Antecedentes del problema

Several different funding models have been used for development of infrastructure and

ownership and operation of First Nation networks. It can be useful to look at backhaul networks that provide connectivity to the community separately from community access networks that provide connectivity within the community. The most prevalent models are:

Backhaul:

 Publicly/Privately Funded, non-First Nation owned and operated

 Publicly/ Privately Funded, First Nations Owned and operated Access:

 Publicly/Privately Funded, Privately operated

 Community Funded and owned and operated

 Community pays for service on Non First Nation, privately owned and operated network Table 5 shows the funding models followed by several major First Nation broadband projects.

NOBEI W.James Bay Saugeen MBQ Walpole I

Backhaul

Infrastructure Funding Public/Private Public/Private Public/Private Private N/A Ownership Private Community Private Private Private

Community Access

Infrastructure Funding N/A Private/Public Public/Private Community Community Ownership & Operation Community Private- Xittel Community Community Community Operations Funding

(other than Health and

Education) N/A Fee for service

Community & Fee for Service

Fee for

Service _Community

February 2013 44 Backhaul infrastructure is typically publicly and privately financed and owned by an Internet Service Provider. The local access network is often also subsidized, but owned and operated by the community. Government support is provided for ongoing operations for health care and education. The community typically funds other operations within the community.

Government funding has been the largest component of the North Western Ontario Broadband Expansion Initiative (NWOBEI), the Western James Bay Telecom Network and the Saugeen First Nation Network. Some of these networks have also benefitted from private funding by an ISP and community funding. The NWOBEI backhaul network will be owned and operated by Bell Aliant, at least in the short term. The Western James Bay Telecom Network and the Saugeen community network are owned and operated by First Nation entities.

Network ownership ensures management positions within the company for First Nations members. Other employment positions can be available for First Nations people under either model. Network ownership also keeps any profits from operations within the communities.48 The Mohawks Bay of Quinte and the Walpole Island First Nations have funded broadband networks themselves. They own and operate their networks.

Another model for bringing broadband to a First Nations community is to have a private ISP serve the community. The community and its residents and businesses buy service directly from the ISP like any other customer does. This has been done in the Hiawatha First Nation and in communities served through Rural Connections and the EORN.

More detailed examples of each model are provided in the following sections.

12.1 Publicly/Privately Funded, non-First Nation owned

12.1.1 North Western Ontario Broadband Expansion Initiative (NWOBEI)

NWOBEI is a huge undertaking in vast remote parts of Northern Ontario. The initiative is funded by the federal government, the Government of Ontario and a private partner, Bell Aliant. Bell Aliant is building, and will own and operate, the backhaul infrastructure for a minimum of 5 years after project completion.

12.2 Publicly/Private/Community Funded, First Nations Owned

The Western James Bay Telecom Network, a community based entity owns and operated a fibre optic and wireless network supporting the First Nation communities of Attawapiskat, Fort Albany and Kashechewan. The Mushkegowuk Council owns the network. The network received public funding of approximately 6.7M and private funding of $1.35M.

12.2.2 Saugeen First Nations Network

The Saugeen First Nation fibre to the home network is owned and operated by The Driftwood Corporation, which is owned by the community. This corporation was created to meet the

48

_{These are unlikely to be highly profitable networks due to their small subscriber base}

February 2013 45 Broadband Canada funding requirement that money be granted to an ISP. Approximately $970,000 of public funding was provided to build the network.

The Driftwood Corporation is able to operate the network with service revenues and support of the community. They are planning to become profitable.

12.2.3 Fort Severn

A community owned and operated satellite network, the Northern Indigenous Community Satellite Network (NICSN), was launched in 2005. It was funded through FedNor and Industry Canada SchoolNet. This was the first K-Net community. Satellite capacity available to Fort Severn will increase as other communities move off satellite service and onto fibre as a part of the NWOBEI project. Fort Severn is a successful community managed model.

12.3 First Nation Funded, Owned and Operated Networks

The Mohawks Bay of Quinte have self-funded a fibre network in their community. They will own and operate the network, which was completed in 2012. The band operates their own ISP providing voice and Internet services on a subscription basis to community members who chose to subscribe. Prices are market rates. Services are also offered to non-community citizens within reach of the network. The fibre network also provides the community with capacity to offer television should they decide to expand their services. By funding their own network, MBQ have been able to exert complete control over its mandate and operations. The MBQ have access to private backhaul facilities, which they pay for at market rates.

12.3.2 Walpole Island

The Community of Walpole Island, in Southern Ontario, has worked with a consultant to establish a broadband access network owned and operated by their community.

The Community has established STARS Canada LLC. (STARS) to own and operate their

broadband community access network. STARS purchases transport bandwidth from other ISPs. Walpole Island was able to provide bridge financing as start-up capital for the network.

The concept behind STARS consists of identifying efficiencies in the community, that can reduce operations costs, and redeploying the resulting savings to develop and operate a broadband network. The focus is on freeing existing resources to make them available for ownership and operation by the community. The network is owned and operated by the community for the community. STARS has developed favourable relationships with vendors, enabling them to negotiate low prices for services.

STARS provides Internet service to consumer and institutional community citizens. The First Nation covers the cost under specific agreements. For extra bandwidth required for gaming or other very high bandwidth applications, a fee is levied. The First Nation manages traffic, but does not throttle. Non-First Nation citizens and some commercial enterprises pay for service. Taking the steps to work with a third party to initiate this process requires strong support from community leadership and trust that savings in one area will be diverted to develop capacity in another to the benefit of the community. Department heads are often segregated through different funding arrangements and cannot easily identify spending to be deferred to another department.

February 2013 46 The STARS concept meets Chief Gilbert’s philosophy of not allowing others to do for you what you can do for yourself. Owning and operating their own network allows the Walpole Island community to keep expenditures within their own community while expanding their capacity.49

12.4 Pay for Service on Third Party Network

Hiawatha, Curve Lake, Alderville, Golden Lake and Red Lake are examples of communities where the band and individual subscribers purchase service from third party ISPs. This model is

effective in areas where there is an ISP capable of providing services to meet the needs of the community.