$3.2B broadband fund behind schedule as auditors flag delays and rising costs

A federal program promising high-speed internet for every Canadian home is falling well short of its targets, with internal figures showing the multi-billion-dollar effort lagging behind schedule amid delays and rising costs.According to a Department of Industry evaluation, the $3.2 billion Universal Broadband Fund has reached just 33% of its goal, connecting about 264,000 households as of mid-2024 — far below its target of 800,000 homes by March 2027.The report cites a range of problems slowing progress, including bureaucratic bottlenecks, staffing shortages and pandemic-related disruptions that hampered early rollout of the program.Auditors also pointed to mounting cost pressures. While the program initially budgeted administrative expenses at 3.7%, those costs have climbed to an average of 6.2%. Meanwhile, connecting rural and remote households has proven expensive, with federal subsidies averaging $3,121 per household.Processing times have also dragged. So-called “rapid response” applications took an average of four months to approve, while others stretched beyond a year — delays that contributed to rising project costs and further slowed deployment.Of the total funding envelope, roughly 77% has been committed to projects, with another 11% still under negotiation, leaving a portion of the program yet to be finalized as the 2027 deadline approaches..Despite the setbacks, federal officials maintain the program is necessary, arguing private telecom providers lack the financial incentive to build infrastructure in sparsely populated areas.The fund provides non-repayable contributions to approved applicants, targeting regions where there is no viable business case for companies to expand broadband service on their own.The report does not outline whether additional funding or extended timelines will be required to meet the original goal of universal high-speed access, nor does it clarify how many projects will be completed by the 2027 deadline.More than 2,500 applications have been submitted to the program, but only 17% have been approved so far, including dozens of projects in indigenous communities. Provinces such as Alberta, British Columbia and Ontario account for the largest share of applications, with Ontario leading in approved projects due to its high number of underserved households.

$3.2B broadband fund behind schedule as auditors flag delays and rising costs

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