Industry Canada is launching a previously-announced program that will consider applications to provide broad-band internet service to as many unserved and underserved Canadians as possible, largely in rural areas.
The program will offer companies federal support equalling up to 50 per cent of their one-time costs. Such costs include the purchase, adaptation or upgrade of equipment, hardware or software; long-term investments in network capacity (such as the lease of satellite transponder capacity); network deployment costs; and other costs directly related to extending broadband infrastructure.
In a prepared release Industry Canada said the service will allow more Canadians “… to participate in the digital economy by giving them access to information, services and opportunities that would otherwise be out of reach.”
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In a related background document Industry Canada spelled out that the program aims to roll out internet service to under served areas that would provide data transmission rates of at least 1.5 megabits per second – fast enough to “…make a voice call over the internet, download an audio CD in seven minutes and experience video-quality streaming and video conferencing.”
Applications will be evaluated against a series of criteria with emphasis on best value and most households served. Applications must also show capacity to deliver within the timeframe and demonstrate a viable business model.
Potential applicants have until October 23, 2009, to submit proposals to extend service to the geographic service areas that were identified as part of an extensive mapping process that took place earlier this summer.
Successful proposals are expected to be announced in late 2009 to early 2010, with project builds starting as soon as possible in 2010.
Ontario-based Barrett Xplore Inc., Canada’s largest internet service provider for rural areas, was the first potential provider to respond to the announcement, which it welcomed. John Maduri, the company’s CEO, congratulated Industry Canada for a “forward looking” infrastructure program.
“Barrett Xplore Inc. looks forward to participating in this program,” Maduri said. “ We believe broadband should be available to every Canadian.”
The Ontario government also announced today that it would be running a program in conjunction with the federal initiative, that would funnel additional dollars to the approved projects, to a maximum of one-third of the full cost.
