Universal Broadband Fund will not be renewed as Canada approaches connectivity goal: industry source

Ottawa will not renew its multi-billion dollar funding program designed to connect every household to high-speed internet by 2030, according to an industry source, who said the Liberal government will rely on satellite offerings to close Canada’s digital divide. Launched in 2020, the Universal Broadband Fund (UBF) is backed by a $3.225 billion envelope used to support projects that bring fibre or fixed wireless internet access to rural and remote communities. In recent months, Innovation, Science and Economic Development Canada (ISED) has announced nearly $400 million in investments to bring 50/10 internet speeds, meaning download and upload speeds of 50 and 10 megabits per second, respectively, to more than 100,000 households across Alberta, New Brunswick, Nunavut and the Northwest Territories. The most recent federal data shows 96.3 per cent of Canadian homes had access to high-speed internet as of November, though the government has said it remains on schedule to reach total connectivity by the end of the decade. However, large swaths of Newfoundland and Labrador, the northern Prairies, the territories, as well as other regions, remain unconnected. With the UBF fund set to expire on March 31, 2029, and sources telling The Wire Report it will not be renewed, it remains unclear how the government will help bring internet access to the country’s most remote areas. “There will be… no money in the budget to fund an expansion of the program or another call for proposals,” said an industry veteran who was granted anonymity in order to speak freely. “It’s a bit premature because there are areas in the country that still have relatively significant connectivity gaps.” “These areas also have very few people, so there's decreasing utility or value for money.” Prime Minister Mark Carney’s (Nepean, Ont.) first budget, released in November, contained no mention of the UBF. Meanwhile, most private efforts to bring connectivity in rural areas from companies like BCE Inc.-owned Northwestel or Rogers Communications Inc. have involved a level of federal backing. The source, who has worked closely with ISED, said government officials are planning to enlist low-earth orbit (LEO) satellite offerings to connect the remaining households, leaving many communities without fibre or fixed wireless infrastructure. “The plan has always been that, at some point…, declares that LEO satellites will be the de facto solution for any areas remaining, and they believe with that, they will have met the commitment ,” they said. Satellite providers have become increasingly popular in remote parts of Canada, with Starlink, operated by the U.S.-based Space Exploration Technologies Inc., reporting hundreds of thousands of subscribers north of the border and more than $400 million in annual Canadian revenues. Amazon.com Inc. and Canada’s Telesat Corp. are also developing LEO services that are expected to come online in the near future. Despite the burgeoning LEO market, fixed wireless and fibre-based broadband are generally able to offer higher speeds and lower latency, leaving questions regarding whether Canada will truly achieve its connectivity goals if certain regions are dependent on satellite. “At a certain level, I think you can justify ,” said the source. “There are definite use cases…, but it’s not a substitute for either fixed wireless or fibre.” “I don’t care what Starlink says, it does not perform at the same level.” Secretary of state for rural development Buckley Belanger, who has led the government’s rollout of announcements under the program, said that "some UBF projects which are bringing high-speed Internet access to Canada's most remote communities will be leveraging satellite technologies." "The deployment of multiple technologies, including satellite, was planned for since the launch of the Government's connectivity strategy," Belanger said in a statement to The Wire Report. "The work of closing that last mile will take time and it requires real partnership with provinces, territories, Indigenous partners, Internet service providers, and local communities, but our government is confident that we are going to get Canada to 100% high-speed internet coverage by 2030." Belanger also teased that additional UBF announcements are expected in the "coming weeks and months." Meanwhile, ISED did not immediately respond to a request for comment. However, during an appearance before the House industry committee on May 25, ISED associate deputy minister Mark Schaan was asked about the UBF and said Ottawa is “routinely assessing” how to achieve its connectivity target. “Our current assessment continues to be that we are on track and that our investments are continuing to provide that very meaningful and very important connectivity for a whole host of communities,” Schaan told MPs. “ it will come through a diversity of approaches in a number of these places, and we need to be very sensitive to the notion of what’s going to work in terms of connectivity.” Schaan did not explicitly reference LEO technology, but emphasized the government will adopt a “regional and place-based approach” to bring high-speed internet to all Canadian homes by 2030. The CRTC’s Broadband Fund, as well as the First Nations Infrastructure Fund administered by Indigenous Services Canada, are also available to finance connectivity projects across the country. dlegree@thewirereport.ca

Universal Broadband Fund will not be renewed as Canada approaches connectivity goal: industry source

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By Davis Legree
|May 27, 2026

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