Inuit
organizations provide critical financing needed to launch Nunavut-wide
broadband service
RANKIN INLET, NU May 11, 2004 – The Board of Directors of the Nunavut
Broadband Development Corporation (NBDC) is pleased to announce that financing
has been secured from Atuqtuarvik Corporation to match government funding,
allowing high speed internet services to be established in all Nunavut
communities by next spring.
“The final pieces of the puzzle are now in place,” says NBDC
Chair Patrick Tagoona. “Our goal of affordable, accessible broadband
for all Nunavummiut is really going to happen. We appreciate the confidence
shown in NBDC by Atuqtuarvik Corporation and Kakivak Association in our
organization and in the technology we know will transform our economy.”
Funding for the $9 million state-of-the-art wireless broadband distribution
network proposed by NBDC will be provided by:
- Atuqtuarvik Corporation – $3 million debt and equity financing,
- Industry Canada – $3,885,000 in contribution financing through the BRAND program,
- SSI Micro – in-kind contributions, that support its role as the network provider, and
- Kakivak Association – $227,000 loan guarantee for working capital
until the fall of 2004.
"We are pleased to provide NBDC with a loan and equity financing to establish high speed internet services," said Atuqtuarvik Corporation's Chairman, John Hickes. "This is a prudent investment for us, benefiting all 25 Nunavut communities. This investment will jump start Inuit businesses in the 'new economy' supported by high speed internet access." Atuqtuarvik Corporation is the Inuit-owned investment Corporation whose goal is to provide support to develop self-reliant, viable, Inuit-owned businesses.
Kakivak Association, the community economic development arm of the Qikiqtani Inuit Association, is providing critical short-term support. By providing an interim loan guarantee to the Royal Bank of Canada, Kakivak has ensured NBDC will have the funds necessary to purchase key equipment in time for this summer’s sealift.
“Connecting our communities to the world is important,” said Larry Audlaluk, Chairman of Kakivak Association. “We had to work hard to make sure we obtained phone service in all communities in Nunavut in the 1970’s, and getting affordable broadband today is just as important.”
MP Nancy Karetak-Lindell praised Industry Canada’s role in NBDC’s success to date. “Industry Canada’s BRAND program helped NBDC prepare the initial business plan needed to assess the viability of affordable, accessible broadband,” she said. “By providing almost half of the estimated financing, the Government of Canada is delivering on its commitment to modern infrastructure in the north. At the same time, we are building important partnerships with Nunavut organizations to make broadband a reality for every Nunavut community.”
The NBDC network has been designed to ensure that Inuit businesses across Nunavut will be involved in delivering broadband. NBDC and SSI Micro (the winner of the NBDC RFP) will work with community broadband providers to ensure local technical support companies are created and are viable over the long term in all Nunavut communities. The Nunavut Economic Development Strategy identified access to affordable broadband in each community as a key requirement for economic development.
With financing now in place, the next major step for NBDC will be a Request for Expressions of Interest for community-based companies, organizations or individuals to act as broadband community service providers.
Nunavut Broadband Development Corporation is a not-for-profit corporation, controlled by Nunavut residents. Currently 62% of NBDC’s membership are Inuit under the Nunavut Land Claim Agreement, (NLCA). Anyone in Nunavut can sign up to be a member.
Nunavut Broadband Development Corporation owns 100% of the shares of the operating corporation, NBDC Inc., which is recognized as an Inuit firm under the NLCA. NBDC Inc. will hold the assets of the new broadband network for the benefit of Nunavut residents, under the direction of the Nunavut Broadband Development Corporation Board of Directors.
When all goes according to plan, equipment will be delivered and installed in communities all over Nunavut from July until February. All communities are expected to be on line and operational by March of 2005.
For more information, visit the NBDC web site at:
www.nunavut-broadband.ca
or contact:
Lorraine Thomas, Project Manager
Ph. (867) 979-1303, fax (867) 979-1508
Email: lorraine@nunavut-broadband.c
