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Building A Vision: The Telecommunications Future October 2010 Paul Flaherty, President and CEO 2 Major Contributor to the Northern Economy • Northwestel is a significant contributor to the northern economy • Direct Employment – 600 northern private sector jobs, payroll of approximately $45 million • Northwestel Spin-off Economic Impact – Capital construction program of $41 million in 2010 • Infrastructure upgrades • Service enhancements • Service expansion to new locations – Northern supplier spend of approximately $32 million in 2009 • Spending with Aboriginal companies - $3 to 4 million per year • Profits to Aboriginal partner companies - $2 million in 2009 3 Nunavut Infrastructure Investment Recent Investments in Nunavut • $10 million invested: – Internet service improvements in Iqaluit – Cellular service expansion: Pond Inlet Arviat Cambridge Bay Kugluktuk Baker Lake Rankin Inlet – Advanced data services to customers in Resolute, Iqaluit, Rankin Inlet & Kugluktuk – New satellite hubs 4 Telecom Infrastructure is a Key Enabler for the North Often we think of Infrastructure as the highways and bridges that connect us to our business opportunities, family and friends. The distance that separates us, can be a competitive disadvantage. Investment in our roads and bridges is important, and upgrading that infrastructure is vital. The Yukon Our Home However, investment in transportation infrastructure doesn’t shorten the distance. The internet places us virtually anywhere we want to be. Investment in communications technology eliminates the sense of distance and improves competitiveness of our economy. 5 OPPORTUNITY Improve delivery of essential government programs & services in northern communities through a world-class, efficient and cost-effective telecommunications platform • Improved health care system – better services at lower costs • Enhanced education opportunities – greater variety available to all residents • More efficient/timely justice system • Greater national security in the north through improved surveillance 6 OPPORTUNITY Help governments to deliver current and future programs in a cost-effective manner as the fiscal environment becomes more restrictive • Opportunity to significantly improve the quality of existing program delivery models and create new ones • Successfully meeting these challenges will result in innovation that will be of interest in other regions of the world 7 OPPORTUNITY Align with the Federal Government strategy of creating a digital economy and be leaders in Canada • Rapid development & adoption of digital technologies will change the way we work, learn, innovate and communicate • Enhanced infrastructure is an enabler to create a new generation of employees with skills & tools to help businesses innovate & grow • Opportunities will exist for consumers to do business with a variety of suppliers and on their terms (i.e. time, place & method) • Governments can show the way forward by being early adopters of the technology to provide programs 8 CHALLENGES Delivering service to communities across the North is an expensive proposition for governments • Travel in and out of communities can be costly and challenging in areas such as health care & justice • Any form of infrastructure in remote communities is expensive • Access to skilled resources can be problematic in many disciplines • Education and training services, which are the primary means to prepare northerners for the future, strain under growing costs & increased expectations 9 CHALLENGES Various governments and their departments (Federal, Territorial, Municipal, Aboriginal) are trying to address their individual needs without any inter-governmental co-ordination • Industry & Infrastructure Canada have Rural Broadband Programs • Health Canada is pursuing programs through Infoway • INAC has funded programs in ICT • CanNor provides economic development funds • Each Territorial Government has their spending • Public Works Canada invests to support Government groups (i.e. Fisheries & Oceans, Environment Canada, Nav Canada) • DND has their communication needs 10 CHALLENGES Result is millions of dollars (> $100M) have been spent without any overall coordination and benefit of scale being realized Individually these programs will deliver less than they could if done in collaboration Is this current model sustainable? 11 PROPOSAL Goal is to bring together northern decision and policy makers to learn about new technological innovations for distant delivery of remote programs and provide opportunities for cooperative investment in the development and use of telecommunications infrastructure Establish an Advisory Committee of stakeholders with inter-governmental, remote distance programming and telecommunications experience to advise and direct the following activities: • Commission research to assess the current technological approach employed by various government sectors • Quantify existing investments in developing & implementing telecommunications solutions for remote program and service delivery • Identify complimentary initiatives • Compile research into best practices and identify those individuals who are innovators in developing new ways of doing business 12 PROPOSAL Overall goal is to bring together northern decision and policy makers to learn about new technological innovations for the distant delivery of remote programs and service and to provide opportunities for cooperative investment in the development and use of telecommunications infrastructure • Develop a workshop for senior policy and decision makers across the North to raise awareness about new telecommunication infrastructure opportunities, increased efficiencies, cost savings and investment opportunities through cooperative action and to stimulate new thinking as to how programs and services could be better delivered • Organize a Northern Leaders Conference with the participation of Territorial First Ministers and senior Federal Ministers, to provide direction for future inter-governmental cooperation • Recruit key personnel to undertake the work and meet with key decision makers in the Territorial & Federal Governments as well as Aboriginal organizations, to seek their input and discuss current challenges 13 OUTCOME Create a vision of how government services and programs, delivered through a common and enhanced telecommunications system, can improve. By working smarter and collaboratively, various governments can develop a single network system capable of supporting the delivery of world-class remote programs and services for people living in Canada’s northern territories with less duplication and more efficiency. 14 In Summary A common vision and collaborative investments in telecom and ICT will improve opportunities for all Northerners. 15