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Report
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Clerk at 905-623-3379 ext. 2131.
Report To: General Government Committee
Date of Meeting: March 6, 2017
Report Number: CAO-004-17 Resolution:
File Number: By-law Number:
Report Subject: Broadband Options for Clarington
Recommendations:
1.That Report CAO-004-17 be received;
2.That the Municipality of Clarington, through the Clarington Board of Trade and Office of
Economic Development, continue working with the group representing Regional
stakeholders and further investigate the feasibility of the telMAX Proposal; and
3.That all interested parties listed in Report CAO-004-17 and any delegations be advised of
Council’s decision.
Municipality of Clarington
Report CAO-004-17 Page 2
Report Overview
Broadband services have been a concern of the Municipality of Clarington residents and
businesses for 10 years. Over the years Council has supported the exploration of options.
This has proven to be a very costly and complicated project and no quick solution has been
found. Since 2015, a collaborative working group comprised of representatives from Durham
municipalities; Region of Durham, and private sector have been researching new opportunities
for a self-sustaining Durham solution.
1. Background
1.1. At the January 23rd General Government Committee Council passed Resolution
#GG-046-17: “That Staff report back to the February 13, 2017, General Government
Committee meeting on strategies available to expand broadband in the Municipality of
Clarington”. The Interim CAO subsequently indicated he would require additional time to
respond to this request as it required the involvement of the Clarington Board of Trade
and Office of Economic Development that would not be available in that time frame to
respond.
1.2. The level of broadband service in Clarington’s rural area’s is not sufficient nor cost
effective.
1.3. Many businesses in our urban centres struggle with adequate broadband service to
operate their business. This includes businesses directly along the 401 corridor, Hwy
35/115 and our downtown cores.
1.4. Between the years of 2008 and 2012, Clarington supported efforts of the Region of
Durham to secure funding and implement a broadband solution. This included a
Regional application to the Rural Connections Broadband 2010 Program to allow the
Region of Durham to enter into a contract with Xplornet.
1.5. Although successful in all processes, the project was unable to proceed due to
Xplornet’s inability to purchase or lease the licensed 3.5GHz Spectrum by the deadline
of December 31, 2011.
1.6. The challenges in broadband service in Clarington and Durham has been widely
discussed through various groups and committees, including the Municipality:
Municipality of Clarington
Report CAO-004-17 Page 3
Clarington’s Strategic Plan 2015 - 2018 – references improved fibre optics
(broadband) as one of three key projects in the number 1 priority to: Facilitate the
creation of jobs, attraction of new businesses and expansion of existing businesses.
Clarington Growth Summit 2016 – 2018 – Recommended a focus on broadband
problem to help retain and attract business. It was suggested as the number 2 priority
from the 1/2 day think tank hosted by the Clarington Board of Trade and Office of
Economic Development.
Clarington Agriculture Advisory Committee – recommended that broadband be a
priority in the 2013-18 Durham Agricultural Strategy.
1.7. Various parties including the Clarington Board of Trade, Chambers of Commerce in
Durham and private and public sector representatives from across the Region have
continued to collaborate and work towards a regional solution.
1.8. One of the most promising options is telMAX Co.. It is currently working with Oshawa
and is interested in expanding reach across the region. It has leadership in this sector
with vast experience with Rogers and Bell. The company is applying for rural funding
program and has secured funding from OMERS and the Teachers pension fund in
advance. telMAX has taken very significant steps with the City of Oshawa and in earlier
stages with Scugog Township and has already completed a great deal of work in
identifying gaps.
2. Policy Analysis
2.1. The Municipality needs to satisfy itself that broadband service delivery will support key
priorities for the community. Key criteria for decision-making on broadband options:
Suitability: will the chosen option suit the problem and or/the opportunity that is
before the Municipality and the benefits outweigh the risks?
Feasibility: will the chosen option technologically, financially and management
wise be able to be reasonably implemented and in a time frame that addresses
the problem or opportunity?
Acceptability: will the chosen option find general acceptance amongst the key
affected stakeholders including funders, customers, suppliers, regulators?
2.2. There are a range of options for how to improve broadband services for Clarington
residents and businesses. The key ones are:
a. support the development of the telMAX model
Municipality of Clarington
Report CAO-004-17 Page 4
b. apply pressure to existing providers to increase service in Clarington
c. use of small independent service providers such as local utilities to deliver service.
2.3 Option analysis
A. Support the development of the telMAX model
Pros:
Suitable to the opportunity at hand: knowledgeable and experienced in
broadband; clear understanding of Durham Region and service needs.
Feasible: strategy in place to secure government funding for rural
implementation with urban spin offs; interest in local utilities to partner.
Acceptable: strong relationships in the industry; effective working
relationships with the community.
Cons:
Need to secure infrastructure.
New delivery process to be established.
B. Apply pressure to existing service providers
Pros:
Companies have existing infrastructure and delivery process in place.
Cons:
Suitability: little to no interest in moving this forward community wide; only
looking at one off solutions.
Feasibility: servicing improvements in Clarington are a minimum 10 years
out.
C. Use of small independent service providers such as local utilities to deliver service
Pros:
Acceptability: Existing trusted relationship with the local community.
Some infrastructure and processes in place that can be tailored.
Cons:
Feasibility: This is a very large and expensive undertaking and much
bigger than our local utilities; steep learning curve would ultimately slow
process down.
Municipality of Clarington
Report CAO-004-17 Page 5
3. Concurrence
This report has been developed in consultation with the Clarington Board of Trade and
Office of Economic Development that has been leading the work on this initiative.
4. Conclusion
Suitable broadband services are important for the quality of life for Clarington residents
and for the attraction, retention and expansion of business in our community. The
challenges of getting Clarington connected to good services is growing as quickly as our
community is. Efforts over the past decade to work with existing service providers has
been unsuccessful. The magnitude of such a project has a large learning curve,
extensive costs and would require a lengthy timeframe to implement.
5. Recommendation
Option “A” is recommended. Specifically, that the Municipality of Clarington, through
the Clarington Board of Trade and Office of Economic Development, continue working
with the group representing Regional stakeholders and further investigate the feasibility
of the telMAX Proposal.
This represents a suitable, feasible and acceptable approach to securing broadband
service for Clarington. telMAX has already completed a great deal of the upfront work
and research, are well connected and knowledgeable and enthusiastic to move forward.
6. Strategic Plan Application
The recommendations contained in this report conform to the Strategic Plan.
Submitted by:
Curry Clifford, MPA, CMO
Interim CAO
Staff Contact: Curry Clifford, Interim Chief Administrative Officer, 905-623-3379 ext. 2002 or
cclifford@clarington.net
List of interested parties to be notified of Council's decision is on file in the department.
Attachments: N/A