Canadian Press

Published Monday, April 19, 2021 4:32PM EDT

OTTAWA — The federal government will add $1 billion to a fund for improving high-speed communications in rural and remote areas of Canada, bringing the total to $2.75 billion by 2026, the Liberals said Monday in their first full budget since the pandemic began last year.

The money is going to the Universal Broadband Fund, which is designed to support the installation of “backbone” infrastructure that connects underserved communities to high-speed internet.

It’s one of many government and private-sector initiatives that have gained urgency since the pandemic began, as Canadians became more dependent on internet service for applications ranging from e-learning to daily business operations.

Ottawa says the additional money will keep it on track to have high-speed broadband in 98 per cent of the country by 2026, and 100 per cent by 2030.

Money spent on high-speed communications will be good for a recovering economy, said Pedro Antunes, chief economist at the Conference Board of Canada, a non-partisan think-tank.

The latest data from Statistics Canada says there were about five million people working from home during the pandemic, up from about two million prior to that, Antunes said in an interview.

“That’s a quarter or so of the workforce,” he added. “And I think a fair number of those people are going to continue to work from home, at least in some part-time way.”

Improved connections to high-speed broadband and mobile communications will add to the productive capacity of the economy overall, especially as it reaches beyond Canada’s cities, Antunes said.

He said there’s been a “real issue” with economic growth outside major urban centres and the improved connectivity “is something that can help stimulate that.”

The Universal Broadband Fund was initially mentioned in the 2019 budget, though specifics were not available until last November’s fiscal update.

The $1-billion top-up to the broadband fund announced today is in addition to $1.75 billion promised to the fund by the federal government’s November fiscal update.

This report by The Canadian Press was first published April 19, 2021.

 


 

 

“Another area that enables effective investments in networks involves use of the radio frequency spectrum – the airwaves used to transmit sound and data wirelessly. The Government of Canada is actively managing this limited resource to maximize economic and social benefits to Canadians, including those in rural and remote communities.

A major cost of building and operating networks is associated with the poles, underground ducts, towers and other structures, otherwise known as passive infrastructure, that make it possible to build networks. The Government of Canada will engage partners to work to reduce these costs, so that networks are less expensive and can connect Canadians sooner. This involves reviewing policy and regulatory frameworks on antenna towers and support structures, considering related advice from the forthcoming review of communications legislation, engaging internally to advance the issue and promote best practices, and raising awareness of the issue among stakeholders.”

https://www.ic.gc.ca/eic/site/139.nsf/eng/h_00002.html