44th Parl. 1st Sess.
November 2, 2023 10:00AM
Madam Speaker, I am pleased to be able to rise and offer my thoughts on Bill S-242, which was first introduced into the Senate by Senator Dennis Glen Patterson of Nunavut and, of course, the bill is being sponsored here in the House by the member for Bay of Quinte.
Essentially, what we need to discuss with respect to this bill is spectrum. A lot of people may wonder what that is.
I would say, first and foremost, that it is a very important public resource. It is essentially the resource that refers to the range of frequencies used for wireless communications, such as Wi-Fi and cell service. These are services that many of us take for granted, especially in urban areas and in work environments such as this.
Every time we pull our phone out, we just know that we are going to have access to the Internet and to important information. It allows us near-instantaneous communication with many of our work colleagues and our constituents, even though the constituents that I represent are three time zones away from Ottawa.
There are different lanes, or frequency bands, within the wireless spectrum. They all have different speed limits, and each is suited to a different type of data traffic. The government's job in this is to regulate and allocate frequency bands to different companies and organizations for use to ensure that there is enough spectrum available for everyone and that different devices can communicate without interfering with one another.
That regulation of wireless spectrum is the responsibility of one department, that is, Innovation, Science and Economic Development Canada. ISED is responsible for developing and implementing policies and programs related to the efficient and effective use of spectrum resource. This includes licensing and allocating spectrum to various users, such as wireless carriers, broadcasters and government agencies. The decisions that ISED makes affects how quickly Canadians are connected.
I want to talk about rural Canada, especially my riding of Cowichan—Malahat—Langford. My riding is about 4,700 square kilometres of beautiful southern Vancouver Island real estate, and it is a very rural riding. I would say that about 90% of my riding's population lives along the east coast of Vancouver Island, going from Chemainus down to Langford. The most beautiful part of my riding, I would argue, is over on the southwest coast.
When a person is driving up to Lake Cowichan, gets down to Mesachie Lake and takes a left turn to go to Port Renfrew, they know that they are out of luck in terms of cell service until they get to the water's edge. This happens within a few kilometres of having departed the highway.
There are significant geographical chunks of my riding where, when one is out there, one does not have access to cell service. Indeed, this is true for most of British Columbia.
I acknowledge that British Columbia is a very complex province to get these services to. This is because of our terrain. We are the most mountainous province. It is a source of great pride and great beauty, but it comes with its challenges when one lives there. The mountains make a perfect physical barrier between two devices trying to connect with one another.
My constituents are experiencing these problems but, right across Canada, we know that the stats show a picture in which 63% of rural households do not have access to high-speed broadband. That includes 14% of highways and major transport roads that do not have access to LTE wireless services, the really fast kind of wireless service.
Up in the Northwest Territories, Yukon and Nunavut, no households have access to high-speed broadband. Moreover, 72% of highways and major transport roads do not have access to LTE wireless services.
This is a critical service that is important in connecting us to the outside world, to safety services and for our work. However, so much of rural Canada still does not have access to that.
The Canadian Internet Registration Authority released 2021 data as a part of its Internet performance test. This showed that the median rural download speeds were measured at 3.78 megabits per second, compared with an astounding 44 megabits per second in urban Canada, a difference of 11.7 times.
The digital divide between urban and rural Canada is starkly seen in these statistics. We know that urban speeds have actually been climbing, while the rural Canadian upload speeds, on average, are falling and have not been keeping the same pace.
Let us turn to Bill S-242. I was looking at the introduction speeches in the Senate and here in the House, and I have looked at how other colleagues have responded to the bill. I think the senator who sponsored the bill in the other place summed it up quite well when he said that the bill is essentially the “use it or lose it” bill.
Bill S-242 would essentially amend Canada's spectrum policy to ensure that this very important and critical resource is used to connect Canadians and is not used as a vehicle for billionaires to be trading back and forth with one another. It would require that all spectrum licence holders deploy spectrum to 50% of the population within prescribed geographic regions contained in the licence area, known as tier 5 areas, within three years of acquiring the licence. It would ensure that those buying larger licence areas would not be able to meet deployment conditions simply by deploying to the urban areas within those larger tiers. They would also be required to service the smaller rural and remote areas nestled within. It would give the minister the flexibility to decide whether to revoke the entire licence outright or to reallocate those tier 5 areas within the licence to other providers that are ready and able to service the underserved areas.
There is also a third component to the bill, which is a civil liability clause. The intent of this clause is to ensure that if the licence holder, by acting in bad faith, does not meet the deployment conditions and has had its licence revoked, the population that had been serviced by it and had the service lost due to the revocation could initiate a civil claim for damages.
I will conclude by saying that we have a situation here in Canada where, if we look at the history of spectrum sales and allocation, we know that the Canadian government, over time, has been deeply discounting spectrum for smaller regional carriers that have consistently failed to deploy it. There are areas all across this great country of ours that are sitting unserved by broadband because of limited access to the spectrum resources. It is a scarce public resource, but it has been squandered because it has been licensed to regional carriers that have preferred to flip it for profit rather than improve the lives of the Canadians it is supposed to serve. This is very important, because it is estimated that next-generation 5G connectivity will add billions of dollars to Canada's GDP over the next half-decade. The lack of reliable connectivity in rural communities is depriving them of access to the 21st-century economy and all the opportunities that it has.
As the NDP's agriculture critic, I know that in rural communities right across the country, with the incredible advancements in agricultural technology and innovation, connectivity to the Internet is so crucial, especially with the next-generation machinery that is coming out, with its ability and artificial intelligence. If we want our farmers to stay on the cutting edge of agricultural technology and to continuously punch above their weight as the agricultural powerhouse that is Canada, we need to solve this problem and make sure that connectivity is where our farmers are doing their important work for our country.
Fundamentally, Bill S-242 is about making sure that those who buy spectrum actually use it. When somebody buys a public resource, especially at significant discounts, as has been our country's history, they should be buying an obligation to connect Canadians. This is an essential service. We must find pieces of legislation that would protect it and protect consumers, and that is why I am proud to say that I will be voting in favour of the bill's going to committee for further study. I believe there is an opportunity for some amendments to be made there. I look forward to listening to other colleague's comments.
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Mr. Speaker, I am pleased to speak to the importance of universal connectivity and the importance of putting wireless spectrum to use to achieve that objective. I am also pleased to speak about the steps that our government is already taking to see that Canadians from coast to coast to coast benefit from affordable high-speed Internet and cellphone service.
When I was elected four years ago, over 5,000 households in my riding did not have access to suitable high-speed Internet. I am very glad to say that in the last four years, we have cut that number in more than half. There are less than 1,500 that still need an upgrade in service, and we are working day and night to make sure that happens.
Today, 93.5% of Canadians have access to high-speed Internet, compared with 79% in 2014. More than 99.7% of Canadians have cell phone coverage. That said, we want to do more. Our government is committed to universal Internet connectivity. That is why, since 2016, our government have committed more than $7.6 billion in funding to expand broadband services. It is working. We are on track to reach 98% coverage by 2026 and 100% coverage by 2030.
Since 2016, our government has also more than doubled the amount of spectrum available for mobile services. Our spectrum rules are designed to complement our investments in high-speed Internet. We impose strict “use it or lose it” rules that require providers to meet increasingly ambitious deployment timelines and targets. For example, over the next few years, the rules we established for our recent 5G spectrum auctions will mean that the benefits of this spectrum will extend to 97% of our existing wireless network footprint, which covers 99% of Canadians. These rules improve services for millions of Canadians.
Our government is also implementing other “use it or lose it” spectrum policies. We recently announced a new licensing policy that will give easy local access to 5G spectrum for Internet service providers and innovative industries as well as rural, remote and indigenous communities. We are also strengthening older deployment requirements and developing policies that will give new users access to unused spectrum even in areas where deployment conditions have been met. These policies are designed to support rural connectivity and rural economic development and to provide essential access to indigenous communities.
Bill S-242 wants to ensure spectrum is put to work connecting Canadians, particularly those in rural and remote regions of Canada. Our government's actions make it clear we share this intent. While the goal of Bill S-242 is to be commended, I question whether it is the right vehicle to get us there.
I am concerned Bill S-242 would create several unintended consequences that, rather than improve connectivity, would let big players off the hook and actually reduce existing services. I worry it would limit competition, chill investment and increase costs for Canadians.
First, the bill would set a universal population coverage requirement for every spectrum licence issued. It is important to mention spectrum licences are issued for a wide variety of important services and not just for mobile and Internet access.
Bill S-242 would apply to all spectrum, regardless of its intended use. This includes spectrum used for things like firefighting, transportation, precision agriculture, municipal services, earth monitoring and national defence. These users would risk losing their spectrum under the framework Bill S-242 would create.
Bill S-242 would also be applied retroactively to spectrum where the rules have been made, creating uncertainty and disrupting investment plans. Investments are already rolling out on the basis of meaningful “use it or lose it” requirements. That includes for 5G spectrum auctioned only two years ago. Changing the rules now is unfair to businesses and it sends the wrong signal to attract future investments.
I am also concerned the bill's timelines and coverage requirements would be impossible for small providers, leaving only the largest players in the game. This would reduce competition and drive up prices for consumers at a time when we are trying to accomplish the opposite. More competition is a good thing.
Given all these uncertainties, I am concerned that Bill S‑242 would not even improve connectivity. In most regions, the 50% coverage required under the bill is much lower than the actual targets set for 5G spectrum, which can be up to 97% of a carrier's mobile network coverage. Collectively, these networks already serve 99% of Canadians. However, in very remote regions, these requirements are too stringent and could force service providers to close down and leave communities with no service at all.
That is why the government sets coverage targets based on various factors, and only after public consultation. These targets are becoming more and more ambitious, yet they are achievable and are designed to encourage investment and expansion in new regions over time.
Access to affordable and reliable high-speed Internet is a right of every Canadian, no matter where they live, and we are on a clear path to achieve it. While I applaud the intent of Bill S-242, the government will not be supporting the bill because it would clearly do more harm than good.
Spectrum is one of several elements that support universal connectivity. It goes hand in hand with other enablers, such as technology, infrastructure and investments. These tools are all backstopped by policies and programs designed to best leverage these elements for the benefit of all Canadians. A one-size-fits-all approach to spectrum management ignores that reality altogether.
Of course, that was not the bill's intent, but rushing into a legislative solution is not the best way to move forward. I congratulate the hon. member for Abitibi—Témiscamingue on his motion to study the telecommunications sector more broadly. A closer look at the factors limiting access to the regions that are hardest to serve, and the tools at our disposal to remove those barriers, will only bring us closer to our objectives.
We need to ensure that we have the right framework in place to encourage investment, lower prices and improve services for Canadians. At the same time, such a study could examine ways to improve the overall competitiveness of our wireless communications sector and ensure that Canadians have access to high-quality, affordable and reliable high-speed Internet services no matter where they live.
We continue to take steps to improve Internet connectivity and the availability of services in rural areas. We look forward to studying these issues further in committee in order to promote the objectives we all share.
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