What is It?
Access to reliable and affordable high speed internet service has been a longstanding problem in many areas of Township. In 2018, Council decided to take the lead and see if the Township could build a network to address unserved and underserved areas. Broadband will support remote working and learning, economic development and foster thriving community. The COVID-19 pandemic has made us all very aware of the need to reliable high speed internet.
What will the Network look like?
With Council’s approval, the Township retained Telecon Design to complete a high-level network design and costing. The goal is to have a network that meets or exceeds the CRTC objective of internet services at speeds up to 50 Mbps for downloads and 10 Mbps for uploads. However, the network must also be scalable to grow and offer faster speeds and services in the future. The network would be based on fibre optic cable being run throughout the Township. Wherever possible, the cable would be installed on existing telephone or hydro poles. In some areas, we may need to build a tower to reach certain areas. Due to the high cost of marine construction, cable would not be run to any islands in the Township.
Telecon’s work showed that cost to build the network in the Township was higher than in other areas, due to the size and geography of the Township as well as how spread out we all live from one another outside the villages. Telecon concluded that, for those reasons, the Township does not fit within the profitability models of the large internet providers such as Bell Canada and Rogers. In other words, the Township could be waiting a long time for a big firm to make high speed internet widely available to the Township.
Is the Township going into the internet business?
No. We have issued a Request for Proposals (RFP) seeking partners who will finalize the design, build, install operate and manage the network. The plan is that the Township will create a subsidiary company, called a “utility”, that will own a certain percentage of the broadband network. It is likely that a partner may own a portion of the network. The percentage of ownership will be negotiated based on how much the partner will contribute to the costs of the design, construction and fit out of the network. The intention is that the Township’s utility will have no employees or provide any services – it will simply be the owner of the Township’s share of the network and receive payments for permitting the partners to offer services through the network.
By having the Township contributing to the cost to build the network (more on that below) it lowers the overall upfront costs to internet service providers to do business in the Township and now fits within their profitability models.
How will the network be funded?
It is expensive to build and operate network and the Township cannot go it alone. As mentioned, the Township is also expecting that the partner(s) will also be contributing to the cost of the network. The Township is also pursuing grant applications through the Universal Broadband Fund (UBF) (a federal program) for submission as part of program funding intakes through 2021. The Township has also applied for a grant through the Improving Connectivity for Ontario Program (ICON) (provincial). The Township's Stage 1 ICON application was approved and there is a Stage 2 application deadline in the Fall. The Stage 2 phase is the point that the province decides whether a project will receive funding or not.
Depending on the amounts of grants and the cost of construction, the Township will also be contributing to the cost. The initial projection was $3 million but it is expected that the actual amount of the Township’s share will be lower as construction costs are better determined. The final amount of the Township’s contribution to the network will be subject to Council’s approval.
Are there other internet providers applying for grants?
There are. The Township received requests from Bell Canada and Lansdowne Telephone to support their respective grant applications for broadband projects in the Township. Council passed a resolution that letters be provided to both firms indicating that it supports all initiatives that will improve access to broadband services for the residents and businesses within the Township.
There is a condition to federal and provincial funding that grants not be used in areas that already have broadband service. Should Bell and Lansdowne Telephone be approved for their projects, the Township will adjust its network coverage and funding request so we do not overlap the other projects. It is also possible that Bell and Lansdowne Telephone submit proposals in response to the RFP and become partners in the Township’s project.
What happens next?
The next few months will be crucial to advancing the project to deploy broadband services in the Township.
Once the RFP for partners closes, staff will evaluate the proposals received and bring its recommendation to Council to commence negotiations with prospective partners on partnership agreements. Upon the conclusion of negotiations, staff will seek Council’s approval to enter into one or more partnership agreements.
Once the partnership agreements are in place, staff will finalize funding applications for submission to the UBF and ICON programs. If we cannot secure provincial and federal funding, we will have to review other options for funding for Council’s review.
If the Township is successful in securing a partner(s) and funding, the work will start with the partner(s) on finalizing the network design and the construction timetable.
Where can I find background information?
August 11, 2020, the Broadband Design Study completed by Telecon Design was presented to Council see Council Presentation . Council also received report PL-028-20 which provided an overview of the study and the recommendations of the report as well as information regarding the Improving Connectivity for Ontario (ICON) Program.
September 14, 2020, Council considered report PL-32-20. This report requested budget allocation from the Modernization Reserve Fund to retain a consultant to prepare a business plan for a Township Broadband Network. On December 14, 2020, under report PL-051-20, Council approved the contract for this work be awarded to NGL Nordicity Group Limited. The business plan contains commercially confidential information and is not available to the public.
March 8, 2021, Council considered report SR-038-21 regarding the requests for support from Bell Canada and Lansdowne Telephone regarding their respective broadband projects.
More information regarding the ICON and UBF grant opportunities can be found at the following links: