Shaw recommends industry contribution to rural broadband

Shaw Communications Inc. broke rank with most of its industry colleagues Tuesday, stating its support for an industry-funded subsidy to help enhance broadband transport. During the company’s appearance at the CRTC’s basic services hearing in Gatineau, Que., Shaw vice-president of regulatory affairs Paul Cowling said the government would play the primary role in “closing the availability gaps that have been identified.” He noted the government included a $500 million rural broadband program in last month’s 2016 budget. “So when we looked at the opportunities from this hearing to close those gaps and the scope of the issue around transport, we see the potential for a combination of federal funding and some complement to that through an industry-funded, CRTC-overseen subsidy mechanism,” Cowling said. The CRTC’s role would be on the co-ordination side, Cowling added, noting that a conversation between the regulator and Innovation, Science and Economic Development Canada would be required to make “sure their funding is not contradictory or not overlapping with any funding the CRTC would undertake and that the dollars were being maximized.” Commissioner Candace Molnar expressed surprise at Cowling’s response. Previous witnesses appearing before the five-person panel have clearly stated their opposition to any new subsidy regimes, including Rogers Communications Inc. and Manitoba Telecom Services Inc. Shaw identified the lack of transport infrastructure as a main hurdle to “access and choice in remote areas” that a national broadband strategy could address in its opening remarks Tuesday afternoon. “Even when local networks in remote areas successfully connect households, quality and reliability can be limited by a lack of access to transport,” Katherine Emberly, Shaw vice-president of operations, said. “There is no point in building isolated pockets of local networks without connecting them to the world.” Shaw also recommended that any subsidized transport should “be subject to mandated wholesale access,” and that existing subsidies for voice should be reviewed for potential reallocation. “The question is whether the investment dollars still make sense,” said Cowling of the voice subsidy, adding that they don’t in Shaw’s view, but that a review would still need to take place to properly determine that. Earlier in the day, the CRTC panel heard from members of the Columbia Basin-Boundary Regional Broadband Committee, consisting of a group of local government officials in southeast British Columbia. Representatives recommended the creation of a permanent fund for improving broadband access in rural areas, which would be funded — like other infrastructure programs — through federal gas tax contributions. The hearing, now in its final week, continues Wednesday at 9 a.m. — With reporting by Charelle Evelyn at cevelyn@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Shaw recommends industry contribution to rural broadband

News | April 26, 2016

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Shaw recommends industry contribution to rural broadband

News | April 26, 2016

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