OTTAWA, October 24, 2003 — Allan Rock, Minister of Industry, and Andy Mitchell, Secretary of State (Rural Development) (Federal Economic Development Initiative in Northern Ontario), today announced that $44 million is available to 33 organizations selected to receive assistance from Industry Canada in deploying broadband or high-capacity Internet to their communities.

These organizations, representing an estimated 768 First Nations, northern and rural communities across Canada, will have access to funds from the Broadband for Rural and Northern Development Pilot Program's first round of implementation funding.

“Broadband will bring Canadians closer together, helping businesses compete and providing Canadians with better access to services such as telehealth and distance education,” said Minister Rock. “Today's announcement is the latest step in making broadband a reality for First Nations, northern and rural communities.”

“Broadband will strengthen rural communities by enhancing opportunities for improved health care, life-long learning and access to a competitive business environment,” said Secretary of State Mitchell. “Stronger rural communities mean a stronger Canada. This is what this pilot program is all about.”

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 services in areas like health, education and business within easy reach of all Canadians.

“Broadband technology will go a long way toward reducing the isolation of rural and remote communities,” said David Johnston, President of the University of Waterloo. “It will help connect these communities to emerging opportunities in health care delivery, life-long learning, and business development.”

Organizations selected to work with Industry Canada (see attached list) were chosen from 83 submissions from across Canada, based on recommendations by an arm's-length National Selection Committee.

Assistance provided will be subject to successful negotiations with the Department, which will take place in the coming months.

The deadline for submission of business plans to compete for the second round of implementation funds is November 20, 2003, with the results to be announced in spring 2004. This competition is open to all applicants, regardless of whether or not they have previously participated in competitions for business plan development or implementation funds.

The Broadband for Rural and Northern Development Pilot Program complements the $155-million National Satellite Initiative, recently announced by Minister Rock in Nunavut. Funding broadband infrastructure strengthens communities, which is 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 tool in building partnerships, improving innovation performance, and promoting entrepreneurial skills and job creation among Aboriginal Canadians.

For further details, visit http://broadband.gc.ca.

For more information, please contact:

Linda Kristal
Office of Allan Rock
Ministry of Industry
(613) 995-9001

Media Relations
Industry Canada
(613) 943-2502

Backgrounder

Broadband for Rural and Northern Development Pilot Program
Broadband Implementation 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 tele-medicine, distance education and improved e-business opportunities.

The Government of Canada is pleased to announce that 33 organizations representing approximately 768 communities were selected to receive assistance from Industry Canada to deploy broadband Internet service to their community.

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

The $105-million Broadband for Rural and Northern Development Pilot Program was announced by Minister Rock and Secretary of State Andy Mitchell on September 5, 2002. This Program marks the first step toward the Government's commitment to ensuring broadband Internet access for all Canadian communities, in partnership with local communities, the provinces, territories and the private sector.

The Program is being delivered through two rounds of business plan development funding, followed by two rounds of implementation funding. In total, the Government of Canada has invested $4,202,777 to support the development of business plans.

The first round of implementation funding is now closed, however, all communities are invited to submit business plans by November 20, 2003, to compete for the final round of implementation funding. Broadband implementation funding is subject to successful negotiations between all parties through a formal contribution agreement.

How were business plans selected for implementation funding?

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

• Community engagement — demonstrated support for broadband implementation of community stakeholders, and neighbouring communities;



• Community need — anticipated requirements, uses and expected benefits resulting from broadband access;



• Project management — the experience and/or ability of the applicant to successfully implement the business plan and complete the project in a timely manner.



• Technology and implementation — demonstration that technological solutions selected through a Request for Proposals (RFP) process are appropriate to the needs and capacities of the community or communities concerned; and,



• Sustainability — demonstration of a long-term strategy to sustain the broadband services deployed as a result of this project.

How were broadband business plans assessed?

Business plans were assessed by Industry Canada and the National Selection Committee based on: community engagement; community need; project management; technology and implementation; 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?

The Broadband for Rural and Northern Development Pilot Program is being delivered through two rounds of business plan development funding, followed by two rounds of implementation funding. Both rounds of business plan development funding are complete and no further funding is available for this phase.

The first round of implementation funding is now closed, however, all communities are invited to submit business plans by November 20, 2003, to compete for the final round of implementation funding. The results will be announced in spring 2004. This competition is open to all applicants, regardless of whether or not they participated in competitions to date for business plan development or implementation funds. 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, and rural 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?

The final deadline to submit a business plan for implementation funds through the Broadband for Rural and Northern Development Pilot Program is November 20, 2003. Results will be announced in 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.

This total represents 433 communities as defined by Statistics Canada and 10% of the unserved communities in Canada.

Note: An application from New Brunswick, covering the entire province, was submitted to the Broadband for Rural and Northern Development Pilot Program. The project is also being considered under the Canadian Strategic Infrastructure Fund. Discussions are underway however, no decision has yet been taken.

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 1 Phase 2 of broadband implementation funds will be confirmed following successful negotiations between Industry Canada and the applicant.

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Date Modified: 2004-05-04 Important Notices