Study on accessibility and affordability of telecommunications services

In 2015, the CRTC mandated the implementation of a disaggregated wholesale high-speed access (HSA) services regime for Bell Canada, Cogeco, Rogers and Vidéotron. It was decided that the regime would first be implemented in Ontario and Québec, as those regions had significant demand for Internet services. At the time, the CRTC also decided that aggregated services would be phased out in conjunction with the implementation of the disaggregated service.

In addition to providing end customers access over existing copper and hybrid fibre coaxial facilities, the implementation of disaggregated wholesale HSA services includes a requirement to make these services available over fibre-to-the-premises (FTTP) access facilities.

Following the 2015 decision, the companies filed proposed configurations. The CRTC established guidelines for acceptable configurations and directed the four companies to file proposed rates with associated cost studies.

After the companies filed their tariff applications, the CRTC set interim rates, terms and conditions for disaggregated wholesale HSA services for Ontario and Québec in August 2017 to spur competition in the market.

In July 2018, the CRTC initiated the process to extend the implementation of the regime to incumbent service providers outside of Ontario and Québec. This process was suspended in October 2018 following a request from the Canadian Network Operators Consortium (CNOC) for additional process related to the configurations of the new regime.

CNOC then filed an application in November 2018 to dispute the decisions made in 2015 and 2016, citing a number of issues related to the implementation of the regime.

The final rates for aggregated wholesale HSA services were published in August 2019 (Telecom Order 2019-288), and were subject to a number of appeals, petitions to Cabinet and review and vary applications. The Order was stayed by the Federal Court of Appeal on November 22, 2019. Subsequently, on August 13, 2020, the Governor in Council declined to vary, rescind or refer the Order back to the Commission for reconsideration. On September 10, 2020, the Federal Court of Appeal dismissed the appeal of the Order. As for the applications submitted to the Commission to review and vary the Order, a decision to stay the Order pending the outcome of the review and vary application was published on September 28, 2020.

Disaggregated HSA services

The CRTC considers that there are issues related to the regulatory framework for wholesale HSA services such that the objectives and transition plan established in 2015 may not be achieved without further measures.

The CRTC launched a consultation on June 11, 2020, to explore the appropriate disaggregated wholesale HSA service configurations and the appropriate level of disaggregation for all incumbents across Canada. This proceeding will allow the CRTC to take into consideration the concerns raised by CNOC related to the current framework, as well as concerns raised by some service providers about the current level of disaggregation. In addition, the Commission does not have confirmation that there has been any implementation of the disaggregated wholesale HSA service regime in its existing configurations.

At the same time, the Commission suspended the proceeding to set final rates, terms and conditions for disaggregated wholesale HSA services in Ontario and Quebec until a later date, after the close of this proceeding.

Aggregated HSA services

On September 28, 2020, the Commission granted a stay for the implementation of the final wholesale rates for aggregated high-speed access services. After reviewing the issues raised in respect of the requests for a stay, the Commission determined that the criteria for a stay have been met. The interim wholesale rates will remain in effect pending a final decision on the applications to review and vary the order published in August 2019. The Commission will duly consider the other issues raised in the review and vary applications.

Disaggregated HSA services

In June 2020, the CRTC launched a Notice of Consultation to determine what should be the most appropriate configuration for the disaggregated HSA regime across Canada.

Disaggregated NoC on disaggregated services (launched June 11, 2020):

• The CRTC is inviting all interested parties to share their views on the matter by September 9, 2020.
• The current aggregated wholesale high-speed access regime will remain in place until the full implementation of disaggregated wholesale high-speed access services come into effect.
• The CRTC remains committed to fostering greater competition and promoting innovative broadband services and affordable prices for Canadians.

GiC decision regarding final rates for aggregated services (published August 13, 2020):

• We acknowledge the government’s response to the petition regarding wholesale rates for aggregated high-speed access services.
• Given that the Commission is currently considering the applications to Review and Vary the final wholesale rates, we cannot provide further comments at this time.

Court decision regarding final rates for aggregated services (published September 10, 2020):

• The CRTC has taken note of the Court’s decision to dismiss the appeal regarding wholesale rates for aggregated high-speed access services.
• Given that the Commission is currently considering the applications to Review and Vary the final wholesale rates, we cannot provide further comment at this time.

Commission stay Order regarding final rates for aggregated services (published September 28, 2020):

• The Commission has reviewed applications received from Bell Canada and a joint application from cable companies to further stay the final wholesale rates decision for aggregated high-speed access services following the Federal Court of Appeal’s decision.
• The Commission determined that the applications have met the criteria for a stay, and has decided to grant the stay of the Order regarding rates for aggregated high-speed access services. This will allow the Commission to fully consider the issues raised in the review and vary applications.
• As the Commission is still considering the applications to review and vary this Order, we cannot provide further comments at this time.

1. What’s the status of the decision on aggregated services published in August 2019?
   • The final rates for aggregated wholesale HSA services were published in August 2019 (Telecom Order 2019-288), and were subject to a number of appeals, petitions to Cabinet and review and vary applications.
   • The Order was stayed by the Federal Court of Appeal on November 22, 2019.
   • Subsequently, on August 13, 2020, the Governor in Council declined to vary, rescind or refer the Order back to the Commission for reconsideration.
   • On September 10, 2020, the Federal Court of Appeal dismissed the appeal of the Order.
   • As for the applications submitted to the Commission to review and vary the Order, a decision to temporarily stay the Order was published on September 28, 2020.
     1. What does it mean that the Commission has ‘stayed’ its decision?
        • A stay is simply a way for the Commission to put its decisions on hold (i.e. to not enforce or implement the decision) until it has had an opportunity to reconsider it, where someone has claimed that the Commission made a mistake.
        • So, in this case, staying Telecom Order 2019-288 means that the interim (or temporary) rates that were in place before the decision will continue to apply until the Commission issues a decision on the review and vary applications.
     2. What are the criteria for a stay?
        • The Commission’s general practice is to require an applicant requesting relief to demonstrate that its application meets all three criteria set out by the Supreme Court of Canada in the RJR-MacDonald decision:
          1. A serious issue to be determined: the threshold for finding that there is a serious issue to be tried is low. If an application is not clearly frivolous, it will generally meet the first criterion of the RJR-MacDonaldtest.
          2. Irreparable harm if the relief is not granted: The second criterion of the RJR-MacDonald test requires the party requesting a stay to demonstrate that it will suffer irreparable harm if its request is not granted, and that the harm is not speculative. This portion of the test requires analysis of the nature of the harm, rather than its magnitude. Harm is also more likely to be irreparable when there is a loss that is unquantifiable, that the applicant may not be able to recover, or that a final order may not be able to redress.
          3. Balance of convenience: The third criterion requires an assessment to be made as to which of the parties would suffer greater harm from granting or refusing to grant a stay pending the final determination of the issues. In addition, the assessment at this stage takes into account the public interest, and either party may raise arguments regarding harm caused to the public interest.
     3. Why is the CRTC issuing its decision to stay the Order now?
        • Bell Canada and the cable carriers requested that the Commission stay the implementation of the final rates set out in Telecom Order 2019-288 if and when the stay granted by the Federal Court of Appeal was lifted.
        • The Federal Court of Appeal dismissed the appeal of the Order on September 10, 2020.
     4. When is the CRTC planning to make a final decision regarding the R&V applications?
        • The CRTC is currently reviewing the applications to review and vary Telecom Order 2019-288.
        • We cannot provide further comments at this time.
     5. In its decision-making regarding the R&V applications, will the CRTC consider making the final rates for aggregated services non-retroactive?
        • The CRTC notes that retroactivity of the aggregated wholesale HSA rates is one of the issues being reviewed in the review and vary applications of Telecom Order 2019-288.
        • As the Commission is still considering this, and other, issues submitted in the review and vary applications, we cannot provide further comments at this time.
     6. Is the decision regarding the R&V applications going to affect the disaggregated proceeding currently ongoing?
        • The CRTC notes that the review and vary applications to Telecom Order 2019-288 and the Notice of Consultation 2020-187 are two separate and distinct processes.
        • As both of these processes are currently open proceedings, we cannot provide further comments at this time.
2. What happened to the announcement on final rates and terms and conditions for disaggregated HSA services that you were supposed to make in 2019? Why did you not make an announcement as planned?
   • In light of this call for comments, the Commission suspended the proceeding to set final rates, terms and conditions for disaggregated HSA services in Ontario and Quebec until a later date, after the close of this proceeding, which started with a notice of consultation on disaggregated services launched on June 11, 2020.
   • The CRTC considers this is an appropriate time to consult service providers on the appropriate configuration for the disaggregated wholesale HSA regime for all incumbents across Canada.
   • Certain measures may be required to facilitate deployment of these services across the country and to minimize any negative effects on competition that might be occurring in the market for wholesale HSA services.
   • The CRTC’s goal is to provide Canadians with a variety of innovative and affordable options in the marketplace.
   • Ensuring competitors have wholesale access to these networks and more control over their retail services and packages will contribute to this goal.
3. What happens to the current regime in Ontario and Quebec? Is the disaggregated HSA services regime still available to providers?
   • The current disaggregated regime remains available to competitors in Ontario and Quebec, with existing interim rates and terms and conditions.
4. Is the CRTC confident there is sufficient demand for the service outside of Ontario and Quebec?
   • The record of this proceeding will help us assess the level of demand for the service across the country.
   • As the proceeding is currently underway, we cannot comment further on it.
5. When will the regime for disaggregated wholesale high-speed access services be available in the rest of Canada?
   • The record of this proceeding will help us consider when disaggregated HSA services will be made available outside of Quebec and Ontario.
   • As the matter is currently before the Commission, we cannot further comment on it.
6. If the CRTC decided to make wholesale disaggregated services available in 2017, why were they not used?
   • The Commission does not have confirmation that there has been any implementation of the disaggregated wholesale HSA service regime in its existing configurations.
   • Whether or not wholesale disaggregated services are being used, and to what extent, will be explored in the context of this proceeding.
   • It is a business decision of each competitor to determine whether it wishes to make use of a mandated service.
7. CNOC has asked the CRTC to review two previous decisions related to wholesale disaggregated HSA services. Did this application have an impact on the current proceeding on disaggregated services?
   • CNOC’s application provided a view of competitor concerns regarding barriers to the use of the current disaggregated service, and was one of the factors that influenced the launch of the current proceeding.
   • In addition to the appropriate level of disaggregation and configurations for a disaggregated wholesale HSA service regime, CNOC raised other issues related to the transition of the current wholesale HSA regulatory framework that are not addressed in this notice. These issues include the addition of port and fibre strand sharing functionality for all incumbent carriers’ disaggregated HSA services, and access to FTTP facilities over aggregated HSA services.
   • These additional issues would require significant analysis, discussion, and industry participation, and the Commission is of the view that this would be more appropriately done through future proceedings.
   • Additionally, since the Commission is suspending the proceeding on final rates, terms and conditions for disaggregated wholesale HSA services, it is no longer necessary to make a determination on CNOC’s concerns regarding the suspension of the speed cap.
   • As for their concerns related to the levels of disaggregation, they will have the opportunity to share their views in the current consultation.
8. The Commission introduced a 100 Mbps speed cap on wholesale aggregated services as an incentive for competitors to migrate to the disaggregated service. Is the Commission concerned this speed cap might lessen competition in the retail Internet market?
   • The Commission provided interim relief on this speed cap, as stated in a letter dated March 20, 2019.
   • The suspension of the implementation of the speed cap will continue until the Commission makes final determinations with respect to the wholesale disaggregated HSA services’ tariffs on a final basis.
9. Will this proceeding have any impact on the price Canadians pay for their Internet service?
   • Wholesale HSA services are used to support retail competition for services such as local telephone, television and Internet access services.
   • Previous decisions were made with the goal of providing Canadians with a wider range of affordable choices in services such as broadband Internet.
   • That being said, the companies that make use of the wholesale high-speed access services will make their own decisions regarding the rates charged to their retail customers.
10. What’s the difference between “aggregated” and “disaggregated” high-speed access?
    • The main difference between the two regimes is how competitors connect to the large companies’ networks.
      • Aggregated wholesale high-speed access service:
        • Competitor connects its network to a small number of points of interconnection (POI) and has access to all end users connected to the incumbent’s network.
        • Incumbent’s network provides transport of end user traffic for the competitor between all head ends or central offices and POI. These transport costs are included in the costs for the service.
        • Competitor provides or leases transport facilities to the POI.
        • All large telephone companies and cable companies are required to provide the aggregated service across Canada.
        • The Commission mandated aggregated services provide fibre to the node (FTTN) access but not fibre to the premises (FTTP) access.
      • Disaggregated wholesale high-speed access service:
        • Competitor has to connect its network to POI per individual head end or individual CO with access limited to all end users connected at the particular head end or CO.
        • No incumbent transport is included in service.
        • Competitor provides or leases transport to each head end or CO it wishes to serve.
        • At this time, Bell Canada, Rogers, Cogeco and Videotron in Quebec and Ontario are required to provide the disaggregated service.
        • Disaggregated services provide both FTTN and FTTP access.
11. What difference does separating the transport component make for competitors in comparison with the wholesale aggregated services?
    • By separating the transport component, the competitor does not have to pay a monthly charge for use of the telephone or cable companies’ transport facilities.
    • The transport-related charges, which are included in the aggregated service’s capacity rate, are directly proportional to the level of traffic the competitor’s end customers generate. Instead the competitor would lease or build its facilities.
    • Therefore competitors will have better control of their transport cost. As traffic increases at approximately 40-50% per year, the competitors’ transport requirements will increase at the same rate.
    • With the wholesale aggregated service, the competitors’ payments to the service provider for transport of data would go up at the same rate, based on the monthly capacity charge.
12. What’s the difference between FTTN and FTTP access?
    • The difference is the amount of fibre used to connect to a home.
    • For FTTP access:
      • Fibre facilities are used to connect from a central office or head end all the way to the end-customer.
    • For FTTN access:
      • The telephone company connects to an end-customer premise through both fibre and copper facilities.
        • Typically fibre from a central office is connected to equipment located in a neighbourhood. Then existing copper lines that are used also for telephone service are connected from that equipment to the end customer premises.
      • The cable companies connect to an end customer through both fibre and coaxial cable.
        • Fibre from a cable head end is connected to equipment in a neighbourhood. The equipment then connects to coaxial cable that is connected to end customer premises.

1. How many rural households have gained access to 50/10 Mbps service since 2016?
   • The Commission’s target of 50 Mbps download, 10 Mbps upload and unlimited data transfer capacity (the Universal service objective, established in December 2016) was available to 45% of the population in rural areas in 2019 (up from 40% in 2016).
2. What is the CRTC doing not only to extend access to broadband service, but also to ensure access to affordable broadband service?
   1. Under the Telecommunications Act, the CRTC has the objective to render reliable, affordable and high-quality telecommunications services accessible to Canadians in both urban and rural areas in all regions of Canada.
   2. The CRTC looks at affordability when it makes decisions and sets policies. When it developed its Broadband Fund, the CRTC decided that, to be eligible for funding, applicants must:
      1. identify a list of various broadband Internet access service packages, with rate, speed, and capacity levels that address different customer needs, including those of low income households. These packages must include rates that are identical to or lower than those offered by a facilities-based service provider in one of the major urban centres or communities in the proposed project’s province or territory for reasonably comparable speed and capacity packages.
      2. commit to providing broadband Internet access service packages at a rate no higher, and at a speed and with a capacity no lower, than the ones proposed in their application, for a minimum of five years from the project completion date.
   3. The CRTC regulates rates where there is no effective competition to offer affordable choices to the consumers. In 2013, the CRTC found that there was limited competition for certain residential and business Internet services offered by Northwestel in its operating territory and decided to regulate Northwestel’s rates for these services.
   4. To ensure that consumers have access to a competitive market, the CRTC also makes sure to allow independent providers to use the network of the large incumbents. With that in mind, the CRTC will determine soon the final rates for aggregated wholesale high-speed access services, as well as rates and conditions for disaggregated wholesale high-speed access services in Ontario and Quebec. Once those decisions are issued, the CRTC will turn its attention to rolling out the disaggregated service in other regions of the country.
   5. In 2018, the CRTC also directed the national wireless carriers to propose lower-cost data-only mobile wireless service plans and encourage them to continue to improve their offerings to respond to consumers’ needs and expectations, including those with lower-income household.
   6. Also in 2018, the CRTC set final rates for the wholesale roaming services that Bell, Rogers and Telus provide to other carriers. This was done to help foster competition and ensure that other wireless providers can offer broad or national coverage to their own customers.
   7. In February 2019, the Commission launched a comprehensive review of the regulatory framework for the mobile wireless market. The objective of the review is, among others, to determine how the CRTC can address any concerns about affordability and service adoption in this market.

   8. The CRTC not only takes into account affordability issues when it elaborates policies and decisions, but it also monitors telecommunications services pricing.

      Average Combined Prices: National Trends [Communications Monitoring Report: 2019 Year-End Monthly Prices for Internet, Mobile, Landline and TV services]

3. Broadband Internet is not available in my riding. What are you doing to fix the situation in my riding?
   1. Your regions is a good example of an area that is underserved and the challenges that entails.
   2. Parts of your region are probably eligible for the Broadband Fund. Some applications are in front of us at the moment. I can’t comment on the applications, but I can say that we are assessing them.
   3. As part of our assessment, we look favourably upon projects that have obtained funding from other public sources.
   4. CRTC staff consulted with all provinces and territories in advance of launching the Broadband Fund and our policy was the result of a public consultation in which some provinces participated.
4. Why is the CRTC still relying on hexagons for its Broadband Fund? Are there any plans to follow the government’s approach and to use more granular data?
   1. The CRTC developed its policy which is based on the hexagon mapping system after extensive consultation with the public and potential applicants.
   2. The CRTC’s policy set out its process for assessing applications and awarding funds. We can’t change rules and/or policies midstream without delaying evaluation and funding processes and raising a question of fairness to applicants.
   3. The CRTC’s focus is on funding underserved areas where there is insufficient broadband Internet access or mobile wireless services. The Fund targets those areas that would not have received improved broadband service without additional support from a funding program. These areas can be easily identified using the hexagon mapping system without relying on more granular data.
   4. Broadband funding in Canada is a shared responsibility between the CRTC, ISED, and various other funding programs. The CRTC has been consulted in the development of ISED’s new approach to broadband mapping.
   5. The CRTC will consider adjusting its mapping framework in the future as appropriate.
5. In light of the November 9^th announcement, what is the difference between the Universal Broadband Fund and the CRTC Broadband Fund?
   1. The Universal Broadband Fund and the CRTC Broadband Fund both provide funding to support high-speed Internet projects. There are key differences with respect to fund administration, sources, and the amount of funding available.
   2. The Universal Broadband Fund is administered by Innovation, Science and Economic Development Canada (ISED), and is a key action under Canada’s broader Connectivity Strategy (published in June 2019). The Universal Broadband Fund is funded through the federal Budget.
   3. The funding for the CRTC Broadband Fund does not come from tax revenues, but directly from contributions made by larger Canadian telecommunications service providers whose total annual Canadian revenues amount to at least $10 million.
   4. The CRTC’s fund will provide up to $750 million over 5 years. These funds will support projects to build or upgrade access and transport infrastructure to provide fixed and mobile wireless broadband Internet access services in eligible underserved areas of Canada.
   5. The Broadband Fund is designed to complement private-sector investments and public-sector initiatives to improve Canadians’ access to broadband Internet and wireless services.
   6. The CRTC recognizes the need for a collective effort, across all levels of government, to achieve the goal of providing fixed and mobile wireless broadband Internet service to underserved Canadians.
   7. The CRTC is committed to working with all levels of government, where appropriate, to achieve the goal of providing fixed and mobile wireless broadband Internet service to underserved Canadians, by assisting in funding projects to build or upgrade access and transport infrastructure.
6. Is the CRTC planning to revisit its universal service objective of 50/10 + unlimited data options?
   1. Our objective is that fixed broadband Internet access with at least 50 Mbps download, at least 10 Mbps upload and an unlimited data option is available to 90% of Canadian homes and businesses by the end of 2021 and to 100% coverage as soon as possible.
   2. The latest data show that at the end of 2019, a little over 45% of households in rural and remote areas have access to that 50/10, unlimited data universal service objective. That’s an increase from the 41% in 2018, but it’s far from satisfactory.
   3. The CRTC reviews its Regulatory Policies as the telecommunications industry evolves and technology changes. The CRTC has not yet announced its intention to review the Regulatory Policy that established the USO.
7. Is there anything the CRTC can do to harmonize prices between large metropolitan areas and rural and remote communities through its Broadband Fund or its regulatory powers?
   1. Remote and rural areas are generally more challenging and therefore more expensive to reach. They often depend on satellite transport capacity to connect communities resulting in higher costs.
   2. Recipients funded by the Broadband Fund must provide broadband services at a price that is no higher than broadband services provided using the same technology in a major urban area in the same province or territory of the proposed project for at least five years after the funded infrastructure is built.
   3. Rates are driven by competition in other areas. The CRTC ensures through its regulatory powers that, when possible, there is choice for consumers.
8. In light of the pandemic, is the CRTC doing anything to accelerate the disbursement of funds from its Broadband Fund?
   1. The CRTC established a comprehensive policy framework, detailed application guide, online intake tool and instructions for applicants.
   2. In August 2020, the first five projects for funding from the Broadband Fund were selected.
   3. Over 10,100 households in 51 northern communities, the majority of which are Indigenous, will have access to improved broadband Internet services.
   4. The fund is providing $72 million for these projects located in northern Manitoba, Yukon and the Northwest Territories – areas where there is a great need for improved services.
   5. In response to the second call, we received 593 applications. The total funds requested is nearly double the $750 million available in the Broadband Fund.
   6. We’re reviewing the applications carefully with a view to approving projects—some sooner than others—that will yield the greatest benefits in closing the divide in all regions of the country.
9. The government has set a new target of connecting 98% of Canadians by 2026 and all Canadians by 2030. What are the CRTC’s views on this target? What would need to happen to connect Canadians sooner than 2026?
   1. The reality is that broadband infrastructure projects do not get implemented overnight.
   2. There needs to be a motivated service provider, appropriate and cost effective technology, and funding.
   3. Low-Earth orbit satellites provide great promise. If they are successful, they will improve the availability of service and cost of providing the service in remote areas.
   4. The government needs to support broadband in areas where it is not economic for service providers to build infrastructure, which it is doing through its programs, as we are with our Broadband Fund.
   5. The CRTC reviewing the applications carefully with a view to approving projects—some sooner than others—that will yield the greatest benefits in closing the divide in all regions of the country.
   6. The pandemic has affected broadband service providers, too. Service providers must do the work to build and improve infrastructure, and may not be in a position where they can accelerate planned infrastructure builds.
10. What kind of data does the CRTC collect from Internet and mobile wireless providers and how much is made public?
    1. All Canadian telecommunications and broadcasting entities are required to provide certain information to the Commission and to Statistics Canada. This is a legal requirement underthe Statistics Act, the Telecommunication Act and the Broadcasting Act.
    2. The CRTC publishes a significant amount of aggregated data through the Communications Monitoring Report and on the Open Data Portal.
11. Should the government mandate the structural separation of incumbent Internet service providers?
    1. The CRTC’s current regulatory framework supports a competitive market. Smaller Internet service providers (ISPs) are provided with the ability to enter the market by leveraging the facilities of larger providers and offer greater choices to consumers.
    2. Structural separation is a measure that has generally only been considered in a limited number of countries where there has been a clear market failure, where there are no duplicate facilities available to support broader competition, and only after other regulatory measures have been implemented without improvement to competitive market conditions.
    3. As such, there would appear to be limited justification to warrant consideration of such an extreme measure at this time.
12. Would it be fair to say that many Canadians do not receive the broadband speeds they are paying for?
    1. As shown by SamKnows results, Canadians generally receive the Internet speeds for which they pay.
    2. The vast majority of participating Canadian ISPs have met or exceeded the maximum download and upload speeds they advertise - the percentage is in the high 90s based on our testing.
    3. The study is limited to participating providers, which the majority of Canadians subscribe to (Bell Aliant, Bell Canada, Bell MTS, Cogeco, Northwestel, Rogers, Shaw, TELUS and Vidéotron).
13. What do you consider a rural area?
    1. Rural communities are defined as areas with a population of less than 1,000 or a density of 400 or fewer people per square kilometre.

14. What is the CRTC doing to address concerns related to access to infrastructure? Could the CRTC set a response time and a price cap per kilometre for the large providers’ infrastructure?
    1. In December 2019, the Commission initiated a proceeding to examine potential barriers to the deployment of broadband networks in rural and remote areas. Through this proceeding, we are looking at issues such as the rules regarding access to support structures. As the proceeding is currently underway, we cannot comment further on it.
    2. On October 30, 2020, the CRTC launched a proceeding to identify ways to make telephone poles more accessible for telecommunications providers in regions across Canada with limited broadband Internet. As this is an ongoing proceeding, we cannot comment further on the matter at this time.

15. Has the CRTC given any consideration to Teksavvy’s proposal that the CRTC enforce its final wholesale rates for aggregated services on a temporary basis during the pandemic?
    1. The CRTC has made a number of decisions regarding rates for wholesale access.
    2. The final rates in the August 2019 decision were subject to a number of appeals, including a petition to Cabinet, an appeal to the Federal Court of Appeal and review and vary applications filed with the CRTC.
    3. The Order was stayed by the Federal Court of Appeal on November 22, 2019.
    4. Subsequently, on August 13, 2020, the Governor in Council declined to vary, rescind or refer the Order back to the Commission for reconsideration.
    5. On September 10, 2020, the Federal Court of Appeal dismissed the appeal of the Order. Bell and the large cable companies are seeking leave to appeal this decision to the Supreme Court.
    6. As for the applications submitted to the Commission to review and vary the Order, a decision to stay the Order pending the outcome of the review and vary application was published on September 28, 2020. This decision is also being challenged before the Federal Court of Appeal.
16. Could the CRTC consider setting rates other than those currently in effect in response to the pandemic?
    1. The Commission is tasked with ensuring that rates charged for services subject to subsection 27(1) of the Telecommunications Act are just and reasonable and in determining whether a given rate is “just and reasonable.”
    2. The Commission needs to consider the telecommunications policy objectives set out in the Act and how the landscape before it impacts the implementation of these objectives.
    3. We are currently reviewing applications to review and vary the wholesale rates that were set in August 2019.

17. Can the CRTC require ISPs to deploy portable Cell on Wheels to areas where residents do not have Internet access?
    1. Last year, the Commission initiated a comprehensive review of the wireless services market.
    2. As part of this proceeding, we are considering whether additional regulatory measures are required. Issues raised in this proceeding include whether retail rate regulation is required, as well as the need to improve mobile wireless service coverage.
    3. As the proceeding is currently underway, we cannot comment further on it.
18. Should Canada have a national broadband strategy?
    1. In 2019, government introduced the Connectivity Strategy - a national plan for broadband being led by ISED to connect all Canadians to affordable, high-speed Internet and to improve mobile cellular access.
    2. The Government’s goal is to work with partners, including the CRTC, to achieve universal 50 Mbps download and 10 Mbps upload speeds for all Canadians and improve access to the latest mobile wireless services.
    3. The CRTC $750 million Fund is intended to benefit all Canadians that live in underserved areas, particularly those in rural and remote areas.
    4. The CRTC Broadband Fund was established to assist in funding projects to build or upgrade access and transport infrastructure for fixed and mobile wireless broadband Internet access services to achieve the universal service objective and close the gap in connectivity.
    5. The CRTC recognizes the need for a collective effort, across all levels of government, to achieve the goal of providing fixed and mobile wireless broadband Internet service to underserved Canadians.
    6. The CRTC is committed to working with all levels of government, where appropriate, to achieve the goal of providing fixed and mobile wireless broadband Internet service to underserved Canadians, by assisting in funding projects to build or upgrade access and transport infrastructure.
19. What could the CRTC do to ensure that Canadians have access to accurate, real-time information regarding the speed and bandwidth of their services?
    1. The CRTC has partnered with participating facility-based Internet service providers and SamKnows to provide analysis of broadband performance through the Measuring Broadband Canada (MBC) project.
    2. The findings from the latest analysis are available on the CRTC’s website to inform Canadians on the performance of their service offerings.
    3. The CRTC is seeking to continue the project in order to provide Canadians with an ongoing evolution of the Internet service offerings available to them, including changes to their performance.
    4. The CRTC is collaborating with participating ISPs to enable this to occur.
    5. Analysis compares performance based on upload and download speeds, latency, web page access times, packet loss and comparison of technologies and regional differences where data is available
    6. Participating ISPs include Bell Canada, Bell Alliant, Bell MTS, Rogers, Telus, Northwestel, Cogeco, Videotron, and Shaw
    7. The CRTC is exploring options to expand data gathering to other players and different platforms such as mobile wireless and fixed wireless.
20. Could the CRTC require ISPs to advertise average speeds rather than best-case scenarios?
    1. The Commission is currently collaborating, on a voluntary basis, with ISPs to continue to provide reliable and continuing analysis of Internet performance.
    2. We have recently published an independent report which analyzes broadband performance throughout Canada. This report includes several metrics used to quantify Internet performance.
    3. The report found that Canadian ISPs have mostly met or exceeded the maximum download and upload speeds they advertise.
    4. The project helps Canadians, the CRTC and ISPs obtain independent, accurate and reliable data on the performance of broadband Internet networks.
    5. The project also helps educate Canadian consumers.
21. In the CRTC’s view, does the mandate of the CCTS need to be reviewed to ensure independence of consumer dispute resolutions?
    1. The CRTC regularly reviews the structure and mandate of the CCTS.
    2. In 2007, the CRTC approved, with changes, the proposed structure and mandate of the CCTS and subsequently reviewed the structure and mandate of the CCTS in 2011 and 2016.
    3. The CRTC intends to evaluate whether the CCTS continues to be effective, efficient, and independent in fulfilling its mandate in 2022-2023.
    4. The CCTS handles complaints about most telecommunications services provided to individuals and small businesses, including home phone, wireless, Internet, and Voice over Internet Protocol (VoIP) services.
    5. The CCTS also addresses complaints about television services provided to individuals, including cable, Internet Protocol television and satellite television providers.
    6. To ensure that the CCTS’s services are available to Canadians, the Commission requires all phone, Internet, television and other telecommunications companies that offer services within the mandate of the CCTS to become participating service providers.
    7. The CCTS administers the CRTC’s Wireless Code, Television Service Provider Code, Internet Code, and the Deposit and Disconnection Code.
22. Does the CRTC collect any data on wireless speeds and coverage? Can you tell where a provider might only offer a low signal resulting in one bar of coverage?
    1. Annual filings show that approx. 98% of Canadians have access to LTE technology.
    2. Towers transmit signals across a region and certain factors, such as hills or mountains and where the individual is located, can impact the quality of the wireless signal.
    3. As part of its universal service objective, the CRTC expects that the latest mobile wireless technology will be available to all Canadian homes and business, as well as along major roads.
23. Is the CRTC planning to review its Internet Code to ensure consumers have simple, accurate, descriptive and non-biased information (i.e., use of traffic shaping, definitions of speed and bandwidth, information on what bandwidth is needed for websites and services)?
    1. Internet Code came into force in January 2020 and is administered by the CCTS.
    2. The Code ensures that, amongst other things, ISPs provide easy to understand contracts; clearer information about prices, including for bundles, promotions and time-limited discounts; bill shock protection and greater flexibility
    3. The CRTC will monitor the Internet Code through annual reporting and other methods, such as public opinion research. The CRTC intends to initiate a review of the Internet Code three years from the date that it came into force.
24. Is the CRTC contemplating any relief for small ISPs?
    • This question would be better answered by the government.
25. What are the CRTC’s view on our proposal that regional prices for national providers not exceed 10%?
    1. Last year, the Commission initiated a comprehensive review of the wireless services market.
    2. As part of this proceeding, we are considering whether additional regulatory measures are required. Issues raised in this proceeding include whether retail rate regulation is required, as well as the need to improve mobile wireless service coverage.
    3. As the proceeding is currently underway, we cannot comment further on it.
    4. With respect to broadband Internet access services, the Commission does not currently regulate the retail rates for such services.
    5. The only exception is for Northwestel’s serving territory, which largely services the northern territories. To date, Northwestel has proposed, and the Commission has approved, rate measures to ensure that broadband Internet access services are more affordable in the North during the COVID crisis.

26. What is the CRTC doing to protect Canadians from scams related to COVID-19?
    1. We’re actively reviewing spam and Do Not Call complaints from Canadians regarding COVID related scams and we’re using that information to publish consumer alerts so Canadians can better protect themselves from this type of harm.
       1. Since receiving the first COVID-related complaint in January 2020, the CRTC has received 10,099 COVID-themed spam complaints in the SRC as of the end of September 2020 (5% of our spam complaints). In contrast, for phone calls, since our first DNCL complaint in March, we received less than 1000 related complaints.
       2. We’re working in close coordination with our partners at the Cyber Centre, the RCMP’s National Cybercrime Coordination Unit, the Canadian Anti-Fraud Centre and other government departments to identify and disrupt online scams that are targeting Canadians.
       3. As part of its activity to disrupt COVID scams, CRTC staff reviewed more than 10,000 COVID-related domains. Of these, more than 1200 were flagged and forwarded to them to Government partners for further review and action. A total of 375 malicious sites were disrupted after being flagged by the CRTC, protecting Canadians from victimization.
    2. After seeing an uptake in of Wangiri scam calls during the pandemic, the CRTC received an application from Bell Canada requesting to block these specific fraudulent calls. The Wangiri calls are a scam to get Canadians to call fraudsters back then keep them on the phone in order to cause significant long distance fees for the consumer. This measure was in place during April and May 2020.
       1. In July of this year, the CRTC subsequently authorized Bell to block other types of fraudulent scam calls under a 90-day pilot project using artificial intelligence and machine learning. The early results of this project were impressive and Bell Canada has subsequently requested to continue this project on a permanent basis; this application is currently being assessed by the CRTC.
    3. The number of complaints the CRTC received from Canadians regarding unsolicited phone calls in April and May decreased by 70% compared to the previous year.
       1. This was likely due to the worldwide lockdown which forced the closure of many foreign call centers that were pushing scam and telemarketing calls to Canadians.
27. The CRTC recently gave Bell temporary permission to block certain fraud calls. Can you tell us if this is working? Any plans to require other service providers to block similar calls?
    1. As a result of the Commission’s decision to allow Bell Canada to block Wangiri scam calls, Bell was able to block 8.5 million of these scam calls from reaching Canadians, with no reports of legitimate calls being blocked in the first two weeks.
    2. In July, we approved a pilot project proposed by Bell Canada to use artificial intelligence and machine learning to block certain types of fraudulent and scam calls. In the first 61 days, the system blocked more than 200 million fraudulent calls.
    3. Bell has since filed an application to make this initiative a permanent solution, and we are assessing that application.
    4. Other service providers have the opportunity to file similar requests with the Commission for consideration.
    5. We have also temporality approved a decision permitting Bell to block scam calls using artificial intelligence.
    6. Thus far, Bell has successfully blocked tens of millions of calls using AI in the first few months of implementation.
    7. We are currently assessing an application filed by Bell to permanently block scam calls using artificial intelligence.

28. How does the CRTC plan to support the government’s objective of lowering wireless rates by 25% within two years?
    1. We share a common objective with the government of wanting prices come down, and they have been coming down.
    2. We can’t speak to the government’s policy objective, given that the CRTC is an arm’s length agency, but I can tell you that we held a major public hearing on mobile wireless services earlier this year and we will be making important regulatory decisions.
29. Should Canadians have access to a basic Internet package – that is, a package with a minimum amount of capacity and a maximum set price? If not, what other measures could be applied to improve the affordability of Internet services?
    1. Consumers have a wide choice of services at different speeds and capacity; works well for majority of Canadians; have used wholesale regulation to ensure competition.
30. Has the CRTC ever considered forcing wireless service providers to offer unlimited plans? Or at least limiting the overage fees the providers charge?
    1. Last year, the Commission initiated a comprehensive review of the wireless services market.
    2. As part of this proceeding, we are considering whether additional regulatory measures are required to improve choice and affordability. Issues raised in this proceeding include whether mobile virtual network operators, or MVNOs, should have mandated access to some or all wireless service providers’ networks and, if yes, subject to what conditions.
    3. Since the issuance of the mobile wireless review proceeding, various mobile wireless carriers subsequently introduced unlimited mobile wireless service plans in Canada. Various intervenors identified the developments associated with unlimited plans as part of the public hearing held earlier this year.
    4. The record for the mobile wireless proceeding is closed, and that the Commission is currently studying the public record with a view to issuing its decision.
31. Can you give us an update on the actions the CRTC has taken further to its report on aggressive sales tactics?
    1. Further to a request by the Governor in Council, the CRTC published the “Report on Misleading or Aggressive Communications Retail Sales Practices” in February 2019.
    2. We proposed a number of initiatives to address the issue of misleading or aggressive communications retail sales practices and also committed to keep the Government and the public informed of its progress on the actions it undertakes to address misleading or aggressive sales practices in the communications market.
    3. In July 2019, we published a new mandatory Internet Code (came into force on 31 January 2020). It currently applies to individual retail customers of the large Internet service providers.
    4. We also hired a firm to conduct our first-ever Secret Shopper Project that was identified in the Report on Sales Practices. The results of the project were released in September 2020.
    5. The report concluded that the vast majority of the enlisted shoppers’ interactions with the providers’ sales staff were perceived as positive. However, approximately 1 in 5 shoppers perceived that they may have faced misleading or aggressive sales practices. The report also indicates that misleading or aggressive sales practices occur at a higher rate for certain vulnerable segments of the Canadian population.
    6. The CRTC uses a variety of methods to monitor compliance with existing consumer codes and indicators to determine if further consumer protections may be required.
    7. As a result of the monitoring activities, the CRTC initiated a show cause proceeding and call for comments on device financing plans for wireless customers in August 2019. The objective of the proceeding is to consider whether device financing plans, including those with terms longer than 24 months, are compliant with the Wireless Code.
    8. We also initiated a public proceeding in March 2020 to obtain a better understanding of whether and in what circumstances Canadians should receive paper or electronic bills.
    9. We recently initiated another proceeding dedicated to examine whether the plans currently offered and promoted are sufficient to meet the needs of Canadians with various disabilities; and whether additional regulatory measures are required to ensure that Canadians with various disabilities have access to plans that meet their needs and enable them to participate more fully in Canada’s digital economy.
    10. We are also engaging with other consumer protection agencies and regulators on various issues and points of mutual interest, such as the Financial Consumer Agency of Canada (FCAC) and Ofcom (UK) and the Office of Consumer Affairs.
32. What is the CRTC doing to prevent SIM swapping scams?
    1. The Commission is continuing to monitor the implementation of the measures put in place by the mobile carriers to protect mobile customers against unauthorized SIM swapping and unauthorized customer transfers, also known as porting.
    2. We take this issue very seriously and know the real threat unauthorized SIM swapping and unauthorized customer transfers pose to customers in terms of fraudulent activity from rogue actors.

• Chair – Sherry Romanado lien externe
• Vice-Chair – James Cumming lien externe
• Vice-Chair – Sébastien Lemire (available in French only) lien externe
• Member – Ali Ehsassi lien externe
• Member – Nathaniel Erskine-Smith lien externe
• Member – Helena Jaczek lien externe

• Member – Majid Jowhari

  

  Political Affiliation: Liberal

  Constituency: Richmond Hill

  Province/Territory: Ontario

  Majid Jowhari is the Member of Parliament for Richmond Hill. He attended Ryerson University, earning a Bachelor of Technology in Industrial Engineering, and York University‘s Schulich School of Business, where he earned an MBA. Jowhari was a licensed Professional Engineer from 1995-1999 and founded his own boutique consulting firm to provide advice to chief financial officers. He has translated this experience into his Parliamentary responsibilities, helping small businesses and entrepreneurs discover Federal funding and grant opportunities through his office and as a presenter to community and business forums.

  In the House of Commons, Member of Parliament (MP) Majid Jowhari is the notable founder of the Parliamentary Mental Health Caucus and holds roles on the Industry and Government Operations Parliamentary Committees. MP Jowhari is a member of the Canada-China Legislative Association, Canada-Japan Inter-Parliamentary Group and Canadian NATO Parliamentary Association.

  MP Majid Jowhari drafted, introduced and read his first Private Members Bill, C-375 An Act to amend the Criminal Code, in the House of Commons on October 19^th, 2017. The bill would mandate that pre-sentence reports, which currently include information such as character, attitude, behavior, and willingness to change, also include relevant information relating to the offender’s mental health.

  In 2018, the Canadian Alliance on Mental Illness and Mental Health (CAMIMH) named Majid Jowhari as a Parliamentary Mental Health Champion. Each year, the organization selects individuals and organizations as Champions to recognize them for their contributions to mental health in Canada. According to the CAMIHM, “Majid Jowhari is a staunch advocate for mental health in Canada. He drafted and introduced legislation to change the criminal code, which would take mental health information into account during pre-sentencing, and founded and chaired the Liberal Mental Health Caucus, and later, the Parliamentary Mental Health Caucus, reaching across party lines to bring mental health to the forefront of discussion on the Hill.” Majid also partnered with the Hill Times to publish a three-part series of opinion editorials on the culture and stigma surrounding mental health on Parliament Hill. Jowhari candidly shared his personal experience, advocated for better protection for political staffers and shared advice on best practices in the workplace.

• Member – Emmanuella Lambropoulos lien externe
• Member – Earl Dreeshen lien externe
• Member – John Nater lien externe

• Member – Derek Sloan

  Note:

  Please note that Derek Sloan is no longer a member of the committee nor the Conservative party

  Political Affiliation: Conservative

  Constituency: Hastings-Lennox and Addington

  Province/Territory: Ontario

  Derek Sloan is a Member of Parliament for Hastings-Lennox & Addington in eastern Ontario.

  He is a lawyer, husband to Jennifer, and father of Fiona (6), Callum (4), and Nora (3).

  He was involved in the first Trinity Western University case in BC in 2015.

  He attended law school at Queen's University after owning and operating several small businesses in the Oshawa area.

  Derek knows that the damage to free speech, freedom of religion, and freedom of conscience happening in Canada cannot be understated. It’s time for everyone concerned about these issues to stand up and support a candidate who will not just pay lip service but get in the line of fire to defend these freedoms.

  Our country is under siege by a tide of political correctness that seeks to destroy Canada.

  As a Member of Parliament, Derek is here to take a stand for Canada.

• Member – Brian Masse lien externe

• INDU Committee transcript June 6, 2019 (M-208, Rural Digital Infrastructure)
• Rural Wireless Digital Infrastructure: A Critical Role (June 17, 2019)
• INDU Committee transcript March 10, 2020 (Study on Fraud Calls in Canada)

Basic Telecommunications Services in Canada (Policy)

• Decision 2016-496: Modern telecommunications services – The path forward for Canada’s digital economy

Broadband Fund

• News Release: Over 10,100 households in northern communities to have access to improved broadband Internet service

• Decision 2018-377: Development of the Commission’s Broadband Fund
• Decision – 2020-255: Broadband Fund – First call for applications – Introductory decision regarding project funding approvals
• Decision – 2020-256: Broadband Fund – Project funding approval for Broadband Communications North Inc.’s Manitoba satellite project
• Decision – 2020-257: Broadband Fund – Project funding approval for Northwestel Inc.’s Northwest Territories satellite project
• Decision – 2020-258: Broadband Fund – Project funding approval for Northwestel Inc.’s Northwest Territories fibre project
• Decision – 2020-259: Broadband Fund – Project funding approval for Northwestel Inc.’s Old Crow satellite project
• Decision – 2020-260: Broadband Fund – Project funding approval for Northwestel Inc.’s Yukon fibre project

On December 21, 2016, the CRTC announced its decision to: a) add broadband Internet access service and mobile wireless service as basic telecommunications services for all Canadians; b) establish a new universal service objective; and c) create a fund to support broadband and mobile wireless infrastructure projects totalling up to $750 million over the first five years.

On September 27, 2018, the CRTC announced the details of the Broadband Fund.

On February 14, 2019, the CRTC published a preliminary Application Guide and sought comments with a view to finalizing it.

On June 3, 2019, the CRTC launched its first call for Broadband Fund applications, targeting the territories and all satellite-dependent communities in Canada.

On November 13, 2019, the CRTC launched its second call for Broadband Fund applications targeting all eligible areas in Canada.

The CRTC’s Broadband Fund will contribute $72 million to improve broadband Internet access services in northern Manitoba, Yukon and the Northwest Territories.

The five selected projects will target more than 10,100 households in 51 communities, the significant majority of which are Indigenous.

Lines specific to the first call for applications:

• The funding recipients are:
  • Broadband Communications North, for a satellite project in northern Manitoba, and
  • Northwestel for:
    • 2 projects in Yukon (one satellite, one fibre)
    • 2 projects in the Northwest Territories (one satellite, one fibre).
• In order for the funding to be distributed from the Broadband Fund, the recipients must complete a statement of work confirming implementation details, including costs and schedules, which must be approved by the CRTC. They will also have to meet the conditions stated in the CRTC’s funding decisions.
• The construction phase is anticipated to start in spring 2021.
• Applications were assessed based on many factors, including their technical merit, financial viability, the level of community consultation and involvement, and the amount of funding from other sources – both public and private.
• The first call of applications targeted the territories, as well as satellite-dependent communities across Canada, where there is a great need for improved broadband Internet access services.
  • Satellite-dependent communities are located in the territories, in the northern parts of British Columbia and Saskatchewan, and in parts of Manitoba, Ontario and Quebec.
  • Certain projects submitted to the first call of applications, including those for Nunavut, have been deferred to the second call for applications. The remaining projects are no longer being considered as the first call for applications is officially closed.

General lines on the Broadband Fund:

• The CRTC's Broadband Fund will provide up to $750 million over five years to support projects that improve broadband Internet access services in underserved areas in Canada.
• In response to its second call for applications, the CRTC received 593 applications requesting more than $1.5 billion in total funding. The CRTC has started the evaluation process and will announce the selected projects as soon as possible.
• The Broadband Fund is designed to complement private-sector investments and public-sector initiatives to improve Canadians' access to broadband Internet and wireless services.
• In 2019, 50/10 Mbps service with an unlimited data allowance, which corresponds to the CRTC universal service objective, was available to 86.4% of Canadian households (compared to 85.7% in 2018).
  • In 2019, 98% of urban households and 42.6% of rural households had access to broadband Internet access services meeting the objective.
• A collective effort is needed across all levels of government to achieve the goal of providing fixed and mobile wireless broadband Internet access service to underserved Canadians.
• Broadband Internet access services play an important role in the lives of all Canadians, enabling them to participate in the digital economy and to access health care, education, government and public safety services.

Selected projects announcement

1. What are the selected projects, by which applicant, in what region? What are the expected speeds? What is the funding allocated to each project from the Broadband Fund?
   • Please refer to the Backgrounder for details on each selected project.
2. What infrastructure will be built in each project? By when will it be ready?
   • Some information on the infrastructure that will be built for each project can be found in the CRTC decisions relating to each project. More specific information regarding the funding recipients’ proposed networks is confidential, and cannot be disclosed by the CRTC.
   • Project construction must not have begun prior to the CRTC’s approval of funding and should be completed within three years. It is anticipated that construction phase will start in 2021.
   • Now that the funding decisions have been issued, funding recipients can begin project construction. Any eligible costs incurred prior to CRTC approval of the funding recipient’s statement of work are at the funding recipient’s risk and will not be reimbursed if the statement of work is not approved.
   • Construction in the North has unique challenges, as construction may be impacted by sea lifts and limited seasonal construction periods.
3. What are the rates to be offered by the funding recipients?
   • Recipients must provide broadband services at a price that is no higher than broadband services provided by service providers in a major urban area in the same province or territory of the proposed project.
   • For projects affecting satellite-dependent communities in the Northwest Territories, Yukon, and northern Manitoba, the rates proposed by applicants were compared to the rates for comparable services provided in Iqaluit.
   • The rates proposed for the other projects in the Northwest Territories and Yukon were compared to the rates for comparable services provided in Yellowknife and Whitehorse, respectively.
   • The price committed to by the applicant must be maintained for at least five years after the funded infrastructure is built.
4. Do all approved projects provide broadband Internet access services that meet the universal service objective?
   • Four out of the five funded projects will provide broadband Internet access services that meet the universal service objective.
   • The satellite project by BCN in northern Manitoba will not provide services that meet the universal service objective, however it will deliver significantly improved service to what is available today.
5. Why is the Broadband Fund funding a project offering speeds of 10 Mbps download and 1 Mbps upload? Has the CRTC lowered its broadband speed target?
   • The CRTC’s target for fixed broadband Internet remains at 50 Mbps download and 10 Mbps upload speeds, with unlimited data allowance.
   • In some underserved areas, such as in northern Manitoba, achieving the universal service objective needs to be accomplished in incremental steps due to many factors, such as geography, the cost of transport capacity, the distance to points of presence, or the technology used.
   • While the speeds offered by BCN in northern Manitoba are relatively low, they are an improvement over the current lower speed service (3/0.5 Mbps) offered in this region. They are also providing unlimited data, which meets that portion of the universal service objective.
   • The CRTC did not want to exclude those areas from the Broadband Fund altogether, as they may be the ones the most in need of improvement to their broadband Internet services.
   • Nevertheless, the CRTC expects that projects that do not initially meet the universal service objective will be an improvement on existing services and a step toward offering such services in the future.
6. Why have you not selected any projects in Nunavut?
   • Certain projects submitted to the first call for applications, including those for Nunavut, have been deferred. The CRTC determined that it would be appropriate to defer consideration of four applications for funding from the satellite component of the fund, because the total amount requested in the four deferred applications exceeds the total funds available for the satellite component in both calls for applications.
   • Therefore, the CRTC considered it important to take into account the amount of funding that may be required for satellite-component projects proposed in response for the second call for applications.
7. Why were only five projects selected from the 15 applications?
   • Applications were evaluated based on many factors, including their technical merit, financial viability, the level of community consultation and involvement, and the amount of funding from other sources.
   • The CRTC has selected what it considers to be high quality projects that make the most efficient use of funds.
   • The selected projects will improve broadband Internet access for more than 10,100 households in 51 communities, the significant majority of which are Indigenous.
   • Certain projects submitted to the first call for applications, including those for Nunavut, have been deferred to the second call for applications. The CRTC intends to examine these applications as a priority now that the second call for applications is closed.
8. Why is the CRTC deferring certain projects to the second call for applications?
   • The CRTC determined that it would be appropriate to defer consideration of four applications requesting funding for satellite-component projects. Now that the second call for applications is closed, these applications will be examined as a priority.
   • The CRTC considers it important to take into account the amount of funding that may be required for satellite-component projects proposed in response to the second call for applications.
   • By deferring consideration of these applications, the CRTC will be able to better determine which projects would represent the most efficient use of the remaining funds for satellite-component projects.
   • The affected applicants will be notified directly.
9. The first call for applications closed in October 2019. Why has it taken until August of 2020 to announcing funding, considering you only received 15 applications?
   • In addition to assessing the applications from the first call, the CRTC was also engaged in launching the second call for applications.
   • The CRTC and the Telecommunications directorate had to continue in their internal activities, such as implementing tools and processes in view of assessing the second call applications.
   • The COVID-19 pandemic also created some delays across the CRTC.
10. Will unsuccessful applicants be notified that their applications were not selected for funding?
    • Consistent with section 4.5 “Communication with applicants”; in the CRTC’s Application Guide, contact between the CRTC and applicants is limited in order to ensure fairness.
    • As such, applicants will not be informed of the status of their applications, with the exception of (a) funding recipients announced in funding decisions, and (b) the affected applicants whose applications were deferred to the second call for applications.
11. When will the recipients receive the funding?
    • In order to access the funds, the recipients must submit a statement of work confirming implementation details, including costs and schedules, which must be approved by the CRTC.
    • They must also meet the conditions stated in the CRTC’s funding decisions.
    • It is anticipated that the construction phase for the majority of the projects will start in spring 2021.
12. What conditions will the funding recipients need to comply with?
    • Funding conditions can be found in the CRTC’s decisions, including those related to project timelines, reporting and auditing.
    • The CRTC also imposed certain conditions to make sure that funding recipients are providing broadband Internet access and/or mobile wireless service at the level of service, the price and packages they proposed in their application.
13. Have impacted communities been consulted? Will recipients need to consult communities again before the construction phase?
    • In most cases, impacted communities were directly consulted, or funding recipients committed to engage in future meaningful engagement with affected communities.
    • In some cases the CRTC is requiring funding recipients, as a condition of funding, to engage with affected Indigenous communities and report back to the CRTC within a certain timeframe, in order to demonstrate that meaningful engagement has occurred.
14. Why did Northwestel receive funding for 4 out of the 5 selected projects?
    • Applications were evaluated based on many factors, including their technical merit, financial viability, the level of community consultation and involvement, and the amount of funding from other sources – both public and private.
    • Special consideration was given to the efficient use of funds.
    • The Broadband Fund regulatory policies, as well as the application evaluation criteria, do not provide that the identity of an applicant is a relevant consideration. Instead, the fund focused on selecting high quality projects that would provide improved broadband Internet access services in underserved areas
15. What approach was used to evaluate and select projects for funding?
    • The CRTC used a comparative selection approach to evaluate and select projects for funding, which involved applying eligibility and assessment criteria and selection considerations announced in advance by the CRTC.
    • Applications were evaluated based on many factors, including their technical merit, financial viability, the level of community consultation and involvement, and the amount of funding from other sources.
    • Applications were then further assessed using project specific criteria that varies depending on the type of project proposed. For example, projects to build or upgrade fixed access, transport or mobile wireless infrastructure and/or satellite projects. When selecting projects for funding, the CRTC considered the amount of funding required for each project, when such funding should be distributed, and the amount of funding available, in order to ensure the efficient use of funds.
    • The assessment criteria have been designed to identify high-quality projects that will provide broadband Internet access and/or mobile wireless services to Canadians to close the digital divide.
16. How will the CRTC monitor the funded projects?
    • Funding recipients must file a progress report as frequently as every three months until project completion. The CRTC will verify the information from that report against the project plan and milestones agreed to with the recipient.
    • If the CRTC is satisfied that a funding recipient is meeting its project plan and milestones, it will direct the fund administrator to make payments.
    • The CRTC will retain a holdback payment of 10% of the approved amount of funding, which it will distribute after project completion and one year of service, once the recipient demonstrates it has fulfilled the conditions of service outlined in the funding decision.
17. When can the affected communities expect to have access to faster better broadband Internet access services from the funding recipients?
    • Construction phase of selected project is expected to start in spring 2021.
    • As established in Telecom Regulatory Policy 2018-377, project construction must not have begun prior to the effective date of the CRTC’s approval of the funding and should be completed within three years.
18. When underserved communities that will not receive improved broadband Internet access services as a result of the funding announcement expect to have access to better services? When underserved communities that will not receive improved broadband Internet access services as a result of the funding announcement expect to have access to better services?
    • A collective effort is needed to achieve the goal of providing fixed and mobile wireless broadband Internet access service to underserved Canadians. There are other sources of funding available for the projects that were not selected (e.g. the Universal Broadband Fund of the Government of Canada).
    • A second call for applications was launched in November 2019 for all eligible regions. Projects have not been selected yet and will be announced in 2021.
    • The CRTC expects fixed broadband Internet access service to be available in 90% of Canadian homes and businesses by the end of 2021, and in 100% as soon as possible.
19. Will there be other calls for application?
    • The second call for applications, open to all eligible regions, was launched in November 2019 and closed on June 1, 2020.
    • In response to its second call for applications, the CRTC received 593 applications requesting more than $1.5 billion in total funding.
    • The CRTC has started the evaluation process and will announce the selected projects for the second call as soon as possible.
    • We are not in a position to comment on any future calls for applications at this time.
20. Considering it took the CRTC almost 10 months to announce funding for the first call, which included just 15 projects, how does the CRTC expect to be able to get through the applications from the second call, which has a significantly higher number of applications to deal with?
    • Since the launch of the first call for applications, the CRTC has undertaken significant internal work to appropriately assess applications.
    • The Broadband Fund team is in good shape to approve the funding of projects that will improve broadband Internet access services in underserved areas in Canada.
21. When will Canadians have access to broadband Internet access services that meet the universal service objective (50 Mbps download, 10 Mbps upload, and unlimited data)?
    • Given the current state of telecommunications infrastructure in Canada, the CRTC expects fixed broadband Internet access service to be available in 90% of Canadian homes and businesses by the end of 2021, and 100% as soon as possible.
    • The projects in Yukon and the Northwest Territories will provide speeds of 50 Mbps download and 10 Mbps upload with unlimited data to close to 26% of the households in those two territories.
    • In communities where distance, geography, and limitations to existing technologies present challenges, the CRTC expects that services will gradually improve as Internet service providers work to progress towards these goals.
    • Canadians can find more information about the selected projects on the Broadband Fund website.
22. Who could apply to the Broadband Fund?
    • Canadian corporations of all sizes, provincial, territorial and municipal government organizations as well as band councils or an Indigenous government could apply for funding from the Broadband Fund. While federal governmental entities were not eligible, the CRTC is committed to working with all levels of government.
    • In addition, any partnership, joint venture, or consortium composed of these parties could apply for funding. The applicant, or one member of a partnership, joint venture, or consortium needed to have at least three years of experience in deploying and operating broadband infrastructure. If the applicant, or the members of a partnership, joint venture, or consortium did not meet this experience requirement, it had to enter into a contractual arrangement with an entity that does.
    • An applicant needed to demonstrate that:
      • it is eligible to operate as a Canadian carrier;
      • it has at least three years of experience deploying and operating broadband infrastructure in Canada;
      • its project is not financially-viable without Broadband Fund support.
23. Can information about the proposed project provided in an application be disclosed by the CRTC?
    • Under the Telecommunications Act, the CRTC must share information provided in an application with the Minister of Innovation, Science and Economic Development or the Chief Statistician of Canada upon request.
    • Also, the CRTC has the discretion to disclose confidential information where it determines the disclosure is in the public interest. The Communications Security Establishment (CSE) may request information in order to assess any potential risks related to the overall integrity of Canadian telecommunications network.
    • The funding decisions include some details of the approved projects, which the CRTC determined was in the public interest to disclose.
24. What did the CRTC do to ensure that the large incumbent telecommunications service providers didn’t have an unfair advantage when applying for this funding?
    • The definition of eligible applicants was determined based on feedback received through a public consultation so that different types of applicants, including smaller Internet service providers, were able to apply for funding.
    • To incent a variety of applicants to apply for funding, including smaller Internet service providers, the CRTC also established a funding distribution model which will allow them to make payments every three months.
    • Accordingly, smaller Internet service providers could apply for funding even though they didn’t have the same access to credit or cash flow as larger applicants.
25. What types of projects were eligible for funding?
    • Applicants could apply for funding to build or upgrade infrastructure for access and/or transport networks, mobile wireless infrastructure, or any combination of these project types in eligible geographic areas.
26. What was the maximum amount of funding that an applicant could request?
    • There was no limit to the maximum amount of funding that an applicant could request, however the CRTC did establish maximum amounts that could be distributed annually.
    • For the first five years of funding, the following maximum amounts for distribution were established (with a review after 3 years):
      • Year 1: up to $100 million
      • Year 2: up to $125 million
      • Year 3: up to $150 million
      • Year 4: up to $175 million*
      • Year 5: up to $200 million*

      *the incremental amounts of $25M in year 4 and $50M in year 5 are subject to a review of the Broadband Fund to be conducted in year 3.

    • 10% of the total annual amount was set aside for applicants proposing projects in satellite-dependent communities.
27. Did applicants need to secure funding from other sources in order to qualify for funding from the Broadband Fund?
    • An applicant was not required to obtain funding from other sources to be eligible for funding from the Broadband Fund. However, applicants had to invest more than a nominal amount in their own projects.
    • Further, applicants were encouraged to apply for funding from other government funding programs, and the CRTC considered the level of funding from other sources, both private and public, when it conducted its assessment of proposed projects.
28. How does the CRTC coordinate its Broadband Fund with other government broadband funding programs?
    • The CRTC is committed to working with all levels of government as appropriate. The CRTC recognizes the need for a collective effort to achieve the goal of providing fixed and mobile wireless broadband Internet access service to underserved Canadians.
    • The CRTC and ISED share broadband Internet access service availability data and maps.
    • ISED’s National Broadband Internet Service Availability Map displays where provincial and federal funded projects are located, along with the latest infrastructure information from telecommunications service providers. This will be a central repository of information for broadband services in Canada.
    • Applicants were encouraged to also seek other sources of funding, for example through federal and provincial broadband funding programs, and are required to disclose to the CRTC all sources of funding that they receive for a proposed project.
    • In order to ensure efficient funding with other government broadband funding programs, if a funding recipient receives any additional funding for the project from another source, it must notify the CRTC in writing within 10 days after receiving the funding. The CRTC may then proportionally reduce the amount of funding that the funding recipient receives.
29. How did the CRTC ensure that the application process would be fair and transparent?
    • The CRTC established the Broadband Fund, including in particular the criteria to be applied in the selection of funding project, in a transparent, open and fair manner through several public consultations.
    • The CRTC published a preliminary Application Guide and parties had an opportunity to provide comments and ask questions of clarification prior to the first call for applications.
30. How did the CRTC ensure that public funds will not subsidize areas where other service providers were going to build anyway?
    • Further to the eligibility requirements and assessment criteria, the CRTC funds projects in underserved areas where it is not financially viable for a provider to offer broadband Internet access service that meets the universal service objective without funding.
    • The CRTC gathered as much information as possible from service providers and from other funding programs to stay informed with respect to other projects in an area.
31. Some of the projects that the CRTC have selected to fund are projects that rely on low-earth orbit (LEO) satellites, which are not yet operational. Is this risky?
    • The CRTC has regularly consulted with LEO satellite service providers in order to keep up-to-date on the timelines for the availability of LEO satellite services in Canada.
    • The CRTC also notes that the Government of Canada announced its commitment to securing advanced LEO satellite capacity to serve the most rural and remote regions of Canada. In that regard, Telesat received $85 million from the federal government to help it launch its constellation of LEO satellites, and the government further committed to spending $600 million over 10 years to buy broadband Internet capacity from Telesat’s LEO satellites once they are in space.
32. Why is the CRTC still relying on hexagons for its Broadband Fund? Are there any plans to follow the government’s approach and to use more granular data?
    • The CRTC developed its policy which is based on the hexagon mapping system after extensive consultation with the public and potential applicants.
    • The CRTC’s policy setting out geographic eligibility was established in advance of the call for applications. The CRTC cannot change those rules or policies midstream without delaying the entire process.
    • The CRTC’s focus is on funding underserved areas where there is insufficient broadband Internet access or mobile wireless services, and targets those areas that would not have received improved broadband Internet access service without additional support from a funding program. These areas can be easily identified using the hexagon mapping system without relying on more granular data.
    • Broadband funding in Canada is a shared responsibility between the CRTC, ISED, and various other funding programs. The CRTC is aware of and has been consulted in the development of ISED’s new approach to broadband mapping.
    • The CRTC will consider adjusting its mapping framework in the future as appropriate.
33. Has the CRTC taken any measures to protect the security of Canada’s broadband network in relation to the equipment proposed to be used by funding recipients, for example Huawei equipment?
    • The CRTC has a partnership with CSE in order to assess any potential risks related to the overall integrity of Canadian telecommunications networks.
    • The CSE established the Canadian Security Review Program and has engaged with service providers since 2013 to mitigate risks stemming from designated equipment and services under consideration for use in Canadian telecommunications networks.
    • The CRTC and CSE consider that the projects that have been awarded funding present a low risk to the security of the telecom networks in Canada. Individual project details are confidential.
    • Individual project details are confidential, and therefore the CRTC cannot discuss the specific equipment proposed by applicants.

Broadband Fund

34. Who contributes to the Broadband Fund? Where does the money come from?
    • Funding for the CRTC’s Broadband Fund comes from Canadian telecommunications services providers.
    • Contribution towards the Broadband Fund are collected by means of a revenue-percent charge that is applied to the contribution-eligible revenues of Canadian telecommunications service providers (or groups of related telecommunications service providers) with at least $10 million in Canadian telecommunications revenue. This includes contributions from Internet service providers and mobile wireless service providers.
    • Contributions, which are collected from telecommunications companies based on their revenue, are only collected as they are required to be distributed.
35. How will Canadians know whether the Broadband Fund is achieving its goals?
    • The CRTC will report annual results of the Broadband Fund’s performance as a part of its Communications Monitoring Report.
36. What kind of data does the CRTC collect from Internet and mobile wireless service providers and how much is made public?
    • All Canadian telecommunications and broadcasting entities are required to provide certain information to the CRTC and to Statistics Canada. This is a legal requirement under the Statistics Act, the Telecommunication Act and the Broadcasting Act.
    • The CRTC collects an extensive range of data from providers, including revenues, prices, equipment location, and retail service offerings by basket.
    • The CRTC publishes aggregated data in its Communication Monitoring Reports and on the Government of Canada’s open data portal.
    • The purpose of the CRTC’s publications is to provide high-level aggregated data to report on major trends, with some level of breakdown (e.g. household subscriptions by speed tiers or certain types of wireless service).
    • In addition, the CRTC publishes maps to assist Broadband Fund applicants in identifying underserved areas in Canada. This information is collected from Internet and mobile wireless service providers, vetted by CRTC and Innovation, Science and Economic Development Canada (ISED) staff, and updated as frequently as possible.
    • The bulk of what the CRTC collects is confidential business information. The CRTC does not publish certain aggregated data given the risk of residual disclosure of information pertaining to private, regional players.
37. Can municipalities apply to the Broadband Fund even if an Internet service provider does not want to expand its infrastructure to their community? If not, why not?
    • Canadian corporations of all sizes, provincial, territorial and municipal government organizations as well as band councils or an Indigenous government could apply for funding from the Broadband Fund. While federal governmental entities were not eligible, the CRTC is committed to working with all levels of government.
    • In addition, any partnership, joint venture, or consortium composed of these parties could apply for funding.
    • The applicant, or one member of a partnership, joint venture, or consortium needed to have at least three years of experience in deploying and operating broadband infrastructure. If the applicant, or the members of a partnership, joint venture, or consortium did not meet this experience requirement, it had to enter into a contractual arrangement with an entity that does.
    • An applicant needed to demonstrate that:
      1. it is eligible to operate as a Canadian carrier;
      2. it has at least three years of experience deploying and operating broadband infrastructure in Canada;
      3. its project is not financially-viable without Broadband Fund support.
    • An applicant was required to invest more than a nominal amount.
    • Therefore, a municipality can apply to the Broadband Fund. If that municipality does not have sufficient experience in deploying and operating broadband infrastructure, it can enter into a partnership, joint venture, or consortium with an entity (or entities) that has the sufficient experience.
38. Does the CRTC intend to open consultations around potential changes to eligibility (both applicant eligibility and project eligibility) for future rounds of applications?
    • We are not in a position to comment on any future call for applications at this time.
    • With regard to project eligibility that may be affected by mapping errors, ISED has a “Consumer Feedback” button on their National Broadband Internet Service Availability Map, which can be used to submit information regarding individual speed tests. It also has a feedback mechanism for telecommunications service providers if they notice an error.

COVID-19

39. The pandemic has shown us that Canadians cannot wait until 2030 for broadband access. Some have suggested that the target should be moved up to 2021, while others have suggested 2025. In the CRTC’s view, what would be a realistic target and what would need to happen to meet it?
    • The reality is that broadband infrastructure projects do not get implemented overnight. There needs to be a motivated service provider, appropriate and cost-effective technology, and funding.
    • Low-Earth orbit satellites provide great promise as they will improve the availability of service and cost of providing the service in remote areas.
    • Federal, provincial and territorial governments need to support broadband in areas where it is not economic for service providers to build infrastructure.
    • The pandemic has affected broadband service providers, too. Service providers must build and improve infrastructure, and may not be in a position where they can accelerate planned infrastructure builds.
    • It will take a collective effort across public, private and non-profit sectors to close the digital divide.
40. In the context of the Covid-19 pandemic, h ow is the CRTC working to help ensure Canadians are receiving adequate access to the Internet in order to meet the demands of working from home and accessing telehealth and remote learning services?
    • Access to the Internet is a vital service for Canadians at the best of times. Now, more than ever, Canadians need access to reliable communications networks to stay connected with family and friends, work from home, and access telehealth and learning services.
    • To help service providers focus on maintaining critical infrastructure during the pandemic, the CRTC has extended several of its regulatory deadlines and is only launching new consultations for priority issues.
    • In addition, several service providers took voluntary steps to help Canadians during the pandemic, either by lifting data caps or through other means.
    • The CRTC is monitoring the situation as events unfold and all options are considered when the need for intervention arises.
    • We also recognize that certain regions of the country, especially in more rural and remote regions, do not necessarily have the same levels of service as more urban areas. That is why the CRTC launched the Broadband Fund in 2019 to help bring broadband download and upload speeds of at least 50 Mbps and 10 Mbps, respectively, as well as unlimited data, to all Canadians.
    • While the Broadband Fund will certainly help, we recognize that efficient access to existing networks may also be an important element in supporting broadband Internet access. On December 10, 2019, the CRTC launched a consultation seeking comments from the public on potential barriers to the deployment of broadband networks in underserved areas in Canada. Canadians who have specific needs in relation to working from home or accessing telehealth and remote learning services are encouraged to reach out directly to their service provider to discuss their particular needs and how they could be accommodated.
41. Has the CRTC considered regulatory actions to reduce financial burdens on consumers during the crisis?
    • Service providers from across the country have taken voluntary steps to help Canadians during the pandemic.
    • The CRTC is monitoring the situation as events unfold and all options are considered when the need for intervention arises.
42. Can you provide comment on whether the determination of efficiency may change as a result of the COVID-19 crisis, particularly around which technologies (wireless, fibre optic, satellite, LEOs, etc.) are seen as most reliable and cost-effective?
    • The CRTC used a comparative selection approach to evaluate and select projects for funding, which involved applying the eligibility and assessment criteria and selection consideration announced in advance by the CRTC.
    • Applications will be evaluated based on many factors, including their technical merit, financial viability, the level of community consultation and involvement, and the amount of funding from other sources – both public and private.

ISED/federal government

43. Doesn’t Innovation, Science and Economic Development Canada (ISED) already have a program for providing broadband to Canadians?
    • There are currently private and public programs in place to help ensure the provision of broadband Internet access services to Canadians, including some programs established by ISED.
    • On December 15, 2016, ISED launched Connect to Innovate (CTI), a program that aimed to bring broadband Internet access to 300 rural and remote communities across Canada. The program will invest up to $500 million by 2021. This project has been closed for applications since April 20, 2017.
    • The Government has also announced $1.7 billion in new investments to be provided for the Connect to Innovate program and the launch of a new Universal Broadband Fund.
    • The CRTC’s Broadband Fund complements existing and future private investment and public funding, including ISED’s programs.

Background

44. How many Canadians have access to the various telecommunications services?
    • Virtually all Canadians, regardless of whether they live in urban centres or in rural and remote areas, benefit from having access to Internet services, mobile services and voice services using a variety of technologies, including wireless and satellite technologies.
    • While wireline and wireless networks reach over 99% of Canadian households, there are differences in the levels of services available in various regions, particularly in rural and remote areas.
    • From 2013 to 2018, the percentage of Canadian households with access to the 50 Mbps download speed has grown from 78% to 86.5%, with 52% of households actually subscribing to services offering 50 Mbps and higher. The percentage of Canadian households with access to both 50 Mbps download and 10 Mbps upload speeds as well as unlimited data offering is 86.4% (all stats as of the end of 2019).
    • During the same time period (2013-2018), availability of LTE has grown from 79% to 99% of households. Such technology serves approximately 99% of Canadians, over 31.7 million Canadian subscribers. For its part, LTE-Advanced has grown from 83% in 2016 to 95% of Canadians in 2018.
45. What is the breakdown of broadband service availability by province?

    Table 9.2 Broadband service availability, by speed and province/territory (% of households), 2018 [Communications Monitoring Report 2019: Retail Fixed Internet Sector and Broadband Availability]

    New Brunswick and Saskatchewan have arrangements to provide broadband services at 1.5 Mbps via satellite under terms and conditions similar to those for wireline services. On Prince Edward Island, HSPA+ [high-speed packet access plus] is available to households without access to other types of broadband services under terms and conditions equivalent to those for wireline services. Since satellite service has a national footprint, it is excluded from this table.

46. What is the urban/rural breakdown of broadband service availability?

    Figure 9.23 Broadband service availability – urban versus rural (% of households), 2018 [Communications Monitoring Report 2019: Retail Fixed Internet Sector and Broadband Availability]

47. What broadband Internet access technologies are available?
    • There are several high-speed transmission technologies available to provide broadband Internet access service to Canadians including fibre, cable modem, fixed wireless networks and satellite.
    • For mobile wireless service, the latest deployed technology that provides the highest data speeds on mobile devices is long-term evolution advanced or LTE-A.
48. How much will it cost to achieve the universal service objective and close the digital divide? Are you confident that it will be achieved?
    • ISED has been working with the CRTC and provincial and territorial representatives to establish common broadband goals and initiatives to close them. The current estimate to close the digital divide is around $8 billion. This includes broadband and mobile wireless coverage along major roads. (See Annex 1)
    • There a several other variables that can impact costs. For instance, fluctuations in the Canada-U.S. exchange rate can also make the cost of purchasing equipment more or less expensive.
    • However, depending on the mixture of technology deployed, the costs could be higher or lower.
    • Our immediate focus is on ensuring that 90% of the population has access to a broadband service offering at least 50 Mbps for download, 10 Mbps for upload, and unlimited data by 2021.

Annex 1 – LTE Road Coverage

Major roads and highways LTE coverage in Canada, 2018

Major roads and highways LTE coverage in Canada, by province/territory and road rank, 2018