Presentation to First Nations Connect
Conference, February 13, 2002
Jacques Drouin, Connectivity Policy
Manager, Industry Canada
Canada
Connecting Canadians
National Vision
"Make the information and
knowledge infrastructure
accessible to all Canadians,
thereby making Canada the most
connected nation in the world."
Speech from the Throne, 1997
2
We Are Now in the Network Age
"Today's technological transformations are
intertwined with another transformation globalization - and together they are creating
a new paradigm: the network age.”
United Nations Human Development Report, July 2001
 Instant access to knowledge
 Transforming business
 Borderless, global economies
 New ways of citizen - government engagement
3
A Six Part Agenda Established
 Canada Online
 Smart Communities
 Canadian Content Online
 Electronic Commerce
 Canadian Governments Online, and
 Connecting Canada to the World
4
Canada Online:
Ensuring Access for All Canadians
www.connect.gc.ca
 First country in the world
to connect all schools &
libraries
 Over 300,000 computers
delivered to schools
 8,800 Community
Access Sites
 11,000 voluntary
organizations
connected
Education & Skills For Jobs and Growth
Employment Growth by Highest Level
of Education Attained 1990-2000
Change 1990-00
(000s)
Level 2000
(000s)
+2,455
7,777
+363
4,616
-993
2,517
Post -secondary
Diploma or Degree
140
120
High School
Diploma
100
Less than High
School
80
60
90
91
92
93
94
95
96
97
98
99
00
Index (1990=100)
Digital literacy critical in the Network Age
6
Digital Divide Still Exists
Internet Use from Any Location
By Education
By Income
Percent of households,
2000
Percent of households,
2000
79
78
61
55
43
24
22
Less than High School or
High School
College
University
Degree
<$20,000
$20,001 $35,999
$36,000 $59,999
>$60,000
Must increase efforts to ensure that
no Canadians are left behind
Source: Household Internet Use Survey; Statistics Canada, 2001
7
Smart Communities
http://smartcommunities.ic.gc.ca
$60M Government
Commitment
Yellowknife
Northern
Saskatchewan
Calgary
Coquitlam +
Brandon +
Labrador
Péninsule Acadienne +
Shawinigan +
Charlottetown +
Sioux Lookout
Ottawa
Annapolis +
…New Model for Community Development
8
Canadian Content Online
http://collections.ic.gc.ca
$108M to bring Canadian
culture into the Digital Age
9
Electronic Commerce
www.e-com.ic.gc.ca
 PKI
 Consumer Protection
 Privacy
 Digital Signatures
 Intellectual Property
 Security / Encryption
 Standards
 Tax Neutrality
E-Commerce in Canada
$ Billions
250
200
B2B
150
100
50
B2C
0
1999
2000
2001
2002
2003
2004
2005
Source: Internet Commerce in Canada, IDC 2001
“The real story is about the e-transformation of
traditional businesses”
The OECD Observer, September 25, 2001
10
Canadian Governments Online
www.canada.gc.ca
"By 2004, our goal is to be known around the world as the
government most connected to its citizens."
Overall Maturity*
Speech From the Throne, 1999
50%
2001
2000
40%
30%
20%
10%
0%
Canada
Singapore
United States
Norw ay
Australia
Client-centric – Integrated – Interactive – E-Com enabled
Source: Accenture, April 2001
11
Canadians Are Receptive to
Government Online Services
Tax returns filed electronically in Canada
Millions
Percent
6
5.5
4.9
5
4
3.2
3
23.4
6.0
30
5.1
4.5
3.9
5.8
24.1
25.5
26.4
27.3
25
20
21.8
19.4
15
15.8
2
10
1
5
0
0
1993
1994
1995
1996
Number of Returns E-Filed (Left Axis)
1997
1998
1999
2000
% of Total Tax Returns Filed (Right Axis)
Source: Canada Customs and Revenue Agency; October 2001.
12
Basic Connectivity No Longer Sufficient
Tele-working
Videoconferencing
Tele or E-Learning
Tele-medicine
Video Telephony
Near VoD
Movies-on-demand
Audio-on-demand
1.5 Mbps
Telegames
Home Shopping
Electronic Banking
Elect. Newspaper
Digital TV
10
100
1000
10000
Kilobits/second
Source: PlannedapproachInc.com
13
Broadband IS the Platform
Inclusive Society
Innovative Economy
Skilled &
Empowered Citizens
Increased
Competitiveness
Knowledge Networks
Broadband
14
What Can Broadband Deliver?
 Increasing volumes of content and services
 Virtual face-to-face interaction
 Substantially improved existing services and creation of
innovative and bandwidth-intensive ones:

E-Learning - learning anywhere, anytime

Tele-health -saving lives and money through networking

E-com - supporting new ways of doing business

E-research - exponential improvements in research capacity

E-government - fully engaging all citizens
Allows ALL Canadians, wherever they are,
to participate in the Innovation Agenda
15
U.S. Economic Study Agrees
The $500 Billion Opportunity: The Potential Economic Benefit
of Widespread Diffusion of Broadband Internet Access
Crandall and Jackson, July 2001


An attempt to look at what life could be like with
ubiquitous broadband access
Study identified five sources of benefit:






Telecommuting
Entertainment
Telemedicine
Telephony
Home On-line shopping
Widespread use of broadband could contribute
between $200B and $500B annually to U.S.
economy by 2025
16
Global Race to Get Competitive Advantage
Through Broadband
Sweden
C$1.24B
Goal: Universal broadband access by 2005
Focus on underserved locations & groups (30% pop.)
$765M for transport; $480M for municipal nets and tax relief
U.S.
C$3.35B/year
Goal: extend universal service to include advanced services.
Multiple federal, state and local programs: e.g., $3.2B/year for
statutory E-rate program, 153M/year for Rural Broadband Loan
Program pilot project. Nearly 40 bills before Congress to
accelerate broadband in rural and underserved areas.
France
C$2.2B
Goal: Universal broadband access by 2005
Focus on underserved, rural locations (20 to 25% of pop.)
$300M direct for infrastructure & deployment; $1.9B in
government funded loans for infrastructure deployment.
U.K.
Not yet funded
Universal broadband access by 2005
Program announcement anticipated
17
Global Race to Get Competitive Advantage
Through Broadband
Germany
C$1.1B
JAPAN
yet funded
Korea
C$25B
(1997-2002)
Goal: Leadership in EU Information Society
Broadband from ADSL to 8 Mbps Target 2006
Not
Goal: World IT leadership by 2005.
“Ultra high speed” goal of 30 Mbps to 30 million homes. $41M
seed funding sought 2002; full funding announcement expected
shortly.
Goal: World IT leadership
Broadband by 2002; Total Korea Information Infrastructure
investment $47B to 2005.
“The information society is and will remain a top priority for the
EU. It can foster economic growth, provide jobs, connect remote
places to urban centres and raise living standards. This has not
changed.”
EC Commissioner, Erkki Liikanen, Sept 28, 2001
18
Canada Well Positioned
High-speed Internet Users per 100 inhabitants
South Korea
Canada
Sweden
United States
Netherlands
Austria
Belgium
Denmark
Germany
Japan
Switzerland
Iceland
0
Source: OECD, 2001
2
4
6
8
10
12
14
16
19
But Canada Faces Unique
Geographic Challenges
Population Densities
OECD Nations
 Relative to other
countries Canada has
low population density
 Rural/remote areas
Netherlands
Japan
United Kingdom
Germany
unlikely to be served
by market forces, as
business case nonexistent
Italy
Switzerland
Denmark
France
Ireland
United States
Rural, remote
and north at risk!
Sweden
Canada
Australia
0
200
400
600
800
1000
1200
Population per square mile
SOURCE: U.S. Department of Commerce, Bureau of the Census,
Statistical Abstract of the United States, 1992, Tables 25, 340 and 1359
20
Majority of Canadian communities do
not have access to high-speed service
Canadian Communities* 5,984
4,781
Communities
22.3 % of pop.
Both DSL
and Cable
5%
No High
Speed
Service
79%
Only DSL
10%
1,203
communities
77.7 % of pop.
Only Cable
6%
*Communities refer to Statistics Canada Census Sub-division (CSD) breakdown.
Source: Industry Canada estimates based on 1996 population data from STC
and confidential company information.
21
Smaller Communities Most at Risk
% of Community Size Group
100%
92%
Unserved Communities By Size
(4781 Communities*)
90%
79%
76%
80%
70%
60%
50%
50%
40%
30%
22%
20%
10%
0%
0%
# of communities
% of population
0-1,000
1,000-5,000
3 230
4.0%
1 309
9.4%
5,000-10,000 10,000-100,000 100,000 +
163
3.9%
79
5.0%
0
0
Canada
4 781
22.3%
* Communities refer to Statistics Canada Census Sub-divisions (CSDs)
Source: Industry Canada estimates based on 1996 population data from STC and confidential company information.
22
Access to High-Speed Service Varies by
Province
100%
Access to High-Speed Service
1,203 Communities*
% of Provincial Communities
90%
80%
70%
60%
50%
44%
40%
30%
43%
29%
28%
23%
21%
24%
20%
8%
10% 7%
20%
12%14%
5%
0%
NF
PEI
NS
NB
QC
ON
MB
SK
AB
BC
NWT
*:Communities refer to Statistics Canada Census Sub-division (CSD) breakdown.
Source: Industry Canada estimates based on 1996 population data from STC and confidential company information.
NU
YT
CDA
Should Rural Canada Have the Same
Opportunities as Urban Canada?
 Economic viability and sustainability in question
for many rural and remote communities



Businesses leave
Jobs leave
Youth leave
 Needs are greatest where services less available
or not available
“Without innovative public policy, these technologies
could become a source of exclusion, not a tool of
progress.”
United Nations Development Report, July 2001
24
Government is Committed to Equal
Access for ALL Canadians
Established National Broadband Task Force
Mandate:
 the need and characteristics of communities not likely to gain access
to high-speed services by 2004
 the technical, institutional and financial barriers which could delay
provision of services by the private sector
 the roles governments might play in overcoming these barriers
Membership:
 Leading Canadians from all sectors:
 Industry (telcos, cablecos, service providers, content providers)
 Public interest
 Education and libraries
 Health
 Aboriginal
25
National Broadband Task Force’s Response
www.broadband.gc.ca




Essential that ALL Canadians have access
Make it equitable and affordable
Ensure balanced public-private partnership
Understand it is more than infrastructure that is required
(encourage use and content development)
 Place highest priority on First Nations, rural and remote
 Called for total investment of $4.6B by ALL PARTNERS (federal,
provincial, territorial, municipal governments, and private sector)
 Community Champion seed funding to all unserved communities ($50 to $70M)
 Transport to unserved communities ($1.3B to $1.9B)
 Connect public institutions in unserved communities ($500M to $600M)
 “Last mile” to homes within unserved communities ($2B)
26
Wide Partnership Required
e-health
e-content
e-learning
Broadband
Platform
e-government
e-business
27
Budget 2001
Continuing Support for Connectedness Agenda





SchoolNet and CAP - $40M per year for two years
$35M/year for the three years to support
broadband expansion
$110M to build CA*net 4 – the next generation
Internet broadband backbone
$600M over next four years to implement
GOL strategy by 2005
Commitment to vision of broadband connectivity
to all communities – timeline extended to 2005
… The Challenge Continues
28
Connecting Canadians
Canada’s Innovation Strategy White Paper
What does innovation mean?
It means:
- Coming up with new ideas about how to do
things better or faster
- Making a new product or offering a new
service
- Putting new ideas to work…and having skilled
people to apply them
- Agressively pursuing new markets for
Canada ’s products and services
Canada
Connecting Canadians
Canada’s Innovation Strategy White Paper
Communities seen as incubators of innovation
But tey have to be part of the globally connected world
Broadband connectivity is an enabler of innovation
Government will work together to strenghten the capacity of
communities to become incubators of innovations
Goal: by 2005, ensure that broadband is available to
Canadian communities
Canada
Connecting Canadians
For Further Information
Industry Canada
www.ic.gc.ca
Connecting Canadians
www.connect.gc.ca
Strategis
www.strategis.gc.ca
Electronic Commerce
www.e-com.ic.gc.ca
National Broadband Task Force
www.broadband.gc.ca
Canada