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Minister’s Message
Year after year, Canadian Heritage portfolio organizations pursue Government of Canada objectives to allow Canadians to discover the richness of their culture and their heritage. As Minister of Canadian Heritage and Official Languages, I am pleased to present the 2012–13 Report on Plans and Priorities prepared by the Canadian Radio-television and Telecommunications Commission (CRTC).
Broadcasting and telecommunications technologies provide Canadians with the tools to strengthen their cultural identity and create a prosperous digital economy. As the regulatory body that oversees this dynamic industry, the CRTC promotes competition, innovation, and consumer choice and ensures that content reflects Canadian society. In 2012–13, the CRTC will ensure that Canadians have access to a wide variety of communications products and services.
The CRTC will achieve its goal by establishing new licence terms and conditions for private French-language television services and by implementing the framework for large integrated companies. It will also actively monitor the evolution of online and mobile programming and the impact of such programming on the traditional broadcasting system. In the area of telecommunications, the CRTC will implement new wholesale billing models that large telephone and cable companies can use to charge independent Internet service providers that access their networks.
As indicated in this report, in 2012–13, the CRTC will continue to take concrete measures to promote our arts, culture, and heritage. In so doing, the CRTC will help improve the quality of life of Canadians, while contributing to Canada’s social, cultural, and economic vitality.
The Honourable James Moore, P.C., M.P.
Minister of Canadian Heritage and Official Languages
Acting Chairman’s Message
I am pleased to present the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) Report on Plans and Priorities for 2012–13. This report describes the activities the CRTC will undertake in the coming year to build on its commitment to fostering a healthy and competitive communications system that will enable Canadians to participate in, and benefit from, the digital economy. I would like to highlight four of these activities.
In April 2012, the CRTC will hold a public hearing to review the Local Programming Improvement Fund. Created in 2008, the fund supports the production of local programming by television stations in non-metropolitan markets and is financed by cable and satellite companies. By the end of 2012, more than $300 million will have been distributed to more than 75 local stations across the country. The CRTC is evaluating whether the fund should be maintained, modified or discontinued.
The CRTC will also renew the licences of the French-language television services that are operated by large private ownership groups. In setting new terms and conditions for these television services, we will ensure that they continue to support the production of Canadian programming, including local programs that reflect Quebec’s different regions. We will also hold a proceeding to renew the licences of the Canadian Broadcasting Corporation’s English- and French-language radio and television services.
The CRTC will continue to implement two major telecommunications policies that were introduced in 2011–12. The first policy established the wholesale billing models large telephone and cable companies can use to charge the independent Internet service providers that access their networks. The second was created to guide the adoption of Internet Protocol technology throughout telecommunications networks. As we work to implement these new policies in 2012–13, we will ensure they achieve our underlying goal of ensuring Canadians have access to innovative services at affordable prices.
Finally, the CRTC will contribute to a more secure online environment for consumers and businesses. As the primary government agency charged with enforcing Canada’s anti-spam legislation, the CRTC will begin to fulfill its responsibilities when the law comes into force later this year. We will work with our partners to investigate and take action against those who send spam or install computer programs without prior consent. We will also act against those who co-opt infected computers to re-route network transmission data.
Over the last few years, the CRTC has increasingly relied on market forces and industry self-regulation to achieve the objectives of the Broadcasting Act and Telecommunications Act. Before establishing any new regulation or policy, we will carefully assess whether such an approach is needed and evaluate its potential impact on consumers and small businesses. We will also seek to fulfill our mandate in the most efficient and cost-effective way possible, while working towards our goal of a healthy communications system that benefits all Canadians.
Leonard Katz
Acting Chairman
Section I: Organizational Overview
Raison d’être
The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent public organization that seeks to promote competition, innovation, consumer choice and Canadian reflection in order to foster a world-class broadcasting and telecommunications system that benefits all Canadians.
The CRTC seeks to balance the needs of Canadians with those of the communications industry. Through its regulatory function, the CRTC addresses various economic, technical, social and cultural issues. Some examples include fostering:
- a competitive marketplace in which Canadian communications enterprises create jobs and value for Canadians
- Canada’s linguistic duality and cultural diversity
- enhanced accessibility for people with disabilities through tools such as closed captioning for the hearing impaired and described video for the visually impaired
- the development of mechanisms to address concerns, such as abusive comments or violence in the broadcast media, or rates for telephone services, and
- compliance with rules that seek to ensure the privacy of Canadians and foster growth in telecommunications and electronic marketing channels.
Responsibilities
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 Canadians have access to a wide variety of high-quality Canadian programming. The Telecommunications Act seeks to ensure that 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:
- deciding on mergers, acquisitions and changes of ownership
- approving tariffs and certain agreements for the telecommunications industry
- issuing, renewing and amending licences for broadcasting undertakings
- monitoring and removing obstacles to competition
- administering the National Do Not Call List and enforcing the list’s related rules
- administering and enforcing applicable provisions of Canada’s anti-spam law
- resolving competitive disputes
- researching, developing and implementing regulatory policies
- monitoring, assessing and reviewing the programming and financial obligations of broadcasting services, and
- consulting and informing Canadians through its website and public processes.
The CRTC works diligently to ensure the communications sector is regulated fairly, effectively and efficiently, and in a manner that fosters increased reliance on market forces. It endeavours to keep its regulatory policies current by taking into account emerging technologies and market developments, as well as evolving consumer interests.
In addition, the CRTC’s activities are guided by the following four principles: transparency, predictability, fairness and timeliness.
The CRTC reports to Parliament through the Minister of Canadian Heritage and Official Languages, and is listed in Schedule 1.1 of the Financial Administration Act. Its budget and employees are subject to Government of Canada policies and guidelines, which ensure excellence and accountability to Canadians.Strategic Outcome and Program Activity Architecture
During 2012–2013, the CRTC will focus its efforts on ensuring that 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 contribute to this strategic outcome:
- Broadcasting, which deals with activities and priorities of the broadcasting system
- Telecommunications, which deals with activities and priorities of the telecommunications sector, and
- Internal Services, which includes: legal services, communications, planning and process, financial and administrative services, information management and technology, and human resources.
Contribution of Priorities to Strategic Outcome – Broadcasting
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Renewals of private ownership groups’ French-language television licences | New | 1.1 Canadian Broadcasting |
| Description | ||
|
Why is this a priority? The CRTC is committed to ensuring that Canadians continue to have access to a wide variety of Canadian-produced, French-language television programming that comes from the private sector. Plans for meeting the priority: The Commission will issue licence-renewal decisions for the French-language conventional, pay and specialty television services operated by private ownership groups. |
||
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Licence renewals for the Canadian Broadcasting Corporation (radio and television) | Previously committed | 1.1 Canadian Broadcasting |
| Description | ||
|
Why is this a priority? The CRTC will ensure that the national public broadcaster continues to satisfy the obligations and special policy objectives described in the Broadcasting Act. Plans for meeting the priority: The Commission will hold a public hearing to consider the licence renewals of the Canadian Broadcasting Corporation’s English- and French-language radio and television services. |
||
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Review of the Local Programming Improvement Fund (LPIF) | Previously committed | 1.1 Canadian Broadcasting |
| Description | ||
|
Why is this a priority? The LPIF was created by the CRTC in 2008 to support local programming produced by conventional television stations that operate in non-metropolitan markets. The CRTC will evaluate whether the fund should be maintained, modified or discontinued. Plans for meeting the priority: The Commission will hold a public hearing on April 16, 2012, to review its policies and regulations relating to the Local Programming Improvement Fund. |
||
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Implement the regulatory framework and policy decisions relating to vertical integration | Ongoing | 1.1 Canadian Broadcasting |
| Description | ||
|
Why is this a priority? The CRTC will ensure that consumers benefit from a wide choice of programming in a broadcasting system in which programming and distribution have become increasingly integrated. Plans for meeting the priority: The CRTC will rely on its framework for vertically integrated companies to resolve disputes involving the ownership of distribution, programming and production properties by a single entity. The CRTC will also reports submitted by vertically integrated companies detailing the progress they have made in providing television subscribers with more choice and flexibility. Should the CRTC determine that they have made insufficient progress in this area, a public consultation may ensue. |
||
Risk Analysis
The CRTC’s ability to meet its priorities depends on many factors, some of which are beyond its control. For example, new developments in the global communications environment can potentially stretch the organization’s resources. The CRTC must monitor such trends closely with the aim of adapting quickly.
The principal challenges and threats the CRTC expects to face in the coming years are driven by the evolving nature of broadcasting. Canadians are growing more accustomed to using the Internet and mobile devices to access content. Although such technologies provide consumers with more choice, they also create uncertainty within the broadcasting industry.
As audiences increasingly turn to specialty and pay-television services (which are licensed and regulated by the CRTC) as well as new platforms (which are exempt from licensing) for programming, the business models of conventional television stations have become strained. This trend could be a cause for concern, given that these stations are involved in the production of Canadian programming.
As competition intensifies in the broadcasting industry, and business models are developed for new platforms, the number of competitive disputes among broadcasters may increase. The CRTC has well-defined processes to help resolve disputes on a timely basis.
Finally, ensuring compliance with regulations and conditions of licence remains one of the CRTC’s key challenges. Additional powers and tools to ensure members of the broadcasting industry follow the rules would enable the CRTC to provide maximum benefit for Canadians.
Contribution of Priorities to Strategic Outcome – Telecommunications
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Implement wholesale services frameworks | New | 1.2. Canadian Telecommunications |
| Description | ||
|
Why is this a priority? Large telephone and cable companies are required to provide wholesale services to their competitors in order to foster competition in the telecommunications market. In 2011–12, the CRTC issued new regulatory policies regarding two types of wholesale services: voice network interconnection services and high-speed access services. These wholesale services play a fundamental role in enabling the provision of reliable services, including Internet services, through advanced networks that reach across Canada. Competition in this sector leads to more innovative services at affordable prices for Canadians. Plans for meeting the priority: In 2012–13, the CRTC will turn its focus towards the implementation of these two regulatory policies. Regarding the policy for voice network interconnection services, the CRTC will review the terms of service and rates submitted by the parties, coordinate and facilitate the activities of the CRTC Interconnection Steering Committee and mediate agreements between parties, as required. The CRTC will also address issues raised by parties concerning the implementation of the new billing models for wholesale high-speed access services. |
||
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Modify regulatory frameworks for retail services | New | 1.2. Canadian Telecommunications |
| Description | ||
|
Why is this a priority? The Commission’s price-cap policy limits the prices that a telecommunications company can charge its customers. Price-cap regulation applies to the regulated services of over 40 incumbent telephone companies serving customers in all provinces and territories. The price-cap frameworks for these companies are reviewed from time to time to determine how the CRTC’s strategic outcome of facilitating Canadians’ access to reliable, affordable, and high-quality telecommunications services can be met in light of technology changes and marketplace innovation. Plans for meeting the priority: In 2012–13, the Commission will review the price-cap regulatory framework for 35 small independent telephone companies that offer services to customers in British Columbia, Ontario and Quebec. The Commission will also undertake a comprehensive review of the infrastructure and services of Northwestel, a telephone company that serves customers in the Yukon, the Northwest Territories, Nunavut and northern British Columbia. Finally, the Commission will address specific applications from industry participants to adjust certain aspects of the price-cap regulatory framework that applies to large telephone companies such as Bell Canada and TELUS Communications Company. |
||
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Enforce the rules related to the National Do Not Call List (DNCL) | Ongoing | 1.2. Canadian Telecommunications |
| Description | ||
|
Why is this a priority? In 2006, the CRTC created a National DNCL to help Canadians reduce the number of unwanted telemarketing calls they receive. The CRTC is committed to protecting the privacy of Canadians—who have registered more than 10.7 million numbers on the list to date—by actively enforcing the Unsolicited Telecommunications Rules. Plans for meeting the priority: In 2012–13, the CRTC will continue to investigate possible violations—which to date have resulted in over $2.1 million in penalties collected on behalf of the Receiver General for Canada and over $740,000 in payments to post-secondary institutions—and make greater use of its tools to further encourage telemarketers’ compliance. The Commission will also explore opportunities to educate consumers and telemarketers about the list and its associated rules. |
||
| Priority | Type | Strategic Outcome and/or Program Activity |
|---|---|---|
| Promote and enforce Canada’s anti-spam legislation (CASL)1 | Ongoing | 1.2. Canadian Telecommunications |
| Description | ||
|
Why is this a priority? In 2011–12, the CRTC received a new mandate to promote and enforce CASL, which addresses, among other things, the sending of commercial electronic messages (e.g., spam), the unauthorized installation of computer programs (e.g., malware) and the unauthorized alteration of transmission data (e.g., network re-routing) without consent. The purpose of this legislation is to promote confidence in the electronic marketplace by regulating malicious or unsolicited forms of commercial electronic activity that erode consumer faith in electronic media as a venue for legitimate and safe commercial activities. Plans for meeting the priority: In the coming year, the CRTC will continue to develop investigation and enforcement processes, systems and tools. When the legislation comes into force, the Commission will pursue investigations of potential instances of non-compliance and initiate outreach activities to increase public awareness. |
||
Risk Analysis
The CRTC’s decisions and new regulatory policies affect participants in Canada’s telecommunications industry. As such, there is always a risk that some industry participants may seek adjustments or clarifications to certain aspects of new policies, which could delay their implementation.
Similarly, the CRTC regulates and supervises the Canadian telecommunications system using public processes. Any procedural delays requested by parties may temporarily deprive Canadians of benefits, such as those derived from increased competition.
To implement major telecommunications policies, the CRTC relies on market forces and negotiation among involved parties. Accordingly, the efficient and timely implementation of new policies and functioning of telecommunications markets in general depends on the good faith of affected parties.
A lack of long-term funding for the National DNCL continues to be a challenge for workforce stability and staff retention. Failure to obtain additional funding will put the continued operation of this activity at risk.
Moreover, the public’s lack of understanding of the National DNCL rules and its exemptions increases the number of complaints received by the CRTC. Further, the Commission is particularly challenged by the task of investigating fraudulent telemarketing calls that originate from abroad. As a result, the CRTC’s results may not meet Canadians’ expectations.Finally, the CRTC will soon assume its new responsibilities under Canada’s anti-spam legislation. The legislation addresses a broad range of electronic threats, most of which are not well known by the public, and those who would break the rules rely on sophisticated means to avoid detection. Given that this is a new enforcement activity, the CRTC must develop strategies to conduct investigations and increase public awareness. During the law’s implementation, the CRTC will have an opportunity to assess the effectiveness of its strategies, which will be dependent in part on the success of its partnerships with Internet service providers, law enforcement agencies and international partners.
Financial Resources ($ millions)
| 2012-13 | 2013-14 | 2014-15 |
|---|---|---|
| 53.2 | 52.9 | 52.5 |
Human Resources (Full-time equivalent—FTEs)
| 2012-13 | 2013-14 | 2014-15 |
|---|---|---|
| 431 | 429 | 427 |
Note: These forecasted totals exclude resources dedicated to the National Do Not Call List (DNCL) activities. At the time of finalizing this report, no funding had been identified for the period after March 31, 2012. As of February 2012, the CRTC was working with government partners to explore funding solutions on a long term basis beginning in 2012–13.
Planning Summary
| Program Activity | Forecast Spending ($ millions) 2011-12 |
Planned Spending ($ millions) |
Alignment to Government of Canada Outcomes | ||
|---|---|---|---|---|---|
| 2012-13 | 2013-14 | 2014-15 | |||
| Canadian Broadcasting |
18.4 | 17.5 | 17.5 | 17.5 | - Social Affairs - A vibrant Canadian culture and heritage |
| Canadian Telecommunications |
20.9 (note 1) |
17.8 | 17.6 | 17.3 | - Economic Affairs - A fair and secure marketplace |
| Internal Services | 19.9 (note 1) |
17.9 | 17.8 | 17.7 | Social Affairs |
| Total Planned Spending | 59.2 (note 1) |
53.2 | 52.9 | 52.5 | |
Note 1: These amounts include the temporary DNCL funding approved for 2011–12
Description of Internal Services
Internal Services are groups of related activities and resources that are administered by the CRTC to support its program needs and other corporate obligations. Internal Services include: management and oversight services, communications services, legal services, human resources management services, financial management services, information management services, information technology services, real property services, material services, acquisition services, travel, and other administrative services.
The CRTC reports on Internal Services in accordance with the Treasury Board Secretariat’s ‘’Revised Profile of the Government of Canada’s Internal Services’’ Information Bulletin, which applies to all organizations subject to the Management, Resources and Results Structures Policy.
Expenditure Profile
The CRTC will spend $53.2 million in 2012–13 to meet the expected results of its program activities and contribute to its strategic outcome. This amount represents a decrease of $6 million—or 10.1 per cent—versus the spending forecasted in 2011–12. The difference between these figures is due in large part to the fact that no funding has been currently identified for DNCL, for the impact of the settlement of severance benefits that occurred as a result of changes to terms and conditions of employment, and for the carry-forward adjustments.
The figure below displays the CRTC’s annual spending from 2008–09 to 2014–15.
($ million)
Total spending includes all Parliamentary appropriation and revenue sources: Main Estimates, Supplementary Estimates, Treasury Board Vote transfers, and revenues from Part I broadcasting licence fees and telecommunications fees. The figures also include operating budget carry-forward adjustments.
In 2008–09, the Commission received temporary funding to address increased workload related to its legislative and regulatory responsibilities. This temporary funding ended on March 31, 2009. Details on the approved increases and the related billing impact for broadcasting and telecommunication industries are noted in Broadcasting Circular CRTC 2007-9 and Telecom Circular CRTC 2007-18 dated December 21, 2007.
The amount for 2009–10 includes the Main Estimates and Supplementary Estimate amounts (i.e., authorized budget carry-forward and the temporary funding received for the National Do Not Call List related activities).
For 2010–11 and 2011–12 the forecasted spending includes the Main Estimates and Supplementary Estimate amounts (i.e. authorized budget carry-forward, the temporary funding received for the National Do Not Call List related activities, as well as funding for Canada’s anti-spam legislation that was received at the end of 2010–11. The forecasted spending in 2011–12 includes funding for CASL-related activities for the full year and the settlement of severance benefits as a result of changes to terms and conditions of employment.
Total spending for the period from 2012–13 to 2014–15 corresponds to the planned vote-netted revenues2, statutory appropriation related to employee benefit plans, and budgetary appropriation received for CASL-related activities. Supplementary funding, carry-forward adjustments and funding for the National DNCL are unknown at this time and therefore not reflected.
Estimates by Vote
For information on our organizational votes and/or statutory expenditures, please see the 2012–13 Main Estimates publication at http://www.tbs-sct.gc.ca/est-pre/2012-2013/me-bpd/toc-tdm-eng.asp
