Liberals say use $500M from spectrum auctions for broadband

Although critics say broadband at speeds of 1.5 Mbps may not be ambitious enough, the federal Liberals say they would deliver it to the entire country within three years by investing $500 million in proceeds from upcoming spectrum auctions. “Using proceeds from the upcoming spectrum auction slated for 2012, a Liberal government will set a goal of 100 percent high-speed internet connectivity of at least 1.5 MB/sec for all Canadian communities within three years of being elected,” says the party platform, released Sunday. “This commitment will increase the availability of affordable line and wireless connectivity, and improve mobile phone coverage in rural areas.” Professor Michael Geist, the Canada research chair in Internet and e-commerce law at the University of Ottawa, said in a brief interview that the 1.5 Mbps speed commitment wasn’t ambitious enough, but he understands it to be starting point with a more ambitious goal to follow in 2020. The government is expected to hold spectrum auctions for wireless licensing rights as early as 2012 for the 2500 MHz and 700 MHz bands. The last spectrum auction in 2008 generated more than $4.25 billion in revenues for the government. Geist said the inclusion of foreign bidders in the next auctions could generate even more revenue. In a blog post Monday, Geist welcomed the use of spectrum funds to support the digital economy. “A commitment to use the spectrum revenues for purposes directly related to connectivity, culture, and the digital economy is an important step forward and helps ensure that new initiatives need not come out of tax revenues. It will be interesting to see if the Conservatives and NDP make a similar commitment,” he wrote. The Liberal platform’s "Digital Canada" component also promotes “a fair, effective" wholesale Internet framework that will “allow smaller Internet service providers to lease broadband infrastructure at fair prices”; digital training for seniors and low-income families; and Canadian content in digital media. “With continuing, rapid leaps in computing capacity, data storage and wireless innovation, digital technology and the Internet have the potential to invigorate our democracy, our economy, and our culture, putting the full power of information and action into citizens’ hands,” the platform says. The Liberals say they would address concerns about digital technologies’ impact on Canadian content by doubling the Canada Council for the Arts’ annual budget (from $180 million to $360 million) while providing the CBC/Radio-Canada with “stable and predictable funding in support of their unique and crucial roles.” “As news and entertainment choices proliferate, accelerated by new digital technologies, concerns have grown about the future of Canadian content in our major media and local news and programming,” the platform says. “In this fragmented media environment, public broadcasting is an essential promoter and defender of Canadian culture, in both French and English.” The platform also looks to “strengthen the Investment Canada Act to make foreign investment reviews more transparent, clarify how ‘net benefit’ is assessed, recognize the importance of Canadian headquarters and management control, and articulate when an asset can be considered of particular ‘strategic’ value to Canada.” The platform does not specifically mention foreign investment in the telecom sector. The Liberals also propose an Innovation and Productivity Tax Credit (IPTC), which would provide a 15 per cent tax credit for investment in startups, and say they would look to adopt online voting. news@thewirereport.ca

Liberals say use $500M from spectrum auctions for broadband

Broadcast | April 4, 2011

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