The 1980s may have wanted their MTV, but 2020s rural Canada wants their Wi-Fi. And the federal Liberal government has announced a $1.75 billion program to improve connectivity, principally in rural areas of the country.
And in an era where Elon Musk’s SpaceX is developing a low-earth orbit constellation of satellites called Starlink to provide high-speed connectivity to rural areas around the world, accessible by consumers, the Canadian government is turning to a made-in-Canada solution, using Ottawa-based Telesat. Telesat’s model is to work with other providers to provide the consumer-facing product.
In a press conference in Ottawa, Prime Minister Trudeau said on Monday: “Our government is launching the $1.75 billion universal broadband fund to connect all Canadians to high speed Internet.
“This fund will be used to build infrastructure across the country, almost entirely in rural and remote communities. And for places that are just too far to reach, including in remote areas in the north, we've reached a $600 million agreement with Telesat for satellite capacity to improve broadband, along with the $2 billion we’ve already put down for broadband through the Canada infrastructure bank's growth plan. We're making real investments in Canadians, their success, and in their future.”
Trudeau continued, “Today's investment puts us on track to get 98 per cent of Canadians connected to high speed internet in the next few years, and everyone connected. a few years after that. These are ambitious targets, and we're ready to meet them. In fact, to accelerate our progress, right now, these need to succeed.”
Trudeau said his government had spent $6 billion over the last five years to connect 1.2 million households to high-speed internet, nearly 10 times the $700 million the previous Conservative government had spent.
The fund was boosted $750 million from the original $1 billion in the 2019 budget. The backgrounder provided by the government notes the strategy is to connect every Canadian by 2030. The strategy is to reach 98 per cent of the population by 2026.
Elements of the program include a “rapid response stream,” with up to $150 million allocated for projects that will be completed quickly and be in service by Nov. 15, 2021. For large-impact projects, the Canada Infrastructure Bank will be brought in as a partner for projects that are “transformative in terms of results and scope,” according to a backgrounder provided. There’s also funding for “a diversity of projects,” from “small ISPs (internet service providers), municipal-led projects, Indigenous projects, as well as projects from the larger ISPs.”
A further $50 million is included for mobility projects benefitting Indigenous peoples. This includes along highways and roads, as well as Indigenous communities.
The agreement with Telesat is to secure high-speed Internet capacity over Canada through the company’s low Earth orbit (LEO) satellite constellation. Telesat’s constellation will utilize next-generation technology to significantly improve connectivity in rural and remote Canada, including the far north. Telesat’s website says its LEO network is truly global, noting, “every point on earth is covered, including polar regions.”
The company plans on expanding its low earth orbit constellation to 298 satellites by 2023, with plans to build out its constellation to up to 1,600 satellites down the road to meet demand.
