Without reliable internet connectivity, Canadians - particularly those in rural or remote communities - lack access to telemedicine, educational opportunities, online job applications and government services. That's why the Canadian government, along with public-private partners, is aiming to eliminate this digital divide by 2030. But to do it, it might have to go beyond fibre and satellite and 5G Fixed Wireless Access can play a key role.
Without reliable internet connectivity, Canadians - particularly those in rural or remote communities - lack access to telemedicine, educational opportunities, online job applications and government services. That's why the Canadian government, along with public-private partners, is aiming to eliminate this digital divide by 2030. But to do it, it might have to go beyond fibre and satellite and 5G Fixed Wireless Access can play a key role.
The digital divide isn’t new. It’s been around since broad adoption of the internet in the mid-1990s. Yet, as of March 2024, only 93.5 per cent of Canadians had access to high-speed internet. (1) Gaps in connectivity are concentrated in rural, remote and underserved households. But the high-cost of last-mile connectivity, combined with challenging terrain, means the digital divide persists decades later.
The cost of being unconnected or under-connected is higher than ever. Without reliable connectivity, households lack access to telemedicine, educational opportunities, online job applications and government services, which can worsen poverty and social exclusion. And, with the rapid rise and evolution of generative AI, these ‘have-nots’ will be left even further behind.
“For many of us, digital technologies are deeply entrenched in nearly all aspects of our lives, whether it is communication, work, shopping, learning or entertainment,” according to the World Economic Forum. But nearly 2.6 billion people, or one-third of the global population, still lack internet access, “leaving them without connectivity and unable to benefit from all of AI’s advantages.” (2)
The Canadian government, for its part, is aiming to provide 100 per cent access by 2030, which is good for isolated communities and good for the country as a whole. (3) According to United Nations research, reducing the digital divide can boost a country’s GDP. (4) But for Canada to reach its target, it will require connecting the country’s most remote and rural locations — and it may require looking beyond fibre and satellite as the only connectivity solution.
Why the digital divide persists in Canada
Solving the digital divide isn’t just about access. It’s also about affordability. “If we rely solely on telecom providers to bridge the divide, the economics of connecting hard-to-reach areas is often challenging to execute,” says Ahmad Husseini, Chief Technology Officer of Ericsson Canada.
Historically fixed wireline internet delivered by fibre or coax cables has been used to bring broadband to households in Canada. While switching to fibre from coax boosts performance, the main challenge of high costs for last-mile connectivity remains unaddressed, especially when connecting geographically dispersed communities.
In remote, rural and isolated areas — particularly those with rugged terrain and a harsh climate — fibre is held back by logistical hurdles, long deployment timelines, high capital costs per household and low economic viability for providers. While satellite internet can be valuable in extremely remote areas, it’s not affordable for many households due to high upfront hardware costs and high monthly services fees.
Fixed Wireless Access: Addressing the hardest part of the divide
Addressing the last mile remains the biggest challenge in closing the digital divide. This is where 5G Fixed Wireless Access (FWA) can play a key role. Thanks to 5G, FWA has made great technological strides, making it an ideal solution to tackle the remaining digital divide — especially the hardest-to-reach households. 5G FWA can also be combined with low earth orbit (LEO) satellites, which offer a higher-performance alternative to existing satellite solutions.
“It doesn’t have to be an either/or proposition,” says Husseini. “Technologies can be combined for their mutual strengths.” 5G FWA can complement fibre in dense areas and work alongside satellite in more remote locations. For example, satellite for backhaul to a local community combined with FWA for local coverage is an increasing common strategy to bridge the digital divide.
“FWA allows for very good connectivity options and it’s also good for the last mile,” says Husseini. “We’ve already seen how FWA is helping to bridge the digital divide in the U.S. — there are millions of people on FWA.” In these areas, telcos don’t choose one technology over another. Rather, they’re creating hybrid solutions that are suited to a particular geography and community.
The benefits of FWA
FWA, which leverages the same cellular infrastructure for fixed and mobile broadband services, has taken a significant leap forward with 5G. A customer’s antenna or router receives a 5G signal from a nearby cell tower to create a Wi-Fi network without the need for physical cables. Unlike fibre, FWA enables rapid buildouts and has a variable cost structure that scales with subscriber growth, rather than fixed coverage for fibre-to-the-premises.
While FWA solutions have been around for more than two decades, the massive performance improvements enabled by 5G “make 5G FWA a competitive solution compared to the predominant technologies in the fixed broadband market,” according to a report by GSMA Intelligence. (5)
Performance:The performance of FWA is no longer theoretical. Modern 5G FWA delivers ultra-high throughput, ultra-low latency and a consistent user experience. Massive MIMO technology and mid-band spectrum allow FWA to serve as a fibre-like replacement and provide real-world usability. A globalstudyby Ericsson ConsumerLab spanning 19 countries found that, compared to fibre, households were more satisfied with 5G FWA regarding delivery time, equipment quality and cost level. For network performance factors, satisfaction among households with 5G FWA was on par with fibre.
Energy efficiency:Universal connectivity needs to be sustainable, economically viable and environmentally responsible. Since FWA connects users to existing towers, there’s no need dig trenches for fibre cables. With advanced 5G, FWA can also optimize power consumption on the network. This approach offers efficiency advantages and lower embodied carbon than extensive fibre builds. It also aligns with national priorities and supports Canada’s 2030 Emissions Reduction Plan.
Trust:Communities need to trust their connectivity solution to spur broad adoption. They need to know they can rely on it for anything from emergency response and telemedicine to government and financial services. To be trusted, a network needs to be secure by design, based on recognized standards and able to maintain reliability in harsh environments. “Trusted connectivity isn’t just essential for availability — it’s also essential for adoption,” says Husseini.
Policy alignment and public-private collaboration
The federal government, alongside provincial and local initiatives and public-private partnerships, is aiming to close the digital divide by 2030. The $3.225 billion Universal Broadband Fund supports high-speed internet projects that bring internet at speeds of 50/10 Megabits per second (Mbps) to rural and remote communities. (6) Public funding is increasingly focused on cost-effective solutions, measurable outcomes and speed of deployment.
Most subsidies have been linked to fibre builds, which aren’t always the most cost-efficient or practical solution in Canada’s remote, isolated regions. On the other hand, FWA aligns with Canada’s Connectivity Strategy and CRTC Broadband Fund priorities.
“What’s needed are technology-neutral policies and continued collaboration across government, operators and the ecosystem,” says Husseini. “Government should adopt a technology-neutral funding strategy, which will allow markets to select the optimal or most cost-effective technology to close the digital divide based on the unique requirements for each community.”
Inclusion defines the best networks
In an AI-driven world, Canada’s success will be measured not just by innovation, but by who is connected and able to fully participate in society. The best networks are not those that only serve dense, profitable markets. Fixed wireless access is an embodiment of the best network for closing the digital divide — and a critical enabler of Canada’s final push toward universal connectivity.
Find out more about FWA here, and learn why FWA sustainable choice for closing the digital divide by registering for this Ericsson webinar.
