Federal budget 2021: Ottawa adds $1B to rural broadband fund as more work remotely

OTTAWA — The federal government says it will add $1 billion to a fund for improving high-speed communications in rural and remote areas of Canada, bringing the total to $2.75 billion by 2026.  

The money is going to the Universal Broadband Fund, which is designed to support the installation of “backbone” infrastructure that connects underserved communities to high-speed internet. 

It’s one of many government and private-sector initiatives that have gained urgency since the pandemic began, as Canadians became more dependent on internet service for applications ranging from e-learning to daily business operations. 

Ottawa says the additional money will keep it on track to have high-speed broadband in 98 per cent of the country by 2026, and 100 per cent by 2030.  

The Universal Broadband Fund was initially mentioned in the 2019 budget, with the details first released in the November fiscal update.  

The $1-billion top-up to the broadband fund announced today is in addition to $1.75 billion projected by the federal government’s November fiscal update. 

This report by The Canadian Press was first published April 19, 2021.

The Canadian Press