What is Canada doing with its Internet Connectivity Inequality?

The Internet has become so indispensable to modern life that it’s often joked about as the real foundation of Maslow’s hierarchy of needs,¹ nestled even below food, water, and shelter, nowadays. While this meme brings a chuckle, there’s a sobering reality behind it.

In today’s hyper-connected world, reliable Internet access is a lifeline for work, education, healthcare, and staying informed. Think about how much of your day depends on it in your everyday life: from helping a child with homework, booking a doctor’s appointment, to applying for a job or learning about candidates in local elections. Yet, for many Canadians, this "essential need" is fundamentally compromised due to glaring inequalities in connectivity in rural and remote Canada as well as lower-income urban neighborhoods. Put simply: too many people in Canada are stuck on with low speed, periodically unavailable Internet.

But why do these connectivity gaps exist? What are private companies and governments doing to tackle the problem? And what can we do, as a society, to make sure everyone has access to the Internet they need?

Canada’s Internet connectivity at a glance

Since 2019, the government has promised to bring high-speed Internet to all households across Canada, defined by the CRTC as 50 Megabits per second (Mbps) download, and 10 Mbps upload. Meaning you can stream high-definition (HD) videos smoothly on multiple devices simultaneously, or comfortably host or join high-quality video calls, for instance. It’s a meaningful target, though maybe not an ambitious one: in 2024, the US’s Federal Trade Commission (FTC) shifted its target for high-speed broadband to 100 down/20 up.²

Canada’s  government currently plans to get us all 50/10 by 2030; but there are still major gaps and challenges on the way.^3,4 As of the Auditor General’s latest report,  40% of rural Canada and nearly 60% of First Nations communities cannot access reliable ground-based high-speed Internet at any price.^5,6 Meanwhile, many urban households, particularly low-income neighbourhoods, cannot afford the service that’s available to them, left behind by some of the highest costs in the world imposed on them by Canada’s  Big Telecom oligopoly:  Rogers, Bell, and Telus.^7,8

Can satellite technology save the day? Not reliably for most Canadians. Recent initiatives, like the Starlink partnership in Ontario, are an important step toward closing the connectivity gap,⁹ but they are more like band-aids on a bleeding wound. The $100 million deal aims to connect 15,000 homes and businesses in northern Ontario, but covers installation, not ongoing costs – meaning use is restricted to those who can afford Starlink's pricey service plans—$140 a month for residential users and $185 for businesses.¹⁰ These rates are far higher than the already significant costs of fibre-based internet services. While this is progress for some, it reinforces the digital divide by excluding some of those who need the connectivity the most to improve the conditions of their lives, but can’t afford such expensive options.

Satellite internet services are also far less durable than those relying on fibre-optic cables, which can last over 30 years.¹¹ In contrast, satellites used in services like Starlink need to be replaced roughly once every five years.¹² The Low Earth Orbit (LEO) Internet industry is still in its early stages, and what’s viable today with venture capital and government subsidies may not be renewable 5-10 years from now for more remote parts of Canada—meaning communities connected today could face  a loss of connectivity in the future if the satellites can’t be regularly replaced at market rates.

What kind of solutions do we need?

Canada needs two things: fibre in the ground everywhere we can, and a competitive telecom market where people have many options for buying service. High-speed internet is no longer a luxury—it’s a necessity. No Canadian should be left on the wrong side of the digital divide.¹³ To move forward, we need long-term solutions that ensure everyone, from Toronto to the far North, has access to reliable, affordable Internet.

However, connecting a country as vast as Canada is no simple task. Sparse populations in rural and remote areas make network expansion costly. Big telecom companies often prioritize quick easy profits, focusing on dense urban markets where the return on investment is quicker, while leaving less populated regions underserved.

This is where public initiatives like the Universal Broadband Fund (UBF) become a critical tool when the “power of the market” doesn’t effectively support the buildout of infrastructure to ensure universal 50/10 access. It’s critical that Canada’s next government maintain and accelerate UBF buildout to meet or exceed our current 2030 target. However, these programs can be a double-edged sword. When implemented correctly, through partnership with locally owned providers and/or open access provisions that let anyone use the government build infrastructure, they can be durable supports to local communities in getting services tailored to the specific needs of their communities, like the North End Connect project in Winnipeg.¹⁴ But if mishandled, they can backfire. What happens when the government simply hands over the money to one of the Big three telecom providers? We deliver that local community into the hands of a single monopoly provider indefinitely, and one with little real interest in delivering or expanding services for that community.¹⁵ In some cases, the best solution is innovative community-based solutions, like local broadband networks, that meet the unique needs of individual regions.¹⁶

What should we do for universal connectivity?

Beyond public buildout, we need to guarantee that every Canadian has high-speed service within their means; no matter where they live, and no matter their personal budget. In today’s world, Internet access is as essential as roads and electricity. Yet, too many Canadians—whether in rural and remote areas or even in parts of our cities—are stuck with slow speeds, sky-high bills, or no service at all. That’s more than an inconvenience; it’s like trying to paddle a canoe with pool noodles while others zoom past on jet skis. Economic fairness and our international competitiveness both dictate we need to do more to enable equal opportunities for all to work, learn, and participate in the modern economy.  

It requires bold action to tackle the systemic barriers that leave so many behind. We need to permanently tackle our overpriced mobile and home Internet plans - amongst the world’s most expensive – by eroding the market power of our telecom triopoly. At minimum, Canada needs to guarantee well priced wholesale Internet access for home Internet, and mobile virtual network operator (MVNO) access to our wireless network. Each system allows third parties to buy access to existing telecom infrastructure at fair prices, and sell services on our networks to the Canadian public. Result? Instead of 3, 2 or even just 1 service provider in a local community, Canadians can benefit from a dozen or more service providers - each fighting to win our business, not offering the same exact plans with the same high cost and weak options.

Existing low-income programs like Connecting Families 2.0 that are currently only available to those receiving maximum social assistance should be expanded so more Canadians that are struggling can benefit from them.¹⁷ And Canada should consider going further, and “structurally separating” our oligopolies – meaning, breaking up their businesses so the companies that build and maintain the infrastructure are different than the companies that sell consumer plans to us. It’s a strong but far from revolutionary approach that’s already been used in the UK, and could be what’s needed to more permanently reset our broken, monopolistic telecom market.¹⁸

Closing the digital divide is no small task, but it’s one we can’t afford to ignore. The first step we can take as a community who care about Canada’s digital future is pushing the government—especially the CRTC and ISED—to take meaningful, people-centered action. 

This fight won’t be won overnight, but every email we send, call we make to an MPs office, and conversation we have with our neighbours about how our frustrating telecom system CAN be fixed brings us closer to a future where everyone has access to the Internet they need to thrive. By raising our voices, we can push leaders to recognize that affordable, reliable internet isn’t a luxury—it’s an essential service that every Canadian deserves.

Sources

1. Maslow’s Hierarchy Of Needs – Simply Psychology
2. The FCC Now Says Broadband Speed Should Be at Least 100 Mbps – The Wired
3. High-speed Internet for all Canadians – ISED
4. 2023 Reports 1 to 4 of the Auditor General of Canada to the Parliament of Canada – The Auditor General of Canada
5. See 4
6. BROADBAND FUND Closing the digital divide in Canada – CRTC
7. Toronto’s Digital Divide – The Dais
8. Government of Canada on track to exceed high-speed Internet connectivity targets – ISED
9. Ontario and Starlink to Bring High-Speed Satellite Internet to Remote Communities – Ontario government
10. Province inks $100M deal with Starlink to provide internet to 15K homes and businesses in northern Ontario – CBC
11. Fiber Broadband Scalability and Longevity – Fiber Broadband Association
12. LEO Satellites for Internet Access – The Internet Protocol Journal (Volume 26, Number 2)
13. What Is the Digital Divide? – Internet Society
14. Winnipeg’s North End Community Network Project – Internet Society Manitoba Chapter
15. CRTC sets rates that will allow for greater choice of Internet services – CRTC
16. How Community Broadband can deliver faster, cheaper Internet for all Canadians – OpenMedia
17. Connecting Families Initiative – Innovation, Science and Economic Development Canada (ISED)
18. BT ordered to split legally from Openreach by Ofcom – BBC