ARCHIVED - Canadian Radio-television and Telecommunications Commission

In 2008–2009, both program activities contributed towards ensuring a healthy Canadian communications industry, and enabled the CRTC to deliver on its strategic outcome. For example:

• cultural prosperity – the CRTC Report on the Canadian Televison Fund contributed to the creation of the new Canada Media Fund; new Canadian content requirements for broadcasting programming were instituted; a new regulatory framework for broadcasting distribution undertakings put in place; new media research led to public proceedings; etc.
• economic prosperity – the CRTC announced important ownership decisions (e.g. TQS); an adapted approach to conventional television licence renewals was developed in response to the economic context; forbearance decisions regarding local exchange services [2] were announced; the CRTC streamlined retail and wholesale tariff approval processes; economic regulatory measures were modified, streamlined, or eliminated; international outreach efforts succeeded in bringing the meeting of the International Institute of Communications (IIC) Regulators Forum to Canada in the fall of 2009; etc.
• social prosperity – the CRTC launched the National Do Not Call List; it approved conditions regarding mandate, structure and operating procedures of Commissioner for Complaints for Telecommunications Services Inc. (CCTS) [3] ; it reviewed access to communications services by persons with disabilities; social regulatory measures were modified, streamlined, or eliminated; etc.

a. Reflection of Canada’s linguistic duality

Expectations Met[8]

• Through the Official Language Minority Community-CRTC Working Group, the Commission provided a forum for the "development and promotion of the bilingual character of Canada," for maximizing community participation in CRTC public processes and for enhancing the CRTC’s decision-making process.
• During 2008–2009, the CRTC pursued implementation of section 41 of the Official Languages Act, through various initiatives. As such, a number of CRTC proceedings and activities led to improved access to broadcasting services in both official languages, particularly within official-language minority communities.
• The CRTC developed an internal policy related to the Official Languages Act to systematically analyze the effects of the Commission’s decision-making processes on official-language minority communities.
• Internal activities were put forward to increase the awareness of CRTC employees, managers and Commissioners regarding their obligations and to help them better understand their responsibilities.
• Review of English- and French-language broadcasting services in linguistic minority communities in Canada - Report submitted to the Governor in Council on March 30, 2009[9].

b. Policy reviews that serve the objectives of the Broadcasting Act

Expectations Mostly Met[10]

• A public hearing on broadcasting distribution undertakings and discretionary services held in April 2008 led to the creation of a forward-looking policy framework for key distribution issues such as discretionary-service distribution. The Commission also revised regulations and policies dating back to 1998.
• The CRTC initiated a review of its community television programming policy by commissioning two studies, one on the impact of technological developments on community television, and the second, a survey of community-television policies and practices in other jurisdictions.
• The Commission held meetings with the community and campus radio sectors in March 2009, and commissioned a study on international approaches to the regulation and funding of the community sector. The results of this study will be published in 2009–2010.
• On February 11, 2009, the CRTC issued a “hits” policy for commercial radio broadcasters. The new policy establishes the criteria used to determine a “hit.”
• The CRTC completed the initial phase of the process to define the term “emerging artists”. A standard definition will enable the CRTC to evaluate the real value of the commitments made by commercial radio broadcasters.
• The CRTC presented its Report on the Canadian Televison Fund (CTF) to the Minister of Canadian Heritage on June 5, 2008. On March 9, 2009, the Government announced the creation of the Canada Media Fund (CMF), replacing the CTF. A number of the CRTC’s key findings on the CTF contributed to the creation of the CMF.
• The CRTC maintained mandatory distribution rights for many Canadian specialty programming services, and the obligation of broadcasting distribution undertakings to distribute them.

This central policy review process and all subsequent follow-ups are linked to the establishment of regulatory and policy frameworks for the funding and creation of Canadian programming and access by Canadians to that programming.  In addition, it provided a broad review of the distribution framework for Canadian and foreign programming.

Expectations Met

• In an effort to further expand services across Canada that will provide diversity of programming and choice for Canadians, CRTC decisions led to:
  • an increase in the number of television services, from 686 in 2007 to 707 in 2008
  • the addition of 11 new foreign services to the elligible Satellite Services list, thus authorizing broadcasting distribution undertakings to offer them to Canadians, and
  • three new AM radio stations and 69 new FM radio stations.

Expectations Met

• The CRTC completed its proceeding with respect to applications proposing new high-definition over-the-air television services. It denied applications due to insufficient commitments to local programming.
• The Commission also began consultations with broadcasters to deal with the long-term effects of the digital transition, which is scheduled for August 2011.

Expectations Met

• The Commission initiated a proceeding to deal with the La Magnétothèque[11] request for mandatory basic distribution on broadcasting distribution undertakings. A decision is expected in 2009.
• In November 2008, the CRTC held a public hearing to address unresolved questions concerning accessibility to telecommunications and broadcasting services.
• The broadcasting component of the public hearing addressed access to closed captioning, described video and customer service provided by broadcasting distribution undertakings.  In addition, in 2007, English- and French-language closed-captioning working groups established proposed quality standards that formed part of the proceeding’s public records.
• A regulatory policy on accessibility is expected to be released in the summer of 2009.

Expectations Met

• As part of its policy framework review, the CRTC is reviewing its operational procedures to further reduce the time and resources required from both the licensees and the CRTC.
• The CRTC developed a new regulatory framework for broadcasting distribution undertakings and discretionary services.
• The CRTC reviewed its approach to dispute resolution for the broadcasting sector. In January 2009, it released new procedures for codifying practices, mediation, final-offer arbitration and expedited hearings.
• The CRTC initiated a policy proceeding—to be held in the fall of 2009—to develop a new framework to license conventional and discretionary television services in the current economic environment.

Expectations Somewhat[12] Met

• The CRTC created and implemented an expedited hearing process for broadcasting ownership transactions. Decisions are now issued within 35 days following adjournment of a hearing, which is an improvement over the previous average of around 60 days.
• The expedited process for public hearings was contingent upon securing additional funding. Given the economic downturn, and the impact that supplementary funding would have had on the fee payers, this activity was cancelled.
• In 2008–2009, the Commission held 14 public hearings on broadcasting, compared to 17 the previous year.
• 89% of applications that do not require a public process were dealt with within 2 months (above 80% target) and 92% within 3 months (above 90% target).
• For applications processed by public notice or notice of consultation:  
  • without interventions: 98% were dealt with within 6 months (above 80% target) and 100% within 8 months (above 90% target)
  • with interventions: 97% were dealt with within 8 months (above 80% target) and 100% within 10 months (above 90% target)
• 40% of renewal applications processed by public notice/notice of consultation were dealt with within 8 months (below 80% target)[13] and 92% within 10 months (above 90% target).

Expectations Mostly[14] Met

• The CRTC continued the study it had initiated in  2007–2008 on the cultural, economic and technological issues associated with broadcasting in the new media environment.
• In May 2008, the CRTC published Perspectives on Canadian Broadcasting in New Media – a compilation of research and stakeholder views on the broadcasting in new media environment.
• During 2008–2009, the CRTC initiated a comprehensive public proceeding to review Canadian broadcasting in the new media environment, and to determine the appropriate policy response. A decision is expected in June 2009.

Expectations Mostly[15] Met

• For the first time in history, the CRTC combined its broadcasting and telecommunications data into a Communications Monitoring Report. The expanded report includes more international comparison and data on the availability of broadband across Canada.
• The Commission collaborated with other government departments by rationalizing reporting obligations for industry.
• A two-part research initiative was undertaken to study convergence issues as they affect other countries and public-policy responses that are being developed. The results will be shared with all 21 Asia Pacific Economic Cooperation (APEC) members seeking information on convergence at the next APEC Telecommunications and Information Working Group meeting to be held in Mexico in September 2009.
• In 2008–2009, the CRTC and Statistics Canada implemented an agreement to collaborate on data collection from telecommunications service providers to eliminate overlap and use common methodology.

Expectations Met

• The CRTC completed reviews and approvals of 44 ownership applications from licensed broadcasting undertakings. This number is lower than in 2007–2008 when the CRTC completed reviews and approvals of 64 ownership applications. The decrease in the number of applications dealt with can be attributed to various factors, such as the economic situation.

Expectations Met

International activities framework

Expectations Met
The CRTC conducted significant work related to international initiatives. For example, it:

• established a framework for its international activities, including a related International Outreach Plan, which is now being implemented
• hosted the Canadian Chapter of the International Institute of Communications’ (IIC’s) annual conference in December 2008
• will host the two-day meeting of the International Chapter of the IIC Regulators Forum in October 2009 in Montreal, and
• organized meetings between senior CRTC officials their international counterparts.

Exceeded[17] Expectations

• The review of the accessibility of communications services by persons with disabilities framework was carried out under both the Telecommunications Act and the Broadcasting Act.
• In 2008, the CRTC launched a fully converged public proceeding.
• The result will be a converged regulatory policy, which will be issued in July 2009.

Exceeded[18] Expectations

• Successfully launched the National Do Not Call List (DNCL) on September 30, 2008.
• Approximately 790,000 telecommunications numbers were registered on the first day of operation and 6.7 million numbers were registered as of the end of March 2009.
• Canadians (84%) are aware of the DNCL and 80% of registrants receive fewer/no calls.[19]

Expectations Somewhat[20] Met

• No respondents to the CRTC’s Request for Proposal met the mandatory requirements set out in the request for proposal process. Therefore, the CRTC has assumed these responsibilities.

Expectations Met

• Process established for enforcement and investigation.
• On average, the CRTC received more than 1,000 complaints per day from the National DNCL operator between September 30, 2008 and March 31, 2009. While this is a significant number of complaints, it represents less than 2% of the numbers registered on the list.
• The Commission issued 70 warning letters to telemarketers as of March 30, 2009.
• In 34 cases, telemarketers have brought themselves into compliance with rules as a result of the established facilitation process. CRTC employees worked with the telemarketers to help them understand and/or introduce procedures that would result in compliance.

The CRTC takes action against abuses or misuse of the National DNCL to protect Canadians.

Expectations Met

• The CRTC assessed requests from local exchange carriers on a priority basis.
• During 2008–2009, the CRTC issued 40 decisions, representing 191 exchanges.
• As of the end of March 2009, the CRTC had refrained from regulating:
  • residential local services in 481 exchanges served by the incumbent local exchange carriers (ILECs), [21] representing 77% of phone lines, and
  • business local exchange services in 145 exchanges served by ILECs, representing 68% of phone lines.
• The CRTC conducted a process to establish a framework for forbearance in small ILEC territories and expects to issue a decision in June 2009.

Exceeded Expectations[22]

• In 2007, the CRTC set out a plan to review seven economic regulatory measures in the 2008–2009 fiscal year. One of those measures was reviewed ahead of schedule in 2007 and six were reviewed or disposed of in 2008–2009. In addition, two measures scheduled for 2009–2010 were reviewed a year ahead of schedule. The majority of these measures were modified, streamlined or eliminated, such as:
  • tariff processes
  • sharing groups[23]
  • the international licence regime
  • agreements between competitive local exchange carrier and municipalities -911 service
  • the price-floor test, and
  • nine reporting requirements.
• During 2008–2009, the CRTC reviewed five social and other non-economic regulatory measures. The majority of these measures were modified, streamlined or eliminated, including: the retail quality-of-service regime (reviewed 17 indicators and associated performance standards) and 17 information requirements.

Expectations Met

• In August 2008, the Commissioner for Complaints for Telecommunications Services Inc. (CCTS) met the conditions of approval set by the CRTC regarding the organization’s mandate, structure and operating procedures.
• The CCTS enforced mandatory membership requirements for telecommunications service providers (TSP) (member TSPs now account for almost 95% of retail telecommunications revenues).
• Public awareness campaign to be reviewed by CCTS board in second quarter 2009.
• More than 6,000 customers contacted the CCTS in its first complete year of operation.
• More than 2,000 complaints were received, 61% of which were successfully resolved following the agency’s initial involvement.

Canadians now have clear recourse for lodging complaints about non-regulated telecommunications services.

Expectations Met

• On 21 August 2008, the CRTC announced it would end its requirement to approve retail tariff filings that met certain criteria, and further streamlined the approval mechanism for other retail tariff filings.
• Streamlined retail and wholesale tariff-approval mechanisms were in place as of October 6, 2008.
• For the period April 1, 2008 to March 31, 2009, 542 retail and wholesale applications were processed.  Of these, 95% were disposed of within two months and 98% were disposed of within four months.
• 94% of Type 1[24} applications under Part VII of the CRTC Telecommunications Rules of Procedure were issued within four months of close of record (above 90% target).
• 93% of Type 2[25] applications under Part VII were issued within eight months of close of record (well above 85% target).
• Four public telecommunications proceedings were held compared to three in 2007–2008.

Expectations Mostly[26] Met

Expectations Mostly[27] Met

The CRTC offered training and eduction opportunities—such as the Orientation Fair, Broadcasting and Telecom 101, workshops and knowledge transfer sessions by retiring employees—to all employees.

Expectations Somewhat [28] Met

• CRTC recruited and hired specialized personnel for specific needs.
• Due to its financial situation, the CRTC did not re-launch its post-secondary recruitment campaign in 2008. The CRTC relied instead on existing student programs such as the Federal Student Work Experience Program.

Expectations Met

• A continuity planning report was developed and implementation is now underway.
• The CRTC launched executive collective staffing processes for current and future vacancies.

Expectations Somewhat [29] Met

• The CRTC achieved a 15% recruitment rate for visible miniorities compared to a target of 30%.
• Of 15 post-secondary graduates recruited in fall 2007, 27% were visible minorities.