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Summary
- Canada had declared broadband internet connectivity a basic service back in 2016.
- Prime Minister Justin Trudeau and Quebec Premier Francois Legault teamed up to invest about C$ 826.3 million into improving the province’s high-speed internet services.
- The two leaders announced on Monday, March 22, that the federal and provincial governments plan to bring high-speed net connectivity to the 150,000-odd households in Quebec by September 2022.
A year of COVID-19 has made the world around appreciate the value of a good internet access. Even as vaccine campaigns for the disease continue to progress, social isolation protocols are still being encouraged, making net connection more important than ever.
Canada had declared broadband internet connectivity a basic service back in 2016. But at that time, the Canadian Radio-television and Telecommunications Commission (CRTC) had pointed that providing complete access to high-speed across the country would take time and coordinated effort.
Now, Canada seems to be getting closer to that dream.
Quebec To Get C$ 826 Mn For High-Speed Internet Connectivity
Most recently, Prime Minister Justin Trudeau and Quebec Premier Francois Legault teamed up to invest about C$ 826.3 million into improving the province’s high-speed internet services.
The two leaders announced on Monday, March 22, that the federal and provincial governments plan to bring high-speed net connectivity to the 150,000-odd households in Quebec by September 2022.
Amid other discussions, Prime Minister Trudeau and Premier Legault noted that having access to fast internet has become more important than ever. PM Trudeau even described it as being a basic utility.
©Kalkine Group 2021
Telecom Companies To Be Compensated
The federal and Quebec governments are set to invest half of the C$ 826.3-million figure each, which will be utilized to subsidize telecom companies that bring high-speed internet access to households in particular regions by fall of next year.
The telecom enterprises will also reportedly be required to charge the locals of these regions the same rates for the internet connection as Quebecers spend in big cities.
Some critics pointed that the governments are pouring capital into a sector (ie, the telecom sector) that is already profitable. In response, Premier Legault said that the telecom companies are being compensated for the high cost of bringing connectivity to sparsely populated rural areas as businesses cannot be “forced” to provide their services at a loss.
©Kalkine Group 2020
Reports said that Montreal-based telecom firms Videotron and Cogeco Communications Inc (TSX:CCA) will each receive about C$ 200 million in subsidies for bringing high-speed net connectivity to over 35,000 households.
Bell Canada is also set to receive about C$ 161.5 million to connect nearly 31,000 homes in Quebec. Similar subsidy offers have been made other telecom firms such as Xplornet, Sogetel and Telus.
Prime Minister Trudeau said that the federal government aims to bring high-speed internet access to Canadians by year 2030.
