Triple-win available through broadband investment: Researcher

John Curran | Jan 06, 2021

Many Canadians who live, work or regularly spend time in cottage country still don’t have sufficient access to fast, reliable internet service, according to University of Guelph researcher Dr. Helen Hambly.

With more Canadians fleeing the cities for rural properties this year due to the flexibility and outright requirement for many to work remotely, the complete inadequacy of Canada’s rural and remote broadband network has been laid bare for all to see.

That was the opening sentiment during the Federation of Ontario Cottager Associations’ (FOCA) fall webinar during the talk delivered by Dr. Helen Hambly, a University of Guelph researcher and leader of Canada’s oldest and ongoing broadband research effort, the Regional and Rural Broadband Project, or simply R2B2 as it is known in academic circles.

“The COVID-19 experience has made that need for access come home,” she told participants in the Nov. 21, online event. “Life and livelihoods are changing.”

In particular, she highlighted two critical demographics whose need for reliable broadband skyrocketed as a result of the pandemic.

“The needs of youth and seniors,” have changed significantly almost overnight, she explained. “Their need to access education and healthcare professionals online,” resulting from sweeping public shutdowns makes the demand for change imperative.

She explained there is really a triple-win available for regions, like Eastern Ontario, that look to invest in enhanced rural and remote broadband. She highlighted R2B2 research that showed the positive impact high-speed internet availability typically has on property values.

“It varies by location, but in Halton County property values went up an average of $16,000,” she said. “In Durham County it was more like $18,000.”

In an economic study specific to Eastern Ontario, Dr. Reza Rajabiun has modelled a three per cent jump in median property values, or roughly $7,500 per home, if the region had widely available broadband.

Faster internet would also facilitate greater ongoing adoption of telecommuting practises among employers, which can help green the economy, Hambly added.

This is a point well illustrated in the Policy Brief prepared in October of this year for the Eastern Ontario Wardens’ Caucus (EOWC) and the Eastern Ontario Regional Network (EORN) titled “Economic Benefits of Investing in Basic vs. Gigabit Broadband Infrastructure in Rural Eastern Ontario.” In it, the authors estimate for every worker making the shift to telecommuting, it translates to a CO2 emission reduction of 2,450 kg per year. Based on a mid-range estimate projecting Eastern Ontario could expect to be home to some 50,000 telecommuters if and when broadband enhancements are made, the result would be a combined CO2 reduction of 380,000,000 kg annually.

EORN is proposing to deliver ultra-fast internet speeds through its “Gig Project” to homes and businesses in the region. Its website claims, “This would be a game-changer for Eastern Ontario to attract and retain businesses and residents, and to compete globally over the long term.” 

“Gig” refers to an internet speed of 1,000 Mbps or 1 Gbps (gigabit per second). It provides seamless, reliable connectivity needed for business, healthcare, education, and other services. Gig speed is also needed for smart technologies that depend on reliable, continuous high-speed connectivity for real-time data sharing.

“Moving forward we’ll have to have faster speeds just with all of the digital integration in our lives,” said Hambly. “Tomorrow’s speeds are already available in Toronto, like one Gig upload and download, but they can be expensive.”

Delivering Gig service generally involves a fibre optic or cable connection to the home or business, explains EORN, adding that addressing the issue now with a comprehensive Gig solution will ensure that rural communities have the connectivity needed to recover from the pandemic and compete globally for decades to come.

“Not only is there a money in your pocket benefit from someone working from home, there is also an environmental benefit,” said Hambly.

Hambly additionally pointed to economic development as far and away the biggest driver making the case for enhanced rural broadband service. She is again backed up by the EORN Policy Brief, which makes the case that over the initial five- to 10-year start-up period there would be massive gains in both economic activity and resulting taxation.

“Based on mid-range generic infrastructure spending estimates in Ontario, we can estimate that the EORN Gig project will lead to an increase in GDP of $2.4 billion over the medium to longer term as it generates additional private investment and positive externalities/efficiency gains start to translate into measurable GDP growth,” it states. “Expected government revenue from this can add up to around $800 million under mid-range assumption and just under $2 billion in the optimistic case (i.e. high diffusion, high take up and use case).”

Also addressing the FOCA webinar was Maryam Monsef, federal minister for Rural Economic Development, who spoke to the federal government’s perspective on broadband and its investment plan going forward.

“European studies show a 32 to 33 per cent rise in GDP when broadband becomes available,” the minister told the largely rural crowd of online participants. “If I had to hypothesize, I would say that our dollars are going to have an even bigger impact.”

The dollars she was referring to are related to Ottawa’s $1.75 billion Universal Broadband Fund, which has been designated by the feds to enable infrastructure projects that will bring high-speed internet of 50 Mbps download and 10 Mbps upload (50/10) rates to most rural and remote Canadians. The larger pot includes up to $750 million for those defined as having a large impact, up to $50 million to support mobile projects primarily benefiting Indigenous communities, and up to $150 million for a rapid response stream aimed at shovel-ready initiatives.

On Nov. 4, Ontario’s provincial government also raised the ante on its own level of IT investment, more than doubling down on its previously announced $315-million commitment to support “Up to Speed: Ontario's Broadband and Cellular Action Plan,” with what it termed an “historic investment” of an additional $680 million. Ontario’s total plan now includes nearly $1 billion over six years to improve and expand broadband and cellular access across the province. Joining FOCA to speak to the initiative was provincial Infrastructure Minister Laurie Scott.

“Our goal is to connect more people and more communities as quickly as possible,” she said. “It’s a time for innovation.”

To put the total federal and Ontario government monetary commitments into perspective in terms of potential reach, the EOWC/EORN Policy Brief estimates that the basic option of achieving 50/10 service to 95 per cent of households, businesses and residents in Eastern Ontario alone would cost about $700 million, while achieving the higher standards of the Gig model with the same penetration rate would require an investment of up to $1.6 billion.