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Broadband Stimulus package must address today's modern economy, the 21st century infrastructure, says Lord

HALIFAX - The federal government should include boosting broadband and wireless broadband services in its upcoming stimulus package, said former New Brunswick premier Bernard Lord Tuesday.

"Every sector that uses a cellphone now would benefit from this investment and that's basically every single business out there," said Lord, now the president and CEO of the Canadian Wireless Telecommunications Association.

The association has lobbied both the ruling Tories and the Liberal Opposition on this topic and will meet with the other two parties this week regarding budget recommendations.

Lord thinks the stimulus package needs to include traditional items such as roads and bridges, but a stimulus package must address today's modern economy as well.

"Yes, we need traditional infrastructure like roads and bridges, but you need to combine that with 21st century infrastructure that includes broadband, mobile, wireless broadband as well."

"It's not simply about helping this industry. Frankly, this industry doesn't need a bailout."

Lord would like to see three measures implemented. These would "create immediate jobs and save jobs, but would have a lasting effect in terms of wireless and telecommunication infrastructure in Canada," said Lord.

First, Lord would like to see the government double its financial commitment and implement it within two years. Another $500 million would be matched by the private sector for a total stimulus of $1.5 billion.

During the last election, the Ferderal Tories committed $500 million to broadband over seven years.

The second measure is an accelerated capital cost allowance for data network equipment. Lord would like to see it raised to 100 per cent just for the year 2009. It currently sits at 30 per cent.

"This could generate up to $12 billion of additional investments this year. This would increase speed for those that have wireless now. It would enable us to get broadband not only at home, but on the move."

All businesses need this to be able to compete, he says.

"If you can't compete at the speed of light, then you're really left behind."

The third measure is to improve 911 for wireless users. Lord is not asking for money for his industry, but wants the government to invest $250 million in public safety agencies to upgrade systems and call centres so that it can find people faster and better.

"By making these types of investments, you're investing in Canadian technology," says Lord. "A lot of this technology is Canadian and will be installed and implemented by Canadians throughout the country."

These measures will all help improve competitiveness, innovation, and productivity, says Lord.

"This is an enabler, this is a catalyst for all other sectors of the economy and when they can use our technology, they can become more competitive."