Rural Broadband? Yes. But How?
If you've got a PhD in mathematics, you may be able to figure out how Canada's telecom regulator, the CRTC, created its formula to collect money from the carriers for the deferral account. (It has something to do with consumers being over-charged for local telephone service in urban centres.) The bottom line is the account contains a whopping $652-million, most of which is supposed to be spent on expanding rural broadband. While everyone agrees it makes sense to bring broadband to rural communities, the $652-million question is how to do it. In February, the CRTC decided most of the money should be given to Bell Canada and Telus, who would, in turn, invest it in rural broadband networks. Others think the money should be given back to consumers. To be honest, rural broadband has never been a cut-and-dry issue in Canada. The idea is universally endorsed as good social and economic policy even though it can be a difficult ROI argument to make sometimes when you're talking about serving very small communities. At one point, Liberal MP Brian Tobin talked about spending $4-billion to roll out broadband to rural Canada but that was more politics than reality. Perhaps the most sensible route are the private-public partnership in Alberta (SuperNet) and B.C. (Network BC) where broadband networks being extended to hundreds of rural communities. A key part of SuperNet is its provides wholesale access to ISPs so competition is allowed to emerge to give consumers the luxury of choice. Perhaps it's time for rural communities in Ontario and Quebec to start demanding a SuperNet of their own.
Update: This post is based on the Federal Court of Appeal's decision to give two consumer groups the opportunity to appeal the CRTC's decision. For thoughts on the court ruling, check out Mark Goldberg. The New York Times has put the spotlight on rural broadband in the U.S. with a story in Sept. 28th's newspaper.
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