Centre for the North MAPPING THE LONG-TERM OPTIONS FOR CANADA’S NORTH Telecommunications and Broadband Connectivity. REPOrt AUGUST 2013 For the exclusive use of University of Saskatchewan. Mapping the Long-Term Options for Canada’s North: Telecommunications and Broadband Connectivity by Adam Fiser About The Conference Preface Board of Canada This report maps long-term options for Canada’s Northern connectivity landscape. In 2013, the immedi- We are: ate concern for Northern stakeholders—both Aboriginal The foremost independent, not-for-profit, applied and non-Aboriginal—is to develop critical connectivity research organization in Canada. infrastructure that is reliable, scalable, and supportive Objective and non-partisan. We do not lobby of locally affordable services. In going forward, careful for specific interests. attention must equally be paid to developing multi- Funded exclusively through the fees we charge stakeholder partnerships that will mature and endure for services to the private and public sectors. beyond immediate infrastructure concerns. Experts in running conferences but also at con- ducting, publishing, and disseminating research; The report first orients the reader by benchmarking helping people network; developing individual the high costs that residents pay for personal telecom- leadership skills; and building organizational munications and high-speed Internet services across capacity. Canada’s North. Sharp contrasts appear between Specialists in economic trends, as well Canada’s inhabited Arctic and boreal forest regions, as organizational performance and public particularly between satellite-dependent communities policy issues. and markets where fibre optic networks are available. Not a government department or agency, The report then explores two regional case studies that although we are often hired to provide foreground the disparate drivers and challenges shaping services for all levels of government. critical connectivity infrastructure in Canada’s inhabited Independent from, but affiliated with, The Arctic and boreal forest regions, and a third case study Conference Board, Inc. of New York, which examines the unique connectivity requirements of serves nearly 2,000 companies in 60 nations Canada’s growing presence and responsibilities in the and has offices in Brussels and Hong Kong. circumpolar North. It concludes with a series of lessons and recommendations to enhance Canada’s Northern ©2013 The Conference Board of Canada* connectivity landscape and improve the multi-stake- Published in Canada • All rights reserved holder partnerships it depends on. Agreement No. 40063028 *Incorporated as AERIC Inc. ®The Conference Board of Canada and the torch logo are registered trademarks of The Conference Board, Inc. Forecasts and research often involve numerous assumptions and data sources, and are subject to inherent risks and uncertainties. This information is not intended as specific investment, accounting, legal, or tax advice. © The Conference Board of Canada. All rights reserved. Please contact cboc.ca/ip with questions or concerns about the use of this material. Contents Executive Summary ................................................................. i Chapter 1—Introduction ............................................................. 1 Methodology ............................................................................... 4 Chapter 2—A National Connectivity Profile for Canada’s North............................... 7 Northern Canada’s Satellite Dependency ........................................................ 10 Northern Residential Access: Aboriginal Versus Non-Aboriginal Communities .......................... 12 The Socio-Economic Context Behind Northern Connectivity ........................................ 15 Chapter 3—Northern Connectivity Scenarios and Case Studies............................. 24 Scenario 1: Charlie the Inuit Artist and Producer Lives and Works in the Arctic ......................... 25 Scenario 2: Tim Is an Itinerant Mining Technologist in Canada’s “Ring of Fire” ......................... 26 Scenario 3: Sandy Is a Coast Guard Officer in the Circumpolar North ................................. 27 Canada’s Inhabited Arctic: A Closer Look at the Basis of Charlie’s World .............................. 28 Canada’s Boreal Forest Zone: A Closer Look at the Basis of Tim’s World ............................. 38 Circumpolar Uncertainty: A Closer look at Sandy’s World .......................................... 46 Chapter 4—Comparative Analysis of Lessons Learned .................................... 51 Next-Generation Networks in Canada’s North—Threats and Opportunities ............................. 52 Regulating Northern Telecommunications in an All-IP World ........................................ 57 Shared Infrastructure for Shared Services........................................................ 58 Varieties of Aboriginal Inclusion............................................................... 59 Governance ............................................................................... 60 Complementary Needs Shape the Northern Connectivity Landscape .................................. 61 High Costs Have Forced Trade-Offs Between Northern Needs ....................................... 61 Chapter 5—Final Observations and Recommendations ................................... 63 Recommendations .......................................................................... 67 Appendix A—Bibliography .......................................................... 69 For the exclusive use of University of Saskatchewan. Acknowledgements The author of this report would like to offer special thanks to Siomonn Pulla, Centre for the North Senior Researcher, for providing crucial editorial and moral support on this project. Special thanks also go to Judith Whitehead for her painstaking copy editing and arcane knowledge of Conference Board style. The author would like to acknowledge Conference Board staff for their valuable feedback and guidance—Anja Jeffrey and David Stewart-Patterson. Thanks to Brian Beaton, Louis Lavergne, Oana Spinu, and Rob McMahon for their advice and guidance on the subject of community ownership and control, and for openly sharing their expertise and passion for Northern connectivity issues. Thanks to Paul Flaherty and staff at NorthwesTel for providing careful and timely feedback. Also much gratitude to staff at CanNor, Eeyou Istchee, Government of Northwest Territories, Government of Nunavut, Government of Yukon, Kativik Regional Government, K’atl’odeeche First Nation, Keewaytinook Okimakanak, Nunavut Broadband Development Corporation, and SSi Micro for their kind assistance and agreeing to participate in the Centre for the North’s research. Many thanks to all the Roundtable members for funding this project and for providing ongoing input. And, finally, thanks to the anonymous research participants who shared their knowledge and experience in Northern connectivity issues, and for reviewing the report and providing valuable feedback. ABOUT THE CENTRE FOR THE NORTH The Centre for the North is a major research initiative of The Conference Board of Canada. The Centre brings Aboriginal leaders, businesses, governments, and community advocates together to identify challenges and opportunities, and to decide how those challenges can be met. Working with Northern stakeholders and some 50 roundtable members, the Centre delivers cutting-edge research and provides a vibrant forum for discussion on issues facing Canada’s North. Sustainable Prosperity Vision: Toward a shared vision of sustainable prosperity in Canada’s North. Governance and Policy-Making Mission: Through research and dialogue, develop new insights that strengthen the foundation for informed Transportation and Infrastructure decision-making. The Centre examines issues from a Northern perspective, Human Capital seeks to maximize Northern engagement, and prioritizes Northern interests. The Centre looks at issues and Healthy Populations oppor tunities across the North—a vast region that Cross-Cutting Themes includes the three Northern territories, as well as the Environmental Sustainability northern portions of seven provinces. Thriving Mapping Security and Communities Economic Sovereignty Potential To date, the Centre has published a number of founda - tional and issue-specific reports related to the underlying Foundational Themes themes of thriving communities, economic development, and security and sovereignty. The Centre’s research agenda is based on a strategic interdisciplinary framework, as illustrated in the exhibit “Sustainable Prosperity.” © The Conference Board of Canada. All rights reserved. Please contact cboc.ca/ip with questions or concerns about the use of this material. Acknowledgements CENTRE FOR THE NORTH MEMBERS The Conference Board of Canada is grateful to the investors and roundtable members of the Centre for the North that, through their membership, support the Centre’s research program: Aboriginal Affairs and Northern Development Canada Government of Saskatchewan Agnico-Eagle Mines Limited Saskatchewan Ministry of the Economy Arctic Co-operatives Limited Government of the Northwest Territories Assembly of First Nations Aboriginal Affairs and Intergovernmental Relations Bell Canada Government of Yukon BHP Billiton Canada Inc. Yukon Economic Development BMO Financial Group Health Canada Canada Mortgage and Housing Corporation Human Resources and Skills Development Canada Canadian Institutes