National Satellite Initiative – Part 1 (Industry Canada) and Part 2 (Infrastructure Canada)

First Nations and Inuit satellite-based broadband infrastructure projects were created in large part through two rounds of funding under the National Satellite Initiative (NSI). The first round of funding came in 2002 with the second round following in 2007.  

As a result of the NSI funding, 43 remote Inuit and First Nations communities, and two non-First Nations or Inuit communities in the northern regions of Quebec, Ontario and Manitoba receive Internet services through the Northern Indigenous Community Satellite Network (NICSN). In 2002, communities in Nunavut, NWT and northern Ontario began sharing satellite bandwidth provided through a Public Benefit Transponder. In 2003, NSI allocated a second Public Benefit Transponder to NICSN to provide connectivity services to public institutions in 43 communities. The second round of funding provided in 2007 allowed NICSN to secure two more satellite transponders and to complete local access network upgrades. 

Read more about NICSN here.

NSI also funded one project in Nunavut ($7.83 million to provide broadband service via satellite to all 25 communities), and one project in NWT ($7.0 million for 31 communities in NWT). These territorial projects are guided by boards of directors that include First Nations and Inuit representatives, but are owned and administered by a commercial organization, SSI Micro.

The NSI investment in Nunavut was matched by a combination of funding from SSi Micro and customer revenue. The combined $15.6 million in funding invested in bandwidth expansion between 2009 and 2012. Specific projects include the expansion of connectivity in public schools across Nunavut and file sharing applications for businesses. Read more.

In 2008, the First Nations Emergency Services Society of BC (FNESS), succeeded in a bid to manage the National Satellite Initiative Round 2 (NSIR2). The project provided 17 communities in British Columbia with access to high-speed internet via dedicated C-band satellite service. The NSI funding is scheduled to end on March 31, 2014. This has prompted communities in BC to begin searching for alternative modes of funding. Read more.

Despite evidence of the success of these projects in achieving economies of scale, network efficiencies, and strong, long-term partnerships across geographic and jurisdictional boundaries, the satellite-based broadband infrastructure and connectivity services associated with NSI are in danger of losing core funding. In one key informant’s words: “The trend appears clear: lower funding for less stable lengths of time”. The Table below highlights the end of NSI funding. As of early 2013, no new government program has been announced to replace the NSI.

NSI Funding Timelines as of early 2013