That's an excellent question. The answer is that connectivity is foundational. Without it, you cannot build a smart city. You need to have connectivity for the city's services, but you have to have connectivity for the residents too.
I think the Canadian Internet Registration Authority has a project around testing connectivity and performance. I think in larger cities you'll find that for the most part it's pretty equitable, but as soon as you go into rural areas, it becomes a real challenge. Building infrastructure out to rural or smaller communities cannot be done with the tax base that's available in those communities.
I think that's where public-private sector partnerships and federal, municipal, or provincial programs should be established to ensure that broadband connectivity is universally accessible across the country. I agree that it is a major challenge.