that primarily benefit Indigenous peoples; and
• Other projects to help get Canadians connected quickly to high-speed Internet, using the remaining funding.
• Budget 2021 increases the UBF to $2.75 billion.

The intake period for the main UBF is now closed. Applications are undergoing assessment and announcements are already underway. All announcements are being posted online on the UBF website: Canada.ca/get-connected

Announced projects as of April 15, 2021:
• Rapid Response Stream: The government has announced over $41 million in funding for 43 projects to connect over 11,000 households across Canada.
• Mobile: The government announced a partnership with the government of British Columbia to provide 100 percent mobile coverage along BC’s Highway 16, known as the Highway of Tears, by October 2022. The Government of Canada is contributing up to $2.25 million to this project, which will see 12 new cellular towers built between Prince Rupert and Moricetown to help keep travelers safe.
• Main UBF: The government, the Government of Quebec, and Internet service providers (ISPs) Vidéotron, Cogeco, Bell, Xplornet, Sogetel, and TELUS are partnering to launch the extensive Canada-Quebec Operation High Speed, to connect nearly 150,000 homes to high-speed Internet by September 2022. This operation is made possible by an equal investment totaling $826.3 million from the government and the Government of Quebec.

The Pathfinder Service received just under 2,000 inquiries during the application period with almost half of them coming from small ISPs and municipalities. They have offered 18 webinars to over 1,000 participants and sent out seven e-blasts to help applicants prepare their submissions to the program.

Applications for the Rapid Response stream were accepted on a rolling intake basis until January 15, 2021. In total, 574 applications were received from all provinces and territories except the Yukon. These applications requested over $550 million and represented total project costs of over one billion dollars. On December 17, 2020, the first project to be funded was announced.

Connectivity Strategy

The government published Canada’s Connectivity Strategy in June 2019. The Strategy committed to connect every Canadian to affordable, high-speed Internet no matter where they live by 2030, and to improve mobile cellular access from coast to coast to coast. The UBF is a key action under the Strategy, along with other complementary measures such as improving access to spectrum, reducing barriers to investment, and broadband funding from other entities including the Canada Radio-television and Telecommunications Commission (CRTC), Infrastructure Canada, and the Canada Infrastructure Bank.

CRTC Broadband Fund

In 2016, the CRTC established a fund of up to $750 million to help achieve universal access at speeds of 50/10 Mbps, as well as mobile coverage along major roads. The CRTC’s fund is sourced from a levy on telecommunications service providers’ revenues.

In August 2020, the CRTC approved $72 million in funding for five projects in the North and Northern Manitoba as part of the fund’s first call for applications, which will improve broadband service to more than 10,000 households in 51 communities. The CRTC’s second call for applications, focusing on the rest of Canada, closed June 1, 2020, and announcements are now being made, including 12 transport projects receiving $84 million in funding to benefit 56 communities.

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