Increasing digital adoption

One of the most important messages I heard at The Canadian Telecom Summit last week was the need to change our national focus on the digital economy from supply to demand.

By Canada’s sesquicentennial in 2017, every Canadian will have access to 25 megabit per second broadband at a price point comparable to offers that are in our urban centres today. Almost all Canadians will have access to speeds in excess of that. What that means, is that the 5 Mbps objective set out in the Digital Canada 150 strategy papers can now be seen as a minimum target for entry level broadband. Many Canadians will choose speeds far in excess of the 5 Mbps minimum, but a wide range of speeds (from 5Mbps through gigabit rates) needs to be an important component of our strategy. Choice helps drive digital adoption. Choice of service providers, choice in services: both are indicators of competition, lead to increased investment and better customer service.

The challenge for policy leaders is in developing a better understanding of the factors that keep nearly one in five Canadian households from subscribing to a broadband service. As I said in my opening remarks last week, we have historically had government programs that spent money based on where people lived, without considering the individual financial needs.

Too many low income households are without computers. I have been especially concerned about what FCC Commissioner Rosenworcel calls the Homework Gap – the inability of kids to complete their classroom requirements because they don’t have adequate tools at home. That ends up holding our educational efforts back for all of our kids.

We need to find ways to increase adoption among all Canadians, young and old, urban and rural, across the full economic spectrum.

My opening remarks included 5 points that should be part of campaign platforms going into the election this fall. Each of those points calls for increased adoption: increasing digital literacy and connectivity in low income households; eliminating the Homework Gap; increase ICT adoption in business; increase digital delivery of government services; increase consumer confidence in digital security and privacy.

Our focus needs to turn to driving increased adoption, moving faster to 100% of households online, engaging with each other, with businesses and with government, especially in improving the quality and efficiency of health care delivery.

As Canada approaches its 150th birthday, targeting 100% adoption should be the main objective for our digital strategy. Driving demand will help ensure investment continues on the supply side and improve the efficiency of delivery of government services.

My vision for Digital Canada 150 is getting to one hundred percent digital adoption: 100% for 150.

What do you think?

Day 3 coverage of #CTS15

Here are links to some of the stories that came out of day 3 (June 3) at The 2015 Canadian Telecom Summit:

I’ll update as more articles appear online.

Day 2 coverage of #CTS15

Here are links to some of the stories that came out of day 2 (June 2) at The 2015 Canadian Telecom Summit:

Day 1 coverage of #CTS15

Here are links to some of the stories that came out of day 1 (June 1) at The 2015 Canadian Telecom Summit:

Opening remarks from The 2015 Canadian Telecom Summit

In case you weren’t there (or you were there but wanted to see what we said), the following were the opening remarks delivered by my co-chair, Michael Sone, and me at The 2015 Canadian Telecom Summit.

GST Conferences was created to produce our inaugural conference in 2002, “Celebrating 10 Years of Long Distance Competition in Canada.”

Twenty three years of competitive telecommunications and today’s landscape of services, of providers, of modalities of communication looks nothing like it did in 1992. A generation of Canadians has no idea what it was like gathering around the phone on Sundays to place long distance calls to out of town grandparents or other relatives, because long distance calls could cost an hour’s pay for each minute on the phone.

In fact, in many ways, with wireless still an expensive novelty and Internet usage in its infancy, telecom of the early-‘90s had more in common with the analogue environment of 1950s and ‘60s than it does with the all-digital, hyper-connected, socially-networked world of 2015. The Internet of Everything is the reality that cuts across and impacts, well, everything. And we’ll hear all about that this week.

Each year, we observe that wireless services flourish with new gadgets and a never-ending stream of new apps and services raising connectivity and instantaneous communication to new heights.

Each year we continue to increase our consumption of bits, of radio spectrum, of fiber capacity.

This trend continues to raise substantive policy issues as service providers – new entrant and incumbent alike – try to stay ahead of demand and seek to invest in newer, faster, higher capacity technologies.

Among the subjects we will examine over the next 3 days is creating the right policy framework to attract and incent continued investment in Canadian telecommunications.

On both sides of the river, our regulator and policy makers in Ottawa and Gatineau continue to disappoint many of us by failing to provide the leadership needed to guide the development of Canada’s digital economy. Neither the CRTC Chair, nor the Minister of Industry have stepped up to seriously address the challenge of getting low income Canadians online. It is perhaps the most glaring omission from Canada’s so-called digital strategy.

I will repeat what I said last year: “Kids need computers at home to do homework.”

Six weeks ago, south of the border, FCC Commissioner Jessica Rosenworcel wrote:

Students who lack broadband access at home are unable to complete basic schoolwork. They have trouble keeping up in the classroom. More than that, they are holding our educational efforts back.

The homework gap is the cruelest part of the digital divide. But we can take steps now to tackle it — steps that will help students get their schoolwork done, help expand access to the Internet, and help grow our digital economy.

Canada’s Digital Strategy, follows the politically attractive path that continues (and expands) the subsidy systems based on geography. Hundreds of millions of dollars have flowed to subsidize rural and remote regions without regard to the actual financial needs of consumers.

In the most recent example, a couple of weeks ago, Industry Canada announced that it has exceeded its initial target of connecting 280,000 rural, remote and northern households at minimum speeds of 5 Mbps by more than 75,000, and said that “most” other projects will be done within the next two years – in time for Canada’s Sesquicentennial in 2017.

The minister said, over 98 percent of Canadian households will be able to subscribe to new or improved high-speed Internet services by that time.

While we applaud programs aimed at increased connectedness to everyone, even if this latest objective is met, we wonder if the speeds offered will be sufficient for many of today’s common online tasks. The service providers will only deploy where there is a good business case for doing so and, therefore, universal broadband depends on creative approaches – whether financial or technical – for delivering a positive return. And second, most of Canada’s digitally challenged citizens are in the urban areas.

Low income Canadians, who tend to be concentrated in urban areas across the country, have no programs to help them pay for service. Prices that may seem affordable to most Canadians, are out of reach for those who are living from week-to-week, let alone month-to-month. All of us may complain about the price of service – who wouldn’t like lower bills for everything – but more than 80% of us have computers at home connected to the internet. As I have written many times, there are too many low income households that don’t even have a computer, let alone a broadband connection.

Isador Rabi, the 1944 Nobel Prize winner in Physics credited his mother for making him a scientist. Each day, instead of asking him what he learned in school, she asked him if he asked a good question today. In its Basic Service public notice, I am concerned that the CRTC didn’t ask the right questions. Questions were based on “where” the CRTC should act, pointing to a pre-disposition to continue the patronizing but politically expedient rural subsidy regime. We should first be asking “who”. Who doesn’t subscribe? And then move on to “why”.

Canada needs to make changes to its approach if we want to bridge the gap between those who can and those who cannot afford to participate in a digital economy.

We will be heading into an election this fall. To what extent will digital issues play a part in party platforms?

What should we be looking for to drive a greater degree of digital inclusiveness for all Canadians, young and old, urban and rural, regardless of their economic station?

  • We need programs that increase digital literacy and promote connectivity for economically disadvantaged Canadians.
  • We need to set a goal of having a connected computer in every home with a school aged child. Every household with school aged children needs to be digitally connected. We need to eliminate the Homework Gap.
  • We need to drive increased adoption of Information and Communications Technology in business
  • We need to improve ICT adoption in all dealings with government, and government funded agencies, especially in improving the quality and efficiency of health care delivery.
  • We need our customers to be confident that they can engage online securely and with their privacy safeguarded.

Let’s see if Digital Canada 150 can be more than a slogan in the October election.

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