High-speed internet | Industry officials say further expansion of services into rural Canada hinges on government policy
Both the technology and available private capital exist to extend high-speed internet throughout all of rural Canada, MPs were told last week.
However, Xplornet Communications Inc. president Allison Lenehan told members of the House of Commons industry, science and technology committee that government policy that forces companies to buy internet “spectrum” access rights both in urban and rural Canada means companies concentrate on the higher-profit urban service and neglect rural areas.
Xplornet, which is based in Woodstock, N.B., provides only rural service and bills itself as the “largest provider of rural broadband” in Canada.
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He said the company has raised and invested more than $800 million in its system. It is not looking for government subsidies.
“We have done what other telecom companies and government thought impossible,” he said.
“We have made high-speed internet available to 100 percent of Canadians. There’s nowhere in Canada we cannot reach with high-speed internet.”
The company uses a network of wireless towers and two satellites to deliver the service to more remote areas.
However, Lenehan said Industry Canada policy governing the auctioning of spectrum access and the licensing of providers mean rural-oriented companies “cannot buy spectrum because spectrum is auctioned in blocks that include major cities.”
It means the potential to provide 100 percent rural coverage is not being met.
The Conservative government has made expansion of rural broadband service a policy goal, but Lenehan said government policy is thwarting that goal.
He offered MPs an example.
“To buy Durham, Ont., (a rural area east of Toronto), we have to buy all of the Greater Toronto area and that is just not feasible.”
Lenehan said the result is that companies aiming at lucrative big city markets end up with rural area spectrum they do not use.
“The private sector has the money and technology,” he said. “We need your help with the public spectrum.”
He said major companies that hold a spectrum license for rural service are using just 26 percent of it.
“Are you suggesting that 74 percent is being hoarded by the companies that have it?” asked Prince Edward Island rural MP Wayne Easter, who complained about spotty service in his area.
“I would suggest that anyone who acquires a spectrum under certain licences and has a period of time to use it should use it within that timeframe,” Lenehan replied.
Later, northern Ontario Liberal MP Glenn Thibeault returned to the issue.
“If you buy it, basically what you’re saying is use it or lose it, right?” he said.
“That’s correct,” replied Lenehan.
He urged the committee to recommend that the government change the rules to allow rural spectrum to be auctioned off separate from city service auctions.
He said improved internet is important for rural Canadians both for standard of living and as a way to boost the rural economy.
