Frequently Asked Questions

Broadband Canada Program

1. What is the objective of the Broadband Program?
2. Will the program be used to increase infrastructure throughout the country?
3. What speed can Canadians expect through this program?
4. How can the funds for this program be accessed?
5. Are there restrictions on the kind of technology eligible under this program?

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Application Guide

1. What is the deadline for applying to the program?
2. When will the successful applicants be chosen?
3. How much funding can I apply for?
4. Is the funding a loan?
5. What is the definition of broadband connectivity?
6. How will the transmission speed requirement be assessed?
7. In some communities and with some technologies, 1.5 Mbps per household may not be possible. Would Broadband Canada consider an application that proposes less speed but is still an improvement over the current situation?
8. Who is eligible to apply for funding?
9. What is the definition of 'not-for-profit'?
10. What costs are eligible?
11. What costs are ineligible?
12. Will in-kind contributions be considered as part of the funding provided by the applicant?
13. What areas in the country are eligible?
14. Does the program have any regional allocations?
15. Are there any regions in the country not eligible for funding?
16. Does an application have to guarantee broadband availability to an entire GSA?
17. Can an application be made to deliver service to more than one GSA?
18. Is the funding available for community access points?
19. Can Broadband Canada ensure that funding is not provided to a GSA that already has existing service?
20. I want to apply for funding to provide service in a GSA that I know is unserved and/or underserved, even though the Broadband Canada coverage maps indicate that this area is served. Will the program accept my application?
21. Is it possible to combine Broadband Canada funding with other federal funding programs?
22. Is it possible to include funding from other provincial/territorial programs as part of the applicants 50% of the funding?
23. Who is subject to M-30 and how do I get additional information?
24. Are there any special provisions for First Nations communities?
25. Who do I contact with questions about the application process?
26. How do I submit an application?
27. Our company provided coverage information to Broadband Canada during the validation period. Why is this information not reflected on the maps?
28. a. Is Broadband Canada funding available to upgrade existing infrastructure?
    
    b. I have an existing network, but in order to deliver 1.5Mbps service, I need to upgrade the network. Is this eligible for funding?
    
    c. I have an existing network that delivers 1.5Mbps to users, but in order to expand this service to customers currently without access from any provider, I need to upgrade the network. Is this eligible for funding?
29. Is it too late to provide coverage information to Broadband Canada?
30. What are the general timelines under the Broadband Canada program?
31. Who do I contact with questions about the application process?
32. Why are some regions in the country not eligible for Broadband Canada funding?
33. a. Are municipalities eligible for funding?
    
    b. Can a municipality apply for funding from Broadband Canada and then, if approved, enter into an agreement with an ISP to deploy the broadband infrastructure?
34. Can I partner with a U.S. firm to deliver broadband connectivity and still be eligible for funding?
35. Why are satellite providers not listed on the Summary Information pages linked to the Broadband Internet Maps?
36. How do I get broadband service in my area?
37. Broadband Canada requires the technical solution to be certified by an engineer. Does the engineer have to be from a third party? What kind of engineer?
38. Would the truck roll-out for the installation of CPE qualify as an eligible expense, if for instance, such expenses are incurred at the same time as the time of the commissioning of the access node?
39. Are the cost of acquisition and operation of vehicles eligible costs?
40. Would EV-DO sticks, covered as part of the applicant's 50% funding share, be eligible project costs?
41. Satellite transponder capacity and tower leases are eligible costs. Is access to backhaul on wireline solutions an eligible expense?
42. Why is satellite transponder capacity capitalized over 5 years eligible, while tower leases and wireline backhaul cost are only eligible over the life of the project?
43. Are ISP operational expenses, such as increased bandwidth and increased customer service requirements, eligible?
44. If Broadband Canada wishes to award projects to multiple applicants within a GSA, how will this decision be made and how would the relative coverage/project split between multiple applicants be determined?
45. Should applications be submitted in both official languages?
46. Are spectrum license acquisition costs, annual licences fees and spectrum leasing costs, eligible costs?
47. Where there are continuing payments, such as for the rental of a tower, over what time frame would this expense be included as an eligible cost?
48. In determining the eligibility of costs, what will the criteria be for determining the demarcation point for consumer premise equipment? For example, are all equivalent elements on the consumer's property ineligible costs (e.g. the fibre, cable or DSL drop loop to the customer's home from the terrestrial networks and the fixed antenna for fixed wireless or satellite networks)?
49. For what period of time is the co-location or lease of towers an eligible expense?
50. Who will evaluate the applications?
51. Is it possible that our application for funding is selected, but the funded amount is less that what was applied for?
52. Will the rating guide be made public?
53. If an area is shown as covered by other initiatives, is there any funding available under the Broadband Canada program?
54. The program is directed at connecting unserved households. Does that include businesses and /or secondary residences?
55. Do I directly input the answers into the right-hand columns on the Schedule 3 spreadsheet?
56. How does the Supreme Court of Canada's decision to uphold the CRTC's deferral account process affect the eligibility of those communities for the Broadband Canada program?
57. What is the definition of 'fair market value' for the cost of equipment?
58. If an applicant is proposing to bring service to an area shown as covered on the National Broadband map, applicants are supposed to complete Schedule 3, Column Q, to validate the variances from Industry Canada's mapping data. What kind of information is required?
59. Does an applicant proposing to bring service to a partial GSA need to provide information in the Excel spreadsheet for the entire GSA?
60. It is anticipated that the number of subscribers will go up with proposed expansion of the network. If a network management tool is required due to this increase in users' bandwidth consumption, would that network management tool be an eligible expense?
61. What portion of mesh equipment would be eligible for funding?
62. The deadline for applications is October 23, 2009, 16:00 Eastern time. Do applications need to be received by Broadband Canada by that time, or simply posted by that time?
63. Section 5.1 of the Application Guide states applicants must provide geographic maps of all network components, using the GSA maps provided by Industry Canada. Where can the GSA maps be found?
64. I would like more information on the access requirements, described in Schedule 5 of the Application Guide.
65. Will an application covering a region or a part of a territory already being served by another competing provider be rejected? If so, what is the mechanism through which this criterion will be implemented?
66. If, within the framework of this program, a contribution is awarded for a project allowing service in a region already being served by a competing provider, will the latter be able to challenge this grant award before the project presented is deployed?

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Broadband Canada Program

1. What is the objective of the Broadband Program?

The objective of the Broadband Program is to reach as many unserved and underserved Canadian households with access to broadband services (1.5Mbps) at reasonable cost.

2. Will the program be used to increase infrastructure throughout the country?

The program will provide essential infrastructure to Canadians in rural and remote areas, allowing them to participate in the Internet economy by accessing information, services and opportunities that would otherwise be out of reach.

3. What speed can Canadians expect through this program?

For the purpose of this program, broadband is defined as 1.5Mbps, a commonly accepted industry definition. For unserved Canadians, this is a dramatic improvement over no service or only dial-up service.

4. How can the funds for this program be accessed?

The program will be based on a competitive application process to fund projects in defined Geographic Service Areas (GSAs). Please refer to the Broadband Application Guide for details.

5. Are there restrictions on the kind of technology eligible under this program?

The Broadband Program will be technology neutral, accepting a variety of wireline and wireless technology solutions, such as fibre, digital subscriber line (DSL), cable and wireless networks (ground based and satellite).

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Application Guide

1. What is the deadline for applying to the program?

The deadline to submit an application to the program is 16:00 EST, October 23, 2009.

2. When will the successful applicants be chosen?

Broadband Canada anticipates the selection process will be completed in December 2009, with contribution agreements signed in January 2010.

3. How much funding can I apply for?

Broadband Canada will provide up to 50% of the eligible project costs.

4. Is the funding a loan?

No. The funding is a one-time, non-repayable contribution, not a loan. Successful applicants will be asked to sign a contribution agreement.

5. What is the definition of broadband connectivity?

Broadband connectivity is defined as access to Internet service that supports data transmission at a minimum download speed of 1.5 Mbps to the household. The program has a minimum target upload speed of 384 kbps. For both upload and download, the program expects a maximum oversubscription ratio of 10:1 on access bandwidth to backhaul bandwidth when the total number of users per node is 100 or less. The acceptable oversubscription ratio would scale linearly up to 50:1 as the number of users on a node approaches 10,000.

The program considers 1.5 Mbps to be associated with the average expectations of the end-user experience associated with a 1.5 Mbps service.

In assessing the sustainability of the applicant's business case for delivering broadband, one of the criteria to be considered is to demonstrate that the new service will be affordable for the consumers by providing a detailed rationale and listing of all proposed monthly charges to end users and comparable service charges in similar areas. Additional information can be found in Schedule 6 of the Application Guide.

6. How will the transmission speed requirement be assessed?

The application must identify download and upload speeds for each section of the network and of the overall network, in the proposed technological solution. Please refer to Schedule 5 of the Application Guide for further information.

7. In some communities and with some technologies, 1.5 Mbps per household may not be possible. Would Broadband Canada consider an application that proposes less speed but is still an improvement over the current situation?

No. Any application that proposes to provide less than 1.5 Mbps will be considered ineligible for program funding.

8. Who is eligible to apply for funding?

To be an eligible recipient, the applicant must be a Canadian legal entity that can build and operate broadband infrastructure. These include: Canadian private-sector companies, not for profit organizations, cooperatives, or consortia; provincial territorial or publicly owned entities such as municipalities, county governments, MRCs in Quebec, and crown corporations; First Nations' organizations such as First Nations Internet Service Providers, and band councils. Please refer to General Program Information in the Application Guide for more information.

9. What is the definition of 'not-for-profit'?

For a definition of 'not-for-profit', please refer to the Canada Not-For-Profit Corporations Act.

10. What costs are eligible?

Eligible costs include: engineering/design; environmental assessments (if required); equipment and infrastructure; tower cost sharing or renting; incremental salaries and benefits associated with the project; satellite capacity; software. Please see Section 4.1 of the Application Guide for more detail.

11. What costs are ineligible?

Ineligible costs include: costs related to the development of the application; existing capital assets; customer premise equipment (CPE); financing or carrying costs; general office equipment. Please see Section 4.2 of the Application Guide for more detail.

12. Will in-kind contributions be considered as part of the funding provided by the applicant?

No; in-kind contributions will not be accepted.

13. What areas in the country are eligible?

Prior to the call for applications, Industry Canada conducted an extensive mapping exercise to identify current broadband connectivity across Canada. The information received during this validation process helped to define the Geographic Service Areas (GSAs) for the purposes of this call for applications.

Based on this analysis, 64 GSAs were defined. Please refer to the General Program Information section in the Application Guide for more information about the GSAs. A list of the GSAs can be found in Appendix 3. GSA maps are also available for download.

14. Does the program have any regional allocations?

The goal of the program is to bring broadband connectivity to as many unserved and underserved households as possible. Applications will be assessed on that basis, therefore there will be no regional allocations.

15. Are there any regions in the country not eligible for funding?

Applications from areas of the country that have, or will have broadband coverage (in the next 12 – 18 months) through other private sector or government initiatives, will not be eligible for funding under this program. Please refer to the General Program Information section in the Application Guide for more information about the excluded regions.

16. Does an application have to guarantee broadband availability to an entire GSA?

No. Applicants are not required to bring broadband connectivity to an entire GSA.

17. Can an application be made to deliver service to more than one GSA?

Yes. Applicants can propose to deliver broadband connectivity in more than one GSA, but a separate application must be made for each one. Please refer to the General Program Information section in the Application Guide for more information.

18. Is the funding available for community access points?

The program is directed at bringing access to households, not just to a point of presence in a community. However, the application should include in the business case (please refer to Schedule 6 of the Application Guide) other service points that will be served under the proposed application, such as a community access point.

19. Can Broadband Canada ensure that funding is not provided to a GSA that already has existing service?

The mapping exercise was undertaken to give us as accurate as possible a picture of existing broadband coverage in the country, in an effort to minimize broadband rollout in areas already served. Applicants will be asked to validate unserved / underserved areas as part of the application process. Schedule 3 (Column Q) of the Application Guide asks that for each hexagon, applicants provide an explanation of any variances from Industry Canada's mapping data.

20. I want to apply for funding to provide service in a GSA that I know is not served at 1.5Mbps even though the Broadband Canada coverage maps indicate that this area is served. Will the program accept my application?

Yes, Broadband Canada will consider applications to bring broadband connectivity to any area that is currently without access to 1.5Mbps or above (unserved and underserved by the program definitions). However, for applications proposing to bring broadband to areas currently shown on the map as served, the application must demonstrate that neither the applicant nor any other provider is providing 1.5Mbps service in the hexagon, or portion thereof. The onus is on the applicant to determine the actual number of unserved/underserved households within each hexagon.

In the Excel coverage spreadsheet that must accompany the application, the rationale and comments should be provided in Column Q (Schedule 3 of the Application Guide).

21. Is it possible to combine Broadband Canada funding with other federal funding programs?

The Government of Canada stacking rule applies to all applicants. With the exception of projects serving First Nations communities (see question #24), federal government funding cannot exceed 50% of eligible costs. Please refer to Other Federal and Provincial Programs.

22. Is it possible to include funding from other provincial/territorial programs as part of the applicants 50% of the funding?

Yes. However, total government funding (federal, provinicial/territorial, municipal) cannot exceed 100% of eligible costs. Please refer to Other Federal and Provincial Programs.

23. Who is subject to M-30 and how do I get additional information?

The M-30 applies for Québec based applicants only. M-30 is the Act Respecting the Ministère du Conseil exécutif (R.S.Q., c. M-30) and organizations located in Québec and receiving more than half of their financing from the Government of Québec may be subject to the Act.

More information on the Act is available online or by contacting the Québec ministry which, for the purpose of this Program, is the Ministère des Affaires municipales, Régions et Occupation du territoire.

All Québec based organizations will have to address this matter in their application and demonstrate their compliance with the Act before the evaluation of the applications.

24. Are there any special provisions for First Nations communities?

Service providers extending broadband access to First Nations households may be allowed to exceed 50 percent federal funding, but are limited to 50% from the Broadband Canada program. Please refer to Other Federal and Provincial Programs.

25. Who do I contact with questions about the application process?

In order to ensure all prospective applicants receive the same information, questions must be submitted in writing to the Broadband Canada office. Answers that require interpretation of the application process and/or guide will be provided in writing and will then be posted as additional FAQs on this website. Questions will be responded to within two business days.

Only the information included in the Application Guide, and/or posted on the website in the FAQs, represents official interpretation of the application process.

Please Note: Answers that require interpretation of the application process and/or guide will be posted on the Broadband Canada website; therefore, please do not include any confidential information in your question.

26. How do I submit an application?

The Application Guide and Application Form are provided in .pdf format for download. Full instructions for submitting an application can be found in the Guide.

27. Our company provided coverage information to Broadband Canada during the validation period. Why is this information not reflected on the maps?

Coverage information received by July 31, 2009 was incorporated into the current maps, now posted on the website. MapInfo Pro files are also posted online. Feedback received after July 31, 2009 will be kept for information purposes with a view to incorporating it into future versions of the maps. While we are not able to update the maps during the call for applications process, we are accepting additional coverage information. This information will be available during the evaluation process to help Industry Canada in assessing coverage, in understanding variances in data, and in minimizing the potential for overbuild.

The methodology used allows the identification of hexagons that are unserved or partially unserved. The colours indicate the unserved population in that hexagon. If there are any remaining unserved households outside your coverage area, but within the hexagon, the hexagon will still show as unserved on the maps.

Facilities-based service providers that serve at least one census dissemination block in a hexagon are listed in a separate mapping tool.

28a. Is Broadband Canada funding available to upgrade existing infrastructure?

• b. I have an existing network, but in order to deliver 1.5Mbps service, I need to upgrade the network. Is this eligible for funding?

• c. I have an existing network that delivers 1.5Mbps to users, but in order to expand this service to customers currently without access from any provider, I need to upgrade the network. Is this eligible for funding?

If 1.5Mbps service is not available to these customers from any other provider, infrastructure and operational expenses associated with the installation or expansion of the infrastructure, such as increased bandwidth or capacity, are eligible, but only for the incremental portion associated with the Broadband Canada project. The application must clearly demonstrate the incremental costs of the new initiative over the existing network and service, and would be limited to the life of project, ending no later than December 31, 2011. Other operational expenses, such as customer service, would not be eligible.

29. Is it too late to provide coverage information to Broadband Canada?

Broadband Canada will seek to update the coverage map during the life of the program. Any information received from ISPs will be retained for subsequent versions of the map. It is anticipated that the National Broadband Maps will be updated once successful applicants for program funding have been identified.

30. What are the general timelines under the Broadband Canada program?

Deadline to apply for funding is October 23, 2009, 16:00 (Eastern Time). No costs incurred prior to that date are eligible for funding. All projects must be completed by December 31, 2011 to allow adequate time to make final payments before the program closes on March 31, 2012.

31. Why are some regions in the country not eligible for Broadband Canada funding?

Applications from areas of the country that have, or will have broadband coverage (in the next 12 – 18 months) through other private sector or government initiatives, are not be eligible for funding under this program. Similarly, CRTC Deferral Account communities are not included. For further information on these areas we encourage you to visit Appendix 3 which lists areas that are served by other initiatives.

32. I do not think the planned provincial initiative for my region will adequately serve my community. Can an existing ISP apply for Broadband Canada funding in areas that do not have GSAs defined?

No. Broadband Canada will respect the publicly stated goals of other initiatives. If you feel provincial initiatives will not serve your community, please contact your provincial representative.

33a. Are municipalities eligible for funding?

Yes. If they can build and operate the broadband infrastructure, municipalities can apply for funding. Broadband Canada will fund up to 50% of eligible costs. The remaining funds can come from sources, including provincial programs.

A full list of eligible recipients and eligible costs can be found in the Application Guide.

• 33b. Can a municipality apply for funding from Broadband Canada and then, if approved, enter into an agreement with an ISP to deploy the broadband infrastructure?

Applications made to Broadband Canada must have sufficient technical detail to be fully assessed at the time of submission, which would likely require that an ISP already be involved and included in the application, or that the municipality be able to build and operate the infrastructure themselves. Broadband Canada will not approve projects for funding that do not meet all application requirements.

34. Can I partner with a U.S. firm to deliver broadband connectivity and still be eligible for funding?

To be an eligible recipient, the applicant must be a Canadian legal entity. The project must conform to existing foreign ownership restrictions, which are also referenced in the Application Guide. All pertinent information on these restrictions can be found in Schedule 8 of the Guide.

35. Why are satellite providers not listed on the Summary Information pages linked to the Broadband Internet Maps?

Since satellite service is theoretically available all across the country, we have not included satellite service providers on our coverage maps. However, applications to deliver satellite service are eligible for program funding.

36. How do I get broadband service in my area?

The provision of broadband Internet service is a private enterprise, driven by market forces. However, sometimes market forces are not sufficient, particularly in rural and remote areas. Broadband Canada will not provide Internet service directly to consumers. Rather, the purpose of the program is to provide a one-time, non-repayable contribution to encourage ISPs to expand broadband infrastructure in areas where there is currently no business case for the private sector moving forward on its own.

On September 1, 2009, the Broadband Canada: Connecting Rural Canadians program launched its call for applications inviting ISPs to apply for funding to provide broadband service to those Canadians who are currently unserved. ISPs will have until October 23, 2009 to submit those applications. It is anticipated that successful applications for funding will be announced in January 2010.

However, Broadband Canada cannot guarantee which areas of the country will receive broadband coverage as a result of this program.

If you would like to receive updates about the program, you can subscribe to our list serve.

37. Broadband Canada requires the technical solution to be certified by an engineer. Does the engineer have to be from a third party? What kind of engineer?

Broadband Canada requires that the Schedule 5 - Technology Solution of the application form be certified by a person with a university degree in a related field of engineering (e.g. electrical, telecommunications, computer). The person should be qualified to attest to the network viability, technical components and service capacity of the application, as laid out in Schedule 5. The qualified person does not have to be from a third party, and can be an employee of the applicant. The person should be eligible to be certified as a professional engineer as a result of his or her university training, but is not required to be a professional engineer.

38. Would the truck roll-out for the installation of CPE qualify as an eligible expense, if for instance, such expenses are incurred at the same time as the time of the commissioning of the access node?

CPE is not an eligible expense, therefore any costs associated with the installation of the CPE are not eligible.

39. Are the cost of acquisition and operation of vehicles eligible costs?

Costs incurred to deploy the proposed network are eligible, including the purchase and operation of vehicles. However, such costs would have to be reasonable and proportionate to the size of the proposed network, and associated only with the incremental infrastructure component of the network, and not with the installation of any CPE. The value of the vehicle would be capitalized over its lifetime, however only the portion of that cost related to the duration of the project, ending no later than December 31, 2011, would be eligible. The costs of operation of the vehicles would also only be eligible for the life of the project. Applicants would have to provide sufficient justification for these investments.

40. Would EV-DO sticks, covered as part of the applicant's 50% funding share, be eligible project costs?

No, EV-DO sticks are CPE, which are not eligible project costs and can therefore not be considered in the application for funding.

41. Satellite transponder capacity and tower leases are eligible costs. Is access to backhaul on wireline solutions an eligible expense?

Yes, fees to access backhaul would be eligible expenses under the program. They would be funded over the life of the project, ending December 31, 2011.

42. Why is satellite transponder capacity capitalized over 5 years eligible, while tower leases and wireline backhaul cost are only eligible over the life of the project?

Supporting satellite capitalization costs is standard practice in the industry, as those technologies cannot be deployed easily, represent limited capacity and require higher levels of up-front investments. It is expected that satellite services will be used in regions where no other technology options are feasible.

43. Are ISP operational expenses, such as increased bandwidth and increased customer service requirements, eligible?

Operational expenses associated with the installation or expansion of the infrastructure, such as increased bandwidth, are eligible, but only for the incremental portion associated with the Broadband Canada project. The application must clearly demonstrate the incremental costs of the new initiative over the existing network and service, and would be limited to the life of project, ending no later than December 31, 2011. Other operational expenses, such as customer service, would not be eligible. Maintenance costs, and other operational costs such as customer service, would not be eligible.

44. If Broadband Canada wishes to award projects to multiple applicants within a GSA, how will this decision be made and how would the relative coverage/project split between multiple applicants be determined?

As per the Application Guide, Industry Canada is seeking applications that propose to provide broadband connectivity to as many unserved and underserved households as possible in each GSA. The program goal is to reach the maximum number of households in each GSA.

45. Should applications be submitted in both official languages?

Applications can be submitted in either of the two official languages.

46. Are spectrum license acquisition costs, annual licences fees and spectrum leasing costs, eligible costs?

Spectrum license acquisition costs and annual license fees are not eligible costs, as per Schedule 4 of the application guide. Spectrum leasing costs are eligible for the life of project, ending no later than December 31, 2011.

47. Where there are continuing payments, such as for the rental of a tower, over what time frame would this expense be included as an eligible cost?

Continuing expenses related to infrastructure costs will be eligible for the life of the project, ending no later than December 31, 2011. An exception exists for satellite transponder capacity, where costs can be covered over 5 years.

48. In determining the eligibility of costs, what will the criteria be for determining the demarcation point for consumer premise equipment? For example, are all equivalent elements on the consumer's property ineligible costs (e.g. the fibre, cable or DSL drop loop to the customer's home from the terrestrial networks and the fixed antenna for fixed wireless or satellite networks)?

The customer's premise is the demarcation point for CPE, as per the Glossary in the Application guide. All equivalent elements on the customer's property are ineligible costs.

49. For what period of time is the co-location or lease of towers an eligible expense?

Rental cost for towers are eligible from the project start date to its completion date, no later than December 31, 2011. These costs would not be capitalized and would be reimbursed as they are incurred.

50. Who will evaluate the applications?

Applications will be evaluated by Industry Canada.

51. Is it possible that our application for funding is selected, but the funded amount is less that what was applied for?

Yes, it is possible. To ensure maximum value for its contribution, Industry Canada reserves the right to negotiate with the applicant once an application has been evaluated, as stated in Schedule 8, Section 8.9 of the Application Guide.

52. Will the rating guide be made public?

No, the rating guide will not be made public as part of the call for applications.

53. If an area is shown as covered by other initiatives, is there any funding available under the Broadband Canada program?

Areas that are "covered by other initiatives", but that appear in a GSA map, are ineligible for funding.

54. The program is directed at connecting unserved households. Does that include businesses and /or secondary residences?

Businesses that would be connected as a result of proposed project should be considered as anchor tenants necessary for sustainability, as stated in Schedule 6 of the Application Guide.

Secondary residences, such as cottages, would be considered as households under the program.

55. Do I directly input the answers into the right-hand columns on the Schedule 3 spreadsheet?

Yes, information should be entered directly in the spreadsheet. Please refer to Section 3.3 in the Application Guide for more information on how the Excel spreadsheet should be completed.

56. How does the Supreme Court of Canada's decision to uphold the CRTC's deferral account process affect the eligibility of those communities for the Broadband Canada program?

Canadian communities under the deferral account proceedings are NOT eligible for funding under the Broadband Canada program. Those communities are identified in the Broadband Canada program maps as deferral account communities. The Application Guide provides further information in Appendix 3. Any questions regarding the Deferral Account communities should be addressed to the CRTC directly. Information about the CRTC deferral account process can be found online.

57. What is the definition of 'fair market value' for the cost of equipment?

Costs will be reimbursed for the amount the applicant paid for the equipment. If the applicant pays 'retail' cost, that would be fully reimbursed. The applicants will not be allowed to add any additional mark-up or extra costs for equipment above what they paid.

58. If an applicant is proposing to bring service to an area shown as covered on the National Broadband map, applicants are supposed to complete Schedule 3, Column Q, to validate the variances from Industry Canada's mapping data. What kind of information is required?

The applicant should begin with the data provided on the Broadband Canada website. The following are examples of proof the applicant could provide, but not the only proof that will be accepted, so please use this as a guideline only.

Using the Google Map application, find the ISPs listed that Industry Canada believes are providing service (at the 1.5 Mbps download speed) in your region:

1. If an applicant believes this information is not accurate due to terrain, or other relevant factors, such as the fact that an ISP is no longer providing service, that should be indicated in Column Q.
2. If an applicant believes any/all incumbent ISP (s) is /are not providing service at 1.5 (but providing service at lower speeds) then some level of proof will be required to support this claim. For example, a survey or letter from area residents or the municipality attesting to this fact.
3. If an applicant believes that some service exists, but that the service is available to such a low percentage of the population, that the hexagon should be shown as unserved, that percentage should be provided, with a rationale and some supporting evidence, such as listed in points 1 and 2 above.

As described in Schedule 3 of the Application Guide, the applicant is required to estimate the number of households that currently do not have access to broadband (Column O), and the number of households that will have access as a result of the proposed project (Column P).

59. Does an applicant proposing to bring service to a partial GSA need to provide information in the Excel spreadsheet for the entire GSA?

Industry Canada is seeking applications that propose to provide broadband connectivity to as many unserved and underserved households as possible in each GSA; however, applicants are not required to bring broadband connectivity to an entire GSA. Therefore, the applicant does not have to provide information regarding the entire GSA. Schedule 3 should only contain information regarding the hexagons the applicant proposes to serve.

60. It is anticipated that the number of subscribers will go up with proposed expansion of the network. If a network management tool is required due to this increase in users' bandwidth consumption, would that network management tool be an eligible expense?

The network management tool needed to manage the increased use of bandwidth due to the proposed expansion of a network, would be an eligible cost.

61. What portion of mesh equipment would be eligible for funding?

Broadband Canada would fund up to 50% of the mesh equipment costs up to a maximum of $200.00 per home served by the equipment.

62. The deadline for applications is October 23, 2009, 16:00 Eastern time. Do applications need to be received by Broadband Canada by that time, or simply posted by that time?

The applications must be received by Broadband Canada by October 23, 2009, 16:00 Eastern time. A postmark is not sufficient.

63. Section 5.1 of the Application Guide states applicants must provide geographic maps of all network components, using the GSA maps provided by Industry Canada. Where can the GSA maps be found?

The GSA maps can be accessed through the left hand navigation button "Geographic Service Areas (GSA)" found directly below the link to the Application Form.

64. I would like more information on the access requirements, described in Schedule 5 of the Application Guide.

For wireline solutions, more information regarding access requirements can be found online, or the applicant can contact the CRTC directly at 1-877-249-2782. For wireless solutions, more information can be found online.

65. Will an application covering a region or a part of a territory already being served by another competing provider be rejected? If so, what is the mechanism through which this criterion will be implemented?

An application covering a region which is already being completely served by another competing provider offering speeds of 1.5Mbps will be rejected. However, if an application covers only a part of a territory already being served at speeds of 1.5Mbps, then only that part will not be rejected, while the rest will be considered. Finally, for an application covering a territory which is already being served, but at speeds below 1.5Mbps, the application will be considered in full.

66. If, within the framework of this program, a contribution is awarded for a project allowing service in a region already being served by a competing provider, will the latter be able to challenge this grant award before the project presented is deployed?

Industry Canada wishes to avoid awarding funding to an ISP for a region already being served by another ISP offering speeds of 1.5Mbps or higher. Nevertheless, we cannot fully guarantee that there won't be any overlap (for example, it is more difficult to establish specific boundaries for a wireless system). However, the mapping exercise we carried out was indeed done to prevent such situations from arising. Applicants may challenge Broadband Canada information (by hexagon) by completing Column Q of section 3.3 (Rationale) of the project application form for the region you intend to serve.