The Importance of Information and Communications Technology in North Eastern Ontario

Summary

North Eastern Ontario Communications Network Inc. (NEOnet) was established in 1999 by a group of community development–minded leaders and organizations as a not–for–profit telecommunications development organization for the region. A digital divide existed between Northern and Southern Ontario, NEOnet was established to close this gap. Over the past 10 years NEOnet has done exactly that. The organization has been responsible for securing, leveraging and stimulating over $110,000,000 in information and communications technologies (ICT) investment in Northeastern Ontario. NEOnet lead projects have brought 40 communities access to high–speed Internet that would have remained unserved and 540kms of additional cell coverage. NEOnet acts as the regional ICT champion for Northeastern Ontario working with both the public and private sectors on infrastructure development and enhancement projects and educational initiatives. The NEOnet catchement area includes both the Cochrane and Temiskaming Districts, going South to Temagami; West to Foleyet; North to the James Bay Coast; and East to the Quebec Boarder.

NEOnet is governed by a board of directors from a number of different communities and sectors of the economy ensuring that a regional and diverse perspective is represented. The organization's strengths include: a positive reputation and relationship with the public, stakeholders, private sector and funding agencies; a comprehensive understanding of the current ICT environment and sector; dynamic and dedicated board members who act as a valuable resource and offer continuous support; project management expertise; strong regional perspective and partners; and a passionate and innovative staff. NEOnet has surpassed expectations and assisted in dramatically improving the ICT environment and significantly reducing the digital divide between Northern and Southern Ontario. An organization such as NEOnet is vital for the continued development of communication technologies throughout the region. Adoption and application of the more readily available ICT services requires digital skills that many residents in Northeastern Ontario do not possess. Residents and small businesses need and rely on an organization like NEOnet.

The Government of Canada has shown tremendous leadership through the Digital Economy Consultation Initiative. NEOnet would like to be involved in the process in whatever capacity the Government sees fit. In the paper to follow, NEOnet has outlined the challenges and concerns of Northeastern Ontario and provided some recommendations on how to create and foster a stronger, more competitive Canadian Digital Economy.

Submission

Innovation Using Digital Technologies

The information and communications technology (ICT) sector has become increasingly important; as it has forever changed the way we do business, learn, communicate, access services and live. In order to advance the Canadian Digital Economy, continued ICT integration and innovation will be required. The Digital Economy Consultation paper suggests that Canada lacks a culture of innovation with respect to ICT adoption and that underinvestment in ICT has been linked to Canada's slower productivity growth. Research will be necessary to encourage innovation and adoption of ICT across all industries. Small and Medium Enterprises (SMEs) will need clear incentives to invest in ICT as they are often slow to adopt. Research can lead to innovation if it is done properly. Once research has been completed it is vital that an action plan be developed based on the findings.

The Northern Ontario ICT Utilization Study prepared by the Sault Ste. Marie Innovation Centre and the Northwestern Ontario Innovation Centre in March of 2010 shows similar findings. Like the rest of Canada, SMEs throughout Northern Ontario under invest in ICT, have difficultly finding skilled information technology (IT) workers and are hesitant to adopt new technologies into their business operations. The study was completed to help further understand the growing ICT sector and the importance that ICT will play in the region's economic future. The majority of the study was related to SME's adoption of ICT services and applications. Although many businesses have access to the Internet, only 53% of the businesses surveyed incorporated ICT into their business plan. This highlights a lack of innovation and adoption of technology.

Several studies have highlighted that Canadian businesses are slow to adopt and adapt ICT. As eluded in the consultation paper Canada lacks a culture of innovation with respect to ICT, we are technology followers, not leaders. Only after a SME hears from peers and is convinced that a new technology can help with productivity and business development, will they consider making an investment in ICT. To remain at the cutting edge of industry ICT investment is necessary, the vicious cycle therefore continues.

Fear of Internet insecurity is another issue preventing ICT adoption and application. If users do not feel secure using the Internet, it cannot be expected that individuals will do on–line banking, file their taxes on–line or share health information. By offering workshops and educational seminars fears and misunderstandings will be elevated. Education and awareness initiatives can be done through informal channels. For example, NEOnet holds monthly 'Tech Break Times' that are delivered during lunch hour and provide an opportunity for individuals to come learn about new ICT products, services or applications. The environment encourages participants to ask questions and share their successes and challenges with ICT. Tech Break Times are held at no cost to the public, very low cost to the organization and is something that could be easily replicated in other regions. Topics such as social networking, interactive web marketing and the new no texting while driving law have been very popular.

Digital Infrastructure

In recent years, the government has recognized the importance of ICT infrastructure, application and adoption. Industry Canada's recent Broadband Canada: Connecting Rural Canadians initiative is an example of the Government's commitment. Millions of dollars have been invested into Canada's ICT infrastructure and programs to encourage growth, adoption, application and innovation. More investment is needed and must be accompanied with a comprehensive strategy that addresses the cost of upgrading equipment and networks, the rugged Canadian landscape and the challenges of serving rural and remote areas. Government must play a strong role to encourage private sector investment and innovation. One of the great challenges of broadband is how to provide service to potential customers in areas of low population density. In cities where the population density is high, it is easy for a service provider to recover infrastructure costs, whereas rural customers may require expensive equipment to get connected. Rural and remote areas have unique challenges that the Digital Economy Strategy must consider.

In Canada there are several regions that remain without access to high–speed Internet. The consultation paper states that the backbone of the digital economy is a strong, globally competitive information and communications technology sector. In order for Canada to foster a growing, globally competitive digital economy strong ICT infrastructure is paramount. The Internet removes geographic barriers allowing individuals in rural and remote areas access to educational opportunities and the ability to develop digital skills. In order for the country to compete globally, continue to grow and innovate, we must begin by ensuring all Canadians have reliable access to high–speed Internet.

NEOnet believes that a priority of the Digital Economy Strategy must be high–speed Internet access for all Canadians. Providing service to these unserved areas will require strong leadership, public–private sector partnerships, collaboration between non–traditional partners and the deployment of innovative solutions. Government involvement is vital to ensure rural and remote regions do not get left behind. Access to high–speed Internet is instrumental from an economic and community development, health care, and educational standpoint.

Over the past 10 years NEOnet and other Community Based Networks (CBNs) in Northern Ontario have demonstrated the success of public–private sector partnerships and collaboration. Thanks to the support of FedNor and the Northern Ontario Heritage Fund Corporation (NOHFC) the significant digital divide that existing between Northern Ontario and the rest of Canada has reduced dramatically. ICT infrastructure projects, education and awareness initiatives and up–skill training opportunities have all helped to close this gap. The region however continues to play catch–up. On average we are two years behind our urban counterparts in regards to access to ICT services, and the adoption and application of digital applications and skills. The Digital Economy framework must develop programs to alleviate this disparity.

In order to build a world–class digital infrastructure, a policy framework must be developed for a new national standard for high–speed Internet. Currently, an Internet connection in Canada is considered high–speed if it is 1.5 Mbps or above. With technological advancements over the past few years 1.5 Mbps is the equivalent of 'dial–up' for high–speed Internet. When developing new networks and upgrading equipment additional bandwidth must be made available. Urban areas have standard offerings well above the 1.5 Mbps as the hurdle rate supports the initial investment. In smaller urban and rural areas it is much more difficult to find a business case to support the required investment. Without government subsidies or shared funding arrangements the private sector cannot justify going into lower populated areas. The Digital Economy framework must address the higher associated costs with providing and accessing similar services available to those living in urban areas to individuals in rural and remote areas. As identified in the consultation paper, Canada must ensure that citizens and communities have more than just basic broadband, but speeds and capacity needed for economic growth.

Given the importance of broadband access, the basic question is whether domestic progress is fast enough for Canadians to be at the forefront of developments in the global digital economy. Canada must ensure that all citizens have more than just basic broadband, as 1.5 Mbps is not enough. In order to remain competitive and encourage innovation 6–10 Mbps should be considered the minimum of high–speed Internet. When developing the Digital Economy framework a focus must be placed on increasing the national standard for high–speed Internet. The framework must also address the challenge of ICT infrastructure becoming obsolete after only a few years.

The ICT industry has given rise to new products and services that have changed the way we do business, access government services, provide health care, communicate, and live. In order to innovate and grow the ICT industry, Canadians need to become technology leaders and not continue to be technology followers. Resources need to be allocated for investments in ICT and make it a government priority. Investment in ICT infrastructure is required to level the playing field for Northeastern Ontario. Implementation of this will allow for competitiveness, encourage adoption and create a more innovated environment to live, work and play

Building Digital Skills

Digital skills are a critical component of a strong digital economy. In today's economy digital skills are essential skills. Those without digital skills are at a significant disadvantage when entering the workforce. Studies have shown that on average residents of Northeastern Ontario lack strong digital skills. The region lags behind the rest of Canada in regards to ICT infrastructure, adoption and application. In Northeastern Ontario there is an increasing demand for digital skills but a lack of skilled workers. Businesses usually go elsewhere for IT services such as website development, website hosting, coding and programming. There is a need for more post–secondary ICT programs and courses. Since there are few programs offered in Northern Ontario youth leave the region to receive an education in ICT, with a low percentage returning. When developing the Digital Economy Strategy there must be consideration of where educational programs, training and up–skilling opportunities are located. As it stands, these types of training opportunities are clustered in urban centres, making it challenging for those outside of these areas to access.

Solving these ongoing skill shortages and underinvestment in ICT will require a range of integrated and targeted efforts coordinated with government, industry, community development organizations and education partners. An organization such as NEOnet is vital to ensure digital skills in more rural communities do not continue to significantly lag behind. Labour markets are increasingly linked to digital competence. Northeastern Ontario has traditionally been a resource–based economy but in more recent years has slowly begun to diversify. Increasing digital skills would provide numerous opportunities throughout the region for new industries to develop and job creation. In order to foster new ICT opportunities and skills programs must be established that address rural challenges such as a lack of universities to facilitate research and encourage innovation, large geographic area with low population density, older ICT infrastructure and in some areas no or limited access to high–speed Internet.

The Consultation paper goes on to highlight the current gender imbalance and under–representation of Aboriginals in the ICT workforce. The digital strategy will need to identify the reasons why women and aboriginals are under represented in this sector and implement programs to encourage participation. Many First Nation communities across the country remain without access to high–speed Internet. Lack of ICT infrastructure provides little incentive for an individual or business to invest in digital skills. The three components identified as necessary for a long–term strategy to help overcome the current ICT skills gap are excellent. NEOnet would also like to see a forth component added to this list, ensure ICT skills programs and opportunities address the challenges of rural and remote areas. There may be a need to develop two frameworks, an urban and a rural solution. These four components will not only help to strengthen ICT skills but also strengthen the economy, productivity, innovation and quality of life for all Canadians.

Conclusion

A successful digital strategy from NEOnet's standpoint will address the need for continued advancement and upgrades of ICT infrastructure in lower populated and rural areas, provide education and training opportunities, encourage innovation and foster public–private sector partnerships. In order for the Digital Economy Strategy to be successful it must address the needs and realities of all Canadians. NEOnet commends the Government of Canada for undertaking this initiative and looks forwarded to being involved in the process in whatever capacity is deemed appropriate.