On behalf of SaskTel, I would like to thank the committee for inviting us to appear.
Just to orient new members of the committee, SaskTel is the incumbent phone company in the province of Saskatchewan and is owned 100% by the provincial government.
On the launch of its study, the standing committee stated that “Science, research and development underpin Canada’s position in the knowledge economy, where strength depends on capacity to innovate and stay ahead of the technological curve.” We couldn't agree more. We believe that improvements in our quality of life and standard of living will depend on our increasing success in bringing scientific and technological innovations to life.
In Saskatchewan, with its widely dispersed population and its natural resource base, we understand the implications of the scientific and technological discoveries and applications, and the benefits they provide. Technology and innovation have been at the core of this province since its inception.
SaskTel has taken a lead role in this regard, delivering the world's finest communications technologies to customers and communities across the province. This year SaskTel will have spent 100 years building a world-leading communications network for Saskatchewan, carrying a wealth of information into the households and businesses of this province every day.
Since 1987 we have invested more than $3.1 billion in our Saskatchewan network. And our work continues in 2008, with ongoing efforts to deliver higher bandwidth, expand our cell coverage, and provide the latest communications and entertainment services to our customers.
Looking ahead, most authorities agree that one area of Canadian science and technology strength and opportunity is information and communications technologies, ICT. In 2007 the federal government report, Mobilizing Science and Technology to Canada's Advantage, identified the ICT sector as an area to focus more of our energy and resources on. Prior to that, the Telecommunications Policy Review Panel observed that in Canada, and throughout the world, ICTs had emerged as significant drivers of economic and social change. The panel concluded that ubiquitous access to affordable and reliable advanced broadband services should be available in all regions of Canada by 2010, and recommended that it be a central goal of a national ICT strategy. The review panel made it clear that in order to maximize Canada's potential, we need to leverage our geographic and demographic diversities and give everyone an opportunity to contribute to building a stronger, more prosperous country, no matter where they live. Broadband access will be the key to this full participation.
Internet access has become an essential communication tool for people in Saskatchewan. Businesses and residences want access to a range of entertainment, learning, communications, and business functions. Broadband access and greater bandwidth are increasingly being demanded as Saskatchewan experiences unprecedented economic prosperity. For the burgeoning oil and gas, mining, and agricultural sectors, most of which are located in rural and remote areas, broadband is essential in order to improve their productivity and competitiveness.
At SaskTel we believe we are leading the way in Canada in bringing digital cellular and high-speed Internet service to rural areas, but there remain many unserved and underserved areas in Saskatchewan—in particular, many farmers, businesses, and first nations communities in the southern part of this province. However, as is generally agreed, market forces alone will not provide ubiquitous broadband access. Despite private sector involvement, government intervention in the form of subsidies will still be required for many high-cost service areas in rural and remote regions of Saskatchewan.
Canada is rightly proud of its achievements in ensuring universal coverage of local telecommunications services in all regions through its national subsidy fund. Yet, in our view, there is an increasing need for advanced telecommunication services that go beyond the traditional telephone service.
Unlike some parties who argue that the national subsidy fund for rural and remote local service should be eliminated or significantly reduced, SaskTel believes consideration should be given to expanding the subsidy program to include other services, such as rural broadband access and, possibly, rural cellular.
SaskTel notes that in the United States, the FCC is currently reviewing its Universal Service Fund. One larger form under consideration is the creation of three separate funds for rural areas to support broadband, wireless service, and providers of last resort—those providing local service.
SaskTel believes the time for ad hoc programs that achieve partial results is over. Broadband access should be expanded to all parts of Canada, urban, rural, and remote, as rapidly as possible.
Again, we thank the committee, and we'd be pleased to answer any questions.