Canada’s telecom regulator has started initiatives to figure out how to dole out its new $750-million fund for broadband Internet in underserved areas
The Canadian Radio-television and Telecommunications Commission (CRTC) launched a consultation Tuesday to establish a broadband funding regime that will eventually replace its legacy telephone subsidy system, which is being phased out to accommodate spending on broadband in rural and remote places.
The fund was first announced in December when the CRTC declared broadband Internet a basic service and set ambitious target speeds across the country. While the announcement marked the transition of funding to broadband, it didn’t spell out exactly what projects might qualify for the money, who could apply or how it would be allocated.
The consultation will hammer out specific details for the funding regime, including governance, operating and accountability frameworks, eligibility and assessment criteria for proposed projects.
As it stands, local phone subsidies are distributed monthly on a fairly steady basis. Broadband funding, however, will likely require larger lump sum payments to reach project milestones. The commission must also determine which geographic areas are eligible for funding.
Interested parties have until the end of June to get involved in the consultation process, but final submissions aren’t expected until the end of November.
It’s not clear when the fund will be ready to distribute cash. The CRTC said it intended to distribute $750 million over five years, with $100 million dispensed in the first year and the amount increasing by $25 million annually to up to $200 million.
