Good morning, Mr. Chairman and committee members.
SaskTel appreciates the opportunity to provide our comments to your pre-budget consultations. I intend to speak on two issues--first, the importance of a national digital economy strategy, and second, the need for a focused federal program of broadband access for Canadians as part of that strategy.
First of all, with respect to the new digital economy, earlier this year Industry Canada held a summit on the digital economy. At the summit, the federal industry minister stated that Canada needs to regain its leadership in the digital economy. He indicated that one of the major challenges is to use the information and communications technology to increase innovation, improve productivity, enhance competitiveness, create jobs, and generate wealth in every firm of every size, in every economic sector, in every region of this country.
SaskTel strongly agrees with the position taken by the minister. Advanced communications networks are a key component of sustainable economic growth and social development. This is especially true in a province such as Saskatchewan.
The telecommunications industry in Canada has been one of the bright spots in Canada during this recession. Employment levels have been maintained and capital investments have continued. The strength has continued in spite of $4.2 billion from the industry in the most recent AWS auctions. These record auction proceeds were, in the opinion of many, the result of artificial rules that created a scarcity of spectrum. The end result was that $4.2 billion was not available for the industry to invest in this infrastructure and in jobs in the industry of the future. Rather, the $4.2 billion was spent to rescue, arguably, the auto sector.
SaskTel and others are calling upon the federal government to follow the lead of many other countries in the world and create a national strategy focusing on the new digital economy. The strategy should include the following elements: it must be comprehensive and look at long-term growth, it must ensure a strong telecommunications sector that is able to continue to make massive investments needed on new infrastructure, and it must include a national broadband strategy for rural Canada.
Broadband services are instrumental tools for accessing information and goods and services and for getting things done at a distance. They are at the core of today's social, cultural, and economic life. However, residents in these regions cannot pay the true cost of bringing these telecommunications services to their homes and places of businesses. SaskTel or other telecommunications providers cannot afford to make the necessary investments in infrastructure required to support rural and northern demands while remaining economically viable.
SaskTel suggests that one way of setting a national broadband policy would be for the federal government to follow the recommendations of the telecommunications policy review panel, which suggested that broadband should become part of a basic set of essential telecommunications services that Canadians are entitled to receive. If broadband is recognized as an essential service, then the federal government must become involved in a more consistent manner than continue with the random one-time facilities grants.
SaskTel believes that the federal participation in rural and northern broadband could become a key component of a national industry policy in a new digital economy. The base wealth of this country remains dependent upon commodities such as oil, potash, uranium, and agriculture. Canada must ensure that those rural and northern people and businesses can participate in the economic and social fabric of the country if Canada is to maintain its standard of living.
SaskTel is making two recommendations for a national broadband strategy for rural Canada.
Recommendation one is that the Government of Canada follow the lead being taken by governments around the globe in assisting in the construction of a single strong network in rural and northern areas for broadband, stimulating competition of services as opposed to facilities.
Recommendation two is that the national broadband strategy must recognize that investment in advanced communications and broadband is never done. This infrastructure is constantly in need of changing and upgrading. Any national strategy must therefore be more than a one-time capital program and create a true long-term partnership with the telecommunications industry that ensures fair returns for infrastructure providers in the maintenance, sustainability, and growth of leading-edge networks in the areas where market forces cannot achieve acceptable results.
Thank you, Mr. Chairman and committee members. We'd be happy to answer any questions.