Canada falling behind on connecting rural areas to high-speed internet: report

The government's efforts to connect rural parts of the country to high-speed internet are falling short, Canada's auditor general says in a report tabled Monday — which warns that the gap between cities and everywhere could lead to equality issues as work, education and many services move online.

While nearly 91 per cent of Canadian households had access to high-speed internet in 2021, just 59.5 per cent of those in rural and remote areas enjoyed the same access. That number drops to 42.9 per cent for households on First Nations reserves.

"These findings emphasize the persistent digital divide for people living on First Nations reserves and in rural and remote communities, compared to people who live in urban areas," Auditor General Karen Hogan said in a news release.

"The government needs to take action so that there is affordable, high-speed connectivity coverage for Canadians in all areas of the country."

Ottawa has set a goal of connecting 98 per cent of Canadians to high-speed internet by 2026, with universal access by 2030. 

The government defines high-speed internet as 50 megabits per second for downloads and 10 megabits per second for uploads.

The report said the urban-rural gap is especially problematic because of how work, education, medicine and government services are moving online.

"Being connected is no longer a luxury but a basic essential service for Canadians. This fact became more apparent as a result of the COVID-19 pandemic, which transformed how many Canadians live, work and learn," the report's summary says.

"Without access to fast, reliable, and affordable high-speed Internet and mobile cellular services, people residing in remote communities do not have the same opportunities as people residing in more urban areas."

Gudie Hutchings, minister of rural economic development, said Monday she accepts Hogan's findings but added the government is still on track to meets its 2030 goal of universal access to high-speed internet.

"Our plan ... is to connect every community — Indigenous, remote, rural. We will get the job done," she said at a news conference.

Hutchings said the government has spent $7.6 billion since 2015 to improve high-speed internet access in underserved communities.

Hogan recommended the federal government look at whether its funding for affordable high-speed internet is sufficient to meet its targets.

She also faulted the government for looking at regional pricing for internet plans when assessing affordability, without considering household incomes.