Ottawa to help finance nationwide sovereign internet network
9 hours ago
- Prime Minister Mark Carney announced federal financing for a new sovereign broadband backbone to connect Canadians coast to coast with secure links to Europe and Asia.
- A new tax incentive called the Productivity Mega Deduction allows companies to immediately deduct 100% of eligible investments, including fibre-optic cable, computer equipment, and R&D.
- The deduction reduces Canada's marginal effective tax rate on new business investment from 13% to 6.4%, making it the lowest among major economies.
- Major telecom companies (Rogers, Bell, Telus) expressed support for the project, emphasizing the need for Canadian-controlled digital infrastructure.
- The initiative aims to reduce dependence on U.S. internet exchanges and limit exposure of Canadian data to foreign surveillance, as studies show about a quarter of domestic data routes through American interchanges.
- The broadband project is part of a broader AI strategy and responds to prior regulatory hurdles that led telecom companies to cut capital expenditures.