Delivering On Canada s Broadband Commitment Presentation to OECD/WPIE Public Sector Broadband Procurement Workshop December 4, 2002

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1 Delivering On Canada s Broadband Commitment Presentation to OECD/WPIE Public Sector Broadband Procurement Workshop December 4, 2002 Canada

2 Demand Aggregation in a Federal Structure 3 major levels of government and jurisdictions Federal Marketplace policies and regulations, Telecom. Act, Competition Bureau, Spectrum management, Standards Provincial / Territorial Health and Education, Physical infrastructure (e.g. roads, power grids and other rights of way) Municipal local services, businesses, physical infrastructure (e.g. rights of way) 2

3 Pro-Competitive Policy & Regulatory Framework Telecommunications Act policy objectives: Safeguard, enrich and strengthen the social and economic fabric of Canada and its regions Render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural areas Ensuring Equal Access for All Canadians 3

4 National Vision Make the information and knowledge infrastructure accessible to all Canadians, thereby making Canada the most connected nation in the world. Speech from the Throne 1997 Tremendous Success in Basic Connectivity

5 What s Next? For Success In The Network Age

6 Broadband is the Next Step E-Learning - learning anywhere, anytime E-Health - saving lives and money through networking E-Commerce - supporting new ways of doing business E-Government - fully engaging all citizens E-Content - entertainment and information to the desktop E-Research - exponential improvements in research capacity Platform to Deliver Capacity and Speed for Advanced Applications and Content 6

7 Canada is Well Positioned South Korea Canada Sweden* Denmark Belgium United States Iceland Netherlands Austria Germany Percent of Total Population DSL lines 14 Cable Modem lines In Adopting High-Speed *Data from Sweden Cable Modem Lines includes 1.3% subscribers to high-speed fibre LAN services Source: OECD, August 2002.

8 But We Face Unique Geographic Challenges Relative to other countries Canada has low population density Rural/remote areas unlikely to be served by market forces, as business case non-existent Korea Netherlands Japan United Kingdom Germany Italy Switzerland Denmark France Ireland United States Sweden Canada Australia SOURCE: U.S. Department of Commerce, Bureau of the Census, Statistical Abstract of the United States, 1992, Tables 25, 340 and 1359 Population Densities OECD Nations Population per square mile 8

9 Broadband Access Served Community 24% Unserved Community 76% 9

10 Rural and Remote Communities Left Behind Canadian Communities 5,426 Both DSL and Cable 9% 4,144 communities 9% No High Speed Service 76% Only DSL 6% Only Cable 6% Wireless Only 3% 1,282 communities Needs are greatest where services less available or not available Communities refer to Statistics Canada Census Dissemination Areas aggregated under Canada Post naming conventions. Source: Industry Canada estimates based on 2001 population data from STC and confidential company information. 10

11 National Broadband Task Force Essential that all Canadians have access Make it equitable and affordable Place highest priority on First Nations, rural and remote Private sector should play leadership role Governments should foster competition and assist communities in exploiting opportunities Competitive and technologically neutral process Sustainable and scaleable Respond to community needs (demand aggregation) Encourage use and content development Called for total investment of $4.6B by ALL PARTNERS (federal, provincial, territorial, municipal governments, and private sector) The New National Dream: Networking the Nation for Broadband Access, June

12 Broadband Commitment Broadband Pilot Program Launch, Sept. 5, 2002 $105M over 3 years to support broadband expansion We will ensure that high-speed broadband access is available to Canadian communities from coast to coast to coast by Allan Rock,Minister of Industry Innovation Strategy Launch, February 12,

13 Pilot Program Objectives To demonstrate and validate the benefits of broadband for communities To provide funding to assist unserved communities to prepare business plans that detail their need for broadband services priority given to First Nations, northern, rural and remote communities To implement broadband services that will address the needs of these communities in education, health & governance To share best practices among communities To create new business opportunities, domestically and globally, for Canadian ICT companies 13

14 Provinces & Territories Taking Action Alberta Yukon Saskatchewan Québec New Brunswick $193M SuperNet communities $17M Connect Yukon 11 communities (largest per capita investment) $21M - CommunityNet 366 communities $75M Villages branchés - schools $7M all public schools Other provinces also have initiatives underway, many focused initially on schools 14

15 Alberta SuperNet High speed services available to 4,700 schools, hospitals, libraries, and provincial government offices in 422 communities - 27 communities in base area network: competitive services already exist communities in extended area network: limited services and competition 12,000 km Fibre Optic and Wireless High Speed Network 15

16 Public Private Partnership Government of Alberta $193 million maximum investment Will own Extended Area Network: 395 rural communities Agreed to purchase $169 million of telecommunications services from Bell over the next 10 years (about half of their expected telecom. Expenditures) Build a sustainable and scaleable network Ensured access for commercial service providers at competitive rates 16

17 Public-Private Partnership Bell $102 million investment: build and own Base Area Network 27 communities Ensure service is available for key users in base area communities Commitment to availability of high speed Internet services in rural communities if no other available Axia SuperNet Ltd. Manage/operate Alberta SuperNet for 10 years (both for G/LHLM users and commercial users) Sub-contracted by Bell to build Extended Area Network 17

18 Communities Taking Action Upper Canada Network (UCNet) Not-for-profit community network that is aggregating demand and lowering telecommunications costs for users schools, businesses, hospitals, agribusiness, tourism and municipal government Simcoe Community Access Network (SCAN) Community partnership of 16 local governments, schools & colleges, hospitals, libraries and 5 hydro utilities including the telecom arm of the former Ontario Hydro School boards in province of Quebec Demand aggregation and procurement of advanced network services and Internet access cost savings 18

19 Challenges Canada focuses on accelerating Broadband deployment understanding procurement vs. demand aggregation dimensions in questionnaire Various levels of governments and jurisdictions make it difficult to respond to certain sections of the pilot questionnaire (e.g. Tables in sections 3.7, 3.10) Clarification of Terms - e.g.framework agreements 19

20 Suggestions for Next Steps Workshop summary necessary: Lessons learned Policy issues and linkages to key WGs Required revisions to questionnaire Additional data and examples Assess if UK proposal s objectives have been met Discuss summary and potential future work with WPIE delegates at December meeting and in follow-up comments 20

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