Canada - Current developments in rural broadband

Telecom Investment Research Note

Synopsis

Canada’s telecom regulator, the Canadian Radio-television and Telecommunications Commission (CRTC) is currently considering whether it should amend the 10-year-old ‘basic service obligations’ under which incumbent phone providers are obliged to provide, at the very least, local phone services and dial-up Internet services, to communities in rural and remote areas.

Responses to the review have been diverse. For instance, incumbent phone companies are calling for the modernisation of out-dated service obligations in the face of increased competition from alternative service providers. Specifically, some are insisting on the complete elimination of basic service obligations thus creating a level playing field for all competitors. In contrast, others are arguing that market forces will be insufficient to close the gap between rural and urban service quality, calling instead for the government to mandate universal high-speed broadband access in order that all Canadians may realise the benefits of advanced information and telecommunications technology.

Two other key CRTC decisions include the decision that over half of the $700 million held in the incumbents’ escrow funds are to be used for rural broadband networks and that the funds may be used for the provision of wireless broadband instead of fibre.

The analysis is followed by broadband market overview and key statistics extracts from the report Canada – Broadband Market – Overview, Statistics & Forecasts.