2023 Reports 1 to 4 of the Auditor General of Canada to the Parliament of Canada
Report 2—Connectivity in Rural and Remote Areas
At a Glance
Connectivity to high-speed Internet and mobile cellular services is not equal for all Canadians. Since the release of Canada’s connectivity strategy in 2019, Internet and mobile cellular coverage has improved both nationally and in rural and remote communities. However, a digital divide still exists between people living in urban areas and people living in rural and remote areas, including First Nations reserves.
The strategy introduced targets for high-speed Internet and included a suite of funding initiatives to support infrastructure projects intended to improve connectivity in rural and remote areas. However, both Innovation, Science and Economic Development Canada and the Canadian Radio-television and Telecommunications Commission (CRTC) had few indicators to measure progress on the quality and affordability of Internet and mobile cellular access. The approach by both the department and the CRTC to measuring affordability focused only on price, without considering income. However, price alone does not indicate whether a Canadian household can afford Internet or mobile cellular service. Connectivity, if unaffordable or of poor quality, is no more of an improvement to the lives of Canadians living on First Nations reserves or in rural and remote areas than having no connectivity at all.
In addition, we found delays in the rollout of a number of federal connectivity initiatives along with a small percentage of funding spent under these initiatives, resulting in some Canadians waiting even longer for access to high-speed Internet and mobile cellular connectivity.
Being connected is no longer a luxury but a basic essential service for Canadians. This fact became more apparent as a result of the COVID-19 pandemic, which transformed how many Canadians live, work, and learn. Without access to fast, reliable, and affordable high-speed Internet and mobile cellular services, people residing in remote communities do not have the same opportunities as people residing in more urban areas. In other words, people in remote communities cannot participate in the digital economy and cannot access online education, work, and medical and government services.
Key facts and findings
- The federal government’s minimum high-speed Internet connectivity target for all Canadians: 50/10 Mbps (50 megabits per second for downloads and 10 megabits per second for uploads).
- High-speed Internet and mobile cellular connectivity is not available for Canadians in many rural, remote, and First Nations communities, affecting their ability to access online services and participate in the digital economy.
- Results as of 2021: 90.9% of households had access to minimum connection speeds across Canada but only 42.9% of households on First Nations reserves had access at those speeds and only 59.5% of households in rural and remote areas had access at those speeds.
- One key factor related to access—affordability—is not fully measured by Innovation, Science and Economic Development Canada or by the Canadian Radio-television and Telecommunications Commission.
- The federal government committed to connecting 90% of Canadians to high‑speed Internet by 2021 and 98% of Canadians by 2026 and 100% of Canadians by 2030.
- Innovation, Science and Economic Development Canada has improved its management of spectrum (radio waves that are used for wireless communication).
- 10-year spending commitments: $8 billion of funding committed to connectivity. Of the federal funding available for use by the 2022–23 fiscal year, 40% was spent as of January 2023 (that’s $949 million of the $2.4 billion available by the 2022–23 fiscal year).
Why we did this audit
- Because connectivity is an essential service that provides for personal and professional communications. Connectivity also supports Canadians as they grow businesses, apply for jobs, pursue online education, and access medical and government services.
- In 2019, the Government of Canada recognized that high‑speed connectivity will become more critical as Canada’s economy evolves and embraces the technologies of tomorrow. The COVID‑19 pandemic accelerated this evolution as it shifted much of Canadians’ lives online. This made it more important than ever that individual Canadians and small businesses in every corner of this country have access to fast and reliable high-speed Internet and mobile cellular connectivity.
Highlights of our recommendations
- Innovation, Science and Economic Development Canada and the Canadian Radio-television and Telecommunications Commission should
- establish consistent methods for telecommunications service providers to report the coverage of mobile cellular connectivity
- verify the mobile cellular connectivity data provided by telecommunications service providers
- Innovation, Science and Economic Development Canada and the Canadian Radio television and Telecommunications Commission should identify, collect, and analyze data, including consideration of household income, to measure progress against the affordability objective of Canada’s connectivity strategy to support improved Internet and mobile cellular connectivity in rural and remote areas, including in Indigenous communities.
Please see the full report to read our complete findings, analysis, recommendations and the audited organizations’ responses.
Infographic
Text version
Connectivity in Rural and Remote Areas
A digital divide still exists in Canada when it comes to access to high-speed Internet and mobile cellular connectivity. People living in some rural and remote areas and on First Nations reserves still do not have equal access—or any access at all—to these services.
Internet coverage
The federal government’s minimum high-speed Internet connectivity target is 50 megabits per second for downloading data and 10 megabits per second for uploading data: These speeds are known as 50/10 Mbps.
In 2021, the percentages of households in rural and remote areas and on First Nations reserves with access to minimum Internet speeds of 50/10 Mbps lagged behind urban areas:
- Canada overall was 90.9% covered.
- Urban areas were 99.3% covered.
- Rural and remote areas were 59.5% covered.
- First Nations reserves were 42.9% covered.
Availability of high-speed Internet as of year-end 2021
While the government committed to, and achieved, bringing 50/10 Mbps speeds to 90% of households by 2021, the speeds in rural and remote areas and on First Nations reserves still lagged behind.
The following are the federal government’s targets to bring 50/10 Mbps Internet speeds to Canadians:
- 90% By 2021
- 98% By 2026
- 100% By 2030
The following was the coverage of 50/10 Mbps Internet speeds by type of area in each province and territory.
In British Colombia, urban areas had 99.43% coverage. Rural areas had 65.79% coverage. First Nations reserves had 71.52% coverage.
In Alberta, urban areas had 98.65% coverage. Rural areas had 40.74% coverage. First Nations reserves had 26.91% coverage.
In Saskatchewan, urban areas had 99.02% coverage. Rural areas had 48.09% coverage. First Nations reserves had 10.05% coverage.
In Manitoba, urban areas had 97.39% coverage. Rural areas had 38.78% coverage. First Nations reserves had 14.58% coverage.
In Ontario, urban areas had 99.22% coverage. Rural areas had 57.10% coverage. First Nations reserves had 33.41% coverage.
In Quebec, urban areas had 99.74% coverage. Rural areas had 76.88% coverage. First Nations reserves had 66.70% coverage.
In New Brunswick, urban areas had 99.85% coverage. Rural areas had 78.91% coverage. First Nations reserves had 95.77% coverage.
In Nova Scotia, urban areas had 99.28% coverage. Rural areas had 65.55% coverage. First Nations reserves had 44.87% coverage.
In Prince Edward Island, urban areas had 100% coverage. Rural areas had 79.12% coverage. First Nations reserves had 97.61% coverage.
In Newfoundland and Labrador, urban areas had 98.24% coverage. Rural areas had 53.98% coverage. First Nations reserves had 25.92% coverage.
In Yukon, urban areas had 99.20% coverage. Rural areas had 23.98% coverage. First Nations reserves had no coverage.
In the Northwest Territories, urban areas had 97.87% coverage. Rural areas had 17.66% coverage. First Nations reserves had 74.89% coverage.
In Nunavut, urban areas had no coverage. Rural areas had no coverage. Data was unavailable about coverage on First Nations reserves.
Source: Data from the Canadian Radio-television and Telecommunications Commission
Mobile cellular network coverage
In 2021, the percentages of households in rural and remote areas and on First Nations reserves with access to LTE mobile cellular technology lagged behind urban areas. Long-term evolution (LTE) is also referred to as 4G (fourth generation) cellular technology.
- Canada overall was 99.2% covered.
- Urban areas were 100% covered.
- Rural and remote areas were 96.3% covered.
- First Nations reserves were 87.6% covered.
Availability of mobile LTE as of year-end 2021
The federal government’s connectivity strategy did not include targets for mobile cellular connectivity. However, the Canadian Radio-television and Telecommunications Commission had established a mobile cellular target to reach 100% LTE coverage in households by 2026.
The following was the coverage of mobile LTE by type of area in each province and territory.
In British Colombia, urban areas had 100% coverage. Rural areas had 94.01% coverage. First Nations reserves had 88.10% coverage.
In Alberta, urban areas had 100% coverage. Rural areas had 98.69% coverage. First Nations reserves had 91.51% coverage.
In Saskatchewan, urban areas had 100% coverage. Rural areas had 99.25% coverage. First Nations reserves had 98.01% coverage.
In Manitoba, urban areas had 99.87% coverage. Rural areas had 94.08% coverage. First Nations reserves had 78.55% coverage.
In Ontario, urban areas had 99.99% coverage. Rural areas had 98.55% coverage. First Nations reserves had 66.07% coverage.
In Quebec, urban areas had 99.87% coverage. Rural areas had 97.65% coverage. First Nations reserves had 85.17% coverage.
In New Brunswick, urban areas had 100% coverage. Rural areas had 97.80% coverage. First Nations reserves had 99.70% coverage.
In Nova Scotia, urban areas had 100% coverage. Rural areas had 97.79% coverage. First Nations reserves had 99.68% coverage.
In Prince Edward Island, urban areas had 100% coverage. Rural areas had 100% coverage. First Nations reserves had 100% coverage.
In Newfoundland and Labrador, urban areas had 100% coverage. Rural areas had 83.31% coverage. First Nations reserves had 67.73% coverage.
In Yukon, urban areas had 100% coverage. Rural areas had 87.39% coverage. First Nations reserves had 100% coverage.
In the Northwest Territories, urban areas had 100% coverage. Rural areas had 84.22% coverage. First Nations reserves had 100% coverage.
In Nunavut, urban areas had 100% coverage. Rural areas had 99.62% coverage. Data was unavailable about coverage on First Nations reserves.
Source: Data from the Canadian Radio-television and Telecommunications Commission
Connectivity spending and project approvals
Connectivity projects must be approved before funding can be distributed, but approvals took much too long. As a result, only $949 million of the available $2.4 billion in funds to be used by 2022–23 fiscal year-end had been spent.
There were $2.4 billion of funds available for use by 2022–23.
As of January 2023, $949 million of funds had been spent.
Summary
Being connected is no longer a luxury—it is a basic essential service for Canadians. They need it to access, among other things, education, government services, and medical services.
People living in rural and remote areas are underserved and greatly impacted by the digital divide. Without access to fast, reliable, and affordable Internet and mobile cellular services, they do not have the same opportunities as people residing in urban areas.
Related information
Entities
Tabling date
- 27 March 2023
Related audits
- 2018 Fall Reports of the Auditor General of Canada to the Parliament of Canada
Report 1—Connectivity in Rural and Remote Areas