David Crane

In February 2007, the IRPP launched a monthly cyber-column by award-winning journalist David Crane. It may be used by newspapers or magazines, or as background for editorials without charge, but with attribution to the IRPP.

Canada's broadband infrastructure is too expensive and too slow

February 2008

It doesn't take long to go from being a leader to a laggard. That's what has happened with Canada when it comes to high-speed broadband, the communications network that drives the Internet and has the power to transform societies and give those out in front a competitive edge.

At the start of this decade, Canada was a leader when it came to the Internet Age. Maintaining this momentum, in 2001 the National Broadband Task Force issued a challenging report, setting as a national goal the linking of all communities across Canada through high-speed broadband of 1.5 million bits of information every second (1.5 Mbps) by 2004. This was seen as the next step in ensuring Canada's place as a leading member of the Internet Age.

But too little was done to achieve this goal, and today Canada has the dubious distinction of having one of the slowest broadband networks among advanced economies and also one of the most expensive. We are now an Internet Age laggard.

Not only that. There is little political interest in raising Canada's status as a high-speed information society, and little understanding on why this is so damaging to Canada's future prospects.

Canada's broadband prices (in Mbps) are higher than 20 OECD countries. In fact, Canadian prices are nearly 30 times as high as those in Japan, 12 times as high as in France, 11 times as high as in Sweden and just over 10 times as high as in Korea.

Along with high prices, Canada has one of the slowest average advertised broadband speeds, ranking 15th in the OECD. Japan's downloading speeds are nearly 12 times as fast as Canada's, France and Korea's nearly 6 times as fast and Sweden's 3 times as fast.

Why does this matter? As Robert Atkinson of the Information Technology and Innovation Foundation in Washington points out, the universal provision of high-speed broadband will deliver a wide range of benefits, in many ways, similar to those delivered by the universal provision of electricity and the telephone did in earlier generations.

For example, an expanding network of high-speed users makes the network much more valuable. One fax machine is a doorstop and a half-dozen fax machines have limited use. But a network of say 5 million fax machines has great value.

The same is true if large numbers of people are connected to a high-speed Internet network. Moreover, expanding the network to all parts of Canada means people everywhere have an opportunity to participate in the digital economy. So this also is an important consideration for regional development and rural communities.

A high-speed universal network creates a market for the development of many new applications and, with them, related businesses and jobs. If Canadians do not have the same kind of access as is found in Japan, Korea, the Scandinavian countries and France, they will lose the opportunity to develop these new businesses. Canada will not be a test bed for future Internet-based products and services. In fact, the availability of access to high-speed broadband will become an increasingly important consideration when businesses decide where to locate. So it will have a considerable effect on future jobs and wealth creation.

The potential for distance learning and access to new education programs, the introduction of telemedicine to deliver health care more efficiently, and the possibilities of telecommuting, allowing people to work at home, are other benefits of achieving universal access to high-speed broadband in all parts of Canada.

When the National Broadband Task Force reported in 2001, it indicated that a universal high-speed system would require strong leadership from business, but to make high-speed broadband universally available and linked to public institutions such as schools, libraries and hospitals, government subsidies of $1.8 to $2.5 billion would be required. It also set out a wide range of proposals to make Canada a leader in content and applications.

Today the speed and bandwidth requirements will be higher than the report anticipated in 2001. The Internet has progressed rapidly since then, with massive transmission of video content, for example. But the need and opportunity are also much greater today.

For a long time many around the world considered Canada to be leader in communications. We have since fallen back, lagging behind countries with much more ambitious agendas. But while the United States, which has also fallen back, is actively looking at ways to regain leadership, there seems to be little concern in Canada. We lack a vision of our possibilities.

Award-winning journalist David Crane writes a monthly column on the challenges and opportunities of globalization for the Institute for Research on Public Policy (IRPP) and can be reached at crane@interlog.com.