Canada In The Network Age: Building an Infrastructure for Innovation and Inclusion
Michael Binder
Assistant Deputy Minister, Industry Canada
CANADA, AND INDEED THE WORLD, is without doubt in the Network Age. The current digital revolution is profound and global, changing the way we do business and the way we live. Its impact is economic, social and cultural.
Canada has long recognized the importance of digital networks. In 1997, the Government of Canada committed to make the information and knowledge infrastructure accessible to all Canadians, thereby making Canada the most connected nation in the world.
Since then, Canada has come along away in meeting this commitment. Various federal programs and initiatives have positioned Canada as a world leader in the use of information and communications technologies (ICTs). Many of these initiatives are being replicated around the world.
A Canadian Success Story
In March 1999, with the support of provincial and territorial governments and the private sector, Canada became the first country in world to connect all of its schools and libraries to the Internet. A total of 10,000 volunteer organizations were connected soon after, and 8,800 public Internet access centres were established so that no Canadian would be left behind. The world?s first, all optical, coast-to-coast national network was built in Canada to support leading edge research and development.
And what is connectivity without content? The federal government has supported the development of Canadian content, and many government services are now accessible online.
Citizens, businesses, and other levels of government have followed suit, and are connecting to the Internet in ever-increasing numbers.
Preparation for the Network Age has been a priority in Canada. Government policies and programs are geared to ensuring that all citizens, wherever they live, are connected to each other and to the world.
Despite this commitment, our accomplishments, and our many firsts, not everyone knows that Canada is a high-tech nation. Statistics show that most people recognize Canada as a nice place to visit but not a digitally wired country that is one of the best places in the world to do business.
However, according to the Economist Intelligence Unit, an international provider of country, industry and management analysis, Canada is the world's best location to conduct business over the next five years. Canada receives very high scores for the quality of infrastructure, its open regime for foreign trade and capital, and favourable market opportunities.
A recent KPMG report also ranks Canada as the lowest cost location to do business.
As more businesses are established in Canada, they are depending on the Internet to reach a global market. Dial-up access is no longer adequate. The same fervour for broadband is evident in Canadian households with 27 per cent connected to high-speed in 2002, According to Statistics Canada?s Household Internet Use Survey 2002, there has been continued strong growth in Internet connections by cable from home. In 2002, 35 per cent of households reported regular Internet access from home through a cable connection. This was up from 26 per cent, in 2001. The Yankee Group is projecting a 50+ per cent take-up by 2007.
What are Canadians doing with broadband access?
The long held belief that broadband is solely for entertainment and the illegal downloading of music is losing credence as broadband emerges as a tool in various sectors.
Canadians are embracing e-business and e-commerce. In 2003, Canada's total Internet sales grew to $19.1 billion in 2003, up 40 per cent from 2002. Domestic online sales also rose 55 per cent to $16.6 billion in 2003.
Canadians are also banking and accessing government services online. Compared to the U.S., the U.K. and France, Canada has been very successful in reaching its citizens via the Internet, ranking highly on Web page views as well as time spent.
Canadians are even paying their taxes online. As of May 2004, 10,381,534 or 48 per cent of all tax returns were filed electronically. (Canada Customs and Revenue Agency)
Online learning has been a Canadian strength dating back to the launch of Canada's SchoolNet Program in the early '90s. The Economist Intelligence Unit ranks Canada second in the world for e-learning readiness, indicating our ability to produce, use, and expand Internet-based learning, both formal and informal, at work, at school, in government and throughout society. Canada shares top ranking with the U.S. for having the most developed and accessible online university courses and degree programs.
How did we do it? The Canadian journey to bridging the digital divide
Since making connectivity a key priority in the early ?90s, the Government of Canada has established a number of initiatives targeting groups directly affected by the digital divide which are defined by factors such as low education, low income, rural location, disabilities, recent immigrants and others.
Community Access Program
Launched in 1994, the Government of Canada?s Community Access Program (CAP) has established approximately 8,800 Internet access points across Canada. The program works in partnership with other levels of government, the private sector and community groups to provide Canadians with access to the Internet at little or no cost in locations such as schools, public libraries, government offices and community centres.
Community access brings both economic and social benefits to rural, remote and urban communities, by supporting online access to government services and encouraging on-line learning and literacy.
Smart Communities
The Smart Communities program was created to stimulate innovation in the development and use of ICTs in Canadian communities. It showcases the benefits of technology when integrated into business, education, health, government and many other areas.
Twelve demonstration projects were established in 2000 with a $55-million federal investment over three years. Nearly 250 partners participated and an estimated 1.9 million citizens have been directly impacted by more then 90 smart services related to e-health, e-business, e-tourism, virtual courtrooms and more.
Working in partnership with federal and provincial/territorial governments and the private sector, each demonstration project is contributing to sustainable communities that integrate social, governance, economic, and environmental concerns.
For example, the Western Valley Smart Communities in Nova Scotia has become a model for smart communities around the world.
Not long ago, the region was facing a fishery industry on the verge of collapse along with unemployment rates at unprecedented levels due to the closure of the local naval base. Local leaders came together with a vision involving the use of ICTs and decided to build and manage their own fibre optic network.
Since then, the fisheries, forestry, agriculture and manufacturing sectors have begun focusing on diversification and strategic use of technology, enabling them to participate in the global marketplace. Residents have become engaged in technology training and entrepreneurship programs, with over 85 per cent of homes having computers.
The Western Valley Smart Community has since been nominated as one of the world's top seven Intelligent Communities, having reinvented itself as a competitive place to do business on a global scale, while maintaining its rural character and enhancing its quality of life.
The Next Step: Broadband
Having come this far, it is critical to continue looking ahead, recognizing that technology doesn?t stand still. As digital networks continue to evolve, citizens, businesses and governments must do the same to remain competitive.
In 2002, the number of broadband subscribers worldwide grew by 72 per cent to approximately 63 million, with home users driving the vast majority of uptake.
Canada is very well-positioned internationally. The Organization for Economic Co-operation and Development (OECD) ranks Canada as second in the world behind Korea in terms of broadband use per 100 inhabitants - an incredible feat considering the disparity in size.
As a result of private sector and provincial/territorial initiatives, 32 per cent of approximately 5400 communities have been connected. However, Canada's geography still presents a challenge. While the private sector is bringing broadband to urban communities, the vast majority of communities are remote and rural. To date, there has not been a business case for the private sector to extend high-speed access to these communities.
With a mandate to move beyond basic connectedness in rural areas, and overcome these geographic challenges, the Government of Canada committed in 2001 to help bring high-speed broadband access to rural and remote areas. This was reaffirmed again this year with a commitment to bring the benefits of modern communications to rural communities.
The first step toward meeting this goal was the Broadband for Rural and Northern Development Pilot Program which was set up to bring high-speed Internet to Aboriginal, northern and rural communities.
Canada's American counterparts are also moving the broadband agenda forward. President George Bush has repeatedly urged that affordable high-speed Internet access be available to all Americans by 2007. He also urged Congress to speed up adoption by making broadband access tax-free.
Broadband Connectivity: the Canadian Report Card
So, how far have we come in achieving our mandate? Are we maintaining our international leadership in connectivity?
The Broadband for Rural and Northern Development Pilot Program was launched in September 2002 following recommendations from the National Broadband Task Force. The Task Force was established in 2000 to advise the Government on how best make high-speed broadband Internet services available to businesses and residents in all Canadian communities. The resulting Broadband Pilot Program was delivered through two rounds of business plan development funding, followed by two rounds of implementation funding.
Under both rounds of implementation funding, 58 projects, representing 884 communities, were selected to receive a one-time investment in capital infrastructure. In total, over $79-million has been invested in bringing broadband to rural communities.
But this is not all we are doing.
In October 2003, the $155-million National Satellite Initiative was set-up to bring broadband to approximately 400 communities in the Far and mid-North where satellite is the only reasonable means of access. This program, a joint effort of Infrastructure Canada, Industry Canada and the Canadian Space Agency, significantly reduces the cost of broadband service to these communities through the purchase of satellite capacity.
To date, four organizations have been selected to receive public benefit C-band satellite capacity valued at $20-million over 15 years. An estimated 52 communities will be served by this investment.
Partnering for Success
In initiating programs like the Broadband Pilot Program and the National Satellite Initiative, the Government of Canada recognizes the role of all stakeholders in bringing to life a vision for a connected rural and northern Canada ? from the local communities to the private sector.
The resulting partnerships are enabling local governments, businesses and public institutions to leverage technology and networks to better serve their citizens.
For example, the remote and sparsely populated region of Nadina and Stuart-Nechako in British Columbia has primarily depended on resources like forestry, mining and agriculture. Following a severe economic decline in these primary industries, the region has turned to industries such as tourism, value-added manufacturing and information technology.
However, just as major improvements to the community infrastructure have enhanced the regions ability to attract business investment in the past, the absence of broadband access currently threatens the investments made to date.
High-speed access has become as important, and in many cases more important, then traditional business development services such as water, sewer, and power. In addition, it allows communities to advance at the same pace as other urban communities in Canada, and deliver vital tools for the development of the communities economic and social potential. Without it, potential businesses may be deterred from locating in the area, and schools, libraries, police departments and community offices have barriers to successfully fulfilling their mandates in the community.
Broadband deployment in this area, as a result of funding provided to the British Columbia Northwest Broadband Initiative through the Broadband Pilot Program, will remove these barriers and create enhanced opportunities for the businesses and the citizens of the community.
The bottom-up approach of the Broadband Pilot Program encourages communities to band together, creating aggregated markets that attract private-sector players. The results are self-sustaining networks that demonstrate and validate the benefits of broadband.
In Canada and Around the World
Industry Canada recently joined the Canadian International Development Agency (CIDA) in a partnership with Ottawa's Algonquin College to research the uses of wireless fidelity, or Wi-Fi. This low-cost, off-the-shelf technology enables the deployment of networks in rural and remote places.
An example of this partnership in action is in the Southeast Asian country of Bhutan, where modified WIFI equipment is being used to obtain and distribute signals from village to village at minimal cost.
The techniques being used in this environment are being studied and applied to Canada's rural and northern regions, and helping developing countries overcome the digital divide. While the networked economy has much to offer the developing world economically, it has many social implications as well.
Technology and networks are more than just than just tools to share knowledge. They promise to transform all areas of life, including how we conduct business and trade, deliver health care and education, as well as how we govern. Information and Communications Technologies are a central tool for economic modernization and a vehicle for social, cultural, and civic enrichment.
ABOUT THE AUTHOR
Michael Binder is the Assistant Deputy Minister of Spectrum, Information Technologies and Telecommunications, Industry Canada. He is responsible for overseeing the implementation of the Federal Government''s "Connectedness Agenda" that commits to connecting all Canadians to an accessible and affordable high speed information highway (Broadband).
He is also in charge of telecommunications and electronic commerce policies; the allocation of spectrum, licensing of the wireless industries; and the promotion of growth & international competitiveness of the Information and Communication Technologies industries.
Mr. Binder holds a Ph.D. in Physics from the University of Alberta. He can be reached at (613) 998-0368.