Bill S-242

An Act to amend the Radiocommunication Act

This enactment amends the Radiocommunication Act to require spectrum licence holders
(a) to deploy the spectrum to at least 50% of the population within the geographic area covered by the spectrum licence; and
(b) in respect of the utilization of radio frequencies within a Tier 1 to 4 service area as described in Canada Gazette notice DGSO-006-19, Decision on a New Set of Service Areas for Spectrum Licensing , published on July 23, 2019, to deploy the spectrum to provide service to at least 50% of the population within any Tier 5 service areas located within the geographic area covered by the spectrum licence.

Radiocommunication Act

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Mr. Speaker, I am rising this evening to speak to Bill S‑242, an act to amend the Radiocommunication Act, an issue that I care a lot about. I have championed this issue since I was elected in 2019, and yet here we still are four years later.

I want to paint a picture of what is happening in Laurentides—Labelle in this regard. I want to show my colleagues this wonderful riding, but they better not get lost because, quite honestly, there are many roads in Laurentides—Labelle where the GPS cuts out because there is no signal. People do not have to bring their phone if they come to visit us. Is that acceptable in 2023?

I want to take 30 seconds to name some of the 43 municipalities in Laurentides—Labelle. They include Sainte‑Lucie‑des‑Laurentides, Sainte‑Agathe‑des‑Monts, Lac‑Supérieur, Lac‑Tremblant‑Nord, Mont‑Blanc, Notre‑Dame‑du‑Laus, Notre‑Dame‑de‑Pontmain and Ferme‑Neuve. I will not name them all, but nearly all of them have areas where there is no cell coverage. Cell connectivity is not just intermittent but completely lacking in some cases. I have experienced it myself many times.

I am thinking of Sainte‑Lucie‑des‑Laurentides in particular. There is no signal next to city hall. It is not the time to get lost in the woods, and having a good sense of direction is key. We are talking here about 1,475 residents who are held hostage by a lack of service, which is, quite frankly, essential in 2023. This is also a community whose economic, social and community development is being hampered by this lack of service, which should be essential.

As everyone knows, the housing crisis has reached every corner of Quebec, and Laurentides—Labelle is no exception. Sainte‑Lucie‑des‑Laurentides would like to attract real estate projects, welcome new residents and offer them a dignified place to live, but it has to wait. A major obstacle stands in the way. Unfortunately, a lack of cellphone service has put a damper on all potential plans, and the municipality is paying the price.

In 2023, what are people being told? Are they being urged to come live in Sainte‑Lucie‑des‑Laurentides for an outstanding lifestyle surrounded by lakes, rivers, hiking trails and even a child care centre, as long as they can do without their cellphone because the area has no signal? It is the same story for other municipalities in Laurentides—Labelle. Only the names change.

I can think of another example. Let us imagine an entrepreneur, the president of a small business, who has to set his cellphone on the kitchen table to be able to work, to have the slightest access to the network. There is almost no chance of teleworking, with a network that cuts out every two seconds. How can anyone be efficient? I think this is unacceptable.

As I said at the beginning of my speech, I really care about the issue of cell coverage. During the 2019 election campaign, however, I quickly realized how much the Liberals were ignoring the issue. I also quickly realized how important this issue is to Quebeckers and Canadians. It is even a question of public safety. When people in a municipality tell us that, during a power outage, they have to knock on neighbours' doors because the Internet, cellphones, landlines and wireless phones at home do not work, that is another matter altogether. It is a question of public safety.

In recent years, the mayors of the 43 municipalities in Laurentides—Labelle signed a letter. The reeve of the Pays‑d'en‑Haut RCM also signed the letter, which was sent to the former economic development minister, the member for Ahuntsic-Cartierville. Twenty-four resolutions from 24 municipal councils calling on the federal government to take action were tabled in the House.

I even sponsored a petition started by an individual named Lynne Gornon. I applaud her mettle and hard work. She asked the federal government to work with big telecoms to build cell towers in rural areas quickly for public safety reasons. Thanks to grassroots efforts, the petition garnered nearly 3,500 signatures in a matter of weeks. Since then, nothing has happened, nothing at all. That is a difficult thing to explain to people, and it is hard to make the claim that this is an important file.

Along my route from here to home, I go through about 10 places where there is no cell service. I just found out that I can make a call with a signal if my car breaks down. I cannot actually call someone, but apparently I can call 911 if I have to. I hope I never have to try.

Why is the federal government doing nothing? If this is so important, why is it not doing something?

Let us talk about the bill before us. Telecommunications companies can acquire spectrum licences during auctions organized by the federal government, but they are not required to use them in their entirety. That is what happens and it does not sit well with us. For rural and remote areas, the licence ends up being unused, which does not serve the public. The bill will not be favourable to our proposal.

It is not that the objective of connecting every under-serviced area is not commendable. We believe that if the bill is referred to committee, a tremendous amount of amendments will need to be made. From the outset, we will have to ask stakeholders to testify to give us answers to some of our questions so that we know, as legislators, whether this is viable. In its current form, the bill is not the right vehicle to meet the objective, even though I agree this is an urgent problem.

This study in committee will allow us to have a bill that is much more comprehensive and better overall, allowing us to respond more favourably to potential investments.

I would like to talk about how the spectrum areas are managed. This could help the people who are watching us to understand this issue. This could be delegated to the Government of Quebec. As in all areas, the Government of Quebec is well positioned to know and recognize the most pressing needs of its communities. It has proven it. With operation high speed, Quebec managed to gradually meet its objectives.

The Government of Quebec's commitment and dedication in this particular matter show that we are capable of implementing ambitious connectivity strategies for Quebeckers. Finally, I think it is worrisome that the bill gives additional powers to the CRTC, particularly with regard to the management of spectrum areas and auctions.

It is of the utmost importance to me that the federal laws and Quebec's provincial laws complement one another rather than compete against one another. We need to think about our constituents. I think that sending the bill to committee is a good idea.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Madam Speaker, I am pleased to be able to rise and offer my thoughts on Bill S-242, which was first introduced into the Senate by Senator Dennis Glen Patterson of Nunavut and, of course, the bill is being sponsored here in the House by the member for Bay of Quinte.

Essentially, what we need to discuss with respect to this bill is spectrum. A lot of people may wonder what that is.

I would say, first and foremost, that it is a very important public resource. It is essentially the resource that refers to the range of frequencies used for wireless communications, such as Wi-Fi and cell service. These are services that many of us take for granted, especially in urban areas and in work environments such as this.

Every time we pull our phone out, we just know that we are going to have access to the Internet and to important information. It allows us near-instantaneous communication with many of our work colleagues and our constituents, even though the constituents that I represent are three time zones away from Ottawa.

There are different lanes, or frequency bands, within the wireless spectrum. They all have different speed limits, and each is suited to a different type of data traffic. The government's job in this is to regulate and allocate frequency bands to different companies and organizations for use to ensure that there is enough spectrum available for everyone and that different devices can communicate without interfering with one another.

That regulation of wireless spectrum is the responsibility of one department, that is, Innovation, Science and Economic Development Canada. ISED is responsible for developing and implementing policies and programs related to the efficient and effective use of spectrum resource. This includes licensing and allocating spectrum to various users, such as wireless carriers, broadcasters and government agencies. The decisions that ISED makes affects how quickly Canadians are connected.

I want to talk about rural Canada, especially my riding of Cowichan—Malahat—Langford. My riding is about 4,700 square kilometres of beautiful southern Vancouver Island real estate, and it is a very rural riding. I would say that about 90% of my riding's population lives along the east coast of Vancouver Island, going from Chemainus down to Langford. The most beautiful part of my riding, I would argue, is over on the southwest coast.

When a person is driving up to Lake Cowichan, gets down to Mesachie Lake and takes a left turn to go to Port Renfrew, they know that they are out of luck in terms of cell service until they get to the water's edge. This happens within a few kilometres of having departed the highway.

There are significant geographical chunks of my riding where, when one is out there, one does not have access to cell service. Indeed, this is true for most of British Columbia.

I acknowledge that British Columbia is a very complex province to get these services to. This is because of our terrain. We are the most mountainous province. It is a source of great pride and great beauty, but it comes with its challenges when one lives there. The mountains make a perfect physical barrier between two devices trying to connect with one another.

My constituents are experiencing these problems but, right across Canada, we know that the stats show a picture in which 63% of rural households do not have access to high-speed broadband. That includes 14% of highways and major transport roads that do not have access to LTE wireless services, the really fast kind of wireless service.

Up in the Northwest Territories, Yukon and Nunavut, no households have access to high-speed broadband. Moreover, 72% of highways and major transport roads do not have access to LTE wireless services.

This is a critical service that is important in connecting us to the outside world, to safety services and for our work. However, so much of rural Canada still does not have access to that.

The Canadian Internet Registration Authority released 2021 data as a part of its Internet performance test. This showed that the median rural download speeds were measured at 3.78 megabits per second, compared with an astounding 44 megabits per second in urban Canada, a difference of 11.7 times.

The digital divide between urban and rural Canada is starkly seen in these statistics. We know that urban speeds have actually been climbing, while the rural Canadian upload speeds, on average, are falling and have not been keeping the same pace.

Let us turn to Bill S-242. I was looking at the introduction speeches in the Senate and here in the House, and I have looked at how other colleagues have responded to the bill. I think the senator who sponsored the bill in the other place summed it up quite well when he said that the bill is essentially the “use it or lose it” bill.

Bill S-242 would essentially amend Canada's spectrum policy to ensure that this very important and critical resource is used to connect Canadians and is not used as a vehicle for billionaires to be trading back and forth with one another. It would require that all spectrum licence holders deploy spectrum to 50% of the population within prescribed geographic regions contained in the licence area, known as tier 5 areas, within three years of acquiring the licence. It would ensure that those buying larger licence areas would not be able to meet deployment conditions simply by deploying to the urban areas within those larger tiers. They would also be required to service the smaller rural and remote areas nestled within. It would give the minister the flexibility to decide whether to revoke the entire licence outright or to reallocate those tier 5 areas within the licence to other providers that are ready and able to service the underserved areas.

There is also a third component to the bill, which is a civil liability clause. The intent of this clause is to ensure that if the licence holder, by acting in bad faith, does not meet the deployment conditions and has had its licence revoked, the population that had been serviced by it and had the service lost due to the revocation could initiate a civil claim for damages.

I will conclude by saying that we have a situation here in Canada where, if we look at the history of spectrum sales and allocation, we know that the Canadian government, over time, has been deeply discounting spectrum for smaller regional carriers that have consistently failed to deploy it. There are areas all across this great country of ours that are sitting unserved by broadband because of limited access to the spectrum resources. It is a scarce public resource, but it has been squandered because it has been licensed to regional carriers that have preferred to flip it for profit rather than improve the lives of the Canadians it is supposed to serve. This is very important, because it is estimated that next-generation 5G connectivity will add billions of dollars to Canada's GDP over the next half-decade. The lack of reliable connectivity in rural communities is depriving them of access to the 21st-century economy and all the opportunities that it has.

As the NDP's agriculture critic, I know that in rural communities right across the country, with the incredible advancements in agricultural technology and innovation, connectivity to the Internet is so crucial, especially with the next-generation machinery that is coming out, with its ability and artificial intelligence. If we want our farmers to stay on the cutting edge of agricultural technology and to continuously punch above their weight as the agricultural powerhouse that is Canada, we need to solve this problem and make sure that connectivity is where our farmers are doing their important work for our country.

Fundamentally, Bill S-242 is about making sure that those who buy spectrum actually use it. When somebody buys a public resource, especially at significant discounts, as has been our country's history, they should be buying an obligation to connect Canadians. This is an essential service. We must find pieces of legislation that would protect it and protect consumers, and that is why I am proud to say that I will be voting in favour of the bill's going to committee for further study. I believe there is an opportunity for some amendments to be made there. I look forward to listening to other colleague's comments.

[Bob Zimmer, Conservative, Prince George—Peace River—Northern Rockies, BC]

Mr. Speaker, I really appreciate the opportunity to talk about a bill from a senator who has become a great friend. The senator is from Nunavut, with a lot of deep history in Nunavut and Northwest Territories even before the boundaries had been reformed.

Many call this the “use it or lose it bill”, but I think it should be called the “connecting Nunavut, Northwest Territories, Yukon and northern Canadian communities bill”, because that is what it is about. My file, officially, is shadow minister for northern affairs, Arctic sovereignty and northern economic development. Connectivity is absolutely imperative now. It is across the country, but even more so in these remote communities that we represent.

I was a little puzzled. I heard the Liberal member across the way say that they were not going to support the legislation. I am troubled by that, in that it has been said, and I have said it before, that the NDP-Liberal government has abandoned the Arctic. By opposing this bill, it just further proves that that is exactly what is happening.

I am going to get into what the bill is, and I am going to give Senator Patterson a lot of credit. This is from his summary:

My name is Dennis Patterson....serving as Senator for Nunavut since 2009. Prior to that I served as a 4-term Member of the Legislative Assembly for the Northwest Territories (pre-division) representing the riding of Frobisher Bay, now known as Iqaluit. I spent 16 years in office as a senior minister and spent 4 of those years as Premier.

Given the remoteness of my region, adequate and reliable access to internet services was a major focus of mine during my time in office and I have continued to work hard on the issues during my time in the Senate. In today's society, access to internet is much more than recreational; we have become increasingly reliant on internet for a host of things that include, but are not limited to, work, school, the administration of justice and health applications.

Use-It/Lose-It is the policy that those who buy spectrum are taking on an obligation to deliver services to Canadians. It sets out that if you get a fair chance to use your spectrum, and if you don't, the government should take it away and give it to someone who will use it. This policy treats spectrum like the public utility that it is.

I could not agree more. There are examples where somebody had said, “buy it and flip it” for a huge profit, without building a stick of infrastructure that is very important.

I want to give a shout-out to some of my fellow shadow ministers for their work on this. The shadow minister for innovation, science and economic development, the shadow minister for pan-Canadian trade and competition, and the shadow minister for rural economic development and connectivity are all doing great work on this.

In summary, for the people who are watching today, including residents from Nunavut, Yukon and Northwest Territories and northern parts of Canada, the bill would implement a “use it or lose it” approach to licence spectrum. The legislation would force licence spectrum holders “to deploy the spectrum to provide service to at least 50% of the population within the geographic area covered by the spectrum licence, within three years of the licence's issuance” or potentially have the licence revoked.

The bill permits the minister to revoke the spectrum licences that do not abide by the aforementioned regulations, and the minister must, within 60 days, reissue the revoked licences to competitive bidders.

One of my colleagues, the shadow minister for pan-Canadian trade and competition has spoken about how we have the most expensive cellular service, Internet services in the world. What I would expect from that, as I think every Canadian should, no matter whether they are from Iqaluit or Toronto, is that these big telcos, that are making huge amounts of money, would be building infrastructure in the remote communities. That really comes with getting that spectrum. It is expected, and this bill would set out to make that the way it is going to be.

I am just going to refer to an article from the Nunatsiaq News. This is one of the publications specifically in Nunavut.

Nunavut senator touts law that could improve communications in North.

Patterson said his bill, which passed third reading in the Senate on April 20, would improve access to wireless services in rural and underserved communities like those in Nunavut.

The senator went on to say, “What's happening now is that telecom companies who are operating are tending to favour larger communities, so we have a disparity in services such as they are between the larger and smaller communities.”

As an example of how telecom companies flip spectrum and make hundreds of millions of dollars while doing nothing for our local communities, the article says, “He said in 2008, Shaw Communications bought a particular spectrum licence for $190 million and sold that licence for $350 million in 2013. Then in 2017, Shaw purchased another spectrum licence from a company called Vidéotron for $430 million, which netted Vidéotron a $243-million profit.” This is all while building zero infrastructure in Canada, but in the north especially, in communities that need it desperately. The senator said, “Broadband access is critical to Nunavut in particular because of the vital services that we rely on here, including health and telehealth, education, business and economic development and communications with the broader world.”

Part of my role is economic development in northern regions in our country. I have been to all three territories several times, and a common topic of conversation is connectivity. Residents in those communities order from Amazon, as we all do, but they do not just order things; they order food in many cases because they cannot access it in their remote communities. It is therefore even more necessary that they have good connectivity.

I have known Senator Patterson for many years, and anybody in this place who has ever met the senator will know that he has a passionate desire to serve not just the region of Nunavut but the people of Nunavut and the north. Anytime someone speaks to him, he has a sealskin vest on or something with sealskin made by a local in one of the communities he represents. He always has a smile for the north. Those in the room might not know, but he is reaching age 75 pretty quickly and soon will no longer be in the Senate chamber. We will miss him there. I want to give him a lot of credit for advocating for people in the north and the things that really matter in the north. I know he is doing his best with this.

The bill has gone through the Senate and is in this chamber, and while I have accused the Liberals of abandoning the north, it is an opportunity for them to support the north and make this happen. However, we have to look at it in a different way, as a geographical area. It is a geographical area with real people who rely on connectivity for their daily lives, as I just said, including for food and health. It does not get more important than that.

This is such an easy thing for the government to support. Hearing the member from Manitoba say Liberals are going to oppose this bill is surprising to me. I should not say “surprising”. It is upsetting to me. However, as I have said many times before, the NDP-Liberal government has abandoned the north. I would challenge members to change the direction they are going on this bill and prove to residents of Nunavut, Yukon and Northwest Territories that they support them and that they indeed have not abandoned the north. I will leave it up to them to make that decision.

The viewers tonight can see the way the government is going to vote on the bill. If it votes in favour of this bill, good; if it votes no, it again proves my point that the NDP-Liberal government has abandoned the north.

[Adam van Koeverden, Liberal, Parliamentary Secretary to the Minister of Environment and Climate Change and to the Minister of Sport and Physical Activity]

Mr. Speaker, I am pleased to speak to the importance of universal connectivity and the importance of putting wireless spectrum to use to achieve that objective. I am also pleased to speak about the steps that our government is already taking to see that Canadians from coast to coast to coast benefit from affordable high-speed Internet and cellphone service.

When I was elected four years ago, over 5,000 households in my riding did not have access to suitable high-speed Internet. I am very glad to say that in the last four years, we have cut that number in more than half. There are less than 1,500 that still need an upgrade in service, and we are working day and night to make sure that happens.

Today, 93.5% of Canadians have access to high-speed Internet, compared with 79% in 2014. More than 99.7% of Canadians have cell phone coverage. That said, we want to do more. Our government is committed to universal Internet connectivity. That is why, since 2016, our government have committed more than $7.6 billion in funding to expand broadband services. It is working. We are on track to reach 98% coverage by 2026 and 100% coverage by 2030.

Since 2016, our government has also more than doubled the amount of spectrum available for mobile services. Our spectrum rules are designed to complement our investments in high-speed Internet. We impose strict “use it or lose it” rules that require providers to meet increasingly ambitious deployment timelines and targets. For example, over the next few years, the rules we established for our recent 5G spectrum auctions will mean that the benefits of this spectrum will extend to 97% of our existing wireless network footprint, which covers 99% of Canadians. These rules improve services for millions of Canadians.

Our government is also implementing other “use it or lose it” spectrum policies. We recently announced a new licensing policy that will give easy local access to 5G spectrum for Internet service providers and innovative industries as well as rural, remote and indigenous communities. We are also strengthening older deployment requirements and developing policies that will give new users access to unused spectrum even in areas where deployment conditions have been met. These policies are designed to support rural connectivity and rural economic development and to provide essential access to indigenous communities.

Bill S-242 wants to ensure spectrum is put to work connecting Canadians, particularly those in rural and remote regions of Canada. Our government's actions make it clear we share this intent. While the goal of Bill S-242 is to be commended, I question whether it is the right vehicle to get us there.

I am concerned Bill S-242 would create several unintended consequences that, rather than improve connectivity, would let big players off the hook and actually reduce existing services. I worry it would limit competition, chill investment and increase costs for Canadians.

First, the bill would set a universal population coverage requirement for every spectrum licence issued. It is important to mention spectrum licences are issued for a wide variety of important services and not just for mobile and Internet access.

Bill S-242 would apply to all spectrum, regardless of its intended use. This includes spectrum used for things like firefighting, transportation, precision agriculture, municipal services, earth monitoring and national defence. These users would risk losing their spectrum under the framework Bill S-242 would create.

Bill S-242 would also be applied retroactively to spectrum where the rules have been made, creating uncertainty and disrupting investment plans. Investments are already rolling out on the basis of meaningful “use it or lose it” requirements. That includes for 5G spectrum auctioned only two years ago. Changing the rules now is unfair to businesses and it sends the wrong signal to attract future investments.

I am also concerned the bill's timelines and coverage requirements would be impossible for small providers, leaving only the largest players in the game. This would reduce competition and drive up prices for consumers at a time when we are trying to accomplish the opposite. More competition is a good thing.

Given all these uncertainties, I am concerned that Bill S‑242 would not even improve connectivity. In most regions, the 50% coverage required under the bill is much lower than the actual targets set for 5G spectrum, which can be up to 97% of a carrier's mobile network coverage. Collectively, these networks already serve 99% of Canadians. However, in very remote regions, these requirements are too stringent and could force service providers to close down and leave communities with no service at all.

That is why the government sets coverage targets based on various factors, and only after public consultation. These targets are becoming more and more ambitious, yet they are achievable and are designed to encourage investment and expansion in new regions over time.

Access to affordable and reliable high-speed Internet is a right of every Canadian, no matter where they live, and we are on a clear path to achieve it. While I applaud the intent of Bill S-242, the government will not be supporting the bill because it would clearly do more harm than good.

Spectrum is one of several elements that support universal connectivity. It goes hand in hand with other enablers, such as technology, infrastructure and investments. These tools are all backstopped by policies and programs designed to best leverage these elements for the benefit of all Canadians. A one-size-fits-all approach to spectrum management ignores that reality altogether.

Of course, that was not the bill's intent, but rushing into a legislative solution is not the best way to move forward. I congratulate the hon. member for Abitibi—Témiscamingue on his motion to study the telecommunications sector more broadly. A closer look at the factors limiting access to the regions that are hardest to serve, and the tools at our disposal to remove those barriers, will only bring us closer to our objectives.

We need to ensure that we have the right framework in place to encourage investment, lower prices and improve services for Canadians. At the same time, such a study could examine ways to improve the overall competitiveness of our wireless communications sector and ensure that Canadians have access to high-quality, affordable and reliable high-speed Internet services no matter where they live.

We continue to take steps to improve Internet connectivity and the availability of services in rural areas. We look forward to studying these issues further in committee in order to promote the objectives we all share.

[Monique Pauzé, Bloc, Repentigny, QC]

Mr. Speaker, this bill is multi-faceted. Unfortunately, it is rigid and highly technical and urgently needs a number of amendments. It encompasses commercial interests, logistical issues, economic considerations and, for good measure, regional development and the vitality of rural and remote communities.

We are living in the 21st century. Our lives are not what they were in the last century. These days, everything has to move quickly. Access to bandwidth, commonly known as a network, is a necessity. Millions of people started teleworking during the pandemic, which shows that work habits are changing, and reliable, secure Internet access is a must.

In November 2018, the Department of Innovation, Science and Economic Development launched a consultation to determine whether creating a fifth tier was necessary, given spectrum saturation and the introduction of new technologies like 5G. Tier 5 is the very local spectrum, the smallest service areas. After several meetings, the Department of Innovation, Science and Economic Development concluded that it was indeed necessary to create these areas. By subdividing further, it became possible to improve broadcast coverage in rural and remote areas, providing coverage that tier 5 could not. That is where things stand right now.

Experts found that the least densely populated areas lacked adequate coverage and that telecommunications giants were buying usage rights to spectrum that they were not necessarily actively using. Experts explained that telecommunications giants chose to do nothing with this bandwidth. They turned it into a product for financial speculation so that they could resell the usage rights for much higher prices than the initial auction price. That is capitalism 101.

Currently, telecommunications companies can acquire spectrum licences at auctions organized by the federal government, but they are not required to use them in their entirety. This situation is problematic for remote, rural areas where a company can hold a licence for a certain range of frequencies, but because it is not considered economically viable, it remains unused and inaccessible to the public.

The wording in Bill S-242 is very rigid, as I said earlier. A major problem is that there are no provisions that would provide an incentive for the industry to invest. More specifically, there is nothing in the bill to require any consultation with the industry that could lead to the development of a strategy that would benefit all parties involved.

What is needed is a formula that shares the investment risk. Of course, absolutely no one is against connecting people in remote areas or who are underserved, but at the same time, it is critically important to ask questions and call things as they are. Is any reasonable person going to put up a $1-million tower and provide expensive annual maintenance and upgrades in a place that can only be accessed by air? We will have to talk about the importance of public service.

The answer to that question may be obvious, but I would say that, in this particular case, it is not quite that obvious, and there could be loopholes. If the bill goes to committee, the Bloc believes it will need extensive amendment and stakeholders will have to testify so lawmakers can come up with an effective public policy. In its current form, this piece of legislation is not the right way to achieve those goals.

The bill does not take into account the interests of co-operatives and businesses or provincial and territorial efforts to connect the most remote communities. If the federal government wants to move forward, the risk has to be shared. No private company, no matter how big, is going to invest in sparsely populated areas where the investment and the operating costs eclipse any possibility of realizing a marginal profit.

Presumably areas of commercial interest, those likely to produce a profit, are already covered by companies or co-operatives. The reason some regions are poorly served or not connected is that existing policies offer companies no incentive to fill those gaps. That said, all telecom observers and experts agree that more competition in this key economic sector is absolutely necessary.

The telecommunications share of Canada's GDP is constantly growing. The government's shift to digital in areas such as health records, distance learning, income tax returns, car registrations—we know a thing or two about that in Quebec—is making Internet access even more critical. Then there are the numerous businesses that are transforming their operations by migrating to the Internet. Not being connected in 2023 leaves people vulnerable and excluded from new ways of interacting with the government. I would even go so far as to say that it excludes them from society.

Ottawa promised 98% high-speed Internet connectivity by 2026 and 100% by 2030. Comparing data from CPAC, or the Chartered Professional Accountants of Canada, and the CRTC, one quickly realizes that Canadians will have to perform a major national blitz to achieve this ambitious goal.

Quebec, however, grabbed the bull by the horns in 2021. That year, the Quebec government launched its Opération haute vitesse, or operation high speed, which was spearheaded by the province's high-speed Internet and special connectivity projects secretariat. The aim is to provide coverage to the 250,000 Quebec households that, despite private initiatives by providers and financial incentives from government programs, do not have access to adequate coverage in their region.

It is Quebec's department of energy and natural resources that has the mandate to track the progress of the rollout of telecommunications services. There is no doubt that this initiative has accelerated the rollout of services, a problem that has gone on for far too long for many Quebeckers. My colleague from Laurentides—Labelle talked about that and said that it has been her cause since 2019.

In the context of the Government of Quebec's operation high speed, the preferred technology for making internet services accessible was fibre optics. However, there are all kinds of other technologies that can be used to connect every home: the coaxial cable, fixed wireless and the low Earth orbit satellite. Several technologies can be used.

Let us come back to Bill S‑242, which we are describing as very imperfect. It is not normal for countless communities to be so underserved or, worse yet, have no telecommunications service at all. Contrary to what people living in cities might believe, this does not only happen north of the 56th parallel. Again, my colleague from Laurentides—Labelle said it best. It is more important for federal and provincial laws to be complementary and not in competition than it is to think about strengthening the powers of the CRTC, which is what Bill S‑242 does.

[The Speaker, Liberal, Greg Fergus]

The hon. member for Bay of Quinte with his right of reply.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Mr. Speaker, I want to again thank Senator Patterson for bringing this bill forward. I think he did the work he needed to do in the Senate. It has been very enjoyable to debate this bill and hear the responses from all members of Parliament.

Canadians understand that they pay some of the highest cell phone bills in the world, but some are surprised that they pay the highest cell phone rates and some of the highest Internet rates in the world. Rogers, Telus and Bell are numbers one, two and three of the priciest telecommunications carriers in 48 countries out of the whole planet. Canadians already know that they pay this.

However, the bill coming out of the Senate was to do one thing and one thing only: it was to tackle spectrum speculation, such as companies buying spectrum at auctions and then making money on that. The two examples we used were, first, Rogers, which had bought, in 2013, a bunch of spectrum, and only five years later it made a $189.5-million profit. It held that spectrum, and when the spectrum became valuable, it sold it. The second was Quebecor and Videotron. In 2008, it bought $96.4-million worth of spectrum and sold it for an $87.8-million profit just nine years later. This bill was only meant to look at spectrum speculation and to ensure that we tackle that.

The current spectrum rules say that a company who buys and keeps spectrum can hold it for 20 years and has to serve a population model only after 20 years. The new rules under this bill maintain that, after three years, a company would have to hit a 50% geographical area, meaning that it cannot just look at population. A lot of these providers are looking only at the city of Toronto and not hitting the northern portions of it, or to the riding of the member for Milton, who spoke earlier. They are looking at the denser populations but not outside of those.

What is most important about this bill, which normally I am against, is that it would give the minister a new power to decide what is best for a community, which means that the minister could decide if the auction was bought and was only speculative. The minister could then change that auction and ensure that it went to someone else. However, if a provider was attempting to develop an area that it was purposed for, then the minister could extend that auction and make sure that the area gets through by that auction. That is what this bill is all about: giving the minister more power to stop spectrum speculation.

What is the point of this? Well, some members have talked about that 60% of rural Canada, where seven million Canadians live, that is not being serviced by high-speech Internet, and when they are, they are served by American companies, such as Starlink and Xplore, which are both American owned and controlled. However, when we look at Canadian companies serving Canadian markets, especially in the north and rural Canada, this bill was to ensure that we have companies that do that.

Members talked about this does not quite do what they do, which is spectrum auction reform, meaning that we are going to look at the $9 billion that Canada makes that goes into general revenues and ensure that perhaps some of that needs to go back to rural Canada to connect the north and connect rural municipalities. We have 3,500 municipalities in Canada and only 94 of them are urban, which means that over 3,400 municipalities in Canada are rural. It would be best for all of us as MPs to look at rural strategies to look at this.

Most importantly, let us get rid of this spectrum speculation. This whole premise is an anomaly and it was a flaw in the original bill of spectrum auctions, which allowed companies to make money simply because they bought an asset that is publicly owned, a public resource. Spectrum is for all Canadians. When we look at this bill, and I think it is a good one coming from the Senate, it would ensure that we tackle that flaw in this bill and ensure that we then look at the future.

In the future, yes, we need more competition in Internet. We need more competition for cell phones. We do not just need a fourth carrier, we need 40 carriers to ensure that we look after Canadians' Internet needs and that all Canadians are connected to the Internet. We need it for health, for safety, and for employment, and we certainly need it for the prosperity of this great nation.

I am thankful for this opportunity. This is a great bill, and I hope everyone can support it.

[The Speaker, Liberal, Greg Fergus]

The question is on the motion.

If a member participating in person wishes that the motion be carried or carried on division, or if a member of a recognized party participating in person wishes to request a recorded division, I would invite them to rise and indicate it to the Chair.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Mr. Speaker, we request a recorded division.

[The Speaker, Liberal, Greg Fergus]

Pursuant to Standing Order 93, the division stands deferred until Wednesday, November 8, at the expiry of the time provided for Oral Questions.