GATINEAU – The CRTC has opened up the public proceeding to decide on the setup, governance, operating, and accountability frameworks, as well as eligibility and assessment criteria, for its new $750 million fund to bring broadband at 50 Mbps downstream and 10 Mbps upstream, everywhere.
The Regulator’s new universal service objective was set out in December in Telecom Regulatory Policy 2016-496, which made providing broadband to everyone a necessity for network operators.
The Commission set the following targets for the basic telecommunications services that Canadians need to participate in the digital economy:
- speeds of 50 megabits per second (Mbps) download/10 Mbps upload for fixed broadband Internet access services. In 2015, 82% of Canadians already had access to speeds of 50 Mbps download/10 Mbps upload for fixed broadband services;
- an unlimited data option for fixed broadband access services (a.k.a., not wireless);
- the latest mobile wireless technology available not only in homes and businesses, but also along major Canadian roads.
As for the fund, the Commission said for the first five years, no more than $750 million would be distributed: no more than $100 million for the first year, an amount that would increase by $25 million annually over the following four years to reach an annual cap of $200 million. However, the annual increase is contingent on the Commission’s review of the broadband fund in the third year to ensure that the fund is managed efficiently and achieving its intended purpose, reads Tuesday’s call for comments.
However, there is a ton on the table to figure out, such as figuring out how far away certain Canadians have to be from a major centre in order for their region to be considered eligible for the fund – which is aimed at helping service providers deliver broadband where is it not economically feasible.
The Commission “could follow the example of Innovation, Science and Economic Development Canada, in which geospatial data is mapped out in hexagonal units of 25 square kilometres,” muses the release.
“Approximately 82% of Canadians, mainly those in urban and suburban areas, have access to broadband Internet access service that meets one of the criteria for achieving the broadband portion of the objective: download speeds of at least 50 megabits per second (Mbps),” reads the call.
“The Commission will examine (i) how to define a geographic area, and (ii) how to determine that an area is ineligible for funding, or is likely to be served without Commission funding", as well as decide on who will manage and administer the fund and vet projects which should receive cash.
However, the CRTC noted, in the end, “the Commission will retain oversight of the fund and will approve the projects to be funded.”
Comments are due by June 28th.
