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?

• Connectivity is essential for rural and remote communities, as it enables access to the digital economy, essential services, educational opportunities, and remote work.

• That is why the Government of Canada is working hard to help ensure all Canadians, no matter where they live, have access to fast, reliable, and affordable Internet.

• With $3.2 billion dedicated to the Universal Broadband Fund, the Government is making significant progress towards its connectivity targets.

• We will continue to invest in rural, remote, and Indigenous communities to reach the goal of connecting 98% of Canadians to high-speed Internet by 2026, and all Canadians by 2030.

Whole of Government status: Since 2015, the Government of Canada has made more than $7.6 billion available for Internet connectivity and is on track to meet its connectivity targets. By 2026, over 98% of households are projected to have access to speeds of 50/10 megabits per second (Mbps). To date, 93.5% of Canadian homes have access to high-speed Internet or are targeted to receive access through existing program commitments.

Universal Broadband Fund (UBF): In Budget 2019, the government set a target for 95% of Canadians to have access to speeds of at least 50/10 Mbps by 2026 and 100% by 2030. With new investments, the target for 2026 has been increased to 98%. The UBF has dedicated $3.2 billion, up from the original $1 billion, towards connecting Canadians living in rural and remote areas to high-speed Internet, and improving mobile connectivity for Indigenous peoples. There are federal-provincial co-funding agreements with Quebec ($920 million), Ontario ($1.2 billion), Newfoundland and Labrador ($136 million), Alberta ($780 million), British Columbia ($830 million), and Prince Edward Island ($20 million) to connect 823,000 households. This includes a $4.5 million co-funding agreement with British Columbia to provide mobile connectivity along the Highway of Tears. The Minister of Rural Economic Development is responsible for the delivery of the UBF.

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

Spectrum Initiatives: The government is releasing spectrum to support 5G technologies and the provision of telecom services across Canada, including through the 2019 600 MHz auction, the 2021 3500 MHz auction, the 2023 3800 MHz auction, and the upcoming millimeter wave spectrum. New rules for the 3800 MHz spectrum auction were announced on June 30, 2022 and are an important step in ongoing efforts to help ensure Canadians have access to affordable and high-quality telecom services. To help ensure this spectrum is put to use in a timely manner, especially in rural and remote areas, ISED has deployment requirements that reflect the minimum population coverage that licensees are required to meet within a service area within a specific timeframe. As well, to further address concerns that there is licensed spectrum in rural and remote areas that is not being used, and that insufficient access to this spectrum is impeding the expansion and improvement of wireless Internet services for consumers and businesses, ISED published several consultations in August 2021 that support rural and remote services and promote spectrum sharing. On August 3, 2022, ISED also published a consultation that will provide localised access to shared 5G spectrum to smaller users including wireless Internet service providers, vertical industries, and Indigenous communities.

Canadian Radio‑television and Telecommunications (CRTC) Broadband Fund: In 2016, the CRTC established a fund of up to $675 million to help achieve universal access at speeds of 50/10 Mbps, as well as improve mobile coverage along major roads. The CRTC’s fund is sourced from a levy on carriers’ revenues. The CRTC has announced selected projects under their first and second calls for applications. The CRTC’s third call for applications closed on June 15, 2023 and announcements for selected projects are ongoing.

Connect to Innovate (CTI): CTI (announced in Budget 2016), will bring improved Internet speeds to over 975 rural and remote communities, including 190 Indigenous communities.

• Under the Universal Broadband Fund (UBF), applicants that offer lower retail pricing are assessed more favourably and their proposed retail plans must remain in place for five years.

• The Government of Canada has also announced significant agreements with Quebec, Ontario, Alberta, British Columbia, Newfoundland and Labrador, and Prince Edward Island to help provide high-speed Internet access to all Canadians by 2030.

• The UBF also includes $50 million to improve mobile services in areas that will benefit Indigenous peoples. Under this stream, the UBF is providing support for cell coverage along British Columbia’s Highway of Tears.