Thank you so much.
In 2019 the Government of Canada released “High-Speed Access for All: Canada's Connectivity Strategy”. Notably, the strategy commits to deliver the 50/10 service to the hardest reaches of Canada by 2030, which implies that rural and remote areas will be the last to be served.
Also, the recently announced $1 billion for the universal broadband fund is insufficient to meet the current needs. Minister of Service Alberta, Minister Glubish, is on record as stating that Alberta alone would need $1 billion to service all of Alberta with high-speed Internet.
The competitive grant model prioritizes higher population areas to the detriment of rural areas. The federal government's broadband strategy implies that the hardest-to-reach areas will be serviced last. Efforts should prioritize rural areas. Otherwise, the digital divide will only grow.
The eligibility maps used by the Government of Canada do not accurately reflect service levels and the criteria for challenging eligibility is next to impossible. This means that it will be up to municipal governments alone to service these areas as they continue to be ineligible for federal funding and the business case is not there for the private sector to invest.
The private sector has failed to meet the need for high-speed Internet service to rural areas because the economic business case does not exist. There is a higher return on investment to densely populated areas, where there are more subscribers, obviously, so when the Internet service providers do invest in rural broadband infrastructure, they usually suck the jelly out of the doughnut by serving only the most densely populated areas first.
Any government intervention must address this economic challenge while ensuring that Internet service is affordable to guarantee high adoption rates and equity among urban Albertans and, I might say, urban Canadians.
Albertans are experiencing greater access to more affordable Internet. However, the Internet is more expensive in rural areas. In addition to an increased financial commitment, the federal government must also reconsider the current eligibility requirements for federal grants.
The eligibility mapping tool relied on by Innovation, Science and Economic Development Canada significantly overstates the level of Internet service actually provided in rural Alberta. This is supported by speed tests conducted in Sturgeon County as well as by the rural municipalities of Alberta and many other municipalities through the open-source Canadian Internet Registration Authority, otherwise known as CIRA.
Further grant programs must also provide more lead time for municipalities and Internet service providers to prepare applications. This will ensure that the right partnerships are formed and that public dollars are used as efficiently as possible.
Given the current supply chain issues, more time should be provided to execute broadband projects. Some grant programs require funds to be spent within a particular fiscal year, which rushes procurement processes, raises questions of supply availability and risks service quality at the expense of expediency.
Alberta has the highest availability of high-speed Internet service at 94.7%. However, while over 95% of urban residents have high-speed Internet service with unlimited data, only 33% of rural households enjoy this level of service. Rural Canadians continue to identify unreliable and slow Internet connectivity as the most significant challenge, resulting in rural children often doing homework at local coffee shops or libraries to access the Wi-Fi and, of course, we all know those facilities have been closed for the majority of the past year.
The sudden need for Albertans to learn, work and access health care services and communicate with friends and family from home has brought the digital divide to the political forefront. This creates a unique opportunity and a policy window for governments to consider significant generational investments to improve the quality of life for rural Albertans and rural Canadians. Overwhelmingly, rural communities have identified the inability to access affordable high-speed Internet as the top issue impeding their economic growth.
Not only does the lack of Internet service drive workers and employers to cities, thereby reducing productivity in rural areas, but improved rural Internet service can play an integral role in Alberta's economic recovery. A recent situational analysis completed for the Edmonton Metropolitan Region Board in 2020 identified that improved broadband and connectivity across the region could enable economic recovery and increase GDP by up to $1 billion per year, with approximately a 1% increase in the region's GDP.
There is also research demonstrating positive economic benefits when women are connected globally, including increased income opportunities, greater independence and individual empowerment.
Time is of the essence. The digital divide continues to grow at the rate of technology, and rural communities cannot afford to be left behind. Investment in rural broadband is an investment in Alberta's economic recovery. All parties need to be at the table.
I would say, with the digital commute faced by all of us, not having Internet to rural homes is tantamount to not having roads to homes or elevators in high-rises. This is a basic service that needs to be provided to all Canadians, much like natural gas and electricity have been over the previous decades.
Thank you for your time.