RURAL CONNECTIVITY TASK FORCE FINAL REPORT
Recommendations
Meeting the federal government’s goals of universal 50/10 service by 2030 will require ambitious, coordinated action at all levels of government.
Based on the results of its research, the Rural Connectivity Task Force has developed a series of recommendations that are organized into several major themes, including:
Working Together
Supporting shared access to infrastructure and fair partnerships between service providers. Too Many Cooks in the Kitchen - Simplifying Canada’s regulatory structure for greater accountability, transparency, and efficiency.
The Importance of Smaller Internet Service Providers
Supporting competition within the industry to ensure smaller players can survive, thrive, and support universal internet access.
Optimizing Public Resources
Optimizing government funding and managing spectrum effectively. Regaining and Retaining Canadian Excellence - Ensuring that Canada takes a leadership role to build long-term sustainability within our telecommunications industry and infrastructure.
Taking Control of the Saskatchewan Advantage
Leveraging our Crown Corporations to ensure that Saskatchewan plays a leadership role in achieving universal connectivity and realising the social and economic benefits that come along with it.
Consumer Protection
Ensuring consumers are guaranteed high-quality, affordable internet service.
Canada would benefit from looking for ways to reorganize government roles and responsibilities to make things clearer, simpler, and more transparent. This would allow for improved accountability and efficiency.
Working Together
Telecommunications infrastructure is massive in scale, extends across provincial and national borders, and is costly to establish and maintain. Service providers and all levels of government must work together to ensure effective sharing of resources and infrastructure, including cellular towers, fibre optic networks, telephone poles, and more.
Creating and enforcing good policy that encourages these partnerships and ensures they are fair is key to getting fast, reliable, and affordable internet to all Canadians, regardless of where they live.
Recommendations:
1. Save money and enhance capacity by ensuring that all levels of government use a “dig once” policy to coordinate their utility and infrastructure upgrades to put more fibre optic cable into the ground when other services are being upgraded.
2 Ensure that service providers have easier access to related infrastructure (e.g., telephone poles).
3. Create and enforce policies that ensure a timely response when third parties request access to data transport facilities.
4. Grant CRTC jurisdiction under The Telecommunications Act for setting rates and resolving disputes regarding access to electrical utility poles and ducts, when related to telecommunications use (as outlined in the Broadcasting and Telecommunications Legislative Review).
5. Vary competition policies to fit smaller markets.
6. Investigate the potential for provincially and municipally owned buildings and infrastructure to be used as passive infrastructure for service deployment.
Too Many Cooks in the Kitchen
For the most part, Canadian telecommunications—including internet connectivity—are regulated at the federal level through The Radiocommunications Act and The Telecommunications Act. The responsibility for telecommunications regulation, policy, and funding is shared across the following areas of the federal government:
- Canadian Radio-television and Telecommunications Commission (CRTC)—arm’s length agency whose parent Ministry is Heritage Canada.
- Innovation, Science and Economic Development Canada (ISED)
- Minister of Rural Economic Development Canada
This structure of shared responsibility makes the process of finding and implementing connectivity solutions very complex. Canada would benefit from looking for ways to reorganize government roles and responsibilities to make things clearer, simpler, and more transparent. This would allow for improved accountability and efficiency.
Recommendations:
7. Work to further coordinate connectivity funding across government into a single agency, with a streamlined application process for ease of access to funding.
8. Encourage the federal government to select a dedicated agency or office responsible for overseeing the development and implementation of a simplified funding structure.
9. Clarify the role of CRTC and ISED to reduce regulatory overlap, and create greater transparency, accountability, and cooperation.
Service providers and all levels of government must work together to ensure effective sharing of resources and infrastructure, including cellular towers, fibre optic networks, telephone poles, and more.
It is crucial that government funds are not only limited to deploying new service, but that funding is also reinstated for maintaining service in areas that are less profitable to serve over time (i.e., “high cost service areas”).
The Importance of Smaller Service Providers
The lack of competition in Canadian telecommunications has also contributed to the problem of poor connectivity in rural and remote communities.
Most large service providers prioritize getting internet service to places with high population densities because it results in a greater return on their investment. But while a large company may look at a rural community as a bad investment, a smaller ISP might see a worthwhile business opportunity. Several such service providers currently provide solutions in rural Saskatchewan.
There is no doubt that competition in the telecommunications industry benefits consumers: it leads to lower prices and better service. It can also be argued that competition benefits the industry as a whole, leading to more innovation and greater flexibility, investment, and fairness in the market.
The best way to support healthy competition within the Canadian telecommunications industry is to make sure—through good policy—that smaller ISPs have a fair shot to stay in business, and that municipalities have the opportunity to provide their own service if they choose.
Recommendations:
10. Reduce spectrum fees for new entrants and smaller providers.
11. Where technically feasible, consider reducing the size of spectrum tiers to ensure that service is provided in areas that are not the most profitable.
12. Improve access to federal connectivity funding by lowering the threshold for eligible projects and allowing multiple projects in a single application.
13. Adjust the rules to better allow municipalities to access the Broadband Fund to build and operationalize local networks.
14. Dedicate a minimum of 15% of funding to small providers.
15.Require the CRTC to reverse the stay on wholesale rates for high-speed internet.
Optimizing Public Resources
The Government of Canada has committed nearly $7 billion to achieve the goal of universal access to fast, reliable, and affordable high-speed internet access for all Canadians. It has also raised billions of dollars in revenue by auctioning off the use of spectrum for wireless communications.
Unfortunately, throwing money at the problem will not be enough if the funds are not supported by effective policy.
This is especially true in rural and remote areas, where there is often no sustainable business case to be made for connecting communities without public investments or incentives.
It is crucial that government funds are not only limited to deploying new service, but that funding is also reinstated for maintaining service in areas that are less profitable to serve over time (i.e., “high cost service areas”).
It is also necessary for improvements to be made to how the government manages spectrum, to ensure that available spectrum is used to connect communities that need service most.
Since Fall 2020, the Standing Committee on Industry, Science, and Technology has been studying the “Accessibility and Affordability of Telecommunications Service”. Many key players in the telecommunications industry have presented to the Committee, and a recurring theme of anti-competitive behaviour has emerged, with accusations of bad faith tactics between competitors. Better sharing between the CRTC and the Competition Bureau could be one way to reduce bad faith between providers.
Recommendations:
16. Ensure that available spectrum is made available to rural communities first since they are most in need of wireless service.
17. Improve the rules and regulations associated with spectrum auctions to better support the goal of universal minimum service as defined by the CRTC, by:
a. Ensuring that all roll-out conditions prioritize universal access and are enforced.
b. Enforcing the “use it or lose it” provision to make sure that all spectrum is used.
c. Ensuring that an adequate amount of spectrum is set aside for non-incumbents (i.e., smaller service providers) to be active and successful in the market.
d. Ensuring that future revenue generated through spectrum auctions be used for connectivity funding to ensure universal access for all Canadians.
18. Investigate the possibility of reallocating existing underused spectrum, such as bands in the 3-5 Ghz range.
19. Ensure that funding is allocated based on the greatest need and impact for rural communities, while ensuring that the process for allocating funds is transparent.
20. Ensure that when public funds are used to build projects that additional fibre is laid to help guarantee future capacity.
21. Require service providers to provide wholesale access to their networks when public funds are used to build projects.
22. Expand the powers of the CRTC to ensure compliance from service providers, such as improved information sharing with the Competition Bureau.
23. Re-establish a new High Cost Service Area fund for high-speed internet, and ensure that the funding formula allows for the creation of a sustainable business environment in rural areas.
24. When adjudicating connectivity funding applications, include an evaluation of the economic spin-offs and growth from broadband deployment.
The best way to support healthy competition within the Canadian telecommunications industry is to make sure—through good policy—that smaller ISPs have a fair shot to stay in business, and that municipalities have the opportunity to provide their own service if they choose.
Saskatchewan is one of the last provinces in Canada to retain public control over its utilities, and this creates a unique opportunity to become a leader in internet and cellular service.
Regaining and Retaining Canadian Excellence
Though Canada was once a world leader in high-speed internet, we have fallen far behind, with Canada in eighth place internationally in terms of overall deployment of high-speed internet to a fixed location, and 28th place in terms of fibre optic deployment.
This downward trend has led to high consumer frustration, and the COVID-19 pandemic has brought the need for universal access to fast, reliable, and affordable internet service into even sharper focus. With the right investments supported by sound policy decisions, Canada can regain and retain our status as an international leader, all while supporting the COVID-19 recovery.
Recommendations:
25. Expand the “Shovel-Ready” stream of the Universal Broadband Fund, which is designed to allow service providers to move forward quickly on projects that are ready to go.
26. In consideration of the COVID-19 pandemic, revaluate and shorten the timetable laid out in the Canada Connectivity Strategy to ensure that 100% of Canadians are connected as soon as possible.
27. Consider adopting a timeline for the regular review and renewal of the target broadband speeds, and consider expanding metrics to include latency, cost parity between urban and rural areas, and network performance.
28. Ensure accountability by requiring that ISED publish an annual report outlining the progress made towards achieving universal high-speed internet access. This report should outline progress on:
- Upload and download speeds
- Latency
- Consumer cost
29. Revaluate the total funding committed to Canada’s connectivity programs in 2022 and commit additional funds if needed to ensure that Canada exceeds its connectivity targets.
Taking Control of the Saskatchewan Advantage
Saskatchewan’s telecommunications Crown Corporation SaskTel is the largest service provider in the province and provides just under 60% of wireless service. However, it is clear that to achieve universal high-speed internet access for everyone in the province (regardless of where they live), SaskTel will not be able to do it alone.
The need to partner is reflected in SaskTel’s history. Connecting the province to telephone service over 100 years ago required collaboration, partnership, and local community involvement, and achieving universal high-speed internet is no different.
Saskatchewan is one of the last provinces in Canada to retain public control over its utilities (e.g., SaskTel, SaskPower), and this creates a unique opportunity to become a leader in internet and cellular service. With the right investments and policy, Saskatchewan could exceed the service goals set out by the federal government and generate huge economic growth—estimated at $1.2 billion—for the province.
Recommendations:
30. Reduce SaskTel’s dividend transferred to the Government of Saskatchewan and redirect the revenue to service deployment.
31. Clarify the mandate of SaskTel to better understand their role and responsibility to connect rural Saskatchewan.
34. Recharacterize SaskTel in the CRTC’s annual Communications Monitoring Report to more accurately report on Saskatchewan’s unique market conditions.
35. Ensure fair access to SaskTel’s fibre optic backbone to allow for local and smaller companies to be able to expand into rural Saskatchewan.
36. Encourage SaskTel to immediately reach out to Saskatchewan’s small providers and engage them in discussion on how they can work together to provide service at a reasonable rate to rural and underserved residents.
37. Ensure that the Minister Responsible for SaskTel produces an annual report for the Government of Saskatchewan on the progress of bridging the digital divide and the Saskatchewan Broadband Strategy.
38. Streamline the process for accessing SaskPower poles by:
a. Conducting an audit and replacement of the poles that are no longer structurally sound.
b. Consulting with Saskatchewan-based providers to set a standard fair market rate for accessing SaskPower poles.
39. Increase the accessibility of the “dig once” policy to allow smaller providers to also lay fibre in new developments and when lines are being replaced.
40. Conduct a third-party investigation into the SaskPower and SaskTel fibre networks to ensure that both are being used to best deliver service to Saskatchewan.
41. Undertake a provincially-funded study on the economic potential that could be unlocked by expanding broadband coverage. Use existing research institutions such as the University of Regina or University of Saskatchewan.
Consumer Protection
When it comes to cellular and internet service, Canada is known for high costs and relatively poor service. Rural residents in particular are often faced with high fees, service that does not meet their needs, data caps and overage fees, and slower speeds than what their contracts promise.
While Canada has established an Internet Code, a Wireless Code, and a Commissioner for Complaints for Telecommunications Services to help protect consumers, these steps are not enough, with a 2016 survey indicating extremely low awareness and compliance. To ensure affordable, accessible service, it is necessary to establish and guarantee basic minimum standards for service and rates.
Recommendation:
42. Ensure affordable and accessible service to rural customers by establishing basic minimum standards for service and rates.
Possible Future Considerations
Allowing service providers to increase their effective radiated power (ERP) on shared bands of spectrum could extend the range of individual cellular sites in rural areas where there is minimal traffic and interference. This could provide greater wireless coverage in underserved areas, while potentially increasing the number of service providers.
Additional recommendation for consideration:
43. Allow for higher effective radiated power (ERP) limits in rural and remote areas where it does not create significant interference.
Though Canada was once a world leader in high-speed internet, we have fallen far behind.