We point out that in recent years the explosion of data consumption by Canadians has been the same in rural Canada as it has been in urban Canada. Our rural customer usage across our LTE network doubled in the last year and exceeds over 100 gigabits per month, which is in line with what the CRTC says is the average for all Canadians. Over 60% of that usage is video, which again is in line with the national averages.
While mobile data use has grown significantly, too, the fixed home connection continues to be the workhorse that carries the heavy data uses like Netflix and Apple TV, yet all significant spectrum allocations made in Canada in the last five years have focused on mobile needs. There has not been an allocation designated for fixed wireless broadband. How do we meet growing the needs of consumers if one primary input has not changed?
We strongly believe that there should be a long-term spectrum strategy to allow rural broadband to keep up. Capacity and speed of rural broadband cannot keep pace without additional spectrum.
The cornerstone of this strategy must be a plan that strikes a balance to allow mobile broadband and fixed rural broadband to expand together to meet consumers' needs. One cannot come at the expense of the other. Rural consumers cannot be left behind.
In summary, Xplornet believes three critical factors must be met in order to create the right conditions for rural broadband connectivity.
Governments at all levels must allow the private sector to do what they do best, invest in our networks, driven by consumer demand. Xplornet is proof positive there is a business case for investing in rural Canada.
The second is targeted government investment for fibre transport and backhaul services that can help accelerate broadband deployment in rural areas. This support should be encouraged when it is coordinated and subject to consultation with the private sector.
And finally, rural Canada must be given access to the spectrum it needs to keep pace with urban Canada. It is the oxygen that breathes life into our rural networks.
Thank you again for the invitation to appear here today. We would be pleased to take any questions.