Hon. Leo Housakos: Honourable senators, before I move the adoption of the report, it has come to my attention that there was a technical problem during the preparation of the report, which resulted in the report as presented not accurately reflecting the decisions taken by the committee.

I have been informed that the technical issue has been resolved and that internal quality controls are being reviewed to minimize the risk of similar errors occurring again and to ensure that the Senate has before it a document that accurately reflects the committee’s decision.

Honourable senators, with leave of the Senate, I move:

That the Fourth Report of the Standing Senate Committee on Transport and Communications be amended in amendment no. 1 by deleting subsection (1.12) and by renumbering subsection (1.13) as subsection (1.12).

Hon. Leo Housakos moved the adoption of the report.

He said: Honourable senators, I rise to speak to the Fourth Report of the Standing Senate Committee on Transport and Communications.

Bill S-242 seeks to amend the Radiocommunication Act to require spectrum licence holders to deploy the spectrum to at least 50% of the population within the geographic area covered by the spectrum licence.

Our committee has made six amendments to this bill. The first is to clause 1, on page 1, and replaces lines 7 to 15 to ensure that those buying Tier 1 to 4 licences would not be able to meet deployment conditions by simply deploying to the urban areas within those large tiers but would also be required to provide service to the smaller, rural and remote areas nestled within in order to meet their obligations under this legislation.

It also lays the foundation for other amendments focusing on the “use it or share it” regime. Additionally, it provides ministerial flexibility to either outright revoke the licence or to reallocate Tier 5 areas within the licence to other providers who are ready and able to service the underserved areas.

The second amendment is to clause 1, on page 1, and adds language that would clarify the intent to ensure licence holders cannot sell the licences up to and including three years minus a day in an effort to avoid penalties for not complying with licence conditions.

The third amendment is to clause 1, on page 2; it replaces and adds text subsequent to the previous amendment to provide the flexibility of subordinate or subsection competition.

The fourth amendment is to clause 1, on page 2, and adds that the minister be required to start a competitive bidding process within 60 days of not only the revocation of a spectrum licence but also where the licence holder has voluntarily surrendered their licence as a result of them not being able to meet their licensing obligations.

The fifth amendment was to clause 1, on page 2, in which line 32 was replaced to address concerns over the ability of smaller proponents to raise the required capital to participate in the competitive bidding process, giving the minister the flexibility to use a competitive bidding process or other reallocation process — such as a first-come, first-served model — when a licence is revoked or surrendered.

The final amendment is to clause 1, on page 2, and adds new text after line 35 that would ensure a company doesn’t repetitively relicense spectrum in order to limit competition or stop others from licensing spectrum in a specific geographic area.

It also adds language that would prevent the company from re-bidding under a different name.

There are also observations from three members of the committee, which were endorsed by the committee as follows:

Senator Clement noted the importance of this bill in raising awareness to the major problem of connectivity in Canada and the serious impacts on communities who lack connectivity, including Indigenous communities, and the impact this plays on Canada’s reconciliation process.

Senator Clement also noted that this topic has been neglected and that this bill is a good contribution to the much-needed discussion but that it is only a small piece of the puzzle, with many valuable suggestions from witnesses falling outside the scope of this bill.

Senator Clement observed that, in recognition of the work done by our committee, we call on the Government of Canada to undertake an exhaustive review of spectrum policy in Canada.

Senator Dennis Patterson’s observations echoed many of Senator Clement’s — in particular, the need to improve rural and remote connectivity and the serious consequences of not doing so as it pertains to vital services such and health and education, as well as the enhancement of language and culture in remote Indigenous communities.

Senator Patterson also observed that the government should develop incentives and policies that foster competition and facilitate the entry of Indigenous proponents.

This is where I will make what I consider a timely observation as chair.

Colleagues, throughout a previous study by our committee, we kept hearing testimony that legislation would promote and amplify Indigenous voices, but Indigenous creators themselves told us that the biggest barrier to having their voices heard on the internet is neither the definition of CanCon nor any algorithm. It’s the inability to actually get onto the internet because of a lack of connectivity.

Finally, Senator Cormier noted that there is currently no official database of all undeployed spectrum in Canada; Canada does not have a system to ensure transparency in the secondary market for licences; and the spectrum management by auction, based on a competitive system, is not well suited to the Canadian geographic and economic reality, according to one of our witnesses.

I want to thank Senator Patterson of Nunavut for putting forward this bill. It was a very enlightening experience, I think, for the whole committee. We discovered a number of concerns. It wasn’t long ago that Canada was a world leader when it came to communications, and we’re slipping. Of course, now we’re seeing deep inequities between rural and urban Canada.

I do not think that this bill is a magic wand that will solve the problem overnight. The problem is too profound and pronounced. Obviously, we have deep challenges and, of course, challenges of economy of scale. I do not think there is a quick fix, but I think the committee feels that this is a good first step in addressing the issue, and hopefully will serve as a basis to encourage governments to work in collaboration with stakeholders and communities in order to find a better solution to the problems. Thank you, colleagues.