CRTC 2015-134 PRÉSENTATION
Review of basic telecommunications services
Examen des services de télécommunication de base.
27 April 2016
5/1 AND CANOES
• In the late 1800s, the small rural community of Fort Brisebois
was only accessible by the 5/1 transport of the day: the canoe.
There was no business case to build a railroad to it. The canoe got
you there, but it took weeks and could only carry light cargo. Yet,
the government saw the long term strategic value in funding the
railroad. Today, Fort Brisebois is better known as Calgary.
• Imagine if the 2 incumbents of the day, La Compagnie des 100
Associés and Hudson’s Bay Corp had convinced the government that
the canoes were more than enough ? Keeping the “served” status
allows incumbenta to protect their territory from new entrants
without having to invest.
• If incumbents have no interest, then they should be sidelined
and a focus moved to those who have an interest:
ESSENTIAL TO ECONOMIC GROWTH
• Vint Cerf has said that over 90% of Internet applications have
yet to be invented.
• The need is to empower all Canadians to create new
applications, content and services, not just consume them.
• The Commission cannot define “basic” Internet based on a fixed
set of existing applications. Deciding which applications are
“need” vs “want” would constitute undue discrimination against apps
declared “want”. It would also discriminate against apps that have
not yet been invented.
• What is done with packets is none of the Commission’s
business. It’s business is to ensure Canadians have access to a
network that carries packets quickly and efficiently to support
growth of the digital economy.
• Therefore, the need is to give all Canadians access to the
Internet using the most modern technology applicable.
NO-ONE LEFT BEHIND• Telephone
• Until an area is considered “served” for broadband, The
obligation to serve for voice service should remain in place,
including dialup, paper directories including the blue pages.
• As incentive to either invest in broadband or get out of the
way, incumbents should be forced to keep voice prices stable
without NCF help.. Once “served”, POTS can be forborne and
incumbent can raise its prices.
• Broadband• Different programmes have funded deployment using
geographical definitions (polygon, DSA, CO, wire centre) which
has resulted in incomplete coverage, (eg: Ryan Adams’ complaint).
No programme insisted in full coverage of a community, and grants
given to technologies that can’t even meet 5/1.
• This must stop
• A single independent body (crown corporation ?) whose role
• Draw accurate and complete census of areas needing broadband
deployments. Areas defined by municipal, first nations boundaries
and special cases for unorganized territories.
• Census results would be available on-line to any Canadian to
check the status of their town and complain if their home/town has
not been identified.
• Combine funding from NCF, federal programme(s) and others such
as EORN and coordinate with provinces to fund deployment of
broadband based on bids for each project.
• Help each municipality to either find companies with expertise
to build, or help the municipality bid to deploy its own municipal
• Coordinate backhaul availability with each municipal
• Coordinate/champion availability of spectrum for fixed
wireless deployments where it is the best solution.
• Projects funded via Private Public Partnerships.
• NBN.CA in charge of quality assurance to ensure service is
delivered as per standards.
• ISP may buy back NBN’s shares to become 100% owner. Proceeds
help NBN fund new projects.
• Dividends flow back to NBN.CA (helps fund other projects)
• Winning bidders below certain size get 5 or 10 year guarantee
from incumbent deployment. They can take this to bank to make loans
easier to get.
• Incumbents may buy a municipal system before the end of the
• A deployed system that falls below standards during the term
loses any protection from new entrant.
BACKHAUL• Sufficient and affordable capacity in the backhaul
helps solve many of the
underperforming services. Backhaul should include capacity
needed for local government / school / library / town hall/ fire
hall and nursing station.
• Statistics for urban ISPs should be used to dictate how much
capacity is provided for rural deployments.
• Current numbers are around 1.2gbps per 1000 customers, (~833
customers per gbps of trunk capacity). Capacity predictions should
not only include the CRTC 32% usage growth rate but also population
growth of the town, planned for 10 year period.
• An incumbent who lost bid to deploy in a town will not be keen
on offering its fibre at low price to a competitor. Incumbents can
rig backhaul rates to price any competitor out of bids.
• Rate regulation may be needed for ethernet links between towns
and the nearest point where competitive access to Internet transit
and a peering point are available.
• Convincing provincial governments to open their rural fibre to
commercial use would go a long way towards a solution.
SATELLITE• Satellites will always be behind the capacity curve,
always more expensive.
• Performance standards cannot match those of land base
Higher upload should be encouraged (Exede has 12 / 3 on
• Although necessary,, satellites are to be seen as solution of
• Goal is to move as many people from satellite to wireline to
free capacity for those who truly need satellite.
• Only a certain number of customers that can be served by
satellite without undue restrictions. Geographical standards
(community size, distance from road or fibre trunk etc) can be set
to limit who has priority to access the satellite so the total
number remains within the satellite’s limits.
• If , without gross oversubscription, satellite services are
not economically viable, then the government could consider buying
the service and running it at a loss.
• Government should consider subsidizing capacity on satellite
to match that of CBB rates (for non DTH applications) so local ISPs
can provide affordable services.
• RFP for full coverage of municipality.
• Partially served by one ISP. • Obligation to serve to force
ISP to deploy to cover full community. Self-fund and raise
rates if necessary.
• Partially served by two or more ISPs • Force all ISPs to bid.
Winning bidder must deploy using compliant standards to the
unserved homes. The costs are split amongst all bidders.
• In some very large municipalities, some outlying homes may
require fixed wireless or satellite service from a 3rd party.
Judgement will be needed.
LAST MILE SCENARIOS
• Technology/ies must be capable of serving everyone in
• Everyone must be able to get the speed standard (synch), No
“up to” speeds. Higher and lower speeds can be offered.
• There needs to be a maximum oversubscription ratio (hard to
set, but must be done) and operator must demonstrate its last mile
technology can be upgraded over time to handle growth in usage and
population. (node splits, more antennas, getting more spectrum
• The total cost over 10 years must be considered in evaluating
bids. A cheaper fixed wireless deployment that needs to be upgraded
after 5 years may turn out to be more expensive than an immediate
• Major goal: ensure any government funded deployment uses
• Stop paying to deploy technology that doesn’t even meet
current standard and has no future.
• Aspirational speed : 100mbps download 100mbps upload.
• Incentive to choose future-proof technology today.
• Proposals whose technology can scale to reach the aspirational
speed get advantage in bids compared to those whose technology will
not reach such speeds.
LAST MILE SPEEDS
LAST MILE SPEED TARGETS
• Funded deployments must meet “Served”, should meet
• Unserved gets priority funding but a town that comes with
project for “underserved” upgrade would be considered
• Allows existing ISPs to plan investments and technology so
their territory remains “served”.
Unserved Underserved Served
Now 5 / 1 8.1 / 1.1
Year A 5 / 1 8.1 / 1.1 24.1 / 3.6
Year B 8.1 / 1.1 24.1 / 3.6 50 / 10
Year C 24.1 / 3.6 50 / 10 60 / 30
Year D 50 / 10 60 / 30 100 / 100
WIRING THE NORTH
WIRING THE NORTH
• Every community moved to fibre reduces demand on scarce
satellite capacity, making it easier for unconnected communities to
get decent service.
• A build would take many years to achieve, considering short
build season. So work must begin soon before satellite capacity is
• Whapmagoostui to Iqaluit is roughly 2000km @ $40,000/km = $80
• Assert Canada’s sovereignty and serve the people of the north
properly once and for all.
• Redundant connections:• Mackenzie Valley Fibre• Possible fibre
to Churchill along tracks• Possible fibre to Moosonee along tracks•
Eeyoo Communications Network• North tip of Newfoundland.
• Possibly part of the Quintillion Network plan to link Japan to
• Commission needs to take the lead and begin by declaring that
Access to Broadband is a basic service. Let social agencies define
how much help is needed depending on location of person.
• Neither the Commission nor telcos or smaller operators have
access to information to validate whether a person qualifies for
• The Commission can team up with organizations such as
MediaSmarts to produce videos and educational materials available
to schools to provide digital literacy. Available on Youtube for
***END DU DOCUMENT***16
Primary goal is to get broadband to people’s homes with modern
technology that lowers the cost of doing so,
If incumbents are not interested, then others must be empowered,
including municipalities who have vested interest in
successful deployment. Incumbents must not be allowed to prevent