Thursday, February 21, 2008
Rethinking rural broadband
After reading a story in this past weekend's National Post, I wonder if it is time to rethink how we fund rural broadband.I have long questioned the need to apply universal subsidies. The Post story speaks of the boom in rural Canada, led by surging crop prices over the past year and a half.
You now see satellite dishes on farms because people need access to the Internet and international grain markets. Farms are doing those things themselves, instead of relying on others, because the technology allows them to do that.There is a need to facilitate broadband in rural Canada, but not necessarily to subsidize it.
Maybe Canada needs to look at targeting broadband subsidies based on income, regardless of where people live. There is a gap in the level of connectedness among lower income Canadians in urban markets as well. Maybe it is time to consider making PCs and broadband part of our social welfare system.
Will a broadband tax credit be a part of the next federal budget?
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Posted by Mark Goldberg @ 2/21/2008 06:52:00 AM 
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Oh - I like the idea of a broadband tax credit for rural and/or low income folks.
I don't like the idea of subsidizing telcos to push better services into rural areas, that's just counterproductive for folks like Barrett Xplore, who are building a rural business, one silo at a time... Perhaps the CRTC can finally figure out what to do with the millions they've made the incumbent telcos squirrel away to help roll broadband to rural areas? Maybe that money should just go back to the general population?
:-)
A girl can dream.
I don't like the idea of subsidizing telcos to push better services into rural areas, that's just counterproductive for folks like Barrett Xplore, who are building a rural business, one silo at a time... Perhaps the CRTC can finally figure out what to do with the millions they've made the incumbent telcos squirrel away to help roll broadband to rural areas? Maybe that money should just go back to the general population?
:-)
A girl can dream.
Jules:
The CRTC set out how the funds in the ILECs deferral accounts are to be used back in 2006 (Telecom Deccision 2006-9): improve access to telecommunications services for persons with disabilities and expand the availability of broadband services to rural and remote communities. On January 17th, in Telecom Decision 2008-1, the Commission approved the use of deferral account funds by ILECs for certain initiatives to improve access to telecommunications services for persons with disabilities and to expand broadband services to certain rural and remote communities in British Columbia, Alberta, Manitoba, Ontario, and Quebec. The Commission also directed that any balance remaining in the deferral accounts be rebated to residential subscribers in non-high-cost serving areas.
Bell, together with the other ILECs as well as the Consumers Association of Canada lauched appeals of the CRTC's original decision at the Federal Court of Appeal. Their appeals were heard on January 23rd and 24th. While the Court deferred on ruling on the appeals at the conclusion of the hearing, it did impose a stay on the implementation of 2006-9. In other words, no monies can be spent on (i)improved services for the disabled, (ii)the expansion of broadband availability, or (iii) the rebates until the court makes a final decision at some point in the future.
Until the Court rules, no one will know how the monies in the deferral accounts will be spent or distributed. So keep on dreaming!
The CRTC set out how the funds in the ILECs deferral accounts are to be used back in 2006 (Telecom Deccision 2006-9): improve access to telecommunications services for persons with disabilities and expand the availability of broadband services to rural and remote communities. On January 17th, in Telecom Decision 2008-1, the Commission approved the use of deferral account funds by ILECs for certain initiatives to improve access to telecommunications services for persons with disabilities and to expand broadband services to certain rural and remote communities in British Columbia, Alberta, Manitoba, Ontario, and Quebec. The Commission also directed that any balance remaining in the deferral accounts be rebated to residential subscribers in non-high-cost serving areas.
Bell, together with the other ILECs as well as the Consumers Association of Canada lauched appeals of the CRTC's original decision at the Federal Court of Appeal. Their appeals were heard on January 23rd and 24th. While the Court deferred on ruling on the appeals at the conclusion of the hearing, it did impose a stay on the implementation of 2006-9. In other words, no monies can be spent on (i)improved services for the disabled, (ii)the expansion of broadband availability, or (iii) the rebates until the court makes a final decision at some point in the future.
Until the Court rules, no one will know how the monies in the deferral accounts will be spent or distributed. So keep on dreaming!
Posted by 
: 1:06 PM, February 21, 2008
: 1:06 PM, February 21, 2008
Thanks Brian!
I didn't realize that the ILECs were stuck in a holding pattern until a formal decision is made. That indecisiveness is impacting everyone - even the folks who need the subsidization :-(
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I didn't realize that the ILECs were stuck in a holding pattern until a formal decision is made. That indecisiveness is impacting everyone - even the folks who need the subsidization :-(
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