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 want to again thank Senator Patterson for bringing this bill forward. I think he did the work he needed to do in the Senate. It has been very enjoyable to debate this bill and hear the responses from all members of Parliament.
Canadians understand that they pay some of the highest cell phone bills in the world, but some are surprised that they pay the highest cell phone rates and some of the highest Internet rates in the world. Rogers, Telus and Bell are numbers one, two and three of the priciest telecommunications carriers in 48 countries out of the whole planet. Canadians already know that they pay this.
However, the bill coming out of the Senate was to do one thing and one thing only: it was to tackle spectrum speculation, such as companies buying spectrum at auctions and then making money on that. The two examples we used were, first, Rogers, which had bought, in 2013, a bunch of spectrum, and only five years later it made a $189.5-million profit. It held that spectrum, and when the spectrum became valuable, it sold it. The second was Quebecor and Videotron. In 2008, it bought $96.4-million worth of spectrum and sold it for an $87.8-million profit just nine years later. This bill was only meant to look at spectrum speculation and to ensure that we tackle that.
The current spectrum rules say that a company who buys and keeps spectrum can hold it for 20 years and has to serve a population model only after 20 years. The new rules under this bill maintain that, after three years, a company would have to hit a 50% geographical area, meaning that it cannot just look at population. A lot of these providers are looking only at the city of Toronto and not hitting the northern portions of it, or to the riding of the member for Milton, who spoke earlier. They are looking at the denser populations but not outside of those.
What is most important about this bill, which normally I am against, is that it would give the minister a new power to decide what is best for a community, which means that the minister could decide if the auction was bought and was only speculative. The minister could then change that auction and ensure that it went to someone else. However, if a provider was attempting to develop an area that it was purposed for, then the minister could extend that auction and make sure that the area gets through by that auction. That is what this bill is all about: giving the minister more power to stop spectrum speculation.
What is the point of this? Well, some members have talked about that 60% of rural Canada, where seven million Canadians live, that is not being serviced by high-speech Internet, and when they are, they are served by American companies, such as Starlink and Xplore, which are both American owned and controlled. However, when we look at Canadian companies serving Canadian markets, especially in the north and rural Canada, this bill was to ensure that we have companies that do that.
Members talked about this does not quite do what they do, which is spectrum auction reform, meaning that we are going to look at the $9 billion that Canada makes that goes into general revenues and ensure that perhaps some of that needs to go back to rural Canada to connect the north and connect rural municipalities. We have 3,500 municipalities in Canada and only 94 of them are urban, which means that over 3,400 municipalities in Canada are rural. It would be best for all of us as MPs to look at rural strategies to look at this.
Most importantly, let us get rid of this spectrum speculation. This whole premise is an anomaly and it was a flaw in the original bill of spectrum auctions, which allowed companies to make money simply because they bought an asset that is publicly owned, a public resource. Spectrum is for all Canadians. When we look at this bill, and I think it is a good one coming from the Senate, it would ensure that we tackle that flaw in this bill and ensure that we then look at the future.
In the future, yes, we need more competition in Internet. We need more competition for cell phones. We do not just need a fourth carrier, we need 40 carriers to ensure that we look after Canadians' Internet needs and that all Canadians are connected to the Internet. We need it for health, for safety, and for employment, and we certainly need it for the prosperity of this great nation.
I am thankful for this opportunity. This is a great bill, and I hope everyone can support it.
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