FCC’s Connect-2-Compete program a reminder of Canada’s lagging leadership

The U.S. Federal Communications Commission (FCC)’s new “Connect-2-Compete” broadband initiative to support access for low-income Americans is a clear reminder that changes and policy initiatives are also necessary in Canada, experts say. “The FCC suggests, in essence, a new definition is needed for Universal Service and suggests that billions of existing Universal Service funding be re-allocated to broadband to ensure the 100 million who don’t have access will get it,” Adrian Foster, a Canadian spectrum expert and partner with McLean Foster and Co. in Ottawa, told The Wire Report by email. In Canada, the government held a consultation on a national digital economy strategy in the summer of 2010, he noted, but a strategy has not yet been released. “It was pretty thin gruel,” Foster said. On Wednesday, the FCC announced a new partnership with the National Cable Telecommunications Association (NCTA) and other cable groups to work to bring low-cost computers and broadband service to low-income American families. In a release, the NCTA said the program will last three years and begin during the 2012-2013 school year across the United States. The initiative will allow American families who qualify for the U.S. National School Lunch Program (NSLP), and who do not already receive broadband service, to gain Internet access for $9.95 a month. The NCTA said it estimates there are more than 10 million students in the School Lunch Program in nearly 5.5 million homes that do not yet subscribe to broadband. In a release, the FCC said Redemtech Inc., a computer refurbishing company, will offer low-income families laptops or PCs for $150 with 90 days of phone tech support, one year of software tech support and a 90-day extendable warranty. The FCC added that, starting next year, Microsoft Inc. will also offer a series of affordable high-quality education computers starting at $250. The FCC said a first phase of the program will begin in the spring of 2012 but it will be expanded nationally by September of next year. Gregory Taylor, a communications expert and post-doctoral fellow at Ryerson University, said in an interview that the United States and the FCC should be applauded for the program. But the initiative is “just the newest example of the fact that Canada is falling behind,” he added. “This should be a wake up call that we need to do more.” Taylor said a Canadian national digital strategy is lacking, which is hampering low-income broadband initiatives from being rolled out. He also noted that the government hasn't released a strategy following the launch of its consultation a year-and-a-half ago. “It’s rather embarrassing for Canada,” he said. Taylor said a string of minority governments might have held back the strategy, noting that “it’s tough to do long-term planning.” But fault might also lie in an unflinching faith in market mechanisms, he suggested. Taylor said there is an expectation for the market to deliver on all aspects of digital policy when political initiatives and guidance are needed. “This terrific initiative from the FCC will not come from markets alone,” he said. “There needs to be some sort of government or political guidance for this ” John Lawford, counsel with the Public Interest Advocacy Centre (PIAC), said in an interview that Canada will fall further behind until the government revives a digital strategy. To get the country online, the government needs to start at the user end, Lawford said, and take policy advice from lower-income Canadians. “They to say, 'Yes, you do need to get us to the end of the line,'” Lawford said, “or they are going to do nothing and trust the companies to somehow magically give people broadband.” Taylor suggested the transition to digital broadcasting, which took place on Aug. 31, 2011, was a failure because the government did not provide enough structure, guidance, and resources for a full transition. “We’ve had an incomplete digital transition and it’s now hurting other areas of emerging digital infrastructure in Canada,” Taylor said. On Aug. 16, 2011—15 days before Canada’s digital transition deadline on Aug. 31—the CRTC announced that it would give the CBC permission to continue broadcasting analog, over-the-air television signals on 22 transmitters until Aug. 31, 2012, a year after the official deadline. The CBC said it could not afford to convert all of its transmitters in mandatory markets. Taylor said bridging the digital divide in Canada requires political effort and a vision from the regulator. “This is not something that markets will do on their own,” he said. “As long as Canada pursues a strict, market-based policy in this area, there will be a digital divide in Canada.” Lawford said Canada lacks a coordinated strategy, saying the current situation is “a nightmare.” He added that the U.S. has also shifted the focus of its Universal Service Fund. The fund, which cross-subsidizes telephone services, was recently moved to a broadband focus, Lawford noted. “Phones are everywhere now,” he said, “so now the problem is getting broadband to everybody.” In a Nov. 9 blog post, Mark H. Goldberg, a telecommunications consultant for Mark H. Goldberg and Associates, wrote that Canada can’t wait any longer for leadership from the government for a digital strategy. “Even if we had received a nice glossy book or a slick website, entitled ‘National Digital Strategy,’ let’s face it, we have a lousy track record implementing these kinds of things,” Goldberg wrote. The FCTA said the Connect-2-Compete initiative will provide U.S. users with download speeds of up to 1 Mbps or faster. dgrenier@thewirereport.ca

FCC’s Connect-2-Compete program a reminder of Canada’s lagging leadership

News | November 10, 2011

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