Rolling out broadband Internet service in Sundre is imperative for the municipality to not only be sustainable but also to thrive in a knowledge-based economy, council recently heard.
"We're moving into what could be referred to as the knowledge economy," said Jon Allan, the town's economic development officer, during his presentation to council at the Feb. 21 workshop.
"Broadband is essential. We will be able to be kept on the same economic playing field as other communities (and) other jurisdictions as the knowledge economy continues to take hold."
A shift towards ensuring municipalities become "gigabit communities" with the capability to reach a minimum of one gigabit per second download speeds is already happening, he said.
"Communities that do not invest in information communications technology will be left behind."
The Canadian Radio-television and Telecommunications Commission recently recognized the need for well-developed broadband infrastructure for the country to remain competitive in a digital economy. Additionally, the commission wants to see 90 per cent of Canadian homes and businesses connected to Internet that offers speeds of at least 50 megabits per second (mbps) for downloads by 2021, he pointed out, adding a speed test at the town's office yielded a less-than-stellar result of barely more than seven mbps.
"So we're significantly lower than what the CRTC's mandate is."
But the municipality has been aware of the shift towards high speed Internet since long before the CRTC's recent announcement. Following council's approval in 2015, administrative staff have since investigated various business models, worked with consultants as well as come up with different options to install the infrastructure. The most economical way for the municipality to do this would be to have 86 per cent of the conduit strung along existing FortisAlberta poles with the remaining 14 per cent of the line buried underground, he said.
"In addition to that, we would require an electronics hub ó it's like a server room that basically lights up the fibre optics...to get it (broadband) to the east side, we would simply need to string it along the Red Deer River bridge," he said, adding Alberta Transportation has even already offered tentative approval for such an approach.
To implement the project through a municipal partnership, if approved by council, staff crunched and compiled some conservative estimates to determine its economic viability. A penetration rate with as little buy-in as 30 per cent residential and 50 per cent commercial within four years could still provide significant revenue potential, he said.
But should council decide to pursue broadband infrastructure through a private enterprise, administrative staff recommended Axia, which has been actively engaging other municipalities with similar projects, he said.
Among the other companies approached were Telus, Shaw and O-Net, and staff also spoke with municipal officials with Didsbury, Olds as well as Vulcan. Didsbury's administration expressed satisfaction with service provided by Telus, Vulcan has found Axia's broadband key to helping promote the community, while Olds mentioned numerous social benefits ó such as providing free WiFi downtown ó to partnering with O-Net despite working through "growing pains" associated with launching the service, he said.
"The number of businesses (in Olds) without a web presence has been halved" since O-Net was introduced, he said.
"So businesses now are finding it easier to become more modern."
And although he said the big telecom companies essentially have no interest in partnering with Sundre on such a project, the community-owned O-Net has expressed a desire to work with the municipality. He added that the commercial uptake in Olds is about 75 per cent after about four years, with roughly a third of all residential properties connected.
Additional information for council to consider included the fact that Internet usage is trending steadily and unstoppably upwards. Broadband usage requirements typically double roughly every two years. So a typical U.S. household, which is comparable to the average Canadian home, that today requires 20 mbps download speeds will need 150 mbps in five years, or a full one gigabit per second in 10 years, he said.
In the end, administration narrowed several potential options down to two recommendations ó either to pursue a municipally-owned network or simply to engage the service of a third party to provide the infrastructure privately.
Council was to decide during last night's regular meeting after the Round Up's weekly press deadline how to proceed in terms of engaging the public to determine the extent of support or interest that exists.
Visit www.sundre.com and click on council's Feb. 21 workshop found in "council meeting agendas" under the "government" tab to see the full report, and see a coming edition of the Round Up for more.
"Communities that do not invest in information communications technology will be left behind."ó Jon Allan, economic development officer
