Question Period Note: RURAL AND REMOTE BROADBAND

About

Reference number:
ISED-RED-2022-QP-00001
Date received:
Jul 15, 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 Government of Canada doing to support the development of high-speed Internet in rural and remote areas?

Suggested Response:

• Canadians know that access to reliable high-speed Internet is no longer a luxury—it is a necessity.

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

• The Universal Broadband Fund provides $2.75 billion in funding to bring high-speed Internet to underserved areas.

• The government will continue to invest in rural and remote communities, with the goal of connecting 98 per cent of Canadians to high-speed Internet by 2026, and all Canadians by 2030.

Background:

• 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 has announced significant agreements with provinces, cost-sharing over $3.8 billion in total investments to connect 821,000 households.

• The government has also announced a Rapid Response Stream, providing nearly $180 million to connect 92,000 households.

• 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 B.C.’s Highway of Tears.

Additional Information:

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 megabits per second (Mbps) by 2026 and 100% 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 to high-speed Internet, and improving mobile Internet for Indigenous peoples. The UBF includes a Rapid Response stream dedicated for projects to connect rural Canadians quickly. There are federal-provincial co-funding agreements with Quebec ($920 million), Ontario ($1.2 billion), Newfoundland and Labrador ($136 million), Alberta ($780 million), and British Columbia ($830 million) to connect 821,000 households. There is also a $4.5 million co-funding agreement with British Columbia to provide mobile connectivity along the Highway of Tears.

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 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 August 12, 2021, the government announced an agreement-in-principle with Telesat to invest $1.44 billion into Telesat’s advanced LEO satellite constellation, Telesat Lightspeed. This investment will advance Canadian leadership globally in a strategically important sector.

Spectrum Initiatives: Innovation, Science and Economic Development Canada (ISED) 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, and upcoming auctions for 3800 MHz and millimeter wave spectrum. To 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 broadband services for consumers and businesses, ISED published several consultations in August 2021, that support rural and remote services and promote spectrum sharing.

Canadian Radio‑television and Telecommunications (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 continues to announce projects under its national call.

Connect to Innovate (CTI): CTI (announced in Budget 2016), will bring improved Internet speeds to over 975 rural and remote communities across Canada, including 190 Indigenous communities, by 2023.