Evidence of meeting #60 for Industry, Science and Technology in the 41st Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was connectivity.
A recording is available from Parliament.
Conservative
Conservative
NDP
Hélène LeBlanc NDP LaSalle—Émard, QC
Thank you, Mr. Chair.
I find it interesting and a little surprising to hear Mr. Lake say that all of Canada is connected and that it ranks eighth in useful connectivity, although we know that a number of regions in Canada do not have access to high-speed Internet. For practical purposes, if you don't have access to high-speed Internet, you don't really have access to the Internet.
When you say that we are in the eighth place in terms of useful connectivity, are you talking about access to high-speed Internet?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
The eighth place I was referring to with respect to connectivity has some relation to the availability...but it's also the usefulness. We've said “useful connectivity”, meaning who is actually making the best and highest use of the available networks?
I take your point. Yes, there are some challenges, certainly in the northern and remote communities, with access to Internet. In the opening of my presentation, the example is that Canada has a very dispersed population and the market forces aren't necessarily there to warrant the investment of networks.
That being said, with the cost 15 years ago, the market wasn't there for even some of the urban areas to have the networks that we have in place now. What we are espousing at this point is that over time those costs will drop and the availability of those networks, through private-public partnerships, will evolve.
NDP
Hélène LeBlanc NDP LaSalle—Émard, QC
You have probably noticed that access to high-speed Internet often goes hand in hand with prosperity. Business is good, people are connected and more education opportunities are available. If we really want to develop the north, to occupy the territory and to watch regions grow, the Internet will have to be available, be it for education or for companies that would like to set up shop in the north to develop natural resources, for instance. It will be important.
You also talked about partnerships. For partnerships to be really worthwhile, the government must provide incentives so that a network can be developed to provide access to the Internet. Do you see that also happening with the 700 MHz spectrum auction that we hear so much about? Has the Minister of Industry announced that there will be incentives for providers to deploy their network in the north, in rural and remote regions?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
I'm not sure I can speculate at this point on how the spectrum auction will roll out in northern communities.
With regard to some of the advantages I saw in how that auction has been positioned, there will be some sharing of spectrum between the three major players at this point, which will certainly go towards reducing costs. That reduction of costs allows for the building of new networks and a broader audience.
Hélène LeBlanc NDP LaSalle—Émard, QC
Do you think that is a strong enough incentive to deploy networks in regions where, as you said, it is not always profitable, especially when the population is quite scattered and small?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
With the implementation of LTE and the fact that the transmission lengths are much longer, I think this spectrum auction will help. Do I think it's enough? Probably not. I think there will still be a need for some incentives.
That's where I was suggesting in my presentation that the government work with local not-for-profit organizations. We actually have a report that we did very recently where we pointed out these examples, such as working with first nation groups for satellite access to Internet. That example has worked very well.
NDP
Hélène LeBlanc NDP LaSalle—Émard, QC
Okay, thank you.
Do you think a portion of the revenue from the auction should be set aside for deploying networks in regions where it is perhaps less profitable for companies to do so?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
That's something I would have to take back to our member companies and come to a consensus on.
NDP
Hélène LeBlanc NDP LaSalle—Émard, QC
You have conducted studies and, in your answers, you mentioned that, according to your observations, small and medium-sized businesses were not likely to want to adopt some technologies because they do not export. How can we show them the benefits? Are steps being taken to show the benefits of a technology when doing business or even when you own a company?
Conservative
The Chair Conservative David Sweet
Mr. Smith, if you want to try to answer that, I'll have to ask that you wait until the next question. The time has run out, I'm sorry.
Mr. Braid, you have seven minutes.
Conservative
Peter Braid Conservative Kitchener—Waterloo, ON
Actually, why don't I begin by allowing that answer?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
To answer your question, I think many small to medium-sized enterprises out there don't have the desire to grow. The challenge for all business is certainty. The incentives that need to be in place need to provide market certainty. That's where I suggested the global value chain, where they have access to a strong market. Trade agreements are very important for that. Put those in place and give small business the insights on how to access those markets.
A lot of those programs are in place right now. Industry Canada has some great programs, although unfortunately most small businesses don't know how to get to them. It's our view—I think Industry Canada is actually working on this right now—that some kind of one-stop shop be put in place for small business to actually access government services.
Conservative
Peter Braid Conservative Kitchener—Waterloo, ON
Do you have any further questions, Madame LeBlanc, or may I proceed?
NDP
Hélène LeBlanc NDP LaSalle—Émard, QC
Thank you very much, Mr. Braid. That was much appreciated. I have loads of questions, but I will keep them.
Conservative
Peter Braid Conservative Kitchener—Waterloo, ON
Okay.
Thank you very much, Mr. Smith, for being here today.
I have just a few questions that will maybe give you an opportunity to elaborate on some of the points from your presentation.
First of all, with respect to the LTE penetration rate, I think you said it was 50% in Canada?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
Correct.
Conservative
Peter Braid Conservative Kitchener—Waterloo, ON
I'm just curious to know how that compares with other OECD countries, other G-7 countries, or whatever comparator is best. My sense is that our LTE rate is fairly good. Is that correct?
Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce
It's very high. I do have it with me, but I'll have to look it up.
Conservative
Peter Braid Conservative Kitchener—Waterloo, ON
That's fine.
I guess perhaps I have a two-part question. I presume that will continue to grow as LTE infrastructure is built out.
Do you have any sense as to how that will continue to increase? That's maybe on the same chart.
