Benefits attached to the Provincial Government's $15 million investment in a $52 million trans-gulf fibre optic network have led to economic development and improved services being available in communities and regions throughout Newfoundland and Labrador.

The Honourable Shawn Skinner, Minister of Innovation, Trade and Rural Development, today clarified the many inaccuracies highlighted in a news release issued today by the Office of the Official Opposition.

"I recognize that the Office of the Official Opposition is in a period of transition and that they may not have an understanding of the Provincial Government's approach to encouraging greater access to high speed Internet but I feel compelled today to provide an overview of what our $15 million investment helped facilitate," said Minister Skinner. "It is disappointing that they would feed the media and general public with inaccurate information and have failed to research how the national communications sector operates."

Minister Skinner also provided an overview of the wide-ranging benefits experienced since the 2007 completion of the trans-gulf fibre optic network.

• On the island portion of Newfoundland and Labrador, 80 per cent of Newfoundlanders and Labradorians have access to high speed Internet access. In Labrador, close to 95 per cent of the population have access;
• EastLink Communications, Rogers Communications, and MTS Allstream — partners in the trans-gulf initiative — have made significant investments in the province that far exceed their $37 million portion of the project, involving jobs, infrastructure, and product offerings;
• Without the trans-gulf fibre optic network, balanced competition among telephone providers would not exist nor would many of the new digital services;
• EastLink Communications, for example, has expanded its service offering to more than 150 communities;
• Memorial University and College of the North Atlantic have secured contracts for better services at lower rates saving hundreds of thousands of dollars;
• Commercial enterprises and residents have greater selection for their communication needs;
• In 2009, close to 450 communities have access to high speed Internet — up from 114 communities in 2003; and
• Tele-Greenland selected Newfoundland and Labrador as its gateway into North America's communications industry as a result of the new network. It constructed and staffed a $4 million facility in the Town of Milton and contributed significantly to the local economy.

"The results speak for themselves," said Minister Skinner. "In the three years since the completion of the trans-gulf fibre optic network, commercial enterprises and residents have enjoyed significant benefits. Today, more than at any other time in the province's history, there is greater access to services, which has led to directly to economic development activity and enhanced opportunities for academic institutions."

In a sector that is overseen by the Canadian Radio-television and Telecommunications Commission — an arms-length body of the Federal Government — the Provincial Government has had to act carefully and identify opportunities where its investments could best leverage existing resources to improve the province's communications capacity.

In addition to its contribution in the trans-gulf fibre optic network, Provincial Government investments totaling $20.6 million under the Centre for Distance Learning and Innovation, and Broadband for Rural and Northern Development Program levered $86 million from the Federal Government and private sector partners.

"Our track record for investments in broadband infrastructure speaks for itself," said Minister Skinner. "As a government, we are currently exploring opportunities to sustain the momentum that our investments have helped facilitate. Through collaborating with industry partners we will achieve our goals of connecting as many Newfoundlanders and Labradorians as possible. It is not solely about spending money. It is about maximizing investments to deliver maximum gains, while balancing a variety of requirements and the capacity of the provincial treasury."

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