GIMLI, Manitoba, July 10, 2003 — On behalf of Allan Rock, Minister of Industry, Andy Mitchell, Secretary of State (Rural Development) (Federal Economic Development Initiative for Northern Ontario) and Rey Pagtakhan, Minister of Veterans Affairs and Secretary of State (Science, Research and Development), today announced another 65 recipients of funding to help develop business plans showing how their communities would deploy high-capacity, or broadband, Internet service.

These applicants, representing approximately 906 communities across Canada, will receive contributions of up to $30 000 each to develop business plans. The total amount of funding announced in this second round of the Broadband for Rural and Northern Development Pilot Program is $1 768 777.

“Broadband can stimulate innovation and improve the quality of life for all Canadians, especially those in First Nations, northern, rural and remote communities,” said Minister Rock. “It is applications in areas like distance education, telemedicine and e-business that will touch the everyday lives of communities and advance economic development. Today, we are one step closer to our goal of making high-capacity Internet access available to communities across Canada by 2005.”

“The Government of Canada is committed to building sustainable communities, which, in turn, contribute significantly to Canada's growth and success,” said Secretary of State Mitchell. “We must continue to work together to ensure that both rural and urban Canadians have access to innovative tools for social, cultural and economic development.”

“Cutting-edge communications infrastructure and the value of universality are synonymous with Canada,” said Minister Pagtakhan. “This government's drive to bring broadband to all Canadian communities by 2005, in partnership with local communities, the provinces, territories and the private sector, will ensure our country maintains this distinctive reputation in the 21^st century.”

Broadband is defined as a high-capacity Internet connection, capable of supporting full-motion, real-time audio and video applications. It is a pipeline for delivering innovative applications, putting more people like medical specialists, post-secondary educators and business contacts within easy reach of all Canadians.

“Broadband is providing rural, northern and First Nations communities across Canada with access to more of the services and information available to those living in large urban centres,” said David Johnston, President of the University of Waterloo.

Proposals selected for business plan development funding were chosen from 91 submissions from across Canada, based on recommendations by an arm's-length National Selection Committee.

The funds were allocated as part of the $105-million Broadband for Rural and Northern Development Pilot Program, announced by Minister Rock and Secretary of State Mitchell on September 5, 2002.

The Program is being delivered through two rounds of business plan development funding, followed by two rounds of implementation funding. The competitions for implementation funds are open to all applicants, regardless of whether or not they received or applied for business plan development funding.

The first round of business plan funds was announced on January 24, 2003. In all, 89 applications, representing 1149 communities, received up to $30 000 to develop business plans. First-round implementation funding will be announced in Fall 2003. Business plans developed with the funding announced today must be submitted by November 20, 2003, to compete for the second round of implementation funding, to be announced in Spring 2004.

Funding broadband infrastructure is a way of strengthening communities, one of the key recommendations that emerged from the regional and national summits on innovation and learning. Through these consultations with business and community leaders, broadband service was identified as a means to help strengthen communities by fostering partnerships to improve innovation performance, as well as by promoting entrepreneurial skills and job creation amongst Aboriginal Canadians.

Backgrounders with Program information and a list of today's business plan development funding recipients are attached. For further details, visit http://broadband.gc.ca.

For more information, please contact:

Christine Aquino
Office of Andy Mitchell
Secretary of State (Rural Development)
(Federal Economic Development Initiative for Northern Ontario)
(613) 759-1107

Daphne Guerrero
Office of Rey Pagtakhan
Minister Of Veterans Affairs and
Secretary of State (Science,
Research and Development)
(204) 983-7090

Selena Beattie
Office of Allan Rock
Minister of Industry
(613) 995-9001

Media Relations
Industry Canada
(613) 943-2502

Potential Program applicants, please call:
1 800 575-9200

Backgrounder

Broadband for Rural and Northern Development Pilot Program
Business Plan Development Funding

Broadband or high-capacity Internet is technology that has the potential to greatly enhance the quality of life of all Canadians through applications such as telemedicine, distance education and improved e-business opportunities.

The Government of Canada is pleased to announce that 65 proposals representing 906 communities were selected to receive business plan development funding as part of its commitment to ensuring broadband Internet access for all Canadian communities by the year 2005, in partnership with local communities, the provinces, territories and the private sector. The $105-million Broadband for Rural and Northern Development Pilot Program marks the first step toward achieving that goal.

How were projects selected for business plan funding?

Industry Canada and the National Selection Committee reviewed the proposals and made recommendations, according to the following criteria:

• competency — the experience and/or ability 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; and



• current facilities or suppliers — the degree of connectivity currently available in the community concerned.

How were broadband funding applications assessed?

Applications were assessed by the National Selection Committee based on: competitiveness, community engagement, management, need and sustainability.

When were the National Selection Committee Members selected and what role do they play?

Allan Rock, Minister of Industry, announced the membership of the National Selection Committee on December 17, 2002. The 24-member committee is composed of individual leaders from academia, government, the private sector, health, education and community organizations. With information from Industry Canada, they make recommendations to the Minister on which proposals should receive business plan and implementation funding.

What additional funding is available?

No additional business plan development funding is available. However, all communities are invited to submit business plans by November 20, 2003, to compete for implementation funding. The results will be announced in Spring 2004. Applicants are invited to compete regardless of whether they received business plan development funding, provided they meet the eligibility criteria. The amount contributed will be subject to the quality of the submissions and the availability of funds.

Who is eligible for the Broadband for Rural and Northern Development Pilot Program?

For a community to be considered eligible for implementation funds under the Broadband for Rural and Northern Development Pilot Program, it must currently have no publicly available broadband infrastructure capable of meeting its broadband needs. Typically, these are communities where a digital subscriber line or cable modem access are not already available to the public. Priority will be given to First Nations, northern, rural and remote communities.

Eligible recipients are community-based, legally incorporated, not-for-profit Canadian organizations that commit themselves to act as the "community champion" on behalf of the eligible community. As the sponsoring organization, they are the legal entities accountable for the successful development and potential implementation of the business plans, and must have the legal authority to enter into contracts with the Government of Canada.

When is the deadline to submit applications for implementation funding? Implementation funds for the Broadband for Rural and Northern Development Pilot Program are being delivered in two competitive rounds.

Table 1

	First Round	Second Round
Deadline for Submission of Business Plans	June 6, 2003	November 20, 2003
Announcement of Selected Business Plans	Fall 2003	Spring 2004

All submissions should be sent to the following address:

Broadband for Rural and Northern Development Program Office
300 Slater Street
Ottawa, Ontario, K1A 0C8
Tel.: 1 800 575-9200
E-mail: broadband@ic.gc.ca
Web site: http://broadband.gc.ca

How does broadband access relate to Canada's Innovation Strategy?

In the lead up to the National Summit on Innovation and Learning, between May and November 2002, more than 10 000 Canadians gave their views and ideas on creating a culture of innovation and learning across Canada. More than 34 regional summits were held to discuss the issues.

At the National Summit, extending broadband access across the country and into rural and remote communities was identified by participants as a key to strengthening communities. The launch of the Broadband for Rural and Northern Develop Pilot Program was identified as an early action taken by the Government of Canada toward this goal.

Backgrounder

Broadband Pilot Program
Successful Applicants and List of Impacted Communities

The following list of communities is based on the information submitted by applicants to the Broadband for Rural and Northern Development Pilot Program. Therefore, there is a possibility of duplicate entries or missing communities. The actual list of communities affected by Round 2 Phase 1 of business plan development funding will be confirmed once contractual negotiations are completed with the successful applicants.

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Date Modified: 2004-03-08 Important Notices