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.