Alberta West News: Successful broadband rural networks owned by municipalities in Canada

I now have comprehensive information about successful municipal broadband networks in Canada. Let me compile a thorough report covering the key examples and their success factors.

Successful Municipal Broadband Networks in Rural Canada

Canada has developed several innovative models for municipally-owned and operated broadband networks that are bringing high-speed internet to rural communities. These initiatives demonstrate how local governments can address connectivity gaps that private telecommunications companies often overlook.

Alberta's Municipal Broadband Leaders

Town of Olds – O-Net

The Town of Olds pioneered Alberta's first municipally-owned fiber-to-the-premises (FTTP) network. Starting in 2010, the Olds Institute for Community & Regional Development borrowed funds from the Town and combined it with provincial grants to develop O-Net, ultimately investing $13-14 million in the complete network. The community-owned service achieved national recognition by offering gigabit internet speeds (1,000 Mbps) to residents for as little as $57 per month in 2013—significantly faster and cheaper than what was available in most major Canadian cities.abmunis+2

The project originated from frustration with incumbent telecommunications providers. After spending years trying to attract major ISPs to use their newly built fiber network, all refused to operate on infrastructure they hadn't installed themselves. Undeterred, the Olds Institute created its own ISP and began offering internet, phone, and IPTV services.cbc+1

By 2013, approximately 60% of homes and businesses had access to the network, with plans to reach 100% coverage. The network attracted technology companies and entrepreneurs from nearby Calgary, helping transform this small farming community into an educational and technology center. In 2024, O-Net was sold to TELUS, though the underlying fiber infrastructure remains and continues to benefit the community.intelligentcommunity+3

City of Brooks – BrooksNet

Brooks developed an innovative open-access model that demonstrates effective public-private partnerships. Facing download speeds below the Canadian standard of 50 Mbps, which deterred businesses from locating in the city, Brooks invested $5.3 million in a municipally-owned fiber backbone network. The project partnered with Crown Capital Partners, which contributed $15.7 million to build the distribution network connecting homes and businesses.arcadis+1

This co-ownership structure was crucial—the city owns and funded the feeder network, while private equity funded the more expensive distribution network. The total $20 million project creates an open-access network capable of 10 Gigabits per second speeds, allowing multiple ISPs to compete by using the municipal infrastructure. This positions Brooks as one of the first rural 10 Gbps communities in North America.abconnectivity+1

Town of Vermilion

Vermilion's $10+ million broadband project exemplifies a methodical, pilot-driven approach to municipal networks. Beginning in 2017 as part of the Vermilion River Regional Alliance, the Town conducted a feasibility study and obtained a CRTC license to become an ISP.abmunis+3

Using a $300,000 Municipal Sustainability Initiative grant, Vermilion ran a pilot project with ten local businesses, which confirmed the demand and municipal capability for broadband service delivery. The successful pilot enabled them to secure $2.4 million in municipal funding, partnering with Alberta Broadband Networks and Primus Communications to deliver the complete fiber network.abmunis+3

The network launched in late 2022, providing gigabit speeds comparable to major Canadian cities for this community of 4,000 people. This project was particularly notable because Vermilion was ineligible for federal funding—some areas already met the 50/10 Mbps standard, creating an "underserved but not unserved" gap.vermilion+3

Red Deer County and Village of Delburne

Red Deer County's initiative demonstrates how regional cooperation can expand broadband access efficiently. The County invested $20 million (later expanded to $30 million) to build a fiber-optic backbone network connecting populated areas, specifically designed to support municipalities within its boundaries.delburne+4

The Village of Delburne became the County's first partner, investing $1.15 million to bring fiber to every building and home—approximately 50% less than if Delburne had undertaken the project independently. The partnership was so compelling that Delburne's Council approved it in less than five minutes. Funded through the Municipal Sustainability Initiative and short-term debentures, the project had minimal impact on local taxpayers while delivering significant benefits.abmunis+1

Installation was completed by fall 2020, making Delburne the smallest community in Alberta with 1 gigabyte internet service at that time. The community has already seen increased home sales as remote work became viable and attracted new business interest. Red Deer County has since expanded this model, creating Rural Connect Ltd., a municipally controlled corporation with partner municipalities to operate and expand the network.abmunis+4

British Columbia's Municipal Networks

Campbell River – CRadvantage

Campbell River launched Vancouver Island's first municipal open-access broadband network in 2017. The city invested $348,000 initially (later expanded to $373,000 with a $50,000 Island Coastal Economic Trust grant) to create a fiber optic network in the downtown core providing symmetrical upload and download speeds scalable to one gigabit per second.cbc+2

The project was specifically designed to attract technology companies and diversify the local economy beyond traditional resource sectors. The open-access model allows multiple ISPs to lease access to the city-owned infrastructure, increasing competition and reducing costs by up to 50% for commercial internet services.islandcoastaltrust+3

Phase one integrated seven buildings and attracted five businesses to the downtown core. The network serves as the foundation for the city's Smart City initiatives, with plans for smart street lights, traffic signals, and irrigation systems.northerndevelopment+1

City of Nelson – Nelson Fibre

Nelson created a unique "dark fiber" utility model beginning in 1998. The city leveraged its municipal electric utility (Nelson Hydro), which owns poles and conduits throughout the community, making it economically feasible to mount and run fiber across the city.nelson+2

Between 1998 and 2005, Nelson connected municipal facilities, fire, police, library, and other civic departments, achieving cost savings through centralized phone systems, servers, and internet access. The network expanded significantly in 2012 when the Regional District partnered to connect offices, and again in 2014 when the Province of BC partnered to connect all schools and Selkirk College facilities.nelson

Nelson Fibre operates as a municipal utility providing dark fiber infrastructure, with private ISPs "lighting" the fiber to provide actual internet and network services. Businesses pay approximately $50 per month per fiber strand for 1 GB capacity to the city, plus separate fees to their chosen service provider. This model has helped Nelson attract and retain technology businesses like Retreat Guru, which processes over $110 million in bookings annually.nelsonbroadband+3

Ontario's Regional Networks

Eastern Ontario Regional Network (EORN)

EORN represents Canada's largest regional broadband initiative, demonstrating how collaboration across multiple municipalities can achieve scale. Created by the Eastern Ontario Wardens' Caucus, EORN covers nearly 50,000 square kilometres serving over one million residents across 103 municipalities.eowc+2

From 2010 to 2015, EORN built a $175 million network (valued at over $260 million with private sector contributions) that includes:eorn+1

A scalable 5,500-kilometer fiber optic backbone with 160 Points of Presence
Nearly two dozen local access networks connecting to the backbone via wired or fixed wireless
Fiber connections to over 60 business parks and clusters
Improved satellite packages for extremely remote areas

The funding model combined federal ($55 million), provincial ($55 million), and municipal/private sector contributions ($65 million). Upon completion in 2014, approximately 99% of homes and businesses in Eastern Ontario could access high-speed internet, with nearly 90% able to access at least 10 Mbps through wired or fixed wireless services. By 2018, the network had over 140,000 broadband subscribers, with private sector partners making additional network upgrades valued at over $100 million.eowc+1

EORN's success led to the development of a long-term Digital Strategy focusing on improving mobile broadband access, regional economic development, and municipal service delivery using the network infrastructure.eowc

Southwestern Integrated Fibre Technology (SWIFT)

SWIFT, initiated by the Western Ontario Wardens' Caucus in 2011, follows a similar regional model for Southwestern Ontario. As a non-profit regional broadband project delivered in partnership with member municipalities and provincial/federal governments, SWIFT subsidizes construction of open-access high-speed networks to encourage ISP expansion in underserved rural areas.ontarioconstructionnews+3

The original SWIFT project was valued at approximately $209 million. As of 2023, SWIFT had awarded 97 contracts to 19 different ISPs. In Oxford County alone, SWIFT's $10.5 million combined investment extended high-speed internet to 1,718 homes and businesses.dufferincounty+2

In September 2024, SWIFT 2.0 received $34 million from the Ontario government to provide high-speed internet to 3,133 additional underserved homes and businesses, including several First Nation communities. SWIFT has signed contracts with leading local and regional service providers including BrookeTel, Cogeco, and Execulink.linkedin+1

Quebec Regional Initiatives

MRC de Matawinie – Connexion Matawinie

Quebec's MRC de Matawinie unveiled the province's largest regional fiber optic project in 2019. After conducting a feasibility study in 2017, the MRC obtained approval from its 15 constituent municipalities to construct a public fiber optic network across the entire territory.matawinie

The project requires installation of 2,700 kilometers of fiber optic cable serving 42,500 homes and businesses. The MRC created the non-profit organization Connexion Matawinie to manage construction and administration of the network, with the mission of ensuring all citizens, businesses, and industries have access to broadband telecommunications services.matawinie

Importantly, this network is publicly owned—the fiber optic infrastructure belongs to the 15 municipalities of the Matawinie region, ensuring long-term community control and benefit.matawinie

Key Success Factors

Economic Benefits and Return on Investment

Multiple studies demonstrate substantial economic returns from municipal broadband investment. British Columbia's Rural Connectivity Benefits Study found that the province's $289.4 million investment in rural broadband leveraged $808.5 million from other sources (a 3.79:1 ratio), creating $1.1 billion in total project funding.gov

The economic impact includes:gov

Short-term benefits: $223.7 million GDP increase, 1,820 jobs, $66 million in provincial tax revenue during construction
Long-term benefits: $2.3 billion in increased GDP calculated to 2045 from enhanced productivity
Total return: 8.6 times the initial provincial investment, or $13,900 benefit per connected person

Similar studies for BC's Interior region showed 4.25 times return on investment with $17,900 benefit per connected person over 20 years. These figures demonstrate that municipal broadband investments generate substantial economic returns beyond the immediate connectivity improvements.gov

Business Models that Work

Successful Canadian municipal networks employ several proven approaches:

Open-Access Networks: Brooks, Campbell River, SWIFT, and EORN all use open-access models where the municipality owns the infrastructure but multiple ISPs can offer services. This promotes competition, lowers prices, and reduces municipal operational complexity.arcadis+3
Public-Private Partnerships: Brooks' co-ownership model with Crown Capital and Vermilion's partnership with Alberta Broadband Networks demonstrate how combining public infrastructure investment with private operational expertise can overcome funding barriers.abmunis+2
Regional Cooperation: EORN and SWIFT show how multiple municipalities working together achieve economies of scale and can attract significant federal and provincial funding that individual communities cannot access alone.torys+2
Municipally Controlled Corporations: Red Deer County's creation of Rural Connect Ltd. as a non-profit MCC allows the network to operate independently while maintaining public ownership and returning excess revenues to municipal shareholders.rmalberta+1
Pilot Projects First: Vermilion's methodical approach—feasibility study, small pilot, successful demonstration, then full deployment—reduced risk and built political support.abmunis+1

Critical Challenges and Lessons

Municipal broadband faces real challenges that require careful planning:

Financial sustainability: Not all municipal networks succeed financially. O-Net in Olds, despite its technical success and national recognition, required financial support efforts in 2022-2023 before being sold to TELUS, with the Town ultimately recording a $7.8 million loss. However, the community continues to benefit from the gigabit infrastructure and attracted businesses that generate ongoing tax revenue and employment.olds+1

Technical expertise: Communities must either develop internal capacity or partner with experienced network operators. Many successful projects engaged consultants like TaylorWarwick for business cases and master infrastructure planning.taylorwarwick

Federal and provincial funding: Most successful projects combined municipal investment with senior government funding. Federal programs including the Connect to Innovate program, Universal Broadband Fund, and CRTC Broadband Fund have been essential. Provincial programs like Alberta's Municipal Sustainability Initiative and British Columbia's Connecting British Columbia program provided crucial co-funding.ised-isde.canada+6

Political commitment: Long-term political support is essential, as these projects typically span multiple years and election cycles. Red Deer County's CAO noted that broadband has become as fundamental as water, sewer, and roads infrastructure.rmalberta

Incumbent resistance: Many projects originated after incumbent telecommunications providers refused to invest in rural areas or demanded prohibitive costs. Brooks was quoted "millions of dollars" to service a single rest area, leading them to build their own network.rmalberta

Impact on Communities

Municipal broadband delivers transformative benefits beyond connectivity statistics:

Economic development: Brooks' economic development team reported that welding and fabrication businesses are relocating to the county specifically because of connectivity requirements. Campbell River has seen increased technology company location in their downtown core.reddeeradvocate+2

Remote work enabling: Delburne experienced increased home sales as remote work became viable. Vermilion residents can now comfortably work from home without needing to relocate.abmunis+1

Business competitiveness: Local businesses gain global competitiveness. In Olds, an engineering firm that previously sent thumb drives by courier now transmits "massive amounts of data just over the internet".cbc

Healthcare and education: High-speed connectivity enables telemedicine and online learning, particularly important during the COVID-19 pandemic.sasktoday+1

Indigenous communities: Several projects specifically improved connectivity for First Nations. SaskTel's partnership with Wood River Controls brought service to Muscowpetung First Nation, enabling remote work and online learning. SWIFT 2.0 includes seven First Nation communities.ontarioconstructionnews+1

Moving Forward

Canada's successful municipal broadband networks demonstrate that local governments can effectively address rural connectivity gaps through various models—from individual community networks to regional cooperatives, from full municipal ISPs to open-access infrastructure partnerships. The key ingredients for success include political commitment, appropriate business models matching community capacity, senior government funding partnerships, and willingness to learn from other communities' experiences.

As Red Deer County's CAO observed, providing broadband is "no different than putting in water, sewer, roads"—it has become essential infrastructure that rural municipalities can and must provide when private markets fail to deliver adequate service.rmalberta

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Tuesday, October 21, 2025

Successful broadband rural networks owned by municipalities in Canada