If you've got a PhD in mathematics, you may be able to figure out how Canada's telecom regulator, the CRTC, created its formula to collect money from the carriers for the deferral account. (It has something to do with consumers being over-charged for local telephone service in urban centres.) The bottom line is the account contains a whopping $652-million, most of which is supposed to be spent on expanding rural broadband. While everyone agrees it makes sense to bring broadband to rural communities, the $652-million question is how to do it. In February, the CRTC decided most of the money should be given to Bell Canada and Telus, who would, in turn, invest it in rural broadband networks. Others think the money should be given back to consumers. To be honest, rural broadband has never been a cut-and-dry issue in Canada. The idea is universally endorsed as good social and economic policy even though it can be a difficult ROI argument to make sometimes when you're talking about serving very small communities. At one point, Liberal MP Brian Tobin talked about spending $4-billion to roll out broadband to rural Canada but that was more politics than reality. Perhaps the most sensible route are the private-public partnership in Alberta (SuperNet) and B.C. (Network BC) where broadband networks being extended to hundreds of rural communities. A key part of SuperNet is its provides wholesale access to ISPs so competition is allowed to emerge to give consumers the luxury of choice. Perhaps it's time for rural communities in Ontario and Quebec to start demanding a SuperNet of their own.
Update: This post is based on the Federal Court of Appeal's decision to give two consumer groups the opportunity to appeal the CRTC's decision. For thoughts on the court ruling, check out Mark Goldberg. The New York Times has put the spotlight on rural broadband in the U.S. with a story in Sept. 28th's newspaper.
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Rural Broadband? Yes. But How?
by
Mark Evans
on Tue 26 Sep 2006 07:06 AM EDT | Permanent Link
Comments
Re: Rural Broadband? Yes. But How?
by
jules
on Tue 26 Sep 2006 08:36 AM EDT | Permanent Link
Perhaps the most frustrating fall out of the delay is that it leaves those rural folks who are desperate for broadband, sitting on their hands, wondering what to do next.
Ehhh, if the CRTC and the incumbents don't make descisions quickly, customers will indeed flock to smaller companies like Barrett or Execulink. -jules Re: Rural Broadband? Yes. But How?
by
Malcolm McLean
on Tue 26 Sep 2006 10:01 AM EDT | Permanent Link
How about something like Green Wi-Fi - http://www.green-wifi.org/ - except that, for most rural users in Canada the boxes could be put on top of power poles, and perhaps draw power from the lines, rather than depending on solar power.
I'm thinking of trying to recruit homeowners spread along the 3km or so between my house and in-town broadband to form a co-operative wi-fi network, with the hubs in people's homes. Problem is, at the moment, that there would not be a good enough signal to my place even if everyone between me and town agreed - too big a distance between houses, with hills in between as well, so I'd need some "remote" hubs too. Suggestions welcome! Re: Rural Broadband? Yes. But How?
by
Guy McDowell
on Tue 26 Sep 2006 03:28 PM EDT | Permanent Link
Does anyone see the immediate problem here? Over $600 million dollars was extricated by legislation to simply be handed over to Telus and Bell. Where has free enterprise gone?
If the market will bear it, rural broadband will become available. Kudos to the idea of starting co-operatives to provide for themselves. Keep digging - there has to be a way. Re: Re: Rural Broadband? Yes. But How?
by
Anonymous
on Wed 27 Sep 2006 04:03 PM EDT | Permanent Link
$30 million would provide 50,000 free Ka-band dishes to customers that want Internet access in rural areas. Aliant, Anikast, NetKaster Barrett, etc. are offering Telesat's service.
Seems like a huge waste to spend $600m to deploy (traditional) high cost, wireline infrastruture to these regions. Re: Re: Re: Rural Broadband? Yes. But How?
The CRTC was far from objective in its decision. We asked for subloop unbundling as a precondition and this was not even considered by the Commission. Companies like Xittel which I work for have been doing wonders in underserved rural areas of Quebec as soon as a fibre optic backbone was agreed to between the local school board and the munipalities, without a big centralized program like Supernet that can only go again in the hands of the ILEC (Telus provided the fiber to SuperNet). You can reach me at fmenard@xittel.net. I am sure that Mark will understand that this is not shameful marketing.
Re: Rural Broadband? Yes. But How?
by
John Maduri
on Tue 10 Oct 2006 08:51 PM EDT | Permanent Link
It will come as no surprise to those who are aware of Barrett Xplore’s vision and mission, that I have an optimistic view for the future of rural broadband. There are two key developments, which position rural Canada at a historic juncture with the opportunity to benefit from greater choice, competition, and availability in their broadband experience. First are the considerable advances in cost reduction, capability, and reliability of satellite and fixed wireless broadband technology that make available first class, urban quality broadband to rural Canadians. In Asia there are examples of entire regions committing to large deployments of broadband wireless technology to enable the provision of high-speed Internet and other communications services. In the U.S., broadband satellite pioneer, WildBlue has partnered with AT&T to deliver high-speed Internet service via Ka band satellite to rural residences and small businesses. The future of broadband, accessible almost everywhere, is evolving rapidly.
Second is the example of Alberta’s SuperNet, an innovative public/private partnership model, which represents an important platform for advancing rural broadband on a long term, sustainable basis. The Government of Alberta and Bell invested in SuperNet, a province-wide Internet backbone that reaches into Alberta’s 429 rural communities. SuperNet’s open access model enables any service provider to purchase bandwidth on the network at low cost. Clearly, the extensive reach and favourable economics of the backbone network are important incentives to encourage the entry of rural broadband service providers (RBSP's); equally important, are the transparent business processes and the independence offered by the existence of a third party network manager, Axia NetMedia; the network manager is the interface through which RBSP’s plan their last mile networks and purchase backhaul service. Axia does not compete with RBSP’s in the retail marketplace for high-speed Internet service. Within one year, we understand that almost 60 service providers have entered the rural Alberta market, offering “last mile” access service to approximately 200 rural communities, which previously had no other availability of broadband. SuperNet creates the conditions, which encourage private investment to deliver “last mile” high-speed Internet service to rural residences, and in so doing creates a “multiplier effect” expanding the original investment in backbone network. I can speak to the example of our company, Barrett Xplore, which has invested approximately $40 million to deliver broadband to rural Canadians. And, there are others with whom we compete in the rural market who are undertaking equally aggressive rural expansion plans. Our company has argued strongly and, I hope, convincingly of the need to modify CRTC Decision 2006-9, and its approach to rural broadband, where subsidies are offered only to the incumbent telephone companies. While well intentioned, I believe that this approach will fail rural Canada in both the speed and extent of rural broadband deployment. The approach will discourage the entry of new entrepreneurial players and private capital, critical to generating the investment multiplier effect to which I spoke earlier. Further this approach does little to advance opportunity for choice and competition, thus leaving rural Canada subject to a de facto monopoly in the provision of broadband service. If we rely solely on public funding, the sheer size of subsidies required to reach the last 10 to 15 to 20% of un- or under-served Canada, will be gigantic, and difficult to fund. Let me offer a benchmark. In Bell Canada’s recent submission to the CRTC in respect of Decision 2006-9, they outline a 5-year plan to spend $455 million in deferral account subsidies to advance broadband availability by 2.5%, reaching 220,000 homes/businesses in 264 rural communities. This is fine, if you happen to live in one of the 264 communities and are part of the 2.5%, but what if you live in the remaining 12.5% of Bell’s service area? Remember that capital subsidies to build out networks are only the start; there are considerable ongoing operating expenses involved in managing any network over a large geographic area where population densities are low. In summary, Barrett Xplore has chosen to petition The Federal Cabinet and to apply to the CRTC to review and vary Decision 2006-9. If the $620 million in deferral account balances are to be invested in support of rural broadband, it is important that: · Advancing technologies such as satellite broadband and fixed wireless figure into the overall strategy; · The learning from and success of the SuperNet model be fully considered for deployment in Ontario, Quebec and other provinces; and, · Careful thought is given to an approach, which encourages choice and competition in rural Canada. Love Aphordisiac
What is important is not the fact of serving the community have every right to receive the service, what matters is whether something is really necessary for these communities or have other more pressing needs that could have invested this money ? Aprende a Trabajar en Internet
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