FAQs

What is "broadband"?

Broadband allows large amounts of information, like real-time, audio-visual applications and advanced multimedia, to be shared between devices, such as computers. Because some multimedia applications require large amount of data to be transmitted, high capacity communication channels need to be used. This is why the communication links need to be "broadband". As its name indicates, multimedia allows the use of a personal computer for various applications such as e-mail, Web browsing, voice and video streaming, video-conferencing, and also specialized services such as medical operations where the surgeon operates remotely through the broadband communication channel. A broadband access infrastructure is needed to link the various institutions and dwellings to the communication network backbones carrying extremely high data capacities (multiple gigabits per second) over optical fiber. This infrastructure can be developed by using optical fiber, co-axial cable, or terrestrial or satellite radio-frequency links.

For additional information on the definition of the term broadband, please see the Broadband Task Force report or Statistics Canada's research report High-speed on the information highway: Broadband in Canada.

What are the benefits of broadband?

The broadband revolution has the potential to bring Canadians and Canadian communities new opportunities in a number of areas, including learning, health, business, and entertainment.

Broadband can :

• provide improved health care and home care services
• facilitate online and distance learning
• improve access to government services
• encourage e-business with new broadband empowered applications and services
• encourage e-commerce through selling products and services on the Internet and sharing best practices
• improve the ability of citizens to participate in local, regional and national issues of interest

What is the link between broadband and Canada's Innovation Strategy?

High-capacity networks are critical to innovation. On February 12, 2002, the Government released its Innovation Strategy. One of our Government's most fundamental objectives is to create an environment of excellence and inclusiveness in which all Canadians can take advantage of their talents, their skills and their ideas. Broadband, or high-capacity Internet will help us achieve these objectives. Broadband will play an important and integral role in helping Canada become a more innovative and inclusive society and economy. We will continue to work with stakeholders in discussing how broadband can support the Innovation Strategy in critical areas, such as, learning, health, research, government on-line and commerce. Success in these areas is basic to Canada's economic and social objectives. This is an on-going process and commitment.

What is the relationship between the National Satellite Initiative and the Broadband for Rural and Northern Development Pilot Program?

The National Satellite Initiative is providing satellite capacity for the deployment of broadband service in those areas that are unable to receive broadband in any other reasonable way then satellite. The Broadband for Rural and Northern Development Pilot Program provides funding to help communities establish the infrastructure required to deploy broadband access. Successful applicants under Round 1 and 2 of the Broadband for Rural and Northern Development Pilot Program, who are eligible under the National Satellite Initiative, may also qualify for satellite capacity.

Although different in their approach, both the National Satellite Initiative and the Broadband for Rural and Northern Development Pilot Program are working in parallel to improve the quality of life of Canadians and help businesses in rural and remote areas. This is achieved through improved access to e-government and other on-line services, like distance learning and telemedicine. Both initiatives are crucial in helping the Government of Canada meet its commitment to connect all Canadian communities to broadband Internet service. In some cases, it is expected that both initiatives could be delivered in a complementary manner to bring broadband to particular communities.

Broadband for Rural and Northern Development Program

Program Questions

What is the Broadband for Rural and Northern Development Pilot Program?

The Broadband for Rural and Northern Development Pilot Program is the first step to meeting the Government's commitment of broadband access to all communities. The Pilot Program has been created to assist those communities that are currently without broadband access. Most often, improved access is necessary in First Nations, northern, rural and remote communities in order to provide services in the area of health and education, as well as to augment economic opportunities. These communities will receive priority and will be given financial assistance through two separate rounds for funding, each with a competitive call by Industry Canada for the submission of applications from interested communities throughout Canada.

Why did the federal government launch the Broadband for Rural and Northern Development Pilot Program?

New advanced applications like tele-health, distance learning, the delivery of government services and e-business require broadband access. These applications have the potential to greatly enhance the lives of Canadians, whether through more learning opportunities, better access to health care or improved business opportunities. Its important that all Canadians have the opportunity to access these services and reap the benefits of the networked economy. This Pilot Program is aimed at ensuring that these technologies are tools of inclusion, not exclusion.

What is an unserved community?

An unserved community currently must have no publically available broadband infrastructure which is capable of meeting its broadband needs. Typically, these are communities where Digital Subscriber Line (DSL) or cable modem access is not already available to the public. Priority will be given to First Nations, northern, rural and remote communities.

What is the Broadband Pilot Program's definition of a community?

Communities must be defined geographically, but are not bound by legal boundaries (municipal, provincial etc.) Communities can self-define and must clearly demonstrate that they are unserved and would continue to be unserved in the longer term. Proof of discussions with, for example, local telephone and cable companies, if applicable, would support this claim.

How does the program work?

This program uses a competitive, two stage selection process. In the first stage, community champion sponsoring organisations apply to receive up to $30,000 to support the development of a business plan to expand broadband to unserved communities. Following this, the successful applicants will be eligible for additional funding towards implementing their business plans, subject to the quality of the submissions, as per the assessment criteria, and the availability of funds.

PLEASE NOTE: No additional rounds of funding are planned under the Broadband Pilot Program at present.

The content in this section has been retained for reference purposes.

How is this related to the Strategic Infrastructure Fund?

The Broadband for Rural and Northern Development Pilot Program is focussed on the community aggregation and deployment of broadband.

The Government of Canada's Strategic Infrastructure Program designed to support the construction of large scale, interregional infrastructure the new economy, including 21st century broadband infrastructure.

Funding / Application Guidelines

Who is eligible?

For a community to be considered eligible under the Broadband for Rural and Northern Development Pilot Program, it currently must have no publically available broadband infrastructure which is capable of meeting its needs. Typically, these are communities where Digital Subscriber Line (DSL) or cable modem access is not already available to the public. Priority will be given to First Nations, northern, rural and remote communities.

Eligible recipients are governments or legally incorporated, not-for-profit Canadian organizations that will commit themselves to act as the community champion on behalf of the eligible community(ies). Eligible recipients also include Indian Bands. As the community champion, they will be the legal entity accountable for the successful development and potential implementation of the business plan and must have the legal authority to enter into contracts with the federal government. A community may not be represented by more than one community champion. Please note, provincial and territorial governments are not eligible to receive funding to develop business plans; however, they are eligible to receive funding to implement business plans.

Are the Community Future Developments Centres (CFDCs) eligible to be Community Champions?

Yes, the CFDCs are eligible to be community champions for the Broadband program. They, as with all applicants, must provide proof of their not-for-profit status and letter of incorporation with their application. Moreover, community champion organizations from Quebec must include a signed copy of Appendix I of the Guide with the submission as well as the following documents: Charter, by-laws and, Financial Statement.

What is a community champion sponsoring organization?

A community champion sponsoring organization is a legally incorporated, not-for-profit Canadian organizations that will commit themselves to act as the "community champion" on behalf of the eligible community. As the sponsoring organization, they will be the legal entity accountable for the successful development and potential implementation of the business plan and must have the legal authority to enter into contracts with the federal government. It is estimated there will be one community champion per eligible community.

What level of funding does the Broadband for Rural and Northern Development Pilot Program offer?

In the first phase, interested communities will submit a proposal to receive seed funding in order to assist them in the development of a business plan. Through a competitive process, the Broadband Pilot Program will disperse up to $30 000 or 50 percent of project costs (whichever is less) in seed funding, directly to successful "community champions," for the development of business plans. These community champion not-for-profit organizations will act as sponsors to organize and develop business plans on behalf of eligible communities. Additional information relating to proposals for seed funding to assist in the business plan development can be found in Part II of this guide.

In the second phase, community champions will submit a business plan for the deployment of broadband within their specified communities. This business plan will serve as an application to a second competitive process, to receive funding for the implementation of broadband deployment in their communities. The successful communities may be eligible to receive funding of up to 50 percent of the project costs, to assist in the implementation of their business plans. Please note that it is Industry Canada's position that the private sector should play a leadership role in the development and operation of broadband networks and services for Canadians. Additional information relating to the development of a business plan can be found in Part III of this guide. It should be noted that business plans funded through the first phase (seed funding) as well as business plans not funded through the first phase can be submitted.

In the last phase, successful community champions will receive the specific funding assistance required to implement their business plans in accordance with a specified agreement. Additional information relating to the business plan Implementation Phase will be made available to successful community champions. All phases are repeated in both rounds of competition.

All submissions, for both funding components, will be assessed by an independent National Selection Committee that will also consider input from the provinces and territories in rating submissions from their perspective regions.

PLEASE NOTE: No additional rounds of funding are planned under the Broadband Pilot Program at present.

The content in this section has been retained for reference purposes.

What are eligible costs?

Eligible costs may include, but are not limited to, direct costs for the development and implementation of business plans for broadband deployment in the community. This includes, but is not limited to, consultant costs, needs assessments, communications and administrative costs. However, costs that have been incurred by a community prior to the announcement of funding approval will not be eligible for reimbursement.

Are communities required to provide matching funding?

Yes. The community champion sponsoring organizations are required to cover at least 50 percent of the eligible costs on a cash and/or "in-kind" basis. Matching contributions may be provided by the community itself, by federal departments, other levels of government, the private sector, foundations, non-profit organizations, individuals and volunteers within the community.

What are considered in-kind contributions?

In order to allow the community champion sponsoring organization an opportunity to offset a lack of funds, eligible "in-kind" contributions include those goods, services or fixed assets, which if not contributed, would normally be purchased and paid for by the recipient. It would include, but is not limited to, volunteer labour and donations of office space or equipment. The value of these contributions will be determined by standard accounting practices. "In-kind" contributions provided prior to funding approval will not be eligible.

How and when will funds be distributed to the selected communities?

Successful community champion sponsoring organizations that are selected for funding will enter into a contribution agreement with Industry Canada. Contribution agreements will outline in detail the terms and conditions by which projects will be funded, including the amount of federal funding to be provided, project milestones, payment schedules (cash flow requirements) and anticipated results.

No payments will be made for costs incurred before the contribution agreement has been signed.

What are the terms and conditions of the contribution agreement?

The terms and conditions of the funding contribution will be set out in a contribution agreement, which will be signed by Industry Canada and the community champion sponsoring organization. The information provided by the applicant in the submissions for those projects selected in the program will serve as the basis for the agreement. It will include the description of eligible costs, the method of disbursement, the anticipated results and the timeline for completion.

What does technology neutral mean?

The Broadband for Rural and Northern Development Pilot Program is technology neutral, meaning that it will not choose which technology is the best - rather - it will allow the market to decide through an open competitive process.

How do communities apply?

To be eligible for consideration, all submissions must be postmarked by midnight on the appropriate deadline. All printed materials must be mailed to the Broadband Program Office.

What does the Broadband for Rural and Northern Development Pilot Program offer communities that are not funded?

Successful applicants will be required to share their knowledge and expertise with other communities by working with the Broadband for Rural and Northern Development Pilot Program office in the development of best practices, lessons learned and other pertinent resource materials.

Are we able to revise the list of communities provided in our proposal?

Yes, applicants are free to revise their lists, however, all communities added must be currently unserved with Broadband access.

Deadlines

When are the deadlines?

The Broadband for Rural and Northern Development Pilot Program will be delivered in two competitive rounds, starting with the launch of the program in Fall 2002 and followed by a second round beginning in Winter 2003.

Will there be another opportunity to apply for funding?

Currently, there are only two rounds of funding. See "When are the deadlines?"

PLEASE NOTE: No additional rounds of funding are planned under the Broadband Pilot Program at present.

The content in this section has been retained for reference purposes.

Selection Process

How are Community Champion Proposals selected?

All proposals will be assessed against the following criteria by an arms length National Selection Committee:

• Competency the experience, capability and/or capacity of the applicant to successfully implement the business plan and complete the project in a timely manner.
• Commitment the plan to bring together stakeholders and, where feasible and desirable, neighbouring communities, to combine their demand for telecommunications services that will thereby enhance the sustainability of the proposed broadband facilities.
• Community Need anticipated requirements, uses and expected benefits resulting from broadband access.
• Current Facilities or Suppliers the degree of connectivity currently available in the community concerned.

Once completed, submitted business plans will be assessed by the National Selection Committee (NSC) for implementation funding consideration. Areas used by the NSC to assess business plans will include competitiveness, community engagement, management, need, level of requested funds and sustainability.

When will applicants find out if their application was successful?

An announcement of successful community applicants for the first round was made in January 2003. For other anticipated announcement dates see "When are the deadlines?"

How will the Broadband for Rural and Northern Development Pilot Program avoid potential conflicts of interest between successful applicants and the broadband service providers they select?

All applicants to the Broadband for Rural and Northern Development Pilot Program are required to conduct a Request for Proposal (RFP) process for the selection of broadband service providers and provide evidence of a transparent, competitive process. Industry Canada will conduct due diligence to assess the fairness of each applicants RFP process when reviewing submissions.

Requests for Proposals (RFP) Process

Am I required to conduct an RFP process?

As part of your business plan submission for implementation funding, you are required to provide details of a competitive and transparent process to solicit bids to bring broadband connectivity to the intended unserved communities.

Where / how can I post an RFP?

RFPs can be posted on the "Broadband Marketplace" website, which is hosted by SourceCan. It can be found at: http://www.sourcecan.com/E/sb2410.cfm

Detailed instructions on how to post an RFP can also be found on the Broadband Marketplace website, at: http://www.sourcecan.com/E/sb2414.cfm

If you received seed funding for the development of your business plan from the Broadband Pilot Program, you are required as outlined in your contribution agreement to post an RFP on the broadband marketplace (SourceCan) website. If you did not receive seed funding for the development of your business plan, you are invited to post your RFP there. You are also welcome to publicize your RFP in other places.

What is sufficient length of time for an RFP to remain open?

The length of time for posting and RFP is determined by the community champion or the author of the RFP. The open period should give sufficient time for vendors to complete a precise and comprehensive response. It should be noted that the posting period is one factor that is considered to assess if the RFP process was competitive and transparent.

Once posted, how long does it take for an RFP to appear on the web site?

Once you have posted your RFP, it takes one (1) business day to appear on the Broadband Marketplace Web Site. Items posted on Friday, will not appear until Monday.

When the RFP closes, how long does it remain on the web site?

At midnight, Eastern time, on the RFP closing date, the SourceCan system moves the RFP from the active list to the Closed Opportunities section of the web site. Closed opportunities can be viewed by searching the SourceCan site using the Search Opportunities button.

Can community information such as statistics/demographics etc. included as part of an RFP be updated or amended after the RFP has been posted?

Yes, updated information on communities can be posted on the website as an "Amendment to the RFP " with the intent clearly noted in the subject line.

If a Community Champion convenes a meeting of potential suppliers and asks them for written questions in advance of this meeting, can the responses to these questions be added to the website in order to ensure that all potential bidders have the same amount of information?

Yes, questions and answers regarding the RFP can be posted on the website as an amendment to the RFP. The subject line should clearly note that the amendment contains Q&As.

I have lost my username and password, what do I do?

If you are one of the Community Champions that received funding from the Broadband Pilot Program, your username and password were e-mailed to the project leader. If you have misplaced your username and password you can contact your regional program officer to receive your information.

If you registered in the Broadband Marketplace yourself or you are unable to reach your program officer you will need to contact the Strategis Help Desk at 1-800-328-6189 or 1-613-954-5031. If you do not have a username and password you will need to register in the Marketplace to receive one. For instructions on how to obtain a username and password click here.

I have filled out the form, I have indicated my attachment, but my opportunity will not post, what is the problem?

Ensure that the attachment is either a PDF or PS format. The steps to create a PS file can be found on the SourceCan Web site.

I have filled out the form, my attachment is a PDF, but my opportunity is not on the web site. What is wrong?

When posting the opportunity, ensure that you make it through to step 4 and that the screen says: "Your Opportunity has been posted. You may still edit this opportunity".

I have posted one opportunity, but would like to post a second opportunity and the system won't let me.

The Broadband Marketplace has been designed to allow only one open opportunity at any time. If you want to make changes to your opportunity, you can make an unlimited number of amendments. If you wish to have another open opportunity, you will need to register in the Marketplace again.

The closing date on my opportunity is today, but the opportunity does not appear on the site. Where did it go?

The SourceCan system performs updates between midnight and 5:00 am Eastern time each day. When this update occurs, on the RFP closing date, the SourceCan system moves the RFP from the active list to the Closed Opportunities section of the web site. These opportunities can be viewed by searching the SourceCan site using the Search Opportunities button.

Customer Premises Equipment (CPE)

What is considered to be Customer Premises Equipment (CPE)?

CPE means equipment on the customer's side of the "demarcation point" which only serves a single customer (household, small business etc...). The demarcation point is generally defined as the point where the local loop (the network transmission equipment) ends and the inside wire (which is the responsibility of the customer) begins. The exact location of the demarcation point depends on the technology, the service provider (who may have CRTC-approved tariffs concerning the location of the demarcation point), the service provided, and the province or territory in which the local network is located. As a result, a hard-and-fast definition for the purposes of this program is not possible. Individual applicants are encouraged to keep the general principle in mind and define in their business plan.

Is Customer Premises Equipment (CPE) an eligible project cost?

Long-term project sustainability is a key consideration for the Broadband program, and we have concerns about the sustainability of a project where funding for CPE is necessary. This program does not provide on-going funds, and since it is expected that networks deployed under this program will have the ability to add customers over time, there would not be funding available in the future for those customer acquisitions. Where a business plan is dependent on funding for CPE, the network would have very little chance of surviving without additional funding in a case where either (a) technology forces a system-wide upgrade in equipment sooner than originally planned, (b) the selected CPE proves to be unreliable/unsuitable, the provider of that CPE removes themselves from the market, or some other event forces a mass replacement, or (c) the business plan simply over-estimates the life of the CPE. As a result, the Program has concerns if a business plan is relying on subsidized CPE.

However, community champions who believe that their business plan requires the inclusion of CPE costs that are incurred at the time of the infrastructure installation may request that, in their case, CPE be eligible. In particular, the business plan must demonstrate that (a) the business plan IS NOT sustainable without CPE expenses being subsidized, AND (b) the business plan IS sustainable with the proposed CPE subsidy, taking into consideration the points above.

Business Plan

If a recipient of business plan funding feels it cannot make the deadline for submitting its business plan, can they submit their business plan for the next deadline?

All deadlines outlined in the Contribution Agreement must be respected for recipients to receive funding.

Will communities be obligated to strictly adhere to their business plan if they are selected for implementation funding?

The business plan will work as an agreement in principle until a final contribution agreement is signed. We expect that the business plans and contribution agreements will be very similar, but will allow for small changes.

If a community can work out a deal with a supplier to get discounts, can those savings be considered matching funds?

No, potential savings are not considered matching funds.

If a company or individual is involved in the development of a business plan, can applicants hire the same company if they are selected for implementation funding?

Yes, companies and individuals involved in the preparation of business plans may also submit bids to organizations to carry out work required in the implementation phase, so long as they are not involved in any evaluation of implementation proposals. The onus is on the applicant to ensure that there is no conflict of interest.

Is Industry Canada willing to consider community ownership of a network as a viable option?

The program's strong preference is for the private sector to own and operate the network. However, if community ownership is being considered as an option, the business plan should indicate how community ownership would remain sustainable for the long term.

National Satellite Initative

Program Questions

What is the National Satellite Initiative (NSI)?

The National Satellite Initiative was created to complement other broadband initiatives and addresses the high cost of broadband access for communities in the Far to mid-north, and in isolated and remote areas of Canada, where satellite is the only reasonable means of providing broadband access.

The National Satellite Initiative is being delivered by Industry Canada, Infrastructure Canada and the Canadian Space Agency in cooperation with Provincial and Territorial Governments.

Communities, through their Provincial and Territorial Governments, have an opportunity to participate in the NSI for the deployment of broadband services via satellite in their areas. Satellite capacity and/or funding will be allocated to successful candidates for the deployment of broadband services. Information related to the participation in NSI projects will be posted on the Broadband Web site.

Updated: 2006-11-03

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