Premier Robert Ghiz today announced in the Legislative Assembly that the Government of Prince Edward Island has entered into a development agreement with Aliant that will see Aliant investing $8.2 million to extend broadband services to every community in Prince Edward Island, the establishment of a $1.0 million Joint Innovation Fund and the renewal of the government’s telecommunications contract.
The details of the agreement were outlined today in a news conference by Fisheries, Aquaculture and Rural Development Minister Allan Campbell.
“The agreement which we are announcing today fulfills one of the government’s major commitments made during the last election campaign,” said Mr. Campbell. “This new service will be of major benefit to individuals and businesses throughout rural Prince Edward Island, and will enable them to become more competitive through the use of new technologies.
The agreement also allows for the renewal of the government’s telecommunications contract with Aliant, which includes local and long distance services, for a further five years, with a total cost-saving of $2.5 million over current rates.
The minister said that Aliant is the largest information and communications company in Prince Edward Island and will play a key role in the continued development of the information technology sector. Over the next five years, Aliant and the provincial government will invest $500,000 each towards a new information technology innovation fund to promote and develop internet based applications and uses for Island businesses.
“We are very pleased to partner with the government of PEI on these important initiatives. Today underscores the tremendous power of partnership and our shared commitment to keep this region at the forefront of innovation,” said Bruce Howatt, Vice President Prince Edward Island, Aliant. “Together, through this significant investment in our broadband network and the Innovation Fund, we will continue to foster greater opportunities to learn, to access information and to deliver new services.”
Mr. Campbell said the new agreement is part of the provincial government’s commitment to rural development. “It is estimated that more than 25 percent of Islanders and rural businesses do not have access to high speed internet,” he said. “This new service will help stimulate rural businesses and improve the quality of life for people living in rural communities. At the core of this strategy is that rural Islanders, like their urban counterparts, have the opportunity to receive the same level of services at a fair price,” he said.
BACKGROUNDER
RURAL BROADBAND INITIATIVE
During the last election campaign, the provincial government made a commitment to provide rural broadband services throughout Prince Edward Island. In addressing its commitment to rural development in the 2008 Speech from the Throne, it said that, “A first initiative will be the provision of high speed internet services to all areas of rural Prince Edward Island.” This commitment was later reinforced in the 2008 budget and in the new economic blueprint, Island Prosperity, A Focus for Change.
The provincial government further announced its commitment on the signing of the Canada-Prince Edward Island framework agreement on infrastructure. Under that agreement, an estimated $5.0 million was expected to be allocated to the project. It was anticipated that a request for proposals would be issued.
The Aliant proposal was unsolicited. The Government of Prince Edward Island and Aliant have entered into a development agreement under which Aliant has committed to the following:
- an investment of $8.2 million, with no government funding;
- Broadband access for any Islander who wants it;
- a uniform rate structure across the province;
- majority of expansion to be completed by 2009;
- provision of $500,000 towards a new IT innovation fund, to be matched by the provincial government;
- exploration of mutually beneficial IT development opportunities between Aliant and the provincial government;
- make available access to its network by other ISP companies.
As part of the agreement, the provincial government renewed its telephone services contract with Aliant for a further five years. Aliant will provide a discount which will result in a total savings to government of $2.5 million over the five years. (Extending telephone contract services without a request for proposals has been a common practice of previous administrations.)
Aliant is the largest information and communications technology company in Prince Edward Island. It employs 350 people and has the skills and capacity to help continue to develop the information technology sector in the province. Information technology has been identified by the provincial government as a priority for development.
This agreement is consistent with the internal trade agreement as it relates to sole-source procurement. The agreement provides for sole-source procurement when there are regional development benefits.
The adoption of the Aliant proposal provides for significant cost savings for government, while providing strong technical expertise for the benefit of rural Prince Edward Island.