Presentation to First Nations Connect Conference, February 13, 2002

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Presentation to First Nations Connect Conference,
February 13, 2002
Jacques Drouin, Connectivity Policy Manager,
Industry Canada
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Connecting Canadians

National
Vision
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We Are Now in the Network Age

• "Today's technological transformations are
  intertwined with another transformation -
  globalization - and together they are creating
  a new paradigm the network age.
• United Nations Human Development Report, July
  2001
• Instant access to knowledge
• Transforming business
• Borderless, global economies
• New ways of citizen - government engagement

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• A Six Part Agenda Established
• Canada Online
• Smart Communities
• Canadian Content Online
• Electronic Commerce
• Canadian Governments Online, and
• Connecting Canada to the World

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Canada Online Ensuring Access for All
Canadianswww.connect.gc.ca

• First country in the world to connect all schools
  libraries

• Over 300,000 computers delivered to schools

• 8,800 Community Access Sites

• 11,000 voluntary organizations connected

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Education Skills For Jobs and Growth
Employment Growth by Highest Level of Education
Attained 1990-2000
Digital literacy critical in the Network Age
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Digital Divide Still Exists
Internet Use from Any Location
Must increase efforts to ensure that no Canadians
are left behind
Source Household Internet Use Survey
Statistics Canada, 2001
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Smart Communities http//smartcommunities.ic.gc.ca
60M Government Commitment
New Model for Community Development
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Canadian Content Onlinehttp//collections.ic.gc.c
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108M to bring Canadian culture into the Digital
Age
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Electronic Commercewww.e-com.ic.gc.ca

• PKI
• Consumer Protection
• Privacy
• Digital Signatures
• Intellectual Property
• Security / Encryption
• Standards
• Tax Neutrality

The real story is about the e-transformation of
traditional businesses The OECD Observer,
September 25, 2001
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Canadian Governments Online www.canada.gc.ca
"By 2004, our goal is to be known around the
world as the government most connected to its
citizens."

Speech From the Throne, 1999
Overall Maturity
Client-centric Integrated Interactive E-Com
enabled
Source Accenture, April 2001
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Canadians Are Receptive to Government Online
Services
Tax returns filed electronically in Canada
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Basic Connectivity No Longer Sufficient
Source PlannedapproachInc.com
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Broadband IS the Platform
Broadband
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What Can Broadband Deliver?

• Increasing volumes of content and services
• Virtual face-to-face interaction
• Substantially improved existing services and
  creation of innovative and bandwidth-intensive
  ones
• E-Learning - learning anywhere, anytime
• Tele-health -saving lives and money through
  networking
• E-com - supporting new ways of doing business
• E-research - exponential improvements in research
  capacity
• E-government - fully engaging all citizens

Allows ALL Canadians, wherever they are, to
participate in the Innovation Agenda
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U.S. Economic Study Agrees
The 500 Billion Opportunity The Potential
Economic Benefit of Widespread Diffusion of
Broadband Internet Access Crandall and Jackson,
July 2001

• An attempt to look at what life could be like
  with ubiquitous broadband access
• Study identified five sources of benefit
• Telecommuting
• Entertainment
• Telemedicine
• Telephony
• Home On-line shopping
• Widespread use of broadband could contribute
  between 200B and 500B annually to U.S. economy
  by 2025

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Global Race to Get Competitive Advantage Through
Broadband
Goal Universal broadband access by 2005 Focus on
underserved locations groups (30 pop.) 765M
for transport 480M for municipal nets and tax
relief
SwedenC1.24B
U.S.C3.35B/year
Goal extend universal service to include
advanced services. Multiple federal, state and
local programs e.g., 3.2B/year for statutory
E-rate program, 153M/year for Rural Broadband
Loan Program pilot project. Nearly 40 bills
before Congress to accelerate broadband in rural
and underserved areas.
France C2.2B
Goal Universal broadband access by 2005 Focus on
underserved, rural locations (20 to 25 of
pop.) 300M direct for infrastructure
deployment 1.9B in government funded loans for
infrastructure deployment.
U.K. Not yet funded
Universal broadband access by 2005 Program
announcement anticipated
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Global Race to Get Competitive Advantage Through
Broadband
Germany C1.1B
Goal Leadership in EU Information
Society Broadband from ADSL to 8 Mbps Target 2006
Goal World IT leadership by 2005. Ultra high
speed goal of 30 Mbps to 30 million homes. 41M
seed funding sought 2002 full funding
announcement expected shortly.
JAPAN Not yet funded
Goal World IT leadership Broadband by 2002
Total Korea Information Infrastructure
investment 47B to 2005.
Korea C25B (1997-2002)
The information society is and will remain a top
priority for the EU. It can foster economic
growth, provide jobs, connect remote places to
urban centres and raise living standards. This
has not changed. EC Commissioner, Erkki
Liikanen, Sept 28, 2001
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Canada Well Positioned
High-speed Internet Users per 100 inhabitants
Source OECD, 2001
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But Canada Faces Unique Geographic Challenges
Population DensitiesOECD Nations

• Relative to other countries Canada has low
  population density
• Rural/remote areas unlikely to be served by
  market forces, as business case non-existent

Rural, remote and north at risk!
SOURCE U.S. Department of Commerce, Bureau of
the Census, Statistical Abstract of the United
States, 1992, Tables 25, 340 and 1359
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Majority of Canadian communities do not have
access to high-speed service
Canadian Communities 5,984
Both DSL
and Cable
4,781 Communities 22.3 of pop.
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No High
Only DSL
1,203 communities 77.7 of pop.
Speed
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Service
79
Only Cable
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Communities refer to Statistics Canada Census
Sub-division (CSD) breakdown.
Source Industry Canada estimates based on 1996
population data from STC and confidential company
information.
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Smaller Communities Most at Risk
Unserved Communities By Size (4781 Communities)
92
100
90
79
76
80
70
60
50
of Community Size Group
50
40
22
30
20
10
0
0
0-1,000
1,000-5,000
5,000-10,000
10,000-100,000
100,000
Canada
0
3 230
1 309
163
79
4 781
of communities
4.0
9.4
3.9
5.0
22.3
of population
0
Communities refer to Statistics Canada Census
Sub-divisions (CSDs) Source Industry Canada
estimates based on 1996 population data from STC
and confidential company information.
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Access to High-Speed Service Varies by Province
Access to High-Speed Service 1,203 Communities
Communities refer to Statistics Canada Census
Sub-division (CSD) breakdown. Source Industry
Canada estimates based on 1996 population data
from STC and confidential company information.
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Should Rural Canada Have the Same Opportunities
as Urban Canada?

• Economic viability and sustainability in question
  for many rural and remote communities
• Businesses leave
• Jobs leave
• Youth leave
• Needs are greatest where services less available
  or not available

Without innovative public policy, these
technologies could become a source of exclusion,
not a tool of progress. United Nations
Development Report, July 2001
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Government is Committed to Equal Access for ALL
Canadians

• Established National Broadband Task Force
• Mandate
• the need and characteristics of communities not
  likely to gain access to high-speed services by
  2004
• the technical, institutional and financial
  barriers which could delay provision of services
  by the private sector
• the roles governments might play in overcoming
  these barriers
• Membership
• Leading Canadians from all sectors
• Industry (telcos, cablecos, service providers,
  content providers)
• Public interest
• Education and libraries
• Health
• Aboriginal

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National Broadband Task Forces
Response www.broadband.gc.ca

• Essential that ALL Canadians have access
• Make it equitable and affordable
• Ensure balanced public-private partnership
• Understand it is more than infrastructure that is
  required (encourage use and content
  development)
• Place highest priority on First Nations, rural
  and remote
• Called for total investment of 4.6B by ALL
  PARTNERS (federal, provincial, territorial,
  municipal governments, and private sector)
• Community Champion seed funding to all unserved
  communities (50 to 70M)
• Transport to unserved communities (1.3B to
  1.9B)
• Connect public institutions in unserved
  communities (500M to 600M)
• Last mile to homes within unserved communities
  (2B)

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Wide Partnership Required
e-health
e-content
e-learning
Broadband Platform
e-business
e-government
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Budget 2001

• Continuing Support for Connectedness Agenda
• SchoolNet and CAP - 40M per year for two years
• 35M/year for the three years to support
  broadband expansion
• 110M to build CAnet 4 the next generation
  Internet broadband backbone
• 600M over next four years to implement
  GOL strategy by 2005
• Commitment to vision of broadband connectivity
  to all communities timeline extended to
  2005

The Challenge Continues
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Connecting Canadians
Canadas
Innovation Strategy White Paper
What does innovation mean?
It means - Coming up with new ideas about how
to do things better or faster  - Making a new
product or offering a new service  - Putting
new ideas to workand having skilled people to
apply them  - Agressively pursuing new markets
for Canada s products and services
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Connecting Canadians
Canadas
Innovation Strategy White Paper
Communities seen as incubators of innovation
But tey have to be part of the globally connected
world
Broadband connectivity is an enabler of innovation
Government will work together to strenghten the
capacity of communities to become incubators of
innovations
Goal by 2005, ensure that broadband is available
to Canadian communities
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Connecting Canadians
For
Further Information
Industry Canada www.ic.gc.ca
Connecting Canadians www.connect.gc.ca
Strategis www.strategis.gc.ca
Electronic Commerce www.e-com.ic.gc.ca
National Broadband Task Force www.broadband.gc.ca