Broadband for All? Regulatory Lessons from Canada for Remote and Indigenous Regions Prof. Heather E. Hudson Institute of Social and Economic Research University of Alaska Anchorage

Prof. Rob McMahon University of Alberta ISER: More than 50 years of public policy research in Alaska

Project Team • Tim Whiteduck, Technology Director, First Nations Education Council (Quebec) • Penny Carpenter, K-Net Services (Ontario) • Marc Awashish, IT Coordinator, Obedjiwan First Nation (Quebec) • First Nations Innovation research team • First Mile Connective Consortium members

Northern Canada: Context 3 Northern Territories • Yukon • Northwest Territories • Nunavut Provinces: northern regions • Similar in isolation • Remote indigenous communities High unemployment> 15% High cost of living Young population: 51% under age 25 in Nunavut

Demand and Affordability Demographics • Young, fast growing populations • Large households • Low/seasonal incomes

Demand • Many users per household • Many applications social media, education, work

Affordability • •

Pricing higher than in urban regions Data caps with high overage charges

• 98% of Canadian households can access speed of at least 5 mbps. • Canadian average data download:93 GB per month

BUT in Iqaluit: price CAD130 for 2.5 mbps with 30 GB cap

Geographic Paradox of Telecommunications Development Urban Communities

Cheapest digital services

Best transportation links

Low need for teleservices

Best digital infrastructure Low appreciation of teleservices

Remote Communities

Most expensive digital services

Worst transportation links

High need for teleservices

Inadequate digital infrastructure High appreciation of tele-services

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‘First Mile’ telecommunications infrastructure development

Digital networks designed and built with region / community needs as the starting point

Regional and local ownership and control of digital infrastructure

Operating costs for anchor tenants support connectivity

Training, local support staff, community jobs

Sustainable digital technologies to meet regional and community needs

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Digital technologies are used by and for the whole community Healthcare, telehealth, and health education

Economic development, business and entrepreneurship

Education and distance education

Indigenous government and governance

Justice, public safety and emergency communications

Community interconnection and interdependency

Digital content about Indigenous culture and identity

Commercial entertainment

Research, data collection, GIS, report generation

Infrastructure maintenance, remote monitoring

Indigenous resurgence, selfdetermination and activism

Land-based activities and environmental sustainability

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Regional Indigenous community intermediary organizations

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Roles of REGIONAL community intermediary organizations in technology development Advocate for and administer digital infrastructures and services on behalf of Indigenous member communities

Represent and are governed by groups of local communities, allowing access to services and economies of scale

Use digital technologies to deliver public services and economic development opportunities

Mediate between local communities and external entities like government funders or corporations

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First Mile Connectivity Consortium (FMCC) • Research: First Nations Innovation (began in 2005) • Outreach: First Mile (began in 2010) • Policy: First Mile Connectivity Consortium (began in 2013)

FMCC Activities • • • •

Regulatory intervention and policy engagement Event coordination and public outreach Capacity-building Free online course on Indigenous-led technology development

CRTC 2015-134: Review of Basic Telecommunications Services • Should broadband be a basic service available to all? • What are barriers to broadband usage? – e.g. connectivity, affordability, skills, disabilities

• If broadband should be available to all Canadians: – What technical criteria should apply? – What is the regulator’s role in ensuring availability? – Is a funding mechanism required to extend/upgrade access?

Process: • Written filings, interrogatories, in-person hearing • Funding for costs available for nonprofit participants

FMCC’s Key Positions • Broadband for all Canadians including remote/indigenous residents • Technical specifications: – Speed, but also: data caps, QoS, latency • Digital literacy training and technical assistance • Importance of local/regional organizations • Northern Infrastructure and Services Fund (NISF) – Establish new fund linked to new sources of revenue (retail Internet) – Include capital (infrastructure) and ongoing operational support – Supplement existing government funding programs – Governed by accountable, transparent body – Prioritize unserved and under-served communities and regions

In-Person Hearing • Presentation by authors with representatives of Indigenous communications organizations • More than one hour of questions by commissioners • Also testimony from other Indigenous and consumer groups (as well as major telecom providers)

CRTC Decision: December 2016 • • • •

Broadband is designated a basic service New target speeds: 50 Mbps / 10 Mbps Requires ‘unlimited’ bandwidth option (no data caps) New infrastructure fund for ‘underserved’ areas: – – – – –

CAD$ 750 million over 5 years All qualified providers can apply Managed at arm’s length, based on objective criteria Fixed broadband and mobile wireless infrastructure 10% of annual funds reserved for satellite-dependent communities – Source is Telecommunication Service Provider (TSP) revenues, including from retail internet and texting services

CRTC Decision… • Details of new fund – Organizational structure , administration and eligibility criteria to be determined in follow-on hearing

• Affordability: no action – No operational subsidies for ISPs – Requirements for transparent pricing BUT – No subsidies for low income users

• Digital literacy – “not in CRTC’s mandate”

• Coordination with federal Innovation Agenda – Report to federal ministry (ISED) – ISED to seek additional input from stakeholders – CRTC fund to complement other government funding

Next steps for FMCC • Participate in follow-up CRTC hearing – Specifics of new funding mechanism: organization, administration, eligibility

• Contribute to federal Innovation Agenda • Provide information on new policies to Indigenous ISPs and other groups • Address ongoing challenges – Affordability for users, high operating costs – Need for digital literacy, technical training

• Support like-minded groups – ex. CRTC review of Indigenous broadcasting (2017)

Conclusions and Lessons for Remote and Indigenous Regions • Importance of applied participatory action research • Encourage participation in regulation and policy – – – –

Institutionalize participatory opportunities Capacity-building among organizations Value in supporting under-resourced groups Preparation and expectations

• Sustainability: resources to participate – Funding for time and expenses – CRTC model: cost claims process – Reliance on foundations, donors

Thank you! For more information: [email protected] [email protected]

www.firstmile.ca