Question Period Note: CONNECT TO INNOVATE

How is the Connect to Innovate program improving access to high-speed Internet in rural and remote communities?

• High-speed Internet access is no longer a luxury — it is a necessity for all Canadians, no matter where they live.

• The current crisis has only reinforced the importance of access to high-speed Internet as Canadians are working and learning at home.

• The Government of Canada is bringing high-speed service to some of the most rural and remote communities, many of which are Indigenous, that would be left behind without targeted government support.

• 750 communities and 250,000 households are on track to benefit from access to improved connectivity with Connect to Innovate projects to be completed by the end of 2021.

SUPPLEMENTARY MESSAGES

• By the end of the program in 2023, Connect to Innovate will have potentially connected nearly 400,000 Canadian households bringing us one-step closer to connecting every Canadian.

• The Connect to Innovate program will bring new or improved high-speed Internet access to more than 975 rural and remote communities – more than triple the 300 communities initially targeted – which includes 190 Indigenous communities.

If pressed about the speed of Connect to Innovate (CTI) projects or status of particular projects:

• The government understands that some CTI projects have experienced delays, but most are well underway and more than 100 communities were connected in 2020.

• These are typically multi-year infrastructure projects that experience common delays due to things like weather, equipment procurement, and permits. COVID 19 is also having an impact, for example, some remote communities are restricting access to prevent the spread of the virus, which is delaying construction.

• The government is working closely with CTI recipients to resolve project delays and ensure they have the flexibility to complete their networks.

Connect to Innovate (CTI) is primarily focused on the construction of new backbone infrastructure (backbone networks are digital highways that move large amounts of data in and out of communities at high speeds) to connect institutions like schools, hospitals, First Nation band offices and libraries, as well as to improve residential and business Internet services.

A portion of the program’s funding is also being used to provide “last-mile” infrastructure, to bring Internet access to households and businesses that do not have speeds of at least 5 megabits per second (Mbps). Communities using new backbone infrastructure will see a transformative change in the speeds and services they can access. The launch of the CTI program in December 2016 coincided with a competitive national call for applications to the program. Applications were accepted with a submission deadline of noon April 20, 2017.

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, more than 750 communities and 250,000 households are on track to benefit from access to improved connectivity with CTI projects.

Budget 2019

Budget 2019 proposed a new coordinated plan to deliver billions in investments in rural broadband over the next 10 years to help build a fully connected Canada—including rural, remote and northern communities.

Budget 2019 committed funding to support the launch of the Universal Broadband Fund, secure new, Low Earth Orbit satellite capacity to serve remote and northern communities, and top-up the CTI program.

For the top-up funding, CTI drew from an existing and already assessed pool of high-quality, but not yet selected, CTI applications that could not be funded under the initial Budget 2016 allocation. All CTI funding has now been committed to projects that are expected to be complete by 2023.

By the end of CTI in 2023, more than 975 communities and nearly 400,000 households will potentially be connected. This represents three times more communities than originally targeted at the start of the program.

Universal Broadband Fund

In Budget 2019, the government set a national target for 95 per cent of 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, no matter where they are located.

The Universal Broadband Fund has dedicated $1.75 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. By adding an additional $750 million to the Universal Broadband Fund, we will be able to connect 98% of Canadians by 2026, up from our original target of 95% in that year. The program is now open for applications.

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.

On June 3, 2019, the CRTC issued a notice of its first call for applications to its fund. The first call accepted applications for Yukon, Northwest Territories, Nunavut and satellite-dependent communities across Canada, and closed on October 3, 2019. On August 12, 2020, the CRTC approved $72M in funding for five projects in the north and Northern Manitoba, 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 5 transport projects receiving $26 million in funding to benefit 41 communities, including three Indigenous and one official languages minority communities.

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