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CCanadlan Rado-televsion and Conse de araioaision et des ‘oucomeruneatons Commisson _sonmunicalens canadionyes tea, Coma 9 Novernber 2018 ‘To: Telecom Fee Payers Re: Implementation ofthe Commission's Broadband Funding Regime ear Madam (027 September 20 the Comission released Telecom Regulater Polley 2018-377 (TRP 2018-877), ‘Dovelopment of the Commissions Broadband Fund. Amongst other tings, TRP 2018-37 la out the ‘governance structure, the operating and accountabily frameworks of the Broadband Fund, as well as the ‘lgiity and assessment citra for proposed projects. In addon, TRP 2018-377 carfed that the antral Fund Acminitator of the National Conirouton Fund wil be responsbie for te accountng functon ‘of the Bresdband Fund, and that the Commission Would be responsible for the Project Management function, Project Management of ho Broadband Fund In Telecom Regulatory Policy 2016-496 (TRP 2016-496), Modem telcommunicatons sonices ~ The path forward for Canade®s cite! economy, the. Commission expressed the preliminary view that the project management funcion ofthe Broadoand Fund would be performed by an indapendent third party However, duing the puble consultation process leading to TRP 2018-377, pares expressed numerous ‘concerns wth this preliminary view, and several partes eupported @ model whereby the Commission andlor Innovation, Science and Economic Development Canada (ISED) would perorm these tasks. In ‘TRP 2018-277, the Commission acknowledged thatthe use offs own experise, staff and institutional capabilty forthe management ofthe Broadband Fund would be most appropriate ‘Accordingly, the Commission wil perform the projet management function of the Broadband Fund and ‘wil consequent be responsible for everyhing this entals, including reviewing end screening ‘plications, selecting funding recipients, establishing funding conditons, assessing and reporting on funding recipients’ progress, perormance, and complance with kinding conditons Undertaking this functon wl resi ina signifcant increase in Commission activites, over and above its ‘xising responsibilies. As a result, supplementary operating budget is requted. 2s addtional {slecommunieatons resources - notably staf and information technology (T) support - willbe necessary 1 undertake the project management function of the Breadband Fund. These addtional funds wil be ‘colacted through fees biled to telesommunicatons service providers. Telecommunications Fees “The Commission's tlecommunicatons regulator costs are funded through fees under the authority of ‘he Act. Te Telecommunicalions Fees Requations, 2010 (Fees Regualions) provide for the payment of nna telasommunestons fe85 by telacommuniealone sevice providers. The Commission announces, via an Order released sna t total tleconmunioatone regulatory cost forthe focal yaar (1 Apri to 51 Mart). “The Commissions estimated incremental tlecommunicatons regulatory cots resulting fom the project ‘management funcion of the Fund forthe ner five year, staring n 2018-2020, and subsequent fiscal years are provided in Annex 1. The Commission intends to add these addtional foes to the regular fees {hat are collected through the bling exercise ‘Should you have feback wth respect to this intended, estimated ovral fee increase, you may write to me at sec-genflotc acca by 10 December 2018, oe Claude Doucet, CGA, CPA Secretory General 8 Chet Financial Ofcsr corre ‘tach si Annex 1. Incremental regulatory costs relative to the implementation of the Commission's Broadband Funding Regime ‘eee aye —— = (a poe NaN ay Cove Haass] aes! ats ‘ean ‘aaa aT Tai aa fs fel