Industry Committee on Nov. 26th, 2020

[Ian Scott]

How will we reach it? We will reach it by continuing the projects and the approach that we have embarked upon. The Government of Quebec has been highly active. The federal government and the CRTC are committing funds. It's all with the intention of moving as quickly as possible to ensure that all Québécois and all Canadians have access to an appropriate standard of service.

[Ian Scott]

Yes, there is a common vision. The vision is clear, which is to bring an acceptable standard of service to all Canadians. In terms of coordination, I can speak only to the role of the CRTC. As I indicated, we work closely with government, as closely as we can given that we are quasi-judicial and operate at arm's length from government.

On technical matters and mapping, for example, in identifying areas that don't have service, we work closely together.

[The Chair]

We'll now move to MP Masse.

You have the floor for six minutes.

[Brian Masse, NDP, Windsor West, ON]

Thank you, Madam Chair.

I'd be open to and would encourage some time of mine being used to have that question answered, please.

[Ian Scott]

I'm sorry. I've lost the thread. Could you repeat the question? Was it just in terms of whether the CRTC should be the sole source?

[Brian Masse, NDP, Windsor West, ON]

Yes. It's following up on Monsieur Lemire's question, which I think you asked one of your assistants to answer.

[Ian Scott]

My colleague, yes.

I'm going to paraphrase, obviously—my apologies.

Whether it should all be in the hands of the CRTC, given it's our role, if that is the question you're looking to have a response to, I think it's a multi-faceted problem. I think a variety of approaches are desirable.

When we think, for example, about the CRTC's fund of $750 million, if you were talking about a major infrastructure project, a very significant fibre build in the far north, for example, this single project would consume our entire fund.

I think some large projects might be better suited to having the Infrastructure Bank address them. Some are more suited to the government's universal broadband fund.

Our fund is focusing on where no one is receiving the basic service objective. A simple example is that if there's one person in the 25-square-kilometre hexagon, then it isn't eligible for our fund, but it is eligible for the broadband fund of ISED.

[Brian Masse, NDP, Windsor West, ON]

I think that's a very helpful answer. What I have seen over the years is program after program announced, and some being used, some not. You're the last stop. How long do we wait, and how long do you evaluate whether anybody will move on those areas before your fund will then be engaged? I think that's part of the challenge we have here—figuring out the pecking order, so to speak, of when an area might lose out on some private sector investment, some quasi...or maybe other government sector, like municipal or provincial investment to connect, and then you, or having no service. Do you have a model for this?

[Ian Scott]

I think the model that exists is directionally right. I don't know how to qualify that.

We focus on the most needy areas, if you will. We fill the gap.

Larger programs can focus on any number of things. I don't mean to repeat myself, but if you use the example of a megaproject, it might require funding from multiple provinces as well as from numerous departments of the federal government. I think you need different types of approaches to address a very large, complex problem.

I'm not sure that answers your question.

[Brian Masse, NDP, Windsor West, ON]

It does. It's quite helpful. This is part of our challenge, we literally have a dog's breakfast rolling out across Canada. As we try to sort this out, even affordability becomes a challenge, too, because of the types of technologies involved.

When we're looking at the CRTC's current supports, how many files do you still have to have to make a decision on for this sector, whether it be regulatory, or affordability, or programs for protection, and then also decisions for laying out...? Do you even have a guess? I know you may not be able to provide that, but how many decisions do you have to make in this file?

[Ian Scott]

Are you talking specifically about the broadband fund, or are you talking about all the various matters?

[Brian Masse, NDP, Windsor West, ON]

I'm talking about all the various matters.

[Ian Scott]

I have a weekly meeting with my direct report in relation to telecom. We have a two-page document in which go through the status report of the major files. I don't have it in front of me.

As a quick sampling, in addition to having almost 600 applications that we have to go through for broadband, we're in the midst of the wireless proceeding. As we've already discussed, we're also in the midst of a review on rates for third party Internet access. We recently launched a proceeding to look at the regulatory environment in the north, that of NorthwesTel. We have a proceeding under way to look at other factors that might slow the deployment of wireless and broadband service, to look at access to utility poles. It goes on and on. I don't want to use up your time, but we have many files in front of us.

[Brian Masse, NDP, Windsor West, ON]

That's my concern. I think, quite frankly, you have impossible time frames. There needs to be some support for modernizing our approach.

A lot of investment decisions are held up because of the CRTC, not because of the fact that people aren't working there and you don't want to move files along. I have every confidence in your getting work done there. I think that given the fact that Canada wants to expand these services rather quickly—and I know that as New Democrats we've been saying this is an essential service, one that is even connected to people's basic rights—your task is insurmountable to roll it out properly and affordably within a few years with the resources provided.

I don't know if you want to comment on your budgetary resources, and you don't necessarily have to do that, but do you think you have the functions to do—

[The Chair, Liberal, Sherry Romanado]

My apologies, Mr. Masse. You're over time.

[Ian Scott]

Can I make one very quick response, Madam Chair?

[The Chair, Liberal, Sherry Romanado]

Very quickly.

[Ian Scott]

We do have the resources. In fact, we recover the cost of regulating from the carriers. Generally speaking, we do move reasonably briskly. We are referring to some unique processes.

[The Chair, Liberal, Sherry Romanado]

We'll now start our second round of questions, beginning with Mr. Nater for five minutes.

[John Nater, Conservative, Perth—Wellington, ON]

Thank you, Madam Chair, and thank you, Mr. Scott, for joining us this morning.

You mentioned there were about 600 applications in the second round. How many applications were submitted in the first round?

[Ian Scott]

I have to go to my notes, 15 or 16, I believe. Ms. Doiron, is that correct?

[Renée Doiron]

Correct, 15.

[John Nater, Conservative, Perth—Wellington, ON]

Those were focused mainly on areas that are currently served by satellite. Of those 15 applications, were there other companies other than the single proponent that actually received funding, NorthwesTel?

[Ian Scott]

First of all, NorthwesTel did receive funding in four of the projects. There was another in northern Manitoba that was not NorthwesTel in those initial ones. NorthwesTel had some other applications, as did a number of other operators among those 15.

[John Nater, Conservative, Perth—Wellington, ON]

You mentioned that you were working quickly to go through those 600 applications. Is there a timeline you've committed to, to have those applications adjudicated?