Question Period Note: UNIVERSAL BROADBAND FUND
About
- Reference number:
- ISED-RED-2022-QP-00008
- Date received:
- Jan 17, 2022
- Organization:
- Innovation, Science and Economic Development Canada
- Name of Minister:
- Hutchings, Gudie (Hon.)
- Title of Minister:
- Minister of Rural Economic Development
Issue/Question:
What is the status of the Universal Broadband Fund (UBF) that was announced in Budget 2019?
Suggested Response:
• The Government of Canada recognizes that it is more important than ever that all Canadians have access to reliable high-speed Internet.
• That is why the government has made billions of dollars available for rural and remote Internet infrastructure to help ensure all Canadians have access to high-speed Internet.
• The Universal Broadband Fund will provide $2.75 billion, with the goal of connecting 98 per cent of Canadians to high-speed Internet by 2026, and all Canadians by 2030.
• To date, the government has announced 131 Rapid Response projects which will connect 75,000 households.
Background:
• The COVID-19 pandemic has shifted much of Canadian’ lives online and transformed how they 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.
• To assist in COVID-19 recovery efforts, the government established a Rapid Response Stream for UBF projects that can be completed quickly and projects are well underway.
• The government is also improving mobile Internet for Indigenous peoples by setting aside $50 million to support mobile projects for the benefit of Indigenous peoples.
o Federal and provincial investments in the Highway 16 project 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 has announced significant agreements with Quebec and Ontario, cost-sharing $2.12 billion in total investments to connect 446,000 households, a partnership with Alberta, and support for cell coverage along B.C.’s Highway of Tears.
• The government is working hard with all provinces and territories to ensure that projects are announced across the country in the coming months.
• 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.
Additional Information:
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 Universal Broadband Fund (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.
Universal Broadband Fund
The Government of Canada set a national target for 95 per cent of Canadian 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, and accelerated the target to 98% connectivity by 2026. To help reach this target, the Government committed $2.75 billion for the Universal Broadband Fund, as well as committing $600 million to secure new, Low Earth Orbit satellite capacity to serve remote and northern communities.
The UBF will support broadband projects that will connect households and includes:
• A Rapid Response Stream for shovel-ready projects that can connect households quickly;
• 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; and,
• Up to $50 million for mobile Internet projects that primarily benefit Indigenous peoples.
During the UBF intake period, a Pathfinder Service was established to help all applicants, but particularly smaller applicants, navigate the process. The Pathfinder Service received just under 2,000 inquiries during the application period with almost half of them coming from small Internet service providers (ISPs) and municipalities. They offered 18 webinars to over 1,000 participants and sent out seven e-blasts to help applicants prepare their submissions to the program.
The intake period for the main UBF closed on March 15, 2021. A total of 1,900 applications requesting ~$9 billion were received. Project selection is underway.
Announced projects as of January 19, 2022 are:
• Rapid Response Stream: The government has announced over $111 million in funding for 131 projects to connect nearly 75,000 households across Canada.
• Mobile: The Government of Canada 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 project is made possible by an equal federal-provincial investment of $2.25 million each. This project fulfills a key recommendation of the National Inquiry for Missing and Murdered Indigenous Women and Girls Calls for Justice.
• Main UBF:
o The Government of Canada and the Government of Quebec, are partnering to launch the extensive Canada-Quebec Operation High Speed, to connect over 166,000 homes to high-speed Internet by September 2022. This operation is made possible by co-funding of $920.3 million total from the Government of Canada and the Government of Quebec.
o The Government of Canada and the Government of Ontario are partnering to connect 280,000 households in Ontario with a combined investment of $1.2B.
o The Government of Canada and the Government of Alberta are co-funding a total investment of $300 million to co-select projects submitted to the UBF in Alberta.