Canada Strategic Infrastructure Fund

GOVERNMENT OF CANADA LAUNCHES NATIONAL SATELLITE INITIATIVE TO PROVIDE BROADBAND ACCESS TO NORTHERN AND REMOTE COMMUNITIES

Minister of Industry and Minister responsible for Infrastructure Allan Rock launches the Government of Canada's $155-million National Satellite Initiative in Rankin Inlet, Nunavut. The Initiative will provide broadband Internet access to northern and remote communities across Canada's. Source: Doug McLarty

RANKIN INLET, Nunavut - Minister of Industry and Minister responsible for Infrastructure, Allan Rock, and Canadian Space Agency President, Marc Garneau, today announced the launch of the Government of Canada's $155 million National Satellite Initiative. This joint project between Infrastructure Canada, Industry Canada, and the Canadian Space Agency (CSA) will provide high-speed broadband Internet access services via satellite to communities located in the Far and Mid North, and in isolated or remote areas of Canada.

Minister Rock made the announcement during a visit to the Community Hall Singiituq Complex in Rankin Inlet. He was accompanied by Secretary of State (Rural Development) (Federal Economic Development Initiative for Northern Ontario), Andy Mitchell, as well as Steve Mahoney, Secretary of State (Selected Crown Corporations) and Nunavut Member of Parliament, Nancy Karetak-Lindell.

"Expanding broadband services will contribute to the sustainability of our northern and remote communities, and will help ensure that Canadian families and businesses can have a prosperous economic and social future, in particular through improved access to telehealth, e-business, and distance learning services," said Minister Rock. "It will also bring the Government of Canada one great step closer to ensuring broadband access is available to all Canadian communities."

The National Satellite Initiative will expand satellite capacity to Far North and Mid North communities, as well as remote communities, which cannot receive broadband services in any other feasible or economic form than satellite communication. Expanding broadband access will enable these communities to benefit from essential services, particularly in the areas of health, education and e-government. A majority of the approximately 400 communities currently targeted by this initiative are Aboriginal.

"By providing greater access to broadband technology, the Government of Canada is in turn ensuring that rural and remote Canadians have access to important services," said Secretary of State Mitchell. "We must continue to work together to ensure that all Canadians have access to innovative tools for social, cultural and economic development."

Minister of Indian Affairs and Northern Development, Robert Nault, offered comments on today's announcement. "This funding demonstrates the Government of Canada's commitment to economic development in the North," said Minister Nault. "Providing greater access to the Internet will not only open new lines of communication for northern and Aboriginal communities, it will enable other Canadians to communicate more easily with the North. Improved Internet access will also bring new technologies and business opportunities to northern Canada, which will enhance the quality of life for all."

The Government of Canada is contributing $155 million towards the costs of implementing this initiative. The funds will be used to purchase and access satellite capacity. Of the $155 million being announced today, $85 million will come from the "national priority project envelope" of the Canada Strategic Infrastructure Fund. The remaining funds will be provided in-kind through a $50 million service credit from the Canadian Space Agency for satellite capacity that will be made available to the Government of Canada, and through additional satellite capacity managed by Industry Canada for public benefit and valued at $20 million.

"Through this initiative, the Government of Canada is also leveraging public and private sector partnerships to launch and deliver space-enabled, state-of-the-art high-speed interactive multimedia services linking communities throughout Canada," said Mr. Garneau. "These space-enhanced services effectively connect the last kilometre, offering the promise of significantly improving the quality of life of all Canadians, especially our citizens living in remote communities and the Far North."

The National Satellite Initiative will ultimately provide northern and remote communities with equal opportunities to access high-speed broadband Internet connections by significantly reducing the costs of providing the service to these communities through the purchase of satellite capacity. The Government of Canada will work to partner with territories, provinces, communities and the private sector to implement this initiative.

Access to broadband service is a national priority that has a major impact on Canada's economy and quality of life. For this reason, the Government of Canada is funding this initiative in part through the $200-million "national priority project envelope" of the $2-billion Canada Strategic Infrastructure Fund, announced by Minister Rock on July 22, 2003.

The provinces and territories therefore remain eligible for other strategic infrastructure projects under the overall Fund. This initiative will work in concert with Industry Canada's Broadband for Rural and Northern Development Pilot Program launched by Minister Rock in September 2002.

In the Speech from the Throne of September 30, 2002, the Government of Canada committed to an additional 10-year involvement in public infrastructure. Its Budget 2003 re-affirmed this long-term commitment, and provided an additional $3 billion for strategic and municipal-rural infrastructure investments. This brings the Government of Canada's contribution to infrastructure since 1993 to $12 billion, which in turn will generate over $30 billion in infrastructure improvements by all partners.

Mylène Dupéré
Office of Allan Rock
Minister of Industry and Minister responsible for Infrastructure
(613) 995-9001

Christine Aquino
Press Secretary
Office of Secretary of State Mitchell
(613) 759-1085

Monique Billette
Senior Media Relations Officer
Canadian Space Agency
(450) 926-4370

BACKGROUNDER

NATIONAL SATELLITE INITIATIVE

Currently, 28 per cent of Canada's 5400 or so communities have broadband access. These connected communities are generally in Southern Canada, large urban centres of Canada or communities along the Trans-Canada Highway. We are now investing $155 million in order to provide high-speed broadband Internet access services to communities located in the Far and Mid North, as well as in other remote areas of Canada.

The National Satellite Initiative will lower the cost of broadband for some 400 communities in the Mid to Far North, as well as other remote communities, where satellite is the only practical means of providing broadband access. Infrastructure Canada, through the Canadian Strategic Infrastructure Fund (CSIF), Industry Canada, and the Canadian Space Agency (CSA) are funding partners.

This unique satellite solution will help provide access to essential services in areas like health care and education, using tools such as videoconferencing and tele-surgery. It will also bring economic opportunities. The National Satellite Initiative is another step towards meeting the Government of Canada's commitment to ensure broadband access is available to all Canadian communities.

The National Satellite Initiative will be implemented in 2004. A document outlining the process, as well as technical and commercial considerations, will be issued in the months to come.

How can communities obtain broadband through the National Satellite Initiative?

Communities must apply for the use of satellite capacity by identifying their needs and the current available technology, confirming their ability to contribute toward the installation of the network components, and outlining plans for the ongoing use and sustainability of the network.

Communities would normally be responsible for the purchasing and deployment of ground infrastructure, as well as the local distribution of broadband services. However, there may be instances where funding for such infrastructure may be available through this initiative. As well, complementary programs such as the Broadband for Rural and Northern Development Pilot Program are available to assist communities in covering costs related to ground infrastructure.

Through the Canadian Strategic Infrastructure Fund, Infrastructure Canada will contribute up to $85 million to purchase and make available a large amount of satellite capacity/transponder space. Four or five transponders will be purchased over a 10- to 15-year time frame.

The Canadian Space Agency will contribute a $50-million satellite capacity credit. This capacity will be made available for public benefit in mid-2004.

In addition, the Canadian Space Agency will work in collaboration with Industry Canada's Communications Research Centre in order to use available satellite capacity to further develop technologies for satellite terminals and reduce the cost of communications in northern communities.

Industry Canada and the Broadband for Rural and Northern Development Pilot Program

Through Industry Canada's authorization of Telesat Canada's Anik F3 satellite, Telesat Canada committed to providing public benefit satellite capacity to serve public institutions in unserved areas. While some of this capacity has already been assigned for use by certain public institutions to support their broadband communications needs, one additional satellite transponder will become available on December 22, 2003. Telesat has committed to providing access to this satellite capacity for the life of its Anik F3 satellite, expected to be about 15 years. The estimated value of the additional capacity is $20 million.

Industry Canada's Broadband Office will manage the capacity made available through the National Satellite Initiative, in concert with the Broadband for Rural and Northern Development Pilot Program and with technical advice from the Communications Research Centre (CRC). This will maximize the strategic outcomes at the community level.