Minister Sullivan Highlights the Benefits of the Trans-Gulf Fibre Optic Network

The Honourable Susan Sullivan, Minister of Innovation, Trade and Rural Development, today responded to the Audit General’s report regarding broadband within the Provincial Government.

“While the Office of the Auditor General has provided a broad analysis of the Provincial Government’s Broadband Initiative and investment in Newfoundland and Labrador’s second trans-gulf fibre optic network, it has underestimated the benefits experienced in three short years,” said Minister Sullivan. “It was a good investment in 2007 and continues to be today. It has brought true competition to the province’s telecommunications industry, played a pivotal role in increasing broadband connectivity, and provided Newfoundlanders and Labradorians with greater access to services.”

Minister Sullivan today highlighted the many benefits derived from the Provincial Government’s investment in the trans-gulf fibre optic network, which include:

• It has helped increase connectivity to 80 per cent of the population on the island portion of the province, which represents a 20 per cent increase from 2003. Additionally, 95 per cent of Labrador has access to high speed Internet;
• In 2009, close to 450 communities had access to high speed Internet – up from 114 communities in 2003;
• Partners in the trans-gulf initiative – EastLink Communications, Rogers Communications and MTS-Allstream – have made significant investments in Newfoundland and Labrador that exceed their $37 million portion of the project involving jobs, infrastructure, and product offerings. EastLink alone has invested $80 million over the last three years and expanded its service offering to more than 150 communities;
• Without the new network, balanced competition in the province’s telecommunications industry would not exist nor would many of the available digital services;
• 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, which has placed them on equal footing with their counterparts in other parts of the country; and
• Tele-Greenland selected Newfoundland and Labrador as its gateway connection 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.

“These are very real and tangible benefits that were derived directly from our investment,” said Minister Sullivan. “They also represent a clear path for the Provincial Government’s vision of advancing its strategy to improve the province’s communications capacity.”

“The Provincial Government is taking a prudent approach to meeting our objectives,” said Minister Sullivan. “If the opportunities present themselves through partnerships with the private sector that enable us to meet our objectives and reduce costs, we will closely consider and evaluate them. We always have to respect the fiscal environment.”

The Provincial Government’s actions to improve the province’s communications capacity have been completed under the framework of a heavily-regulated industry sector where the Federal Government is Canada’s only legislative body that can mandate a communications carrier or carriers to deliver residential and commercial high speed Internet access.

“Great strides have been made in recent years to improve Newfoundland and Labrador’s communications capacity,” said Minister Sullivan. “We look forward to sustaining that momentum through collaboration with industry and to deriving maximum benefits from our investments.”

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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 

2011 01 26             2:15 p.m.