Thank you.
I also was under the impression that we had seven minutes, so I'll try to do my best to fit it in five.
Good afternoon, my name is Erin Knight. I lead OpenMedia's work on Internet affordability and accessibility, and I'm joined here today by our executive director Laura Tribe.
First, I am speaking to you today from Calgary as a guest on the traditional territories of the Blackfoot Confederacy—the Siksika, Piikani and Kainai Nations—the Stoney Nakoda, and the Tsuut'ina Nation. This area is also situated on the homeland of the Métis Nation.
OpenMedia last testified before this committee in May, and on closing the digital divide, we said, in effect, “Do it now. Do it right and don't leave anyone out.” Almost half a year later, Canada's digital divide has actually gotten worse. While the universal broadband fund shows great promise in getting a substantial number of rural households connected to higher speeds by the end of 2021, the government's inaction during the first seven months of the pandemic made certain that, on average, rural and remote Canadians are no better connected today than they were in March.
According to recent data from the Canadian Internet Registration Authority, rural Internet speeds have remained stagnant throughout the pandemic while urban speeds have significantly increased. On average, urban Internet users now see speeds 10 times faster than rural users. The digital divide has deepened simply by a failure to act. In the spring, emergency COVID-19 policies from Canada's ISPs were a positive measure that truly helped people. These policies granted customers freedom from overage charges and the fear of disconnection for missed payments. The majority of these reprieves, however, have now been gone for months. The government took no action to share the burden of these supports or ensure that they would last until the pandemic crisis was over.
We're now seeing second-wave lockdowns all around us. Just this week, Alberta sent every student from grades seven to 12 home for remote learning until the end of the year. We know that not every student can afford an adequate home Internet connection that supports this, but the government still has not stepped up to help people struggling to pay their telecom bills.
In our May testimony we shared that one in 10 people in Canada does not have Internet at home, many of them due to the high cost of plans. Since then, Internet prices in Canada have actually gotten worse. Cabinet's decision in the wholesale Internet rates' appeal this August directly led to higher retail prices from smaller Internet providers who are struggling to stay alive. All this to say, five months since we last testified, the government's actions have been a far cry from, “Do it now. Do it right and don't leave anyone out.” It's clear that real action to improve the affordability and accessibility of telecommunication services in Canada could not come at a more crucial time. But if this attempt to close the digital divide is going to be any different from the countless others that we've tried before, we need to set a few things straight.
First, let's dispel the myth that access to an Internet connection is more important than how affordable that connection is. In reality, there are three main components to bridging the digital divide and they're all equal in importance: one, availability, a.k.a. infrastructure; two, quality of connection; and three, affordability. Is what exists accessible to those who live there? You can build it, even state-of-the-art, but until everyone in Canada, at any income level, can afford it, the digital divide will persist.
Second, let's dispel the myth that it's a good strategy to only focus on one of these three components at a time in a silo. We can't connect the country to quality Internet and then try to tackle the cost. They need to be addressed in tandem. Without affordability, there is no accessibility. For those who have access but can't afford it, when can they expect to start using the Internet? 2031? For rural residents, we can't afford to let their desire for access be used to support a one-option, one-provider, one high-price solution. We can't replicate the structural market competition problems we already have in new areas and just be happy that they're technically served. This is especially true for households that are served only by satellite plans.
Finally, let's dispel the myth that affordable Internet in Canada is out of reach. There are clear, simple things that could be done to improve the cost of Internet in this country. First, you need to support more competition. For both home Internet and cellphones, Canadians do not have enough choice. More competition is the ticket to lower prices. Every time a policy, funding announcement or regulatory decision supports the incumbents, you're helping to keep the Internet unaffordable. Second, do your part. Make sure your constituents know that they're eligible to apply for programs like the universal broadband fund, and support them in their applications. Hold big telecom to account in policies, platforms and testimony here regarding their price-gauging tactics and ever-increasing retail rates.
It's somewhat discouraging to be here talking about the digital divide when it's gotten worse since we were last here, but I remain optimistic that if we can work with urgency, the next time we meet we can be celebrating success.
Thank you. We look forward to your questions.