MAXVILLE, Ontario, January 24, 2003 — On behalf of Allan Rock, Minister of Industry, the Honourable Andy Mitchell, Secretary of State (Rural Development) (Federal Economic Development Initiative for Northern Ontario), and the Honourable Don Boudria, Leader of the Government in the House of Commons, today announced $2.4 million of business plan development funding as the next step toward making high-speed Internet access available to more unserved communities. In all, 89 applicants representing approximately 1149 communities will develop business plans outlining how each community would use high-speed, or broadband, Internet service. Each applicant received up to $30 000 toward the cost of developing those plans.

"Through innovations like distance education, telemedicine and improved opportunities for business and community development, broadband access has the potential to enhance the quality of life for all Canadians — especially for rural, Aboriginal and northern residents," said Minister Rock. "This phase of the Broadband Pilot Program is a significant step forward in our commitment to delivering broadband services to all Canadian communities by 2005."

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.

"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,"said Secretary of State Mitchell. "The Government of Canada is committed to building sustainable communities, which in turn contribute significantly to Canada's growth and success."

"As Minister for a mostly rural riding, I look forward to the day when all of my constituents have the option of gaining access to high-speed Internet for their personal or business needs," said Minister Boudria. "Canadians, no matter where they live, deserve equal access to the latest technologies and today is another step in this direction."

"We are extremely impressed by the level of cooperation between the communities competing for business plan development funding," said David Johnston, Chair of the Broadband National Selection Committee.

Proposals selected for business plan development funding were chosen from 222 submissions, based on recommendations by an arm's-length National Selection Committee.

Successful applicants will now use their funds to develop business plans to be submitted by May 22, 2003, to compete for implementation funding.

Minister Rock also called for proposals to compete for business plan development funding under the Program's second round. The deadline for submissions is March 28, 2003.

Backgrounders with information on the program and a list of first round business plan development funding recipients are attached. For further details, visit the Program's Web site at http://broadband.gc.ca.

For more information, please contact:

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

Michel Potvin
Parliamentary Assistant
Office of Minister Boudria
(613) 996-2909

Media Relations
Industry Canada
(613) 943-2502

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

Backgrounder

Broadband for Rural and Northern Development
Business Plan Funding

The Government of Canada is committed to ensuring high-speed broadband Internet access for all Canadian communities by the year 2005. This $105-million Broadband for Rural and Northern Development Pilot Program marks the first step to achieving that goal.

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 publicly-available broadband infrastructure 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.

Eligible recipients are community-based, 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 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.

What funding is available?
Applicants can submit proposals for funding to support the development of a business plan. Successful applicants will be eligible to receive up to $30 000 for this purpose. Additional funds may be available on a competitive basis to eligible applicants to implement their business plans. The amount contributed will be subject to the quality of the submissions and the availability of funds.

When is the deadline?
The Broadband for Rural and Northern Development Pilot Program will be delivered in two competitive rounds. The first round started with the launch of the Program in Fall 2002 and is followed by a second round beginning in Winter 2003.

All submissions should be sent to the following address:

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

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 will the business plans be assessed?
Once completed, submitted business plans will be assessed by the National Selection Committee (NSC) for implementation funding consideration. The National Selection Committee will assess business plans and make recommendations based on: competitiveness, community engagement, management, need and sustainability.

When were the National Selection Committee Members selected and what role do they play?
Industry Minister Allan Rock announced the membership of the National Selection Committee on December 17, 2002. The committee is made of up 24 members and 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.

The program will provide feedback to all applicants that were unsuccessful in the first round of business plan development funding, should they wish to improve their submission for the second round.

How does broadband access relate to Canada's Innovation Strategy?
Canada's Innovation Strategy recognizes that Broadband access is key to the growth of an innovative society and economy. It calls for the introduction of broadband access across the country through partnerships between the public and private sector.

This announcement builds on the targets devoted to "Strengthening Communities" as expressed by Minister Rock at the National Summit on Innovation and Learning on November 19, 2002. These are:

• to work in partnership to foster internationally recognized technology clusters;



• to significantly improve innovation performance of communities through strengthened partnerships; and



• to promote entrepreneurial skills and job creation among Aboriginal people.

Provincial Breakdown

* The sole submission from New Brunswick proposes to work with local Community Future Development Corporations (CFDC) to submit a business plan covering the entire rural region of New Brunswick.

Backgrounder

Broadband Pilot Program
Successful Applicants and Original List of Communities

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

Alberta

British Columbia

Manitoba

Nova Scotia

Ontario

Prince Edward Island

Saskatchewan

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Date Modified: 2003-08-07 Important Notices