The federal government is spending $ 55 million on two companies to install high-speed fiber optic Internet to connect about 11,000 homes.
Toronto-based Rogers Communications Inc. will receive some of the funding, while Woodstock-based Xplornet Communications Inc. will receive another portion. A breakdown of how much each company should receive was not provided.
Gudie Hutchings, the federal minister for rural economic development, made the announcement on Friday morning at a news conference in Miramichi that was lacking in detail.
The minister said the communities where the money would be used cover a “huge” list. CBC requested the list, but it has yet to be provided.
“This is not a big project for each of the proponents, there are a variety of projects to connect these houses that we connect today, and each one is a little different,” Hutchings said.
Part of the federal connection goal
Funding through the $ 2.75 billion Universal Broadband Fund is part of a commitment to keep 98% of Canadian homes connected with download speeds of 50 megabits per second and 10 up for 2026.
The federal government has set a second 100% target for 2030.
Hutchings said the Liberal government has spent $ 43 million to connect 66,000 New Brunswick homes since 2015.
The actual cost of service to 10,802 New Brunswick homes is unclear. Both Rogers and Xplornet will spend more on government funding, but no figures have been revealed.
“We look forward to working with Minister Hutchings to bring fiber to homes, a gigabit-speed Internet service for rural New Brunswickers,” said Jeff Burlock, executive vice president and co-founder of Xplornet.
Matthew MacLellan, president of the Atlantic region of Rogers, on the left, and Jeff Burlock, co-founder of Xplornet, watch the press conference at Miramichi. (Mike Heenan / CBC)
Burlock said the company, owned by New York-based private equity firm Stonepeak Infrastructure Partners since 2020, is already working with the federal government to connect more than 63,000 homes in the province to high-speed Internet.
Matthew MacLellan, president of the Rogers Atlantic region, also said they will use the funding to install fiber in various locations that will increase 2.5 gigabits and decrease 2.5 GB.
Hutchings said even with the spending announced so far, there will still be about 24,000 New Brunswick homes that do not have high-speed Internet service.
The minister said “talks” are being held on future funding with Rogers and Xplornet to service these homes.
“My goal is to connect all of Canada and working with Rogers and Xplornet, we will connect all of New Brunswick,” Hutchings said.
Hutchings said companies were selected after an application process that considered things like the equipment that would be used, if the network infrastructure could be upgraded later to offer higher speeds, affordability and connection they do not yet have service.
No provincial funding was part of the announcement.
Shortly after the announcement, a Bell Aliant spokesman sent a press release to CBC that the company issued on Tuesday saying it would expand its Internet service to more than 25 New Brunswick communities through a “fully funded” program. for Bell “.
A company spokesman said the areas were already served by slower internet.