Question Period Note: RURAL AND REMOTE BROADBAND

What is the Government of Canada doing to support the development of high-speed internet in rural and remote areas?

• The current crisis has highlighted the need for digital connections, and the Government of Canada wants to ensure that all Canadians have access to fast and reliable Internet, no matter where they live.

• Budget 2021 proposes to add an additional $1 billion over six years for the Universal Broadband Fund, bringing the total to $2.75 billion available through the UBF to improve high-speed communications in rural and remote areas of Canada.

• The government has also entered into a $600-million agreement to serve the most remote areas through Telesat’s Low Earth Orbit satellite constellation.

• High-speed internet will be available to 98 per cent of Canadians across the country by 2026, with the goal to connect all Canadians by 2030.

SUPPLEMENTARY MESSAGES

• In November 2020, the government added an additional $750 million to the original $1 billion allocated to the Universal Broadband Fund to accelerate timelines and connect 98 per cent of Canadians by 2026 – up from the original target of 95 per cent by 2026.

• The government is providing this additional funding to advance large, high-impact projects, and to partner with the Canada Infrastructure Bank and other stakeholders.

• 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.

• To connect communities as quickly as possible, the UBF includes up to $150 million for a Rapid Response Intake Stream, dedicated to projects that will be completed quickly - by November 2021. Several Rapid Response projects have already been selected and announced, with more to come.

• The UBF also includes $50 million to improve mobile services in areas that will benefit Indigenous peoples.

• The application period for the Rapid Response Stream closed January 15, 2021. In response to feedback from our partners and stakeholders, the deadline for applications to the main UBF intake was extended to March 15, 2021.

• The CRTC also recently announced projects under its Broadband Fund. The selected projects will target 41 communities, including three Indigenous communities and one official language minority community, representing more than 8,000 households.

Amid the pandemic, a Canadian sample showed that home Internet traffic for downloads increased by up to 48 percent, and up to 69 percent for uploads. Approximately 4.7 million Canadians worked from home in March 2020. On March 27, 2020 Bell noted that Internet usage in 300 rural communities also surged 50 percent.

Universal Broadband Fund

In Budget 2019, the government set a national target for 95 per cent of all homes and businesses to have access to speeds of at least 50/10 Megabits per second (Mbps) by 2026 and 100 per cent by 2030. With new investments, the target for 2026 has been increased to 98%.

The UBF has dedicated $2.75 billion, up from the original $1 billion, towards connecting Canadians living in rural and remote areas of the country to high-speed Internet as well as improving mobile Internet for Indigenous peoples. The UBF includes a $150 million Rapid Response stream dedicated for projects to connect rural Canadians by November 15, 2021.. The deadline for applications to the Rapid Response Stream closed on January 15, 2021. Following feedback from partners and stakeholders, the deadline for applications under the main UBF intake was extended until March 15, 2021.

LEO Satellite Developments

The government has partnered with Telesat and invested up to $600 million to secure Low Earth Orbit (LEO) satellite capacity over Canada to reach the most remote communities. These satellites will provide high-bandwidth, low-latency broadband internet coverage to rural and remote regions of Canada, including the North.

On November 6, 2020, ISED provided regulatory approval for SpaceX’s Starlink constellation, allowing it to provide fixed satellite services in Canada. Over the past few months, SpaceX has entered the Canadian market and has begun to offer Starlink beta service to Canadians.

Other Actions to Improve Access

Spectrum Initiatives: In addition to providing flexibility to licensees during the pandemic by extending payment dates for annual licence renewal fees in 2020, allowing unused spectrum to be shared between telecom service providers to increase coverage and capacity and also accelerating the process to authorize the use of spectrum, ISED has proposed to amend the Radiocommunication Regulations to introduce a new fee structure for certain services (fixed point-to-point, including backhaul). This will reduce these fees overall and encourage the upgrading and deployment of these systems, particularly in rural and remote areas. Modernizing these fees will support the development of 5G and benefit rural communities, where broadband deployment depends on the use of these systems.

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. The CRTC announced its first set of projects in northern and satellite dependent communities in August 2020 and announced a subsequent set of projects under its national call on February 4, 2021. Further CRTC project announcements are anticipated later this year.

Connect to Innovate (CTI): Through CTI (announced in Budget 2016), over 100 rural and remote communities across Canada are already benefitting from completed projects that have the potential to bring improved internet speeds to over 35,000 households. By the end of 2021, 750 communities and 250,000 households are on track to benefit from access to improved connectivity with CTI projects.

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