BRIEF FROM SASKATCHEWAN
TELECOMMUNICATIONS (SASKTEL)
Executive Summary
In its submission, Saskatchewan Telecommunications (SaskTel) highlights
aspects of government policy and programming expenditures which impact the base
infrastructure needs of Saskatchewan residents and their ability to participate
in the digital economy.
SaskTel is asking that there be a renewed focus on rural
telecommunications policy. We need policies and
programs that address the economic realities of rural areas of Canada like
Saskatchewan. Equally important is improving broadband and digital
economy skills for First Nations.
In order to meet Canada’s goals
for all citizens to participate in the digital economy, SaskTel believes the
following three recommendations are critical:
1. Spectrum Auction
Too much spectrum is unused in rural Canada.
The 2012 spectrum auction should be an open auction that will
maximize revenues for the federal treasury BUT with special rules for some of
the spectrum to ensure rural deployment actually occurs and is taken into
account in the bidding process.
2. Rural Broadband
There must be an ongoing commitment to those that create
significant wealth for Canada – rural residents. It is widely recognized that
the inability of the market to accommodate low population densities has led to
a growing digital divide between rural and urban Canada.
What is required is an ongoing program to upgrade broadband
capacity in rural and remote areas. Current broadband targets of 1.5 Mbs. are
already being outpaced by demands.
3. First Nations Connectivity
First Nations communities are an increasingly important part of the
social and economic fabric of Canada. Advanced communications services,
particularly broadband, have proven to be an efficient and cost-effective way
to improve the delivery of services such as health and education as well as
contributing to First Nations economic development and self-government
initiatives.
Continuing federal government support of broadband and digital
economy skills for First Nations will allow them to participate in and
contribute to the digital economy.
Introduction
SaskTel believes that the issues raised in this set of budget
consultations are critical at this stage of Canada’s development. Creating a
sustained economic recovery, with quality jobs, should be viewed as an
opportunity to develop new future directions and to strengthen the digital economy
as one of the foundations for economic growth, job creation, global
competitiveness and a better way of life. The digital economy is enabling
entire new industries and unlocking vast new possibilities for existing ones. A
strong digital economy can also change how we educate children, deliver health
care, manage energy, ensure public safety, engage government, and access,
organize and disseminate knowledge.
In Saskatchewan, our economy is based primarily on resources - be
they in agriculture, potash, uranium or even eventually diamonds. All of these
industries are in rural areas and are increasingly dependent on the
availability of leading edge information and communication technologies
(ICT’s).
The public discourse on telecommunications policy today seems to
centre on whether someone can watch unlimited movies at home or is able to
access multiple wireless service providers. All of our efforts seem to focus on
areas where there is no real wealth creation or economic development.
Our rural areas form the foundation of
our economic growth. Affordable access to ICTs is paramount to sustaining this
growth. Government policies must recognize that in rural areas, market forces
alone will not result in telephone, cellular or internet services which are
reasonably similar in terms of affordability or performance to urban areas. Unlike
urban markets, there is a need for national policies to stimulate the abilities
of companies to provide rural services.
In urban areas, the private sector is
already building a world-class, leading edge infrastructure. Rural areas
continue to lag behind because there are no economic margins to stimulate
infrastructure growth. Also telecommunications policies try to treat both urban
and rural markets the same way – that just does not work.
SaskTel is suggesting that federal
programs and policies recognize the realities of development in rural areas in
order to stimulate growth.
In addition, SaskTel firmly believes in the importance of our First
Nations in Saskatchewan and their significant contributions to our Province. Saskatchewan's
First Nations offer a home-grown solution to our province's ongoing talent
challenge and will help meet the needs of a growing province. This will not
happen without the proper tools and support that improved connectivity can
provide.
SaskTel believes that the Government of Canada must create
consistent and ongoing policy instruments that recognize the differences
between areas where market forces may function effectively and areas where they
do not.
Recommendations
Spectrum Auction
New cellular services are rapidly becoming the heart of economic
development in rural and northern areas. To ensure that these services are
available, there is a desperate need for the Government of Canada to recognize
rural requirements in the upcoming spectrum auction. Spectrum is an
increasingly scarce resource for new leading-edge cellular services, yet the
way in which spectrum is auctioned leaves great sections of spectrum unused as
buyers focus on the urban portions of their serving areas to the detriment of
rural residents. As an example external companies are presently hoarding more
unused spectrum in Saskatchewan than will be offered in the entire upcoming
auction of new spectrum.
The blocks in which spectrum is sold includes both rural and urban
areas. They can stretch from Edmonton to Lloydminster or Regina to Swift
Current. New entrants tend to focus on urban areas leaving the rural areas to
fallow. In some cases some of this spectrum has remained unused for over 20
years.
SaskTel is asking that:
1. Auctions should be held as soon as possible in 2012, SaskTel and rural
Saskatchewan needs access to that spectrum now.
2. The auction structure should recognize the
difference between rural and urban markets. The market is very different in the
rural areas than the markets in Montreal or Toronto or even Saskatoon for that
matter. This can be reflected in the conditions of licence or the creation of
the spectrum blocks themselves.
3. Given the need for spectrum those who purchase
spectrum should have to use it within 5 years. Spectrum use should be up to 90%
in some spectrum blocks to ensure that rural residents are not bypassed.
4. There should be no spectrum caps or set asides
for spectrum. SaskTel, as an example, has various types of spectrum but it is
the only company using that spectrum in most of deep rural Saskatchewan. The
700 spectrum in this auction is ideally suited for rural deployment and SaskTel
must be allowed to bid on that spectrum to service rural customers.
It is our belief that these auction policies would have very
limited or no impact on the Federal Government’s objective toward balanced
budgets. The billions of dollars from the spectrum auction are associated with
the largest markets in Canada.
Rural Broadband
SaskTel was disappointed in the recent CRTC decision in the local
service proceeding to not take any concrete steps to expand broadband to rural
and remote areas but only continue to watch developments until 2014. Already
the digital divide between rural and urban residents is continuing to increase.
Urban residents and businesses can easily access 25 to 100 Mbps services while
the farmer whose livelihood increasingly depends on immediate access to grain
markets can access 2 Mbps or less. By 2014, fibre to the home will expand
services in urban areas to 100 Mbps or even 1 Gbps for some businesses. Rural
access will remain relative stable at current low levels with perhaps some
increases in satellite coverage. This will cause business development,
education and healthcare delivery in rural areas to forgo many of the
productivity gains which can be associated with the new digital economy.
There is a need for an ongoing program to upgrade broadband
capacity in rural and remote areas given that broadband is always likely to lag
behind developments in urban areas. We would suggest using the proceeds from the
spectrum auction for this purpose.
First Nations Connectivity
Inequalities between First Nations and non-First Nations Canadians
persist in every province and territory throughout Canada. Educational
attainment for First Nations lags behind the averages for the Canadian
population as a whole – for example, only 7.2% of First Nations people have
received a university degree compared to 23.4% of all Canadians. The 2006
median income for First Nations people was 30 per cent lower than the median
income for the rest of Canadians. Access to health care is an issue faced by
many First Nations – it has been recently reported that almost 1 in 5 First
Nations adults had no doctor or nurse in their area.
Access to bandwidth and thus the digital economy can provide remote
educational opportunities, e-health services and new business opportunities for
First Nations.
First Nations are the fastest growing demographic in Canada, and
Canada cannot continue to be productive without addressing such socio-economic
gaps.
Broadband is seen not only as a cost-effective method of service
delivery but as a tool for economic development and self-government
opportunities. First Nations youth should enjoy the same life chances as other
Canadian children – to explore the endless opportunities associated with the digital
economy.
Over the past several years, SaskTel, First Nations communities and
federal agencies have collaborated to provide broadband access on many
Saskatchewan First Nations and, like elsewhere, this infrastructure will need
to be upgraded and improved in order to provide the best possible services and
opportunities.
Continuing federal government support of broadband and digital economy
skills for First Nations will translate into positive contributions to the
Canadian digital economy down the road.
Conclusion
SaskTel is committed to working with the federal government to
develop a strong, dynamic digital economy.
In our submission, we have focused on various aspects of government
which may impact the base infrastructure needs of Saskatchewan residents and
their ability to participate in the digital economy.
SaskTel is suggesting that Federal
government policy recognize the major differences between rural and urban
markets, and the important role that improved broadband connectivity can play
in providing opportunities for First Nations to be part of and contribute to
Canada’s prosperity. The application of this policy must be sustainable over
the long term to ensure that the major creators of wealth in Canada, rural
people and First Nations, are able to succeed and grow.