Industry committee hears call to devolve broadband funding to provinces

A regional nonprofit dedicated to expanding internet connectivity in rural Ontario told the House of Commons industry committee that investment schemes like the Universal Broadband Fund would be more efficient if they were devolved to the provincial level. Speaking to the committee on Tuesday, Barry FieldBarry Field, executive director of Southwestern Integrated Fibre Technology Inc. (SWIFT), said that the proliferation of multiple government funding programs for high-speed internet is impeding some internet service providers (ISPs). “Competing programs at the federal, provincial and municipal levels make it difficult for ISPs to access funding…within southwestern Ontario today there are no less than five active government programs, all trying to solve the same problem in the same geography.” While Field praised the Universal Broadband Fund’s Pathfinder program as simplifying the funding application process for ISPs and other organizations, he suggested that the presence of multiple federal funding sources (such as the Connect to Innovate program and the CRTC’s Broadband Fund) might be hampering efforts to efficiently roll out broadband to Canadians in rural or remote areas by causing an “overlap of responsibility”. “It risks different programs funding the same project and it distracts the federal government from what should be its central role of providing equitable distribution of funds,” Field said. “If we step back and were to design a program from scratch as to how to fund broadband mainly in rural regions of Canada, we would not develop the current system that we have.” In response, NDP committee member Brian Masse expressed concern that shifting responsibility to the provinces could result in connectivity disparities between parts of Canada. “How do we create national expectations in support of broadband if we devolve everything to the provinces alone? ...how do we guarantee a model that will be more pan-Canada?” Field clarified that he was not advocating a total devolution of broadband infrastructure development to the provinces. Rather, he indicated that the federal government could outline expectations, and provinces and municipalities would then take the lead when it comes to fulfilling connectivity goals. “I think it’s appropriate for to coordinate, for them to provide their requirements if they’re going to provide funding, what their requirements are, what the outcomes that they expect with their dollar are.” Field also told the committee that more funding is needed in order to reach the federal government’s own targets of connecting 98 per cent of Canadians to high speed internet by 2026 — in southwest Ontario alone, he estimates that a further $1 billion in investment would be needed. Quebecor Inc. CEO Pierre Karl Péladeau also appeared at Tuesday’s committee meeting, offering his own views on how the federal government might work towards connecting rural Canada to high speed broadband. Bringing up Vidéotron’s recent disputes with BCE Inc.’s Bell Canada over access to poles, he said the CRTC needs to act to rein in Bell’s monopoly. “We can live within 30 or 45 minutes of an urban centre and not have access to high speed internet. Why? Because the infrastructure does not belong to us,” he said in French. “The CRTC has regulatory power but they need to have the courage to use that power,” he said later. However, after highlighting the importance of Bell granting access to its infrastructure, Péladeau also took issue with the prospect of the CRTC requiring other companies — like Vidéotron — to grant smaller resellers access to their infrastructure. If resellers are granted overly lenient access to incumbent networks, this could lower the quality of services offered by companies like Vidéotron, Péladeau said in French. “Our investments have started and we will keep investing in . But if we have to compete with resellers who behave like parasites through their use of existing infrastructure, we will not be able to give high quality service to residents and companies...what we’re trying to say is that we don’t necessarily disagree with the existence of resellers but conditions for resellers need to be fair for us and for everyone.” — Reporting by Tim Forster at tforster@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

Industry committee hears call to devolve broadband funding to provinces

News | February 23, 2021

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