Thank you.
Good morning and thank you for the invitation to join you today. My apologies that I could not be there in person.
My name is actually C. J. Prudham, and I'm the executive vice-president and general counsel at Xplornet Communications.
I'm pleased to have the chance to put Xplornet's expertise at your disposal in this very important discussion. It's a subject we know very well.
Xplornet is Canada's largest rural-focused Internet service provider, connecting over 370,000 homes, or nearly 1 million Canadians. We're truly national, serving Canadians in every province and territory. We proudly serve those Canadians who choose to live outside of the cities.
Conquering our country's vast geography by bringing fast affordable Internet to rural Canada is more than just our business; it's our purpose. We've invested over $1.5 billion in our facilities and in our network, expanding coverage while increasing both speeds and data for our customers.
Recently, we were excited to announce a new investment of a further half a billion dollars to bring 5G services to rural Canadians. Starting later this year, Xplornet will double the download speeds we offer to 50 megabytes per second. Next year, we'll double them again, making 100 megabytes per second available to our customers.
To do so, we're using the same technology being deployed in Canadian cities—fibre, micro-cells and fixed wireless technology—to ensure that rural Canadians enjoy access to the same speed and data.
Through innovation and private investment, Xplornet is already hard at work to exceed the Government of Canada's target for broadband connectivity in 2030, well ahead of schedule.
It is against that backdrop that we thank the committee for allowing us to comment on motion 208 on rural digital infrastructure. The motion outlines a number of important measures the government can do to incent further investment.
While the Government of Canada does have a role to play, we would caution that there needs to be coordination and balance taken in financial investments. Otherwise, there is a risk of multiple well-meaning government agencies rushing to fund projects and crowding out sustainable private investment.
However, private investment and targeted financial support from government are only two of three key factors that lead to real improvements in Internet services for rural Canadians.
The third is access to spectrum. Spectrum is the oxygen that our wireless network needs to breathe. More literally, it's the radio waves that carry data between our customers and the Internet.
While data consumption by Canadians has exploded in recent years, all significant spectrum allocations by the Government of Canada in the last five years have focused exclusively on mobile needs. Rural Canada needs access to spectrum in order to keep pace.
We note that providing access to spectrum is regrettably absent in M-208, and we therefore propose that the committee consider an amendment to ensure that this essential ingredient is included in the motion.
Specifically, Mr. Chair, the committee may be aware of the 3500 megahertz spectrum band and the consultation currently under way via Innovation, Science and Economic Development Canada. This spectrum band is absolutely critical to serving rural Canadians. The decision, which we understand is imminent, will be the single biggest decision in a decade impacting rural broadband.
If either of the options proposed in the consultation is implemented, rural Canadians will be disconnected. They will lose access to Internet services that we all agree are vital. Instead of moving forward as the motion strives to do, rural broadband connectivity would be set back a decade.
Xplornet continues to have positive discussions with the Government of Canada, and we are hopeful for a solution that does not negatively impact rural Canadians.
Thank you once again, Mr. Chair, for the opportunity to speak to the committee. I'd be pleased to answer questions.