Mr. Speaker, With regard to the 700 megahertz spectrum auction and in response to (a), proceeds from wireless spectrum auctions go to the government’s consolidated revenue fund.
The government is applying specific measures, rollout requirements, in the 700 megahertz spectrum auction to see that Canadians in rural areas have access to the same advanced wireless services as everyone else in a timely manner.
The government relies primarily on market forces to extend broadband Internet access to Canadians. The private sector continues to invest to expand and increase the speeds of broadband networks, with $8.4 billion in capital expenditures in 2010. In areas where there has not been a business case for the private sector to deliver broadband Internet services on its own, the approach has been to use targeted initiatives to extend broadband to unserved areas. For instance, the broadband Canada program, BCP, contributed significant investments to projects to expand broadband service to nearly 220,000 unserved and underserved households. BCP projects are expected to be completed in the summer of 2012.
In response to (b), the government is reforming foreign investment restrictions in the telecommunications sector in order to provide greater access to capital and expertise for the companies that need it the most. This is especially the case for new wireless companies that are providing more choices to Canadian families and businesses. This reform is one component of the government’s actions to sustain competition and strong investment in this sector, and the availability of the latest telecommunications technologies for all Canadians.
The three largest telecommunications firms that control more than 90% of the telecommunications sector will still be required to be Canadian controlled.