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Section II – Analysis of Program Activities by Strategic Outcome

2.1 Strategic Outcome (S.O. 1)

2.2 Program Activity 1.1: Canadian Broadcasting

2009-10 Financial Resources ($ millions)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
17	19.1	19.7	133	149	16

Expected Results	Performance Indicators	Targets	Performance Status	Performance Summary
The Canadian broadcasting system is made up of a variety of voices that display Canada's linguistic and cultural diversity.	Diversity within the broadcasting system is reflected in the ownership of undertakings, 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.	Canadians could access 1,221 different radio services.  Of these, 910 were English-language services, 265 French-language services and 46 third-language services.  Canadians could also choose from 704 television services, which consisted of 459 English-language services, 111 French-language and 134 third-language services.	Canadians have access to a wide variety of high-quality, Canadian-produced programming.
Canadians have access to the broadcasting system as licensees of new services, as audiences of high-quality programming and as participants in CRTC proceedings.	Performance is measured by the number of: applications received; proceedings initiated; interventions filed; and broadcasting services licensed as a result of proceedings.	Increase number of proceedings for new services by 10 percent. The 10 percent increase in proceedings was contingent upon securing additional funding.  Given the economic downturn, and the impact that supplementary funding would have had on fee payers, this expectation was not met.	The CRTC processed a total of 870 applications for new services, licence amendments and renewals. The Commission held 14 broadcasting hearings, including four on regulatory policy matters. It also issued 110 notices calling for comments on various applications and policy-related matters. These processes generated a total of 213,743 comments and interventions—more than 10 times the number recorded in 2008–2009.	Given the recession in 2008 and 2009, the Commission took a cautious approach in dealing with applications for new services in highly competitive markets.

2.2.1 Benefits for Canadians

The broadcasting industry is a major contributor to Canada’s economy. It employs more than 32,000 people and generates annual revenues of more than $14 billion.² The CRTC ensures that Canadians can access a wide array of high-quality Canadian programming on a multitude of platforms.

2.2.2 Performance Analysis

Despite financial constraints and the economic downturn, the CRTC continued to work closely with industry to strengthen Canada’s broadcasting industry while fully delivering on its mandate under the Broadcasting Act. The Commission issued short-term licences that enabled private conventional television broadcasters to move forward with more flexibility in their operations while increasing funding for the Local Programming Improvement Fund to ensure a minimal number of hours of local programming in non-metropolitan communities.

2.2.3 Planned Activities Results

Regulatory review

• In June 2009, following a study on broadcasting in new media, the CRTC announced that it would continue to exempt new media broadcasting services from regulation.

• On March 22, 2010, the CRTC finalized the list of markets that must convert to digital television by August 31, 2011. These markets include the national capital region and all provincial and territorial capital cities, as well as markets either served by more than one local station or with populations greater than 300,000.
• In February 2010, the CRTC released Navigating Convergence: Charting Canadian Communications Change and Regulatory Implications, which examined telecommunications, broadcasting, and the evolving converged world of communications. The report demonstrated the links between each and the CRTC’s current regulatory agenda.

Accelerated service delivery and standards

The industry continues to benefit from the Commission’s accelerated service delivery and improved service standards.  In 2009–2010, the CRTC resolved 97 percent of applications that did not require public processes within 2 months (target is 80 percent) and 98 percent were resolved within three months (target is 90 percent).

For amendment applications processed by notices of consultation:

• Without interventions: 89 percent were processed within six months (target is 80 percent) and 92 percent within eight months (target is 90 percent).
• With interventions: 91 percent were processed within eight months (target is 80 percent) and 93 percent within 10 months (target is 90 percent).

For renewal applications processed by notice of consultation, 75 percent were processed within eight months (target is 80 percent) and 75 percent within 10 months (below 90 percent target).

In addition, the single point of contact for smaller broadcasters—created in November 2008 to facilitate the application process—dealt with 913 requests for information.

Licence awards, amendments and renewals

In 2009–2010, the Commission granted 13 radio licences to community and native stations to increase diversity of voices in small markets and remote areas, approved 29 applications for Category 2 specialty services to increase the diversity of television programming, and approved applications for five new distribution services. Furthermore, the Commission authorized 4 non-Canadian services to the list of eligible satellite services for distribution (Fox Business Network, Russia Today, Al Jazeera English, Benfica TV).

The CRTC processed 316 applications for licence amendments for the three broadcasting sectors (radio, television and distribution).  The Commission received 193 renewals and administratively renewed all television licences expiring on August 31, 2010, so it could review its approach to licence renewals in light of the rapidly evolving broadcasting landscape and the challenges facing the broadcasting industry.

 In the context of licence renewals, the CRTC monitored compliance with licence requirements among radio, television and broadcasting distribution licensees. It reviewed and evaluated the logs of 124 licensees of television services and performed approximately 90 analyses of radio stations’ programming. At renewal time, it reviewed the complaints concerning licensees received during the current licence term and addressed those that were outstanding.

Finally, the Commission received 4,047 complaints pertaining to radio and television services. Of that total, 830 dealt with programming matters that were referred to the Canadian Broadcast Standards Council.  For distribution services, the Commission received a total of 5,867 complaints. It also dealt with five allegations of undue preference or undue disadvantage.

2.2.4 Unplanned Activities Results

On September 16, 2009, the government issued an Order-in-Council requesting that the Commission hold hearings on the implications and the advisability of implementing a compensation regime for the value of local television signals. The CRTC launched a proceeding inviting consumers and members of the industry to share their views on how negotiated compensation may or may not affect:

• the affordability of cable and satellite television services
• the availability of local television services, including local news, information and public affairs programming
• the industry as it adapts to a digital communications environment, and
• current or future business models facilitating access to local television stations after the transition from analog to digital signals.

The CRTC began public hearings on December 7, 2009, and submitted its report in March 2010.

2.2.5 Lessons Learned

Given the increasingly global nature of communications, the programming and distribution sectors of the Canadian broadcasting system must work together to ensure a Canadian presence in the new digital environment.

2.3 Program Activity 1.2: Canadian Telecommunications

2009-10 Financial Resources ($ millions)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
13.4	18.0	18.6	130	140	10

Expected Results	Performance Indicators	Targets	Performance Status	Performance Summary
Ensure that Canadians have access to reliable telephone and other high-quality telecommunications services at just and reasonable rates, while at the same time providing the service providers with incentives to operate more efficiently and be more innovative in the provision of services.	The percentage of Canadians who have access to wireline and wireless services. The average annual increase in local telephone rates. The number of complaints received regarding quality-of-service issues.	Ensure that the proposed rates for telecommunications services meet pricing constraints imposed by the Commission. Monitor quality-of-service indicators to ensure that service providers deliver high-quality services. Ensure the number of quality-of-service complaints does not increase.	With 99 percent access, Canadians are well served by their wireline services. Further, the advanced wireless network that supports handsets, such as smartphones is available to 96 percent of Canadians.Rate increases for local telephone service remained at or below the rate of inflation. The CRTC saw a significant reduction in the number of telecommunications complaints received.	The CRTC ensures 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.
Implementation of the policy objectives of the Telecommunications Act through an increased reliance on market forces.	Market statistics such as wireline telecommunications revenue market share by type of service provider (percent) and total telecommunications revenues by type of service provider (dollars).	The Commission’s targets are to remove regulatory obstacles to maximize reliance on market forces, foster an efficient and competitive market, and regulate 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 to continue.	There are increasingly more competitors entering the marketplace, offering Canadians a wide array of services and pricing options. Wireline telecommunications revenue market share by type of service provider: -incumbents 63 percent -competitors 31 percent -resellers six percent Total telecommunications revenue by type of service provider: -incumbents $22.9 billion -competitors $16.5 billion -resellers $1.6 billion	The number of local telephone lines held by competitors increased by 12 percent in 2009-2010. Revenue generated by Canada’s telecommunication industry exceeded $41 billion in 2009. This represented an increase of 1.8 percent from the previous year.

2.3.1 Benefits for Canadians

The CRTC’s regulatory processes and policy structures ensured that Canadians had access to reliable and affordable telecommunications services.

2.3.2 Performance Analysis

Although Canadians were seriously affected by the global recession, the demand for new wireless and broadband Internet services grew. The CRTC has steadily removed regulatory obstacles to maximize reliance on market forces.

Pricing constraints

As per its commitment in the 2009–2010 Report on Plans and Priorities, the CRTC ensured that the increase in rates for local telephone service remained at or below the rate of inflation.

Monitoring Complaints

The Commission’s Client Services group responded to over 11,000 telecommunications inquiries, compared to approximately 19,000 in the previous fiscal year.

2.3.3 Lessons Learned

• The National Do Not Call List has demonstrated the importance and value of using a wide range of compliance tools to address specific situations. The Commission can build on this experience to assess how to apply a broader range of tools to its telecommunications regulations. 

• Building on the success of implementing enhanced wireless 911 services, the CRTC will continue to cooperate with industry to address future technological implementations.

• Given the increasingly competitive telecommunications environment, the CRTC must respond to competitive disputes and tariff applications in a timely manner to ensure the open market’s continued efficient functioning.

2.4 Program Activity 1.3: Internal Services

2009-10 Financial Resources ($ millions)			2009-10 Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
15.9	18.5	15.4	162	146	16

2.4.1 Benefits for Canadians

The CRTC has a governance mechanism and procedures that ensure services are delivered in timely and cost-effective manners.

2.4.2 Performance Analysis

The CRTC responds to applications for new licences or amendments to the terms and conditions of existing licences. It conducted 10 public hearings to respond to applications for: new radio licences to serve Ottawa/Gatineau, Quebec City and Halifax; ownership transactions; television licence renewals; and various other broadcasting matters. There was no change in the number of hearings from the previous year.

• The CRTC will continue to enforce the National DNCL’s rules and educate consumers and industry about the new requirements. By doing so, the Commission expects that Canadians will receive fewer unwanted telemarketing calls.
• Plans to implement an accelerated process for certain types of public-hearing applications were delayed due to budgetary restraints and other priorities. The Commission is committed to making its processes more efficient. Improvements could include expediting routine applications, proposing exemption orders and streamlined renewals for certain types of applications.
• Through the CRTC website, stakeholders have better access to pertinent and updated information.
• The CRTC fully implemented its human-resources continuity framework and talent-development process. All leadership positions have been filled, and development plans are in place for 90 percent of the CRTC workforce. Furthermore, 29 percent of employees recruited into indeterminate positions at the CRTC self-identified as visible minorities.
• The CRTC collaborated with other government departments to collect and analyze data. This collaboration resulted in greater data-collection efficiencies and increased accuracy. The CRTC conducted significant work related to international initiatives. For example it hosted the two-day meeting of the international chapter of the International Institute of Communications’ Regulators Forum in Montreal in October 2009.
• The CRTC modernized its desktop operating systems resulting in increased software and database interoperability.

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