Tensions rise over access to broadband CRTC fund

Sluggish internet speeds present a problem for millions of Canadians, whether they live in remote northern regions, First Nations communities or rural areas near major cities where access is taken for granted.

But tensions are rising over who should get priority access to the Canadian Radio-television and Telecommunications Commission’s $750-million fund to bring broadband up to speed in rural and remote regions, leaving the distribution details up to a consultation.

In submissions to the regulator late last month, the biggest industry players, local governments and public interest groups presented vastly different visions of who should get the cash and how it should be doled out.

The fund could technically apply to the approximately 6.5 million Canadian households (82 per cent) who don’t have access to the new and ambitious target download and upload speeds of 50 Mbps and 10 Mbps. But the cash will only help a fraction of them given the high cost of broadband infrastructure.

While most agreed populations with the worst service should get first dibs on the cash, they disagreed on geographic priorities and whether to invest in backbone infrastructure or last mile service. A top concern is whether satellite-dependent communities such as Nunavut and northern Quebec should be allocated more than 10 per cent of the fund.

Rogers Communications Inc. suggested the CRTC steer clear of investing in areas near existing fibre facilities given the higher likelihood they will eventually be served by market forces. Rogers also argued the fund should prioritize remote areas, a view shared by northern provider SSi Micro and the governments of Nunavut and the Northwest Territories

BCE Inc agreed with the 10 per cent set aside for satellite communities. It proposed the rest of the funds be split fairly between provinces, then again between unserved and underserved communities.

Telus Corp. argued Bell’s proposal would be inefficient given the subjective nature of auction requirements. It proposed the CRTC work with the government to distribute the fund.