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Canada scales back broadband network initiative

TORONTO—The Canadian government has set aside C$110 million (US$70.2 million) to kick start Industry Canada’s national broadband network plans. The sum is much less than anticipated by industry watchers.

Federal Finance Minister Paul Martin’s 10 December budget earmarked only C$110 million to expand Canada’s national broadband initiative and link Canada’s “research-intensive institutions,” although there was no mention of bringing wireless access to remote and rural communities. The government has not yet allocated funds for broadband in the coming years.

Earlier this year, the government had grandiose plans for spending C$4 billion (US$2.6 billion) to provide a so-called “digital dial tone” for rural residents across Canada. Northern and isolated communities would have gained broadband speeds through wireless and satellite links. But economic concerns have led the liberal government to dramatically scale back its broadband initiative.

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