The federal government announced on 15 Oct 2014 that eligible Internet
Service Providers (ISP) can now apply to extend or enhance high-speed Internet[1]
service to areas in need across the country. As part of the Connecting
Canadians initiative, the target of the subsidy program is to connect 280,000 homes
to the Internet.[2]
See this
blog entry for basic information
about the program.
Interested ISPs have until 12 January 2015 to submit their applications.
Industry Canada (IC) expects to make the first announcement of successful
applicants in the spring of 2015.
ISPs can receive up to 50% of eligible project costs for expenses in rural areas and up to 75% for expenses in
remote (Far North) and Aboriginal communities.
According to the IC release, "Successful ISPs will
be expected to provide services at speeds of at least 5 megabits per
second (Mbps) to Canadians in rural areas of the country that currently have
slower access and 3 to 5 Mbps in the satellite-dependent communities
served under the northern component of the program." While likely not the
intent of the program, this seems to leave out areas that do not have any
access.
Industry Canada also
released an application
tool kit (ATK). The ATK contains all the necessary background and
application information need by the ISPs to prepare their submissions.
The ATK provides excellent templates that require the ISPs to provide
detailed information about their proposals in the areas of (1)Internet Service
Offerings (2) Network Capacity and Equipment (3) Project Budget Costing (4) Broadband Subscriber Estimates (5) Environmental
Assessment Screening and (6) Lobbyist Declarations.
If I were preparing a
RFP (Request for Proposals) or RFI (Request for Information) for Communications
and Technology (ICT) services, I would definitely consider adapting these
templates into my document.
A review of the
actual application document leads to interesting observations.
The application
identifies the following as potential solution types :
(1) Cable (2) DSL (3)
Fibre (4) Satellite (5) Mobile Wireless (6) Fixed Wireless (7) Other
The definition of
what the applicant proposes to deliver is rather loose in that it does not
indicate whether the speeds mentioned are burst speeds, consistent speeds, peak
time speeds or any other parameters and metrics that ensure a superior quality
of service. In the Internet Service
Offering template, a column heading uses the term "Advertised Speed".
I consider this avoidance of a more definitive identification of the speed that
an end user may expect a lost opportunity.
This is the quote
from the application form.
"The applicant must demonstrate that the proposed
technological solution will support broadband[3]
connectivity, defined as speeds at least 5.0 Mbps download and 1.0 Mbps upload
(3.0 Mbps download and 512 kbps upload for the Northern Component) to
underserved households in the underserved area.
"A settlement certified by a project technical
authority confirming the ability of the technological solution to deliver the
minimum download and upload speeds is required to meet this eligibility
criterion."
Similarly, the
application allows the IPS to establish their own data caps in their proposal.
In many of the sample cases the data
caps are far below the average monthly downloads as identified in the in the
annual CRTC Telecommunications Monitoring Report referenced in
this blog entry. At a time when the
projected increased in data transfer by users is increasing at a two-digit
rate, these cap limits are rapidly becoming unrealistic. A more realistic approach would require applicants
to commit to tying their data caps to the annual CRTC statistics.
There is a section in
the application which addresses the five-year outlook and scalability that asks
the ISPs to describe how the network will handle forecasted network capacity
including additional subscribers and usage traffic, enhanced services and the
network's ability to adapt to increased speed demands. However, there is no
mention of data caps.
Maps are available
for download on the Connecting Canadians website that purports to show what areas
identified with "households that do not have access to service at 5 Mbps."
I have serious reservations as to the accuracy of the information associated
with these maps. It is a fact that many of the areas in the Algoma District identified
as unserved have access to terrestrial based service in excess of 5 Mbps.
Overall, the application
process looks comprehensive from a business perspective. I would like to have
seen more stringent technical parameters for the proposed service.
[1] While the CRTC implies
a distinction between high-speed and broadband, IC appears to be using the term
as all-inclusive for anything that is not dial-up.
[2] This is a bit
misleading in that the program will provide the infrastructure necessary to
allow access to the Internet. At this time, the cost of actually connecting to
the Internet such as set-up charges, routers and modems if required and computers
are the responsibility of the individual. In others words, while this program
may address some of the physical digital issues, it does not seem to address
the economic divide issues.
[3] Back to broadband -
not high-speed.
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