Rural broadband funding program announced

Industry Canada is taking the first steps towards fulfilling its revised commitment to universal broadband access with the announcement of a $105-million Broadband for Rural and Northern Development Pilot Program. The program will provide matching funds on a competitive basis for the development of business plans followed by their implementation. The process is expected to take until October/03.

Successful projects will be determined by an arm’s length selection committee chaired by David Johnston whose members will be chosen this fall. The ultimate decisions will be taken by Industry minister Alan Rock. Up to $30,000 in matching funds is available for the development of business plans and matching funds will be provided for actual implementation, although the maximize allowed under the program has not been made public. Matching funds can be cash or in-kind, such as volunteer labour, equipment and donations of office space.

To be eligible, interested communities must first form a not-for-profit organization with the authority to enter into contract with the government. Priority will be given to First Nations, northern, rural and remote communities where no broadband infrastructure is publicly available.

The Pilot Program is the first action by the government since it watered down the original proposal to spend at least $1 billions on extending broadband development to all Canadians, regardless of proximity to urban areas. As recommended by the National Broadband Task Force, the rollout would have been completed by 2003 and included innovative services, applications, technologies and content (R$, June 25/01).

But that plan was scuttled in the last federal Budget, in what is largely viewed as a leadership positioning feud between former Finance minister Paul Martin and former Industry minister Brian Tobin. Ottawa reduced its commitment to $105 million, called for more study and extended the completion date to 2005 (R$, December 17/01).

The Pilot Program opens the way for universal broadband access to make its way back onto the national agenda.

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