Is fibre optic new or existing telecommunications technology? I ve heard its pie in the sky and can t be done.

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1 Arctic Fibre FAQ Who is Arctic Fibre? Arctic Fibre is a private Canadian owned company that plans to lay fibre optic cable from Asia to London UK through the Northwest Passage, and through Hudson Bay to Montreal and New York. The cable will have branches to various Canadian and Alaskan communities. Arctic Fibre s President is Doug Cunningham, a resident of Toronto, Ontario. Mr. Cunningham is a very successful businessman who has direct and proven experience in underwater fibre optic systems, having previously laid fibre optic cable between a number of Caribbean countries and between Canada and Bermuda. Arctic Fibre has contracted Madeleine Redfern, Ajungi Arctic Consulting, Iqaluit to provide Nunavut communities and decision-makers as much information as possible and answer questions about this project. What is Fibre Optic? Fibre optic is a modern telecommunications technology that allows tremendous amounts of digital information to be sent by light over long distances at very fast speeds (at the speed of light, in fact). Because of its immense capacity and speed, fibre optic technology is the technology of choice to transmit calls and data between continents or over long distances. Right now, for example, the vast majority of telecommunications traffic between North American and Europe, between Asia and Europe, etc. travels over fibre optic cables lying on the bottom of various oceans. With the exception of remote areas like the Arctic, satellite connections have generally been replaced by fibre optic technology. Is fibre optic new or existing telecommunications technology? I ve heard its pie in the sky and can t be done. Fibre optic technology is not new and has existed for over 50 years. It is proven technology which excels when large amounts of information have to be transmitted quickly. While at one time it would have been considered pie in the sky to install fibre optic cables across the North, this is no longer the case. The cost of installing a fibre optic network has come down over time, and with other developments (like the reduction in sea ice cover) it is now possible for Arctic Fibre to bring an advanced fibre optic network to the Arctic. What does Fibre Optic look like? A fibre optic cable is typically only an inch or two in diameter. It consists of a number of layers: 1) several very fine glass wires about the thickness of human hair, surrounded by a protective covering that includes: 2) a hard plastic layer; 3) 2 layers of metal rods (each about the size of a pencil lead); 4) a thin copper casing; 5) hard plastic (the combined size so far is the size of a dime); 6) another single layer of metal rods (each about the size of a house nail); 7) a layer of cotton (1/8 ); and 9) another hard plastic layer (for a total size 1

2 approximately the size of a garden hose). The majority of the fibre optic cable acts as protective casing with some of these protective wires also helping the light energy transmit over the vast distances. How does Fibre Optic technology work? The cable has equipment attached to each end which sends digital data as pulses of light over the glass wires (the fibre optic strands) at the speed of light. Digital data includes voice conversations, drawings, photographic pictures, text and video. This telecommunication technology is used for Internet, telephone and cable television. Is Fibre Optic safe? Fibre optic technology is extremely safe. It is effectively inert or benign, such that there is no perceptible effect or impact from the fibre optic cable. You can hold it in your hands without protection. While there is energy in the form of light traveling inside the cable, the amount of energy is small. It would be like picking up an extension cord that is plugged from your house into your vehicle. Northwestel, like all other large Canadian telecommunications companies, already uses fibre in parts of its network, and the Government of Nunavut is currently laying fibre optic cables to connect up its facilities in various communities. What are the proposed routes for Arctic Fibre? Arctic Fibre will connect Japan, Montreal, New York and London, UK through its cable laid through the Northwest Passage. In its initial phase, the cable will provide bandwidth to 52% of Nunavut's population, with connections to Cambridge Bay, Gjoa Haven, Taloyoak, Igloolik, Hall Beach, Cape Dorset, and Iqaluit. Later phases will provide for expansion to communities on both the western and eastern shores of Hudson Bay, around Ungava Bay as well as the eastern shore of Baffin Island. Some of these routes are contingent on external funding as they are not economic on their own. Why is Arctic Fibre going through Canada s north? The chosen routes are the shortest and most cost effective connection between these cities. Arctic Fibre s main fibre optic backbone routes will cost approximately $600 million dollars. How is fibre optic installed under the ocean? Arctic Fibre will hire and use a specialist company that installs fibre optic cable on the sea floor. A large ship travels slowly and unwinds the cable from the back of the ship. In deeper waters, the cable lies directly on the ocean floor. Where needed, the cable will be buried to ensure that it is protected from potential risks and threats such as shipping trawlers that drag nets along the bottom of the sea. 2

3 To what extent will fibre optic installation disrupt marine life and/or harvesting activities? The installation of the cable will cause very little or no disruption, including to the natural environment, wildlife & Inuit harvesting. The cable laying ship must travel slowly through the waters along the proposed route, and in some areas, the cable will have to be buried to protect it. The ship s captain will submit his route and schedule with the proper authorities to get all the necessary permissions. The ship s captain will do everything as not to interfere or cause any harm to marine wildlife. Arctic Fibre will ensure the routing and schedule is provided to the communities via HTO/HTA and Hamlet prior to undertaking the laying of the fibre optic. Any concerns and/or questions will be answered by Arctic Fibre to ensure community members have all the necessary information they require about this project. Once the fibre optic network is installed, it will not disrupt marine wildlife, as it sits on the ocean floor or is buried under the seabed. Maps will be published so that everyone, including fishermen, are aware of the cable s route and can avoid it. Why and when is fibre optic cable buried? Fibre optic cable is buried to protect it from potential risks or threats, such as being cut by equipment (for example, fishing trawls or anchors), seismic activity (earthquakes), and moving ice (particularly in Arctic conditions eg pack ice). This typically occurs only in shallow water. Fibre optic cable construction provides good protection to the delicate glass wires and generally is not susceptible to most natural environmental risks but the costs associated with repair and subsequent disruption to customers mean that Arctic Fibre will do everything possible to minimize any risks to its fibre optic cable. Where does the fibre optic cable land and come up to and through our Nunavut communities? A lot of important lessons have been learned from Greenland and Norway fibre optic cable installations. Arctic Fibre will bury the fibre optic cable under the ocean floor near the shore of the communities where it lands. This will ensure that the pack ice does not damage the fibre optic cable and interrupt service. This also minimizes any interference with marine life and/or harvesting activities (clamming) and/or boating. Once the fibre optic cable comes to a certain point inland, it will be routed through a telecommunications/power network (often underground ducts) to a community telecommunications network station, e.g. NWTel, Qiniq, etc. How is this economically feasible? I ve heard that it s too expensive to have fibre optic in Canada s north. 3

4 The small and spread out population of northern Canada (approximately 150,000), makes it difficult, but not impossible, to install fibre optic networks. By extending the Arctic Fibre network beyond Canada s arctic to Japan, the United States and the U.K., Arctic Fibre is able to tap a much larger pool of customers for its capacity. By marketing to international customers like financial institutions, Arctic Fibre is able spread the costs of the system over a wider base. Every millisecond counts when trading in stock and commodity markets. By routing the cable through Canada s arctic, Arctic Fibre will offer the fastest connections between some of the world s largest financial centres, making Arctic Fibre very attractive to financial institutions. Unfortunately, there are some communities that are simply too remote or too sparsely populated to be economically feasible on their own. Arctic Fibre will initially reach 52% of Nunavut s population without any government subsidy. We are working with various governments and other organizations to bring the cable to the remainder of Nunavut. Will Arctic Fibre connect all Nunavut communities? If not, why not? Arctic Fibre is doing everything possible to connect as many Nunavut communities as possible to its fibre optic network. However, Arctic Fibre will require government and community support for spurs or branches from the main backbone to some Nunavut communities. Arctic Fibre feels strongly that northern communities shouldn t be bypassed without efforts to connect them. However, Arctic Fibre cannot, without government support, pay for the spurs or branches from the main fibre optic backbone into Nunavut communities. Arctic Fibre is in discussions with the federal government to help offset the $130 million cost to bring fibre optic from the main backbone into 23 out of 25 Nunavut communities. Which Nunavut communities would be connected or not connected? Arctic Fibre would like all Nunavut communities to be connected to fibre optic. The Arctic Fibre network will be built in phases, some of which require external funding to be completed. By the final phase, Arctic Fibre will have all Nunavut communities connected except Resolute Bay and Grise Fiord where government assistance is required to help offset the additional costs to reach these communities. Arctic Fibre is working with the Federal and Nunavut Governments to bring fibre optic to all Nunavut communities. How will fibre optic speeds and bandwidth be brought into my home, business, school, government offices, etc.? Arctic Fibre is not an Internet Service Provider (ISP) and will not provide telecommunication services directly to end-users. Instead, Arctic Fibre will sell bandwidth on its fibre optic network to existing ISPs, cable television and telecommunications companies like NWTel and Qiniq. These companies, if they choose to purchase fibre optic 4

5 bandwidth from Arctic Fibre, will determine the services and speeds they will provide to their customers. How much will services using fibre optic technology cost? Since Arctic Fibre is not the direct service provider to customers, it cannot say with certainty how much any existing or new provider will charge its customers for Internet, phone and/or cable services. Fibre optic should be cheaper, faster and provide customers significantly more bandwidth than is currently being provided by your provider via satellite. Will I notice a difference in the quality of my Internet with fibre optic service? Absolutely. Arctic Fibre s fibre optic network will provide tremendous amounts of bandwidth for a fraction of the cost of satellite services. This will enable ISPs to provide very stable and faster digital telecommunications with more bandwidth available for transmitting data. This increase will allow customers to access the same kinds of internet services enjoyed by customers in southern Canada including watching full length videos, TV shows, and movies, using Skype, and playing online games with others within your own community, region, territory, nationally or internationally without any delays or interruptions. Much will depend on your ISP and what they chose to provide customers; however, fibre optic broadband should be significantly better and faster to permit the offering of such services at affordable prices. How will Nunavut benefit from the Arctic Fibre project? The Arctic Fibre project will provide Nunavut communities and Nunavummiut faster, cheaper, more stable, higher quality Internet services. In addition, ISPs and other providers can, through the fibre optic cable network, provide customers telephone and cable television on the same cable. In the south, many telecommunication companies bundle these services to their customers at cheaper cost. Faster, cheaper, more stable, more bandwidth, and less latency (speed delays) means that customers will be able to have faster upload and download speeds especially for large digital files eg pictures, photos, videos, audio, etc. Will governments, NGOs and Nunavut businesses benefit from Arctic Fibre? Absolutely. Governments, NGOs, and Nunavut businesses are often hampered in being able to send and/or receive large digital files or information on the Internet. Many complain that lack of bandwidth, unreliable service, and data caps limit or prevent sending of important files; in worse case situations, the lack of affordable internet bandwidth means that files must be sent by mail on thumb drives. The delays in uploading/downloading data from the Internet also lead to delays in work productivity for those employees and 5

6 their clients. Faster, better, more stable, broadband Internet services should greatly improve internal and external communications within communities, within territory, and with the rest of Canada and the world. Fibre optic bandwidth could also permit these institutions to use real videoconferencing, thereby reducing the amount of money spent on travel within and outside of the territory. Extra savings from travel can be spent on other operational or organizational costs or programs or services. Will mining companies be hooked up to Arctic Fibre? Arctic Fibre is currently having discussions with several mining companies that are in or near operation to get their mines connected to the Arctic Fibre network. This would provide the mine with all the benefits of a fibre optic connection for its own internal/external communications and operations. In addition, it would provide mining employees the opportunity to Skype and/or video conference with their loved ones in their home communities, ideally directly into their own homes. This should reduce the inevitable disconnection families feel when their loved ones go to the mine for extended periods of time. How and what kind of support can be provided to the Arctic Fibre project? A letter of support for Arctic Fibre is particularly useful as it shows this project has community support and show market interest to potential investors, especially the Government of Canada. Arctic Fibre seeks to obtain funding from the Federal Government to help offset the fibre spurs or branches into the Nunavut communities. Politicians and bureaucrats involved in decision-making are more likely to respond positively and invest in a northern project if there is northern support. Therefore, the greater and more demonstrable support Arctic Fibre has, the more likely Nunavut communities will benefit from this project. 6