Wireless technology big winner in latest Ontario broadband funding announcements

In a province rocked by the financial downturn, the Ontario government is injecting millions of dollars into wireless broadband infrastructure to enhance rural connectivity. According to funding recipients and a government spokesperson, the money could have an important impact on Ontario’s economy. “It certainly presents itself as not an alternative, but a viable industry in its own right, able to generate wealth and jobs,” says Dino Radocchia, manager of the rural investments unit, rural community development branch, Ontario Ministry of Food, Agriculture and Rural Affairs (OMAFRA). “Whether manufacturing companies will be able to make the shift, I think that’s something that governments are looking into and finding ways to help.” Ontario’s once-strong manufacturing sector has taken a beating since the global economic crisis began in late-2008. This May, the province lost 60,000 jobs, mostly in the manufacturing and construction sectors, according to Statistics Canada. “While Ontario accounts for 39% of the total working-age population, it has experienced 64% of overall employment losses since the start of the labour market downturn,” reads Stats Can’s June release from the national Labour Force Survey. But last month the Ontario government released a flurry of rural broadband announcements. Through OMAFRA’s Rural Connections Broadband Program, 14 communities across the southern part of the province received anywhere from about $330,000 to $1 million, totalling $10.1 million. (For the complete list of fund recipients, see “Ontario fund winners” below.) This is the third wave of broadband projects since 2007. In total the province has spent more than $27.4 million on 47 projects to build broadband infrastructure in rural communities. “It empowers local businesses and individuals to connect to the local and global economy,” Radocchia says. “As a social tool, it helps strengthen the fabric of the local community.” Peter Wagland is the chief administration officer of Lanark County, comprising eight municipalities in the south-eastern part of the province. The community received $631,658 for its broadband project. Lanark has many small home-based businesses that would use the web to expand their customer bases and services. “You can’t be competitive if you can’t communicate,” Wagland says. Lanark won funding from an earlier round of broadband investment from the province. The county used the money to partner with local ISP Storm Internet to develop a wireless high-speed network connecting one part of the region. The new funding lets Lanark extend the network across the entire area. “We want to pick up where we left off and finish the job,” Wagland says. Wireless is the technology of choice for Lanark. “Price, cost – no comparison,” between wired and wireless infrastructure, Wagland says. “The wireless providers said, ‘We can do two-thirds of the county for the cost.’ The wired companies said they could do 5 km.” Radocchia from OMAFRA says the province hasn’t stipulated that communities have to use one kind of technology or another. “It’s all based on what’s most suitable for that local environment, whether that’s wireless or DSL or cellular connectivity, or fibre.” But the Ontario government certainly seems interested in wireless technology. Under the Ministry of Economic Development’s Advanced Manufacturing Investment Strategy (AMIS), the province has loaned Markham, Ont.-based Redline Communications Inc. $10 million for continued wireless infrastructure development. “We talked about the fact that Redline is somewhat unique in the Ontario government manufacturing and knowledge-development area,” says Kevin Suitor, Redline’s VP of corporate marketing, explaining how his company won the loan. “We’ve really for the last 10 years developed a centre of excellence for 4G wireless technologies.” Although a manufacturer, Redline might not be as vulnerable as automakers and other manufacturers in this economy, Suitor says. He sees the Ontario government working to support manufacturers involved in new markets and industries. “If you take a look at the broader context, and look at the value of companies that still build product as opposed to being in the services industry, providing support to the manufacturing sector and our sector makes a heck of a lot of sense. These are well-paying jobs that tend not to have huge pensions and things of that nature.” Redline plans to use the loan to support its ongoing product development efforts, which seem to be bearing fruit in under-served markets. The company has seen success selling into Africa, South America, and the Middle East, while the U.S. and European markets have become “a challenge,” Suitor says. “I think the macabre joke in the industry is, ‘Flat is the new up.’ If you can maintain your revenues in a recession, you’re doing relatively well, because you’re probably gaining market share.” He added that the Canadian market for wireless broadband infrastructure remains relatively strong as well. Still, the real action is happening south of the border, where federal stimulus money for U.S. rural connectivity projects has been set aside – but the rules of engagement remain unclear. Will Canadian wireless product providers be able to bid on those projects as per NAFTA rules, or will state- and municipal-level “buy American” stipulations get in the way? “That’s something we should all be watching closely,” Suitor says. Ontario fund winners Oxford County: $988,333 Prescott and Russell Counties: $898,610 North Frontenac Township: $334,887 Lanark County: $631,658 Dufferin County: $597,397 Wellington County: $1 million Bruce County: $1 million Stormont, Dundas and Glengarry Counties: $521,458 Lennox and Addington County: $621,793 Laurentian Valley Township and the Town of Petawawa: $700,908 Renfrew County: $329,106 Norfolk County: $1 million Essex County: $1 million Hastings County: $452,000 Stefan Dubowski is a freelance writer in Ottawa. You can reach him via sdubowski@rogers.com.

Wireless technology big winner in latest Ontario broadband funding announcements

News | July 2, 2009

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