ISED pushing Bell to show progress on CTI rollout: docs

Innovation, Science and Economic Development Canada (ISED) will be pressuring BCE Inc. to show progress on the rural broadband projects for which it has received funding under the Connect to Innovate program, documents obtained under Access to Information indicate. Bell has received nearly one-fifth of the total funds available under the program, receiving $110 million out of the $585 million total for projects in Ontario, Quebec, Atlantic Canada, Manitoba, Northwest Territories, Yukon and Nunavut, the October briefing note says. “I would flag that Canadians are anxious for investments to happen as quickly as possible so that their connectivity meets their expectations and needs. My folks will be pushing you for regular updates on your rollout achievements,” read the suggested speaking notes for ISED deputy minister Simon Kennedy. The document was prepared for Kennedy ahead of an October meeting with now-CEO Mirko Bibic, senior vice-president of regulatory affairs Rob Malcolmson and government relations director Maggie Papoulias. The briefing document outlined that over the previous year, stakeholders including Parliamentary committees, provincial governments and media have all “repeatedly sought updates on CTI investments.” “Spending to date has been slow because the upfront planning phase is intense but relatively lower in cost than implementation of projects,” it says. “There will be considerable focus on demonstrating progress in the coming year.” Bell spokesperson Marc Choma said in an email that Bell has now spent more than 70 per cent of the funds it was awarded, and is now “well on our way to having everything completed by the March 2021 deadline as required.” Last year, Bell announced it would cut rural broadband rollouts to 200,000 rural households after the CRTC lowered internet wholesale rates. It’s a measure telecoms warned the CRTC at a hearing last month could result again if the regulator mandates wholesale access to their wireless network. Asked whether Bell’s CTI projects have also been affected or slowed down, Choma said “there are no changes to our investments in CTI contracts.” The Wire Report has previously reported that the CTI program was behind schedule, and that 60 per cent of applications had not heard back, more than two years after the deadline to apply. ISED spokesperson Hans Parmar said in an email that “most” CTI projects have now been announced, including those that were chosen at a later date after the government provided an $85-million top up for the fund in the 2019 budget. “Some projects still require final contribution agreements to be negotiated, and these are expected to be in place by Spring 2020,” Parmar said. The government had initially aimed to have all contribution agreements signed by May 2019. “Most Connect to Innovate projects are now well underway and to date, the program has paid out approximately 20 per cent of committed funds to recipients, with all projects expected to be complete by 2023,” Parmar said. The initial deadline in ISED’s application guide was March 2021. Asked if the two-year extension was because of the top up, Parmar said the additional money in the budget “allowed the program to select additional applications from the original intake in late 2019 and provided additional time to ensure all projects could be completed within the program’s funding profile.” In response to a question about whether Bell is behind the other applicants in terms of rolling out funding, Parmar said “under the terms of ISED’s contribution agreements with Bell, the company is required to report progress to ISED at regular intervals. This obligation applies to Bell, as it applies to all Connect to Innovate recipients.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Adam Langenberg at alangenberg@thewirereport.ca

ISED pushing Bell to show progress on CTI rollout: docs

News | March 27, 2020

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ISED pushing Bell to show progress on CTI rollout: docs

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