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The Government of Canada recognizes that the cultural sector plays a vital role in building dynamic communities across Canada and contributes immensely to our economy. As a Canadian Heritage Portfolio agency, the Canadian Radio-television and Telecommunications Commission (CRTC) works to engage Canadians in a vibrant cultural and civic life and encourages us to celebrate the uniquely Canadian nature of our country.
Our cultural and economic life is undergoing a remarkable transformation. Today, broadband and wireless networks are allowing Canadians to take advantage of the many opportunities offered by digital technologies—as creators, consumers, and engaged citizens. The CRTC works to ensure that the broadcasting and telecommunications industries continue to play key roles in this new environment.
The CRTC’s regulatory framework, which evolved during an era when access to the broadcasting system was well defined, is being challenged by new platforms for the distribution of content. At the same time, technology helps the CRTC fulfill its mandate by giving consumers more choice and enabling greater public participation in the regulatory process.
As the Minister of Canadian Heritage and Official Languages, I am pleased to present the 2009–2010 Departmental Performance Report of the CRTC. This report illustrates the activities of the CRTC during the last fiscal year.
The Honourable James Moore, P.C.
Minister of Canadian Heritage and Official Languages
I am pleased to present the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) Departmental Performance Report for 2009-2010. The past year presented many challenges for the CRTC, most notably a growing crisis in conventional television and the regulatory implications of new technologies.
In the spring of 2009, the CRTC issued licences of one year for the major English-language television networks and two years for TVA Group Inc. This decision was made in light of the global recession, which triggered a slump in the sale of advertising on conventional stations. Smaller broadcasters, who were less exposed to the difficult economic climate, were granted renewals of six or seven years.
Following the short-term renewals, the CRTC developed a new approach to licensing private television services. In March 2010, we introduced a framework that will ensure English-language broadcasters can continue to invest in high-quality Canadian programming. Starting next year, licence renewals will be conducted on the basis of large ownership groups that control both conventional and specialty television services.
Additionally, the CRTC announced new requirements to make it easier for the more than four million Canadians living with disabilities to access broadcasting and telecommunications services. As a result of this converged proceeding, Canadians will have access to cellphone models and other services that meet the needs of users with disabilities.
In October 2009, the CRTC announced its decision on Internet traffic management practices—an issue that is also referred to as net neutrality. We set out a comprehensive framework to guide Internet service providers (ISPs) in their strategies to manage the traffic on their networks, as well as the criteria to determine whether a practice is acceptable. We also required ISPs to inform their retail and wholesale customers before implementing a traffic management practice.
The digital revolution is fully underway, while the convergence of broadcasting and telecommunications is creating an integrated communications industry. The CRTC will continue to leverage opportunities that derive from the digital economy for the benefit of all Canadians, to the extent possible under the current legislative and regulatory frameworks. Our aim, as always, is to maximize the presence of Canadian content on a variety of platforms, and ensure Canadians have access to high-quality telecommunications services at affordable prices.Konrad von Finckenstein, Q.C.
Chairman
The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent public authority that regulates and supervises the Canadian broadcasting and telecommunications systems in the public interest, according to the policy objectives established in the Broadcasting Act of 1991 and the Telecommunications Act of 1993.
The CRTC seeks to strike a balance between the needs of Canadians and those of the communications industry. Through its regulatory function, the CRTC addresses, various economic, social and cultural issues in relation to the communications industry. Some examples include fostering:
The CRTC exists under the authority of the Canadian Radio-television and Telecommunications Commission Act of 1985. The CRTC’s mandate is governed by the Broadcasting Act of 1991 and the Telecommunications Act of 1993.
The Broadcasting Act seeks to ensure that all Canadians have access to a wide variety of high-quality Canadian programming. The Telecommunications Act seeks primarily to ensure that all Canadians have access to reliable, high-quality telephone and telecommunications services at affordable prices.
The CRTC fulfills its responsibilities through a number of interrelated activities such as:
Timeliness, transparency, fairness and predictability are the four principles that guide the CRTC’s work.
The CRTC endeavours to ensure that its regulatory policies remain current by taking into account emerging technologies, market developments and evolving consumer interests, and that where regulation is required, it is efficient and effective.
As a federal organization, the CRTC reports to Parliament through the Minister of Canadian Heritage and Official Languages. The CRTC is listed in Schedule 1.1 of the Financial Administration Act, and as such its budget and employees are subject to Government of Canada policies and guidelines, ensuring excellence and accountability to Canadians.
During 2009–2010, the CRTC was guided by one overarching Strategic Outcome: Canadians have access to a wide variety of high-quality, Canadian-produced programming, and to reliable, affordable and high-quality telecommunication services. Three program activities facilitated results under this Strategic Outcome:
Planned Spending | Total Authorities | Actual Spending |
---|---|---|
46.0 | 55.6 | 53.7 |
The difference between planned spending and total authorities is attributable to the Commission having received temporary funding for the National Do Not Call List (DNCL); increases in authority for Treasury Board’s vote transfer for ratified collective agreements; reimbursement of eligible paylist expenditures; and authorised budget carry forward.
Planned | Actual | Difference |
---|---|---|
425 | 435 | 10 |
The difference between planned and actual FTEs can be attributed primarily to the temporary funding for the National Do Not Call List.
Performance Indicators | Targets | 2009-10 Performance |
---|---|---|
Diversity within the broadcasting system is reflected in the ownership of stations, the availability of programming genres and the language of broadcast. | Maintain the current levels of diversity as measured in the CRTC’s Communications Monitoring Report. | The CRTC not only maintained but increased levels of diversity within the broadcasting system. The CRTC granted 13 radio licences to community and native stations to increase the diversity of voices in small markets and remote areas. The Commission also approved 29 applications for Category 2 specialty services to increase the diversity of television programming offered by the Canadian broadcasting system. It also approved applications for 5 new distribution services. Furthermore, the Commission authorized 4 non-Canadian services to the list of eligible satellite services for distribution in Canada. As a result, Canadians can now access 1,221 different radio services and 704 television services. |
The number of applications received The number of proceedings initiated The number of interventions filed The number of Canadian broadcasting services licensed as a result of the proceedings. |
The one-year target set by the CRTC for 2009-2010 was to increase the number of public proceedings for new services by 10 percent. Due to budgetary constraints and other priorities, this target was not achieved. | The CRTC processed a total of 870 broadcasting applications for new services, licence amendments and renewals. The CRTC initiated 14 public hearings, equalling last year’s total, and issued 110 notices calling for comments on various applications and policy-related matters. These processes generated 213,743 comments and interventions—more than 10 times the number recorded in 2008-2009. The CRTC issued 47 new broadcasting licences. |
Performance Indicators | Targets | 2009-10 Performance |
---|---|---|
The percentage of Canadians who have access to wireline and wireless services The average annual increase in local telephone rates, and The number of complaints the Commission receives regarding quality-of-service issues. |
Ensure that the proposed rates for telephone service and other telecommunications services submitted by the major service providers are limited to the rate of inflation. Monitor quality-of-service indicators to ensure that service providers deliver high-quality services. Ensure the number of complaints does not increase. |
More than 98 percent of Canadians subscribed to telephone service, and 99 percent had access to wireless services. Commission staff reviewed all tariff applications filed by the regulated service providers. Where the proposed rates did not meet the pricing constraint imposed by the CRTC, the applicant was notified and asked to file amendments to ensure compliance. In regulated areas, the increase in rates for local telephone service remained at or below the rate of inflation. The Commission’s Client Services group responded to more than 11,000 telecommunications inquiries, compared to approximately 19,000 in the previous fiscal year. |
Wireline telecommunications revenue market share by type of service provider (percent), and Total telecommunications revenues by type of service provider (dollars). |
The CRTC's target is to maximize the reliance on market forces and foster an efficient and competitive market. The Commission will regulate the industry only in cases where the market fails to fulfill the Telecommunication Act’s objectives. Historically, competitor revenue growth has been approximately two percent per year. The Commission expects this trend will continue. | The Commission streamlined regulations related to consumer-privacy safeguards, modified regulations related to directory-assistance service and the expanded local calling area framework. The Commission began a review of the telephone companies’ basic service obligations. Public hearings have been scheduled for October and November 2010. The Commission continued to review its telecommunications regulations. |
Program Activity | 2008-09 Actual Spending |
2009-10 | Alignment to Government of Canada Outcomes | |||
---|---|---|---|---|---|---|
Main Estimates |
Planned Spending |
Total Authorities |
Actual Spending |
|||
Canadian Broadcasting | 22.8 | 16.7 | 16.7 | 19.1 | 19.7 | A vibrant Canadian culture and heritage. |
Canadian Telecommunications | 19.0 | 13.4 | 13.4 | 18.0 | 18.6 |
A fair and competitive marketplace. |
Internal Services | 16.7 | 15.9 | 15.9 | 18.5 | 15.4 | |
Total | 58.5 | 46.0 | 46.0 | 55.6 | 53.7 |
Operational Priorities | Type | Status | Links to Strategic Outcome(s) |
---|---|---|---|
Private Conventional TV licence renewals |
New |
Expectations met
|
Strategic Outcome 1 The Canadian broadcasting system consists of a variety of voices that display Canada’s linguistic and cultural diversity. |
Implementation of the broadcasting distribution undertakings (BDUs) decision | Ongoing |
Expectations met
|
Strategic Outcome 1 Canadians continue to have access to the broadcasting system through traditional and new platforms. |
Emerging artists | Previously committed to |
Expectations mostly met
|
Strategic Outcome 1 The CRTC has a broad mandate to advance cultural, economic and social objectives in the Canadian communications system. |
Canadian Broadcasting Corporation (CBC)/Société Radio-Canada (SRC) licence renewals | Previously committed to |
Expectations not met
|
Strategic Outcome 1 The CRTC sets out the requirements CBC/SRC must meet in carrying out its mandates under the Broadcasting Act, which includes providing a wide range of programming that reflects Canadian attitudes, opinions, ideas, values and artistic creativity |
Digital transition | Previously committed to |
Expectations mostly met
|
Strategic Outcome 1 The CRTC seeks to ensure that Canadians maintain access to over-the-air television stations after the digital transition. |
Value for signal | New |
Expectations met
|
Strategic Outcome 1 The CRTC is encouraging broadcasters and distributors to work together to ensure the continuation of conventional television. |
Local Programming Improvement Fund (LPIF) | New |
Expectations met
|
Strategic Outcome 1 The CRTC created the LPIF to maintain minimal number of hours of local programming for Canadians living in non-metropolitan communities. |
New media | Previously committed to |
Expectations met
|
Strategic Outcome 1 The policy affirms that broadcasting over the Internet and through mobile devices compliments the traditional broadcasting system. |
Social policy direction | Ongoing |
Expectations met
|
Strategic Outcome 1 The CRTC works with industry to promote greater accessibility to broadcasting and telecommunication services for persons with disabilities. |
Convergence policy | Ongoing |
Expectations met
|
Strategic Outcome 1 The research provided the CRTC with a better understanding of the challenges of the rapidly evolving digital communications environment and consumers’ behaviour. |
Operational Priorities | Type | Status | Links to Strategic Outcome(s) |
---|---|---|---|
National Do Not Call List (DNCL) | Ongoing |
Expectations met
|
Strategic Outcome 1 The Commission notes that an independent survey conducted by Harris Decima, on behalf of the Marketing Research and Intelligence Association, confirmed that the program has been effective with 84 percent of Canadians surveyed said that they were receiving fewer telemarketing calls. |
Wireless 911 | Previously committed to |
Expectations met
|
Strategic Outcome 1 The CRTC continues to work with industry to improve the security of Canadians. |
Revisions to wholesale services rates and terms | Previously committed to |
Expectations met
|
Strategic Outcome 1 The CRTC is committed to ensuring that Canadians have access to a choice of service providers that offer reliable telephone and other high-quality telecommunications services at just and reasonable rates. |
A focused and modernized regulatory framework | Ongoing |
Expectations met
|
Strategic Outcome 1 The CRTC is committed to efficient and effective regulation. The CRTC relies on market forces to the maximum extent possible and only regulates when needed. |
Streamlining tariff approvals and other processes | Previously committed to |
Expectations met
|
Strategic Outcome 1 The CRTC continues to meet or exceed its service standards with respect to processing tariff applications. |
Internet traffic management practices | Previously committed to |
Expectations met
|
Strategic Outcome 1 The CRTC instructs ISPs to be more transparent about their Internet traffic management practices that appropriately balances the freedom of Canadians to use the Internet with the legitimate interests of ISPs to manage the traffic generated on their networks. |
Mediation | Ongoing |
Expectations met
|
Strategic Outcome 1 The CRTC is committed to a well designed, predictable and timely dispute-settlement mechanism for broadcasting and telecommunications. |
Industry analysis | Ongoing |
Expectations met
|
Strategic Outcome 1 The CRTC now produces a comprehensive report of the communications service markets and industry for use by all stakeholders. |
International outreach | Ongoing |
Expectations met
|
Strategic Outcome 1 The Commission will pursue regular consultation with international regulatory agencies to identify—and, where practical, implement—best practices. |
Management Priorities | Type | Status | Links to Strategic Outcome(s) |
---|---|---|---|
A more focused regulatory approach | Ongoing |
Expectations mostly met
|
Strategic Outcome 1 The CRTC continues to streamline and reduce the industry’s regulatory burden. |
Greater outreach to citizens and stakeholders | Ongoing |
Expectations met
|
Strategic Outcome 1 The CRTC is making efforts toward greater outreach to citizens and stakeholders in an effort to better serve them |
An improved organization | Ongoing |
Expectations met
|
Strategic Outcome 1 Continuity is a corporate strategy for building capacity and ensuring the organization’s future. |
Operating environment
The digital revolution is significantly transforming how Canadians live, work and communicate. As a result, broadcasting and telecommunications stakeholders have called on the CRTC to streamline regulations, process applications more quickly and offer better service standards. Working closely with industry, the CRTC has deregulated nearly every area of the telecommunications industry. Last year,
for instance, it reviewed regulations related to consumer-privacy safeguards, modified regulations related to directory-assistance service and the expanded local calling area framework.
Risks
The recession had an impact on all sectors of society, including the communications sector. To help industry during the period of economic uncertainty, the CRTC:
Challenges
The CRTC successfully addressed most of the challenges identified in its 2009–2010 Report on Plans and Priorities.
The CRTC’s actual spending decreased in 2009–2010. The Commission had received temporary funding, which ended in 2008–2009, to address an increased workload related to its legislative and regulatory responsibilities.
Details on the approved increases and related billing impact for the broadcasting and telecommunications industries are noted in Broadcasting Circular 2007-9 and Telecom Circular 2007-18, dated December 21, 2007. More information about these circulars is available online at: http://www.crtc.gc.ca/eng/archive/2007/c2007-9.htm.
The total authorities also include the amount authorized for the operating budget carry-forward and applicable Treasury Board vote transfers.
The CRTC’s actual spending in 2009–2010 was $53.7 million. Of that total, $12.4 million was related to voted and statutory items and $41.3 million to expenditures netted against revenue (i.e. vote-netted revenue). For additional information, see the section on sources of respendable and non-respendable revenue.
Canada’s Economic Action Plan
The CRTC received $14,000 in funding under Canada’s Economic Action Plan to enhance student employment in the federal public service.