Alberta gov’t unrolls digital plan for rural area; NDP unimpressed

Alberta taxpayers’ historic investment in rural broadband will help eliminate the digital divide in rural, remote and Indigenous communities, and enable all Albertans to participate in our economic recovery.

Budget 2022 increases investment into rural broadband for a total of $390 million over four years. This investment supports the implementation of the Alberta Broadband Strategy, a plan to ensure that every family, household, business and community in Alberta can access reliable, high-speed internet. Reaching universal connectivity will help all Albertans participate in the economic recovery and realize their fullest potential. The Alberta Broadband Strategy supports the Alberta government’s efforts to protect livelihoods and makes life better for hardworking Albertans.

“Alberta’s government is increasing its budget and investing $390 million into expanding rural broadband access to support economic diversification and level the playing field with urban centres by providing the digital infrastructure required to ensure entrepreneurs in every region of our province remain competitive, stated Nate Horner, Minister of Agriculture, Forestry and Rural Development in a prepared statement.

Alberta’s Broadband Strategy aims to connect every home and business to high-speed internet by the end of the 2026-27 fiscal year.

The strategy supports economic recovery and diversification by creating jobs for hard-working Albertans, connecting businesses with the global marketplace and providing access to education, upgrading and re-skilling resources.

Universal access to high-speed internet will bring a number of economic and social benefits to Alberta’s underserved communities, from improving access to telehealth services to attracting private sector investment.

“Rural Alberta needs access to high-speed internet to enable communities and residents to continue to support local economies and connect for needed services. The release and implementation of the Alberta Broadband Strategy, as well as increased investments into broadband in this budget, is a crucial step in making reliable rural internet a reality,” noted Paul McLauchlin, president, Rural Municoality Association.

“The Alberta Broadband Strategy outlines how the provincial government intends to deliver reliable, high-speed internet in rural, remote and Indigenous communities. This strategy has long been a priority for Alberta Municipalities and its 275-plus member communities, from the smallest summer village to the largest city, explained Cathy Heron, president, Alberta Municipalities.

This strategy is a key part of Alberta’s Recovery Plan to build, diversify and create good jobs for Albertans in every corner of the province.

Quick facts

• Approximately three years after achieving universal coverage and adoption of services, it is expected:

♦ annual GDP will rise between $500 million and $1.7 billion

♦ the agricultural sector’s GDP will grow up to five per cent, resulting from adoption of AgTech

♦ up to 2,000 long-term service industry jobs may be created in rural communities

♦ up to 40,000 Albertans without access to a primary health-care provider may have improved access to telehealth, and the cost to deliver those services will be reduced

♦ more than 120,000 students will have improved access to remote education • Alberta’s Broadband Strategy is expected to generate up to 1,500 jobs during infrastructure deployment.

• Alberta’s total broadband funding commitment is now $390 million over four years.

♦ This commitment includes the province’s previous $150 million investment from 2021.

♦ The federal government has committed to match $150 million, and Alberta’s government continues to work to secure a matching agreement for an additional $240 million.

• Approximately 489,000 Albertans living in 201,000 households lack access to federal target speeds of 50 megabits per second (Mbps) for downloads and 10 Mbps for uploads.

♦ Approximately 80 per cent of Indigenous communities and 67 per cent of rural and remote communities do not have access to reliable, high-speed internet.

♦ None of Alberta’s Metis Settlements can access federal target speeds.

In December, the UCP announced they would be contributing $150 million to the federal government’s Universal Broadband Fund with matching dollars from Ottawa. However, few additional details were given about how universal broadband access would be achieved.

“The digital divide has grown during the pandemic and rural Albertans are being left behind,” said NDP Service Alberta Critic Jon Carson. “We can’t sit back and rely on the federal government to solve this issue. Albertans can’t trust the UCP to deliver on this important issue.”

In November, NDP Leader Rachel Notley released her party’s detailed plan to ensure all rural Albertans have access to affordable high-speed internet in every corner of the province, if elected in 2023.

In an address to the Rural Municipalities of Alberta, Notley presented rural leaders with her plan, “Bridging the Digital Divide”, a proposal created through the Alberta’s Future initiative following more than a year of extensive consultation with internet service providers, municipalities, and all Albertans.

The NDP government would ensure every Albertan has access to the 50/10 speed standard. Based on a comparative analysis conducted by Deloitte, the NDP estimates this plan will create 18,700 jobs and generate an additional $4 billion in GDP growth over five years. The fully-costed $520-million provincial investment would be recovered through increased government revenue within six years.

The NDP’s detailed plan is designed to be achieved in one mandate through a series of steps:

• New Agency: Create a new agency called Digital Innovation Alberta, empowered by legislative authority to achieve 100 per cent coverage. An advisory group will provide guidance to the government on practical solutions that will include municipal and Indigenous leaders, internet service providers (ISPs), utility companies and gas co-ops. It’s first mandate will be to identify gaps in coverage and determine current speeds.

• Competitive Funding Model: The Government of Alberta will take a regional approach to closing those gaps, holding a series of open and competitive reverse auctions to find bids to provide the highest speeds at the lowest price. Bids may be made by ISPs, utility companies, gas co-ops, and municipalities.

• Regional Approach: Successful bids proceed to infrastructure build and connection. As the solutions will vary across the province, some connections will be achieved through fibre optic builds, while others will be achieved through fixed wireless towers or satellite connection.

• Affordability Credit: To ensure affordability for the Albertans whose only options are satellite connections, the Government of Alberta will implement a Satellite Solution Tax Credit that will ensure those Albertans’ internet bills are comparable to the rates charged in urban centres. “Achieving universal access to high-speed affordable internet is critical to Alberta’s rural economy,” said NDP Agriculture and Rural Economic Development Critic Heather Sweet. “Due to a lack of connectivity, we are missing out on economic opportunities and losing our competitive advantage as the world moves forward. After years of delay and empty promises, it shows Albertans can’t trust the UCP on this issue.”