Prime Minister Mark Carney says the federal government will help finance a “sovereign broadband backbone”: a nationwide, high-capacity network linking Canada coast to coast, with more direct connections to Europe and Asia and, later, the Arctic. He announced it at the Canada Investment Summit in Toronto, MobileSyrup reports. He also proposed tax measures to cut the cost of laying fibre.

The problem it’s meant to solve: according to the Canadian Shield Institute, nearly 75% of internet traffic between Canadians travels through other countries, about 64% of it through the U.S. That’s a surveillance and resilience risk for traffic that never needed to leave Canada.

What we don’t know yet:

  • Cost: no dollar figure or financing split was announced.
  • Ownership: the Globe and Mail reports the Major Projects Office is discussing ownership and financing with telecom companies. Rogers, Bell, Telus and Quebecor have voiced support.
  • Timeline: none given.

Extra capacity could also serve the AI data centres being planned in Saskatchewan, Alberta and B.C.

Why it matters: A backbone is invisible to most people, but it decides where your data physically goes. Routing domestic traffic domestically is a sovereignty win that doesn’t depend on any single carrier or app. The details to watch are who owns it, and whether smaller ISPs get fair access.