Thank you, Madam Chair.
The Public Interest Advocacy Centre is a national non-profit and registered charity that provides legal and research services on behalf of consumers, particularly vulnerable consumers. PIAC has been active in the field of communications law for over 40 years.
Yes, we have a broadband problem in Canada. PIAC has consistently attempted to change this at the CRTC; in submissions to the government; as part of coalitions with ACORN Canada and the National Pensioners Federation, making demands for low-income and seniors groups; and with OpenMedia in a project called Get Canada Connected during COVID-19. However, progress is elusive, even to the point of our despair.
Lower-income Canadians' broadband Internet penetration levels are lower than the highest-income Canadians'; that is 70% versus 98%. Similarly, rural and remote access is considerably lower, especially at the higher speeds, such as the CRTC's 50/10 Mbps target speed for broadband Internet. Rural access is at less than 40%, and first nations land at less than 30%, whereas the all-Canada average, including urban, is well over 80%.
Full coverage of rural and remote Canada is promised only for 2030, at which time the 50/10 Mbps speed undoubtedly will be inadequate for the functions of broadband then enjoyed in cities. This too late.
PIAC believes that broadband access and affordability can be addressed in four steps.
First, Canada should adopt a clear universal service obligation, such as that in the United States. The broadcasting and telecommunications legislative review panel's final report in January of this year recommended a USO for Canada. Canada has never had a legislatively mandated universal service obligation. A true USO means that telecommunications carriers and regulators and the government must all work together to deliver service to all. It's the law. It can be measured and enforced. Parliament can make this change. Without this legal basis, nothing else is possible.
Second, PIAC recommended in two research reports on telecommunications affordability that communication services are affordable where, as a guideline, they make up, at most, 4% to 6% of a household's income. Low-income Canadians pay about 8% to 10% of their household income at the moment, often for fewer services than other Canadians. Canadians are willing to pay through their telecommunications bills a small levy to support affordable, universal service for Canadians. PIAC asked Environics Analytics to survey Canadians in 2016 as part of submissions on a major broadband proceeding at CRTC. It showed that most Canadians would pay 50¢ more per month on their Internet bills to support low-income broadband access. Without a statutory USO with affordability as a clear goal, the CRTC consistently has refused to create a subsidy for broadband access. This divides Canadians.
Third, the CRTC has undermined the broadband project by recently moving to phase out the national contribution fund or NCF. For decades, the NCF has funded above-cost-operation telephone service in rural areas. It should be transitioned to a broadband contribution fund. Operating broadband in rural areas will always be above cost in many places. The U.S. has such an operating support for broadband. Without it, we will have networks that we cannot afford to run outside of cities.
Fourth, Canada continues to pump billions of dollars into building broadband infrastructure. Everyone in this space—from the smallest co-operatives to the largest telcos, consumer groups, MPs—complains about the fragmented Government of Canada operation of these funds. Bring them all under one body and call it a “broadband czar”.
Those are our thoughts, and we look forward to your questions.
Thank you.