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 Lagging or leading?
The state of Canada’s broadband infrastructure
Mark H. Goldberg& Associates Inc.
www.mhgoldberg.com
Mark H. Goldberg & Associates Inc.Giganomics Consulting Inc.
 
Lagging or Leading:
The state of Canada’s broadband infrastructure
 Mark H. Goldberg & Associates Inc. Page i
Mark H. Goldberg& Associates Inc.
www.mhgoldberg.com
Lagging or Leading
The state of Canada’s broadband infrastructure
Abstract
Countless statistics and rankings have been developed regarding the state of broadbandnetworks in countries around the world. Yet, the sum total of all this work may have cloudedthe issues, and caused confusion among policymakers and other stakeholders.Canada is no exception. While some paint a picture of crisis, others argue that Canada hasenviable broadband infrastructure and is well-positioned for the future, despite facing uniquegeographic challenges.One matter that is uncontested is that the stakes are high. Countries around the world seeinformation and communication technologies (ICTs) like broadband as key to their economicfutures. In Canada, as in other countries, these issues are important to the economic presentas well. Canadian telcos, cablecos and wireless providers invest between $8B and $10B eachyear in advanced communications infrastructure. These investments support $54B inrevenues
1
and provide jobs to more than 140 thousand Canadians.ICT policy sets an enabling foundation for Canada’s participation in a global knowledge-basedeconomy. This report, commissioned by a group of Canada’s largest internet serviceproviders,
2
seeks to clarify the facts, dispel myths and provide the analysis needed toconstructively move the issues forward and facilitate a more informed debate.
1
CRTC,
Communications Monitoring Report 2009 
, August 5, 2009.
2
Bell Canada, Bell Aliant, Cogeco, Rogers, SaskTel, Shaw, TELUS.
 
Lagging or Leading:
The state of Canada’s broadband infrastructure
 Mark H. Goldberg & Associates Inc. Page ii
Mark H. Goldberg& Associates Inc.
www.mhgoldberg.com
Contents
Abstract ....................................................................................................... i
 
Contents ..................................................................................................... ii
 
Figures ...................................................................................................... iii
 
Tables ....................................................................................................... iii
 
0
 
Executive summary ................................................................................... 1
 
0.1
 
Conclusion ........................................................................................ 3
 
0.2
 
Recommendations ............................................................................... 4
 
1
 
Introduction ............................................................................................ 5
 
1.1
 
Canadian broadband investment .............................................................. 6
 
1.2
 
Purpose ............................................................................................ 7
 
2
 
Defining broadband ................................................................................... 8
 
3
 
Broadband technologies ............................................................................. 11
 
3.1
 
DSL and FTTN ................................................................................... 11
 
3.2
 
Cable – DOCSIS .................................................................................. 13
 
3.3
 
FTTH / FTTP ..................................................................................... 14
 
3.4
 
Wireless broadband ............................................................................ 15
 
3.4.1
 
Fixed wireless .............................................................................. 15
 
3.4.2
 
Nomadic and mobile wireless ........................................................... 16
 
3.5
 
Satellite broadband ............................................................................ 18
 
4
 
Canada in the world ................................................................................. 20
 
4.1
 
Current statistics in Canada ................................................................... 21
 
4.1.1
 
Availability and coverage ................................................................ 21
 
4.1.2
 
Adoption and penetration ................................................................ 23
 
4.2
 
International comparisons ..................................................................... 24
 
4.2.1
 
Types of indicators ........................................................................ 25
 
4.2.2
 
Adoption of broadband internet ........................................................ 25
 
4.2.3
 
Broadband availability and coverage ................................................... 31
 
4.2.4
 
Broadband pricing and speed ............................................................ 35
 
4.3
 
Additional considerations...................................................................... 39
 
4.3.1
 
Socio-economic factors ................................................................... 39
 
4.3.2
 
Geography and population density ..................................................... 42
 
4.4
 
Summarizing the current debate ............................................................. 43
 
5
 
The increasing politicization of broadband ...................................................... 45
 
5.1
 
Economic prosperity ........................................................................... 45
 
5.2
 
Wholesale obligations on next-generation networks ...................................... 47
 
5.3
 
Closing the digital divide ...................................................................... 48
 
5.4
 
New media and content control issues ...................................................... 49
 
5.5
 
Neutrality in the network ..................................................................... 50
 
5.6
 
International broadband stimulus plans ..................................................... 52
 
5.6.1
 
Government measures and initiatives .................................................. 55
 
5.6.2
 
Is government involvement the “silver bullet”? ...................................... 58
 
6
 
Summary .............................................................................................. 60
 
6.1
 
Universal availability of broadband in Canada ............................................. 61
 
6.2
 
The availability of next-generation broadband ............................................ 63
 
6.3
 
Adoption and the unexplained gap ........................................................... 64
 
6.4
 
International comparisons and lessons ...................................................... 67
 
A
 
Appendix A: How did we get here? ................................................................ 69
 
B
 
Appendix B: Rankings and statistics ............................................................... 73
 
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