Nation moving on right path for fibre access, international report finds

Canada is the second-most connected nation when it comes to broadband access, according to a new study by the Organization of Economic Cooperation and Development. The Paris-based group looked at the levels of DSL and cable penetration in 30 countries. Only the Republic of Korea rated higher than Canada. Like the majority of nations surveyed, Canada has a greater percentage of cable access than DSL. Last year, nearly one million Canadians used cable modems to access the Internet, for a rate of 3.01 per 100 inhabitants. DSL accounted for 465,600 subscribers, a rate of 1.53 per 100 inhabitants. "A key ingredient in Canada’s rapid development of broadband services is competition between different networks owned by independent actors," the OECD writes. "Canada was also one of the first countries to introduce unbundling for telecommunication networks and open access for cable networks." The study says DSL services were available to 69 per cent of Canadian households at the end of last year. It is projected to jump to 78 per cent by 2004. Cable modem access, which stood at 60 per cent of households in 2000, is likewise expected to increase. It is predicted that by 2004 fixed wireless will be available to 60 per cent of the market, while satellites will have universal coverage. The report also heralds the federal government’s commitment to rolling out broadband throughout the country by 2004. However, recent media reports have suggested the government will not commit money in the Dec. 10 federal budget to broadband, and Industry minister Brian Tobin has hinted that the 2004 deadline may not be met. Indeed, Tobin has been attempting to lower the industry’s expectations on a broadband initiative in recent weeks as the government looks to beef up national security in the wake of the Sept. 11 terrorist attacks (NL Update, Oct. 29/01). A national broadband initiative ties in well with the increased appetite for DSL and cable modems among subscribers noted in the OECD study. Sixteen of the 30 countries profiled in the study showed a preference for cable over DSL. Eight had DSL in ascendancy, while another five had no broadband penetration at all in the years surveyed. Finland was evenly divided, with 15,000 residents using DSL and another 15,000 on cable. The report promotes competition as vital for the growth of Internet access. "Policies such as unbundling local loops and line sharing are key regulatory tools available to create the right incentives for new investment in broadband access," the study states. "The evidence indicates that opening access networks, and network elements, to competitive forces increases investment and the pace of development."

Nation moving on right path for fibre access, international report finds

News | 12/05/2001 5:00 am EST

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