BROADBAND & CONNECTIVITY IN BRITISH COLUMBIA (2023)

Issue

Rural and remote communities in British Columbia are impacted by a lack of connectivity both from a broadband and a cellular perspective. The COVID-19 pandemic exposed this significant crack in our economic foundation. At the height of the crisis, many businesses scrambled to move their operations online to stay open. Enabling online business – whether it’s employees working from home or setting up online sales cap – was a key strategy for business resiliency, but rural and remote communities throughout B.C. faced the added barrier of not having access to reliable broadband infrastructure and connectivity.

Background

Reliable broadband infrastructure, internet and cellular connectivity is the bedrock of ongoing and future economic development and there is clearly a divide within B.C. when it comes to accessing these services in rural B.C.[1]

A 2019 Union of BC Municipalities (UBCM) policy scratched at the surface as to extent of the problem facing rural and remote communities when they noted “nearly 40 per cent of rural residents in North-Central B.C. do not have access to broadband internet service.”[2] Cellular services do not exist in most rural and remote areas costing British Columbians to face unique challenges and unequitable costs.

The Northern Development Initiative Trust NDIT (NDIT) released their 2019 B.C. Connectivity Report[3] which states: “To prevent the digital divide from widening further, it is imperative that rural communities are adequately positioned and enabled (by way of infrastructure investments and digital literacy capacity building) in order to keep pace with imminent, exponential changes on the horizon brought on by connectivity. The time is now for rural communities to leverage broadband-enabled opportunities to bring greater economic diversity, resiliency, and prosperity to their communities”

The Canadian Radio and Telecommunications Commission (CRTC) declared back on December 21, 2016 “that broadband internet access is a basic service.” The provincial government in response to a UBCM resolution said “The Province recognizes the importance of cellular connectivity along provincial highways and in rural communities, especially for public safety and the role it plays in economic development and tourism.” it is crucial that we get equitable and affordable connectivity to rural British Columbia. 

Business, local government, the NDIT, the CRTC and provincial government all recognize the absolute importance of broadband and connectivity to rural and remote communities to sustain and grow their local and regional economies – which in turn grows our provincial economy. Now it is time to set a realistic, achievable timeframe to get affordable broadband into rural and remote B.C.

As we now move towards the recovery phase from COVID-19 pandemic, the provincial government has an opportunity to focus on efforts that can drive economic growth. As governments did 2008 and 2009 following the Great Recession, the provincial government should prioritize shovel ready projects that enhance communities’ ability to better grow and sustain their regional economies and access new markets. These infrastructure projects will enhance economies on our Road to Recovery and there is very few projects than investing in broadband infrastructure that will deliver further economic opportunities within rural B.C.

Of course, cost remains a challenge when it comes to accessing broadband service whether it is a small business owner, or their employee wanting high-speed connectivity at home. As an example of the cost in northern B.C., a Chetwynd resident living outside of the town limits will have a landline (approx. $100), a cell that only works in town (approx. $100) ad satellite service for internet (approx. $200). That is $400 monthly, not including overages. For someone living in a major urban centre, they would pay a fraction of this amount. A tourism business in rural B.C. pays either increased rates or must access satellite services. As a comparison, a hotel on the Alaska Highway in northern B.C. currently pays $2399 per month while a hotel in town only pays $1119 per month for the same broadband access. Even within rural B.C. communities, there is a wide difference in cost, which means for the business operator that is less money to invest back into their business or for the resident who has less disposable income available to spend in town.

The lack of progress of broadband connectivity in rural communities and the high cost of service need to addressed quickly, whether it’s rural communities coming together as a region to leverage better rates[4] or some other funding model that gets broadband built in rural and remote communities and keeps the service affordable for residents and business alike

Broadband and cellular services should be considered essential utilities. The COVID-19 crisis has enhanced the need for broadband and cellular availability in rural B.C. and has clearly demonstrated the gaps and issues brought about by a lack of access to equitable and affordable service. 

THE CHAMBER RECOMMENDS

That the Provincial Government:

1. Accelerate the timetable for delivering affordable broadband service in rural areas of British Columbia;
2. Prioritize shovel-ready, last-mile projects in rural and remote areas that will improve broadband and cell service for existing residents and provide affordable broadband options to rural residents who don’t already have it;
3. Reduce the requirement for matching federal dollars on provincially funded projects (including pilot projects), where appropriate, to create a made-in-B.C. solution; and
4. Work with stakeholders to develop funding models that ensure rural and remote communities are not forced to enter into cost prohibitive ISP agreements.