THE REGIONAL MUNICIPALITY OF YORK Committee of the Whole Report of the Executive Director, Corporate and Strategic Planning ECONOMIC DEVELOPMENT ACTION PLAN UPDATE - YORK REGION BROADBAND STRATEGY PROGRESS 1. RECOMMENDATIONS It is recommended that: 1. Staff report back to Council on the final York Region Broadband Strategy by the first quarter of 2014. 2. PURPOSE This report provides Committee with an overview of the preliminary findings of the York Region Broadband Strategy. The Strategy examines connectivity opportunities within the Region and will outline recommendations for improving connectivity to ensure the Region remains a competitive, attractive location for businesses and a knowledge-based workforce. 3. BACKGROUND The Region s Economic Development Action Plan highlights the need for improved broadband connectivity The issue of increasing high-speed broadband connectivity throughout York Region in order to keep pace with the needs of businesses, the public sector and residents, has been identified as a key priority in the Region s Economic Development Action Plan and by the Region s partner municipalities. Approved by Regional Council in December 2012, the York Region Economic Development Action Plan has as a goal: Provide Connectivity Infrastructure to Support Innovation. Facilitating investments in broadband infrastructure has been identified as a transformational goal, critical to supporting existing business growth, to attract and expand research functions, and attract and retain a knowledge-based workforce. The Economic Development Action Plan calls for an assessment of bandwidth capabilities Committee of the Whole 1
Economic Development Action Plan Update across the Region and development of a strategy for improving connectivity. The intent is to determine how best to move towards a widely distributed competitive broadband network within York Region. York Region is a vibrant location for many technology and research-based businesses that rely on broadband The Region has a large and thriving business community that requires significant broadband infrastructure to support activity and growth. For example, York Region is home to 3,700 companies in the Information and Communications Technology (ICT) industry, including some of the largest names in the field, many of which conduct world class research here. The Region has also received several recent investments in major broadband-dependent data centres, focused primarily along the Highway 7 Corridor. These companies and investments illustrate that in some parts of the Region, there is significant broadband capacity that can support this level of business activity. The Region recognises the importance of connectivity for its own operations and has been investing in broadband infrastructure The Region has been undertaking an incremental program annually since 2009 to install fibre connections between Regional facilities in an effort to reduce operating costs. The resulting York Telecom Network (YTN) currently includes 75 kilometres of fibre, and services 87 York Region locations including York Regional Police, as well as several area municipal and school board facilities. The future extent and role of the YTN is currently under review by the Corporation, and will be the subject of a future report to Committee. Local Municipalities recognise the importance of connectivity and approached the Region to undertake a joint broadband study Local municipalities within the Region have also been investing in broadband networks to service their own operational needs and in some cases directly promote broader community development initiatives. Collectively they recognise the broader importance of connectivity to overall economic vitality and the need for collaborative effort to move towards more effective and competitive levels of service. On October 4, 2012 the CAO s of the northern six communities approached the Region to advance a collaborative study of broadband capabilities. The southern three municipalities were subsequently engaged and a jointly-funded broadband study of the entire Region was launched in November 2012 with the support of the Regional Economic Strategy Branch. 2 Committee of the Whole
Economic Development Action Plan Update - 4. ANALYSIS AND OPTIONS Development of the York Region Broadband Strategy has been a collaborative process involving a diverse number of stakeholders A consulting firm has been engaged by the Region and area municipalities to prepare a Broadband Strategy to understand the needs and identify ways to improve connectivity. The process for developing the strategy involves consultation with an array of important stakeholders from across the communities. To date, the following stakeholders have been engaged: Municipalities all nine local municipalities and York Region. Internet Service Providers a number of private sector service providers in the Region. Education York Region District School Board, York Catholic District School Board and Seneca College. Healthcare Southlake Regional Health Centre, Mackenzie Health, Markham Stouffville Hospital, Central Community Care Access, York Region Public Health and Central Local Health Integration Network. First Responders including all local municipal Fire Departments, York Regional Police, the Ontario Provincial Police and Emergency Medical Services. Business Community all nine Chambers of Commerce and the Board of Trade were engaged, as were 65 businesses through three public consultation sessions and 45 through an online survey. Residents 72 residents provided input through an online survey. The Broadband Strategy work is progressing through a number of steps The development of the Strategy includes a number of actions, including: Gap Analysis an analysis of the current service areas within York Region. Community Needs Analysis engagement of public and private sector stakeholders to identify their connectivity infrastructure and application needs. Internet Service Provider Consultation engagement of private internet service providers to discuss their coverage areas and opportunities for investment. Technology Infrastructure identification of target connectivity speeds and technologies for the Region. Road Map development of a range of strategies for improving connectivity within the Region. The study team is currently in the final stages of identifying target connectivity speeds and the various strategies to achieve them, which will be completed over the next few months. Committee of the Whole 3
Economic Development Action Plan Update PRELIMINARY YORK REGION BROADBAND STRATEGY FINDINGS High-speed broadband connectivity is critical for communities and businesses to compete The Broadband Strategy work has identified that connectivity speeds and costs can influence the amount, type and location of investments in communities. This is important in the following areas of growth and economic development: Business Investment Retention and Attraction access to high-speed connectivity is a pre-requisite for the attraction and retention of high-value knowledge economy investments. Improved connectivity can ensure communities can continue to compete by providing a range of investment options across all of its municipalities. Post-Secondary Research Investment Attraction high-value post-secondary research requires high-speed broadband infrastructure. By providing improved connectivity, communities will be better suited to attract high-value post-secondary research opportunities. E-Governance and Community Service Delivery access to broadband connectivity provides the opportunity for the public sector to deliver services in a virtual fashion that can improve delivery, while reducing costs. Increasingly leading edge communities are using e-governance and services to also attract business investment. Population Growth/Demographic Distribution population growth could be skewed between areas that are well serviced with connectivity, where a younger demographic might locate, to those that are not well-served, where an older demographic may live. Providing similar connectivity opportunities allows for a better distribution of the workers relative to business labour needs, an important factor in attracting a young emerging workforce. Other Communities are embracing high speed connectivity as an economic driver The Broadband Strategy work has reviewed examples of other communities that can be considered best-practice models for community connectivity. Some communities that have facilitated investments in high-speed connectivity and their available speeds can be found in Table 1. Table 1 Available Connectivity Speeds in Sample Communities Available Available Location Business Speed Residential Speed Waterfront Toronto - Toronto, Ontario 10 Gbps 250 Mbps Olds, Alberta 1 Gbps 1 Gbps Stratford, Ontario 1 Gbps Kansas City, Kansas 10 Gbps 1 Gbps Austin, Texas 1 Gbps 1 Gbps 4 Committee of the Whole
Economic Development Action Plan Update - These communities are leveraging these improvements for economic development purposes, attracting new investments, retaining and growing existing businesses, and facilitating research and collaboration. York Region is currently serviced with a range of service providers, connectivity speeds and technologies Through the Broadband Strategy work over 100 internet service providers have been identified that provide connectivity to the Region s residents, businesses, public and nonprofit sectors. These providers use a range of technologies, including wired, wireless and satellite. Generally, wired technologies provide greater connectivity speeds at a lower cost, followed by wireless and satellite technologies, which offer lower connectivity speeds typically at a higher price. Depending on a resident or business location within the Region, they may be able to be serviced by one or more of these technologies. Access to high-speed connectivity is currently available across the Region, but not always at the speeds, costs and locations for the Region to be competitive The Strategy has identified that while connectivity is available across the Region, it is not always available at the speeds, costs and locations that will enable the Region to compete with communities locally and globally. An example of an issue stemming from this is the marketability of employment lands. Available high-speed connectivity was found to be limited in some of the Region s employment lands, with businesses in some urban areas having to rely on higher cost and slower connectivity solutions. While most employment areas are located in urban areas, private sector internet service provider investments in internet connectivity are generally focused more on the residential market, with service to employment areas taking a secondary role. This means that smaller businesses within these parks often cannot get access to wired fibre optic solutions without significant investments, leaving them to rely on wireless solutions. This may make some employment lands less competitive for the types of employment uses the Region is trying to attract. Gaps in broadband infrastructure could impede the Regions ability to achieve other economic development goals Another gap identified within the Regional broadband network relates to the Ontario Research and Innovation Optical Network (ORION). ORION is the provincial broadband network that allows post-secondary institutions and their private research partners to connect and undertake advanced research with high data and computing needs. The ORION backbone travels from Barrie to York University in Toronto through the western part of York Region, but the lack of a post-secondary research campus presence in the Region means there is very limited access to this important network here. Access to the ORION network through a point of presence (POP) is critical to supporting post-secondary/industry research collaborations. Stakeholders such as Southlake Committee of the Whole 5
Economic Development Action Plan Update Regional Health Centre have identified this as an impediment to advancing research agendas in the Region. Filling this gap would help address another transformational goal of the Economic Development Action Plan by increasing the post-secondary and research presence, facilitating business and job growth in key knowledge-based activities. The Broadband Strategy will identify and examine the various issues related to current levels and distribution of broadband service across the Region. Setting targets will be necessary to set the stage for building the infrastructure required to support economic growth Broadband can be considered critical infrastructure, much like roads, sewers and transit. Through consultation with a range of stakeholders, including internet service providers, the York Region Broadband Strategy is identifying recommended improved connectivity targets based on the Region s land-uses. The targets will include the speed and technology requirements for the mid-term (five years) and long-term (10 years). Achieving these targets will require investments in fibre optic infrastructure in all urban communities of York Region, as well as fibre optic investments and improved wireless and satellite technologies in the Region s towns, villages and rural areas. This work can ultimately be translated into a 10 year community capital plan for implementing broadband, one that is shared by the various public and private sector stakeholders. Setting these targets will take into consideration factors such as the interest of the Region to direct development to certain areas, such as the Region s Centres and Corridors, so that broadband infrastructure investments support other growth related investments and policies. The Region s Centres and Corridors will compete with other global centres for office employment and knowledge workers. If the Region aspires to lead and attract global talent and investment, it must look at ways to improve and provide critical highspeed broadband infrastructure, particularly in key locations in the communities. Private sector service providers see opportunities for investment in York Region Throughout the development of the York Region Broadband Strategy, staff has been engaging private sector internet service providers with operations within the Region. These discussions have focused on their current service areas, their plans for expansion and challenges they face doing business within the Region. Their input into strategies on how the Region could improve connectivity for the various stakeholder groups within the Region will help inform the various approaches recommended as part of the York Region Broadband Strategy. Relationships with these and other private sector internet service providers will be critical as the Region and stakeholders move forward with implementation of the Strategy. 6 Committee of the Whole
Economic Development Action Plan Update - A range of strategies will be required to develop the necessary broadband network to remain competitive Ultimately the goal of the York Region Broadband Strategy is to increase the amount of high speed connectivity that is available in the Region. Encouraging those investments can be made easier with streamlined municipal processes, for example, but inevitably infrastructure must be built to meet the needs within communities. Through the Strategy work and consultation with stakeholders, a range of approaches have been identified that could be employed to improve connectivity within the Region. These include: Education and Advocacy activities focused on educating the public and private sector on the importance and potential uses of high-speed connectivity to promote economic vitality Municipal Processes and Operations activities focused on opportunities for improving municipal processes that impact connectivity investments and on opportunities for collaborative coordinated efforts amongst municipalities to support connectivity initiatives Infrastructure Investments activities focused on exploring a range of infrastructure projects that will lead to improved regional connectivity The Strategy will provide a detailed list of infrastructure related initiatives that cover all aspects of the community, from those that require public sector leadership, to others that will require private sector investment. Given the diversity of the Region s municipalities and their interest in connectivity, the Strategy provides different approaches for realizing the connectivity goals highlighted for the Region. Implementing the Broadband Strategy will require collaborative effort from a range of stakeholders Implementation of the York Region Broadband Strategy will require collaboration among the Region s internal departments, its municipal partners, and an array of private sector relationships, including interested internet service providers. Coordination and oversight will be necessary to guide and report on the implementation and results of the Strategy, and potential models for providing this oversight will be explored and reported on in the final Strategy document. Link to key Council-approved plans York Region has a number of Council approved strategic documents that provide clear direction regarding economic development both in the longer term and within the current term of Council. Vision 2051, the Regional Official Plan, and the 2011 to 2015 Strategic Plan, all highlight the importance of economic vitality and high speed broadband connectivity plays an essential role in facilitating economic growth. Committee of the Whole 7
Economic Development Action Plan Update 5. FINANCIAL IMPLICATIONS Delivery of robust, competitive broadband infrastructure across York Region will require significant long term investment by multiple stakeholders. These investments will be necessary to sustain existing communities and facilitate future growth that will result in significant economic benefit. The Broadband Strategy will help articulate costs of possible solutions and assist in focusing investments on the most appropriate technologies and locations to maximize return on investments. The development of the York Region Broadband Strategy is being undertaken in collaboration with the Region s municipal partners sharing the costs. External consultants have been engaged to assist in the initiative and all Regional costs associated with the work were approved in the 2013 Economic Strategy Branch budget. Going forward, it is anticipated that elements of the proposed York Region Broadband Strategy will be implemented through the Economic Strategy Branch annual program and budget, in partnership with other departments, local economic development offices and external program delivery partners. 6. LOCAL MUNICIPAL IMPACT The York Region Broadband Strategy was initiated and funded in partnership with all nine local municipalities. All nine local municipalities have been engaged and consulted throughout the process, having input into the priorities identified for their communities and the broader goals of the Region s broadband Strategy. The local municipalities are seen as on-going partners in the implementation of the Strategy and will play a key role in implementing the priorities identified for their communities. 7. CONCLUSION Having accessible high speed broadband connectivity is a critical need to meet the Region s goals of attracting 21 st century businesses and a knowledge workforce that can compete globally. The York Region Broadband Strategy is a collaborative effort of the Region and area municipalities to examine the broadband capabilities across the Region and identify opportunities for developing improved connectivity. The goal of the Strategy is to increase the amount of high speed connectivity that is available in the Region to stay ahead and remain competitive. The Strategy will identify a series of approaches and projects that will help develop this critical infrastructure across the Region through both public and private sector stakeholders. Approaches to achieve this could include a combination of education and advocacy efforts, improvements in municipal processes, and infrastructure investments. 8 Committee of the Whole
Economic Development Action Plan Update - The actions required to address the opportunities will vary based upon their location, importance to local stakeholders, and the business value associated with the action. The York Region Broadband Strategy work will be completed later in 2013, and staff will report on the final Strategy findings before the end of the first quarter of 2014. For more information on this report, please contact Doug Lindeblom, Director, Economic Strategy at (905) 830-4444, Ext. 1503. The Senior Management Group has reviewed this report. Recommended by: Approved for Submission: Dino Basso Executive Director, Corporate and Strategic Planning Bruce Macgregor Chief Administrative Officer Committee of the Whole 9