Innovation, Trade and Rural Development
February 15, 2010
Provincial Government Provides Update on Broadband
Activities
Recognizing the value of
high speed Internet access in today's social and
economic environment, the Provincial Government has
taken a deliberate approach over the last six years to
improve the province's communications capacity. That
results-driven approach has led to high speed Internet
access being available to 80 per cent of the population,
up from 60 per cent in 2003.
Within the heavily
federally-regulated communications sector, the
Provincial Government has carefully identified
opportunities where it could best leverage its resources
and improve the province's communications capacity.
Highlighted by investments under the Broadband for Rural
and Northern Development and Centre for Distance
Learning and Innovation, along with the $15 million
investment in the province's second trans-gulf fibre
optic network, residential and commercial consumers are
benefiting from greater competition and improved
services.
"The Provincial
Government's financial investments have helped
facilitate significant progress in broadband
connectivity and led to the development of essential
infrastructure that will serve as the foundation for
continued advancement of the province's communications
capacity," said the Honourable Shawn Skinner, Minister
of Innovation, Trade and Rural Development. "These
investments have not just benefited a single region but
the entire province. Now, more than ever before,
Newfoundlanders and Labradorians have a greater
selection of communications carriers to choose from,
more services, and access to modern technologies."
To further advance the
province's communications infrastructure, the Provincial
Government issued a Request for Proposals (RFP) to build
and manage an advanced communications network. Under the
RFP, the communications requirements of the Provincial
Government's more than 1,000 facilities that include
health care institutions, libraries, schools, and other
offices would have been consolidated into one
provincially-owned communications network. Currently,
the Provincial Government leases its communications
services from various communications carriers.
Due to anticipated
project costs escalating to more than half a billion
dollars, the Provincial Government has cancelled the
RFP. Effective immediately, the Provincial Government
will be re-examining its approach to improving the
communications infrastructure while continuing to build
on the progress that has been made over the last six
years.
"With anticipated project
costs almost doubling from when we first embarked on
this process to today, the Provincial Government has
cancelled the RFP as it is too expensive within the
current fiscal environment," said Minister Skinner. "As
a government, we take a very pragmatic approach to
managing the provincial treasury – all investments are
closely scrutinized to ensure maximum long-term benefit
for Newfoundlanders and Labradorians. While broadband
connectivity remains a priority, we have to balance our
many financial requirements, including significant
expenditures in health and education, and stay within
our fiscal framework."
"Today's decision does
not diminish the Provincial Government's view that
advanced communications is fundamental in the province's
economic and social development," said Minister Skinner.
"We remain committed to stimulating connectivity in all
regions. The next step is to work with industry to
explore options that will allow us to meet government's
broadband requirements and advance connectivity in all
regions."
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Media contact:
Scott Barfoot
Director of Communications
Department of Innovation, Trade and Rural Development
709-729-4570, 690-6290
scottbarfoot@gov.nl.ca
2010 02 15
3:40 p.m.
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