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The original version was signed by
The Honourable James Moore, P.C., M.P.
Minister of Canadian Heritage and Official Languages
Minister’s Message
Chairman’s Message
Section I – Commission Overview
1.1 Summary Information
1.1.1 Raison d’être
1.1.2 Responsibilities
1.1.3 CRTC Strategic Outcome
1.1.4 CRTC Program Activity Architecture
1.2 Planning Summary
1.2.1 Financial Resources
1.2.2 Human Resources
1.2.3 RPP Summary Table
1.2.4 Contribution of Priorities to Strategic Outcome
1.2.4.1 Operational priorities – Canadian Broadcasting
1.2.4.2 Operational priorities – Canadian Telecommunications
1.2.4.3 Management Priorities
1.2.5 Risk Analysis
1.2.6 Expenditure Profile
1.2.7 Voted and statutory items displayed in the Main Estimates
Section II – Analysis of Program Activities
2.1 Strategic Outcome 1 (S.O. 1)
2.2 Program Activity: Canadian Broadcasting (S.O. 1)
2.2.1 Program Activity Expected Results
2.2.2 Program Activity Summary and Planning Highlights
2.3 Program Activity: Canadian Telecommunications (S.O. 1)
2.3.1 Program Activity Expected Results
2.3.2 Program Activity Summary and Planning Highlights
2.4 Strategic Outcome 2 (S.O.2)
2.5 Program Activity: Internal Services (S.O. 2)
2.5.1 Program Activity Expected Results
2.5.2 Program Activity Summary and Planning Highlights
2.6 Benefits to Canadians
Section III – Supplementary Information
3.1 Tables
3.1.1 Sources of Respendable and Non-respendable Revenue
3.1.2 CRTC fees
3.2 Other Items of Interest
3.2.1 CRTC Members and Offices
3.2.2 Legislation and Associated Regulations
3.2.3 Definitions
The Canadian Heritage portfolio gives Canadians the opportunity to participate in society, to achieve their full potential, and to celebrate their heritage and their culture. As a departmental agency, the Canadian Radio-television and Telecommunications Commission (CRTC) is working to achieve this goal.
The communications industry is an important part of the everyday lives of Canadians. It showcases Canada and the best the world has to offer through diverse programming choices, world-class audiovisual production services, and access to a multitude of distribution platforms. During these uncertain times, the Government of Canada wants to ensure that Canadians continue to enjoy diverse Canadian content choices. We must ensure that our portfolio organizations, such as the CRTC, remain accountable and that taxpayer dollars are well spent. We must all harness the opportunities that new technologies provide to refresh our approach to arts and culture and meet the changing needs of Canadians.
Today’s digital world presents increasingly complex challenges that require creative solutions. In the coming year, the CRTC will explore the opportunities offered by new technologies to broadcast Canadian programming and provide quality telecommunications services. The CRTC also intends to work with the broadcasting industry to prepare for the transition to digital transmission in Canada. It will be important to develop strategies to ensure that all Canadians have access to the conventional broadcasting services they currently enjoy.
As Minister of Canadian Heritage and Official Languages, I invite you to read the Report on Plans and Priorities for 2009–2010 prepared by the CRTC. This report shows the CRTC’s commitment to ensuring that the creativity and innovation of Canadian society contribute not only to our cultural vitality, but also to our future.
The Honourable James Moore
I am pleased to present the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) Report on Plans and Priorities (RPP) for 2009–2010. I would like to highlight four activities that demonstrate how the CRTC will support a strong communications industry.
First, the CRTC will hold public hearings to renew the licences of conventional, specialty and pay television services. This exercise will provide us with an opportunity to discuss many issues with Canada’s broadcasters, including their plans for conventional television’s transition from analog to digital transmission. In setting the terms and conditions
for the new licences, the CRTC will ensure that these services reflect Canada’s cultural diversity and that programming in both official languages is available to all Canadians.
Secondly, we will conclude our proceeding on broadcasting in the new media environment and publish our findings. We held a hearing in February 2009 to gain a better understanding of Canada’s participation in this environment and its impact on the traditional broadcasting system. We are also evaluating whether the CRTC’s current approach, which consists of
exempting new media and mobile broadcasting services from regulation, remains appropriate.
Thirdly, the CRTC will undertake a major proceeding on the Internet traffic management practices that are currently employed in the retail and wholesale markets, as well as those that could be adopted in the future. Canadian Internet service providers use different approaches to manage the traffic on their networks. Our proceeding will address key issues such as the
practices that are acceptable under the Telecommunications Act and the criteria that should be used in the event that specific practices need to be authorized.
Finally, we will ensure telemarketers comply with the National Do Not Call List rules. The list was welcomed by Canadians, who registered nearly five million telephone numbers in the 60 days following its launch on September 30, 2008. This service is designed to help Canadians protect their privacy by reducing the number of unwanted telemarketing calls and faxes they
receive.
I expect that the year ahead will hold many challenges for both the communications industry and the CRTC, particularly as we contend with the evolution of convergence in the midst of economic uncertainty. The CRTC is committed to exercising fiscal prudence in carrying out its mandate. At the same time, we will continue to reduce or remove regulations where possible
and help to resolve competitive disputes as they arise.
Konrad von Finckenstein, Q.C.
Chairman of the Canadian Radio-television and Telecommunications Commission
The Canadian Radio-television and Telecommunications Commission was established to sustain and promote Canadian culture and achieve key social and economic objectives.
The CRTC fulfils its mandate by regulating and supervising Canadian broadcasting and telecommunications in the public interest. The CRTC is governed by the Broadcasting Act of 1991 and the Telecommunications Act of 1993.
The Broadcasting Act seeks to ensure, among other things, that Canadians are provided with a predominance of Canadian content and have full access to the broadcasting system, as participants and as audiences.
The Telecommunications Act seeks to ensure, among other things, that increased reliance on market forces for the provision of telecommunications services is fostered, that regulation, where required, is efficient and effective, and that Canadians have access to reliable telephone and telecommunications services at reasonable prices.
The CRTC is an independent public authority and reports to Parliament through the Minister of Canadian Heritage and Official Languages.
The CRTC’s mandate is to serve the public interest by maintaining a balance between the cultural, social and economic goals of the legislation on broadcasting and telecommunications, taking into account the wants and needs of Canadian citizens, industries and various interest groups.
The CRTC will fulfill its mandate by achieving the following strategic outcome:
S.O. 1 Canadians have access to a wide variety of high-quality, Canadian-produced programming, and to reliable, affordable and high-quality telecommunication services. |
2009-2010 | 2010-2011 | 2011-2012 |
---|---|---|
46.0 | 46.2 | 46.2 |
2009-10 | 20010-11 | 2011-12 |
---|---|---|
425 | 425 | 425 |
Performance Indicators | Targets |
---|---|
1. 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 Communications Monitoring Report. |
2. The number of applications received, the number of proceedings initiated by the CRTC, the number of interventions filed with the Commission and the number of Canadian broadcasting services licensed as a result of the proceedings. | Increase the number of proceedings for new services by 10 per cent. |
Program Activity | Expected Results | Forecast Spending 2008-09 |
Planned Spending | Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|---|
2009-10 | 2010-11 | 2011-12 | ||||
Canadian Broadcasting |
|
30.3* | 16.7 | 16.7 | 16.7 |
A vibrant Canadian culture and heritage. |
Total Planned Spending | 30.3 | 16.7 | 16.7 | 16.7 |
Performance Indicators | Targets |
---|---|
3. The percentage of Canadians who have access to wireline and wireless services, the average percentage increase in Primary Exchange Service rates for a given year 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 meet pricing constraints imposed by the Commission, limited to the rate of inflation. Monitor quality-of-service indicators to ensure that the telecommunications service providers deliver high-quality services. Ensure there is no increase in the number of quality-of-service complaints. |
4. Various statistics on the telecommunications market, such as 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 remove regulatory obstacles to maximize the reliance on market forces and to 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 objective. Historically, competitor revenue growth has been approximately two per cent per year. The Commission's target is for the continuation of this trend. |
Program Activity | Expected Results | Forecast Spending 2008-09 |
Planned Spending | Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|---|
2009-10 | 2010-11 | 2011-12 | ||||
Canadian Telecom-munications |
|
26.5* | 13.4 | 13.5 | 13.5 | A fair and competitive marketplace. |
Total Planned Spending | 26.5 | 13.4 | 13.5 | 13.5 |
Program Activity | Expected Results | Forecast Spending 2008-09 |
Planned Spending | Alignment to Government of Canada Outcomes | ||
---|---|---|---|---|---|---|
2009-10 | 2010-11 | 2011-12 | ||||
2.1 Internal Services1 | Note | 15.9 | 16.0 | 16.0 | No data required for this year. | |
Total Planned Spending | 15.9 | 16.0 | 16.0 |
The CRTC will achieve its strategic outcome by focusing on operational priorities for its program activities and management priorities.
Operational Priorities | Type | Links to Strategic Outcome(s) | Description |
---|---|---|---|
Digital transition | Ongoing | SO 1 |
|
Implementation of the broadcasting distribution undertakings decision | Ongoing | SO 1 |
|
New media |
New | SO 1 |
|
Emerging artists | Ongoing | SO 1 |
|
Private conventional TV licence renewals |
New | SO 1 |
|
CBC/SRC licence renewals |
New | SO 1 |
|
Social policy direction | New Ongoing |
SO 1 |
|
Convergence policy |
Ongoing | SO 1 |
|
Management Priorities | Type | Links to Strategic Outcome(s) | Description |
---|---|---|---|
National DNCL | Ongoing | SO 1 |
|
Wireless 911 | New | SO 1 |
|
Revisions to wholesale services rates and terms | Ongoing | SO 1 |
|
A focused and modernized regulatory framework | Ongoing | SO 1 |
|
Streamlining tariff approval and other processes | Ongoing | SO 1 |
|
Traffic management practices |
Ongoing | SO 1 |
|
Mediation | Ongoing | SO 1 |
|
Industry analysis | Ongoing | SO 1 |
|
International Outreach | Ongoing | SO 1 |
|
Background
To help determine how it should evolve in the current era of convergence, the CRTC initiated a strategic exercise in 2007. The product of this exercise was the Future Direction initiative, whose scope extended not only to the entire Commission, but also to its stakeholders. The initiative established a new strategic intent for the CRTC: to foster a globally advanced, market-driven
communications system that benefits all Canadians. It also better positions the Commission to deliver on three core business objectives: a strong Canadian presence on all platforms, healthy and competitive communications markets, and consumer accessibility and participation. Finally, three priority areas were identified for 2009–2010, which are presented in the following
table.
Operational Priorities | Type | Links to Strategic Outcome(s) | Description |
---|---|---|---|
A more focused regulatory approach | New | SO 1 |
|
Greater outreach to citizens and stakeholders | New | SO 1 |
|
An improved organization | Ongoing | SO 1 |
|
Operating environment
The communications industry has changed profoundly in recent years. New digital technologies have transformed how Canadians communicate, do business and inform and entertain themselves. As the broadcasting and telecommunications industries embrace new technologies and move toward convergence, they demand lighter regulations, faster processes and better service standards from the CRTC. At the same time, the Government of Canada has issued a policy that accelerates the deregulation of the Canadian telecommunications industry and increasingly emphasizes market forces.
Risks
Challenges
Opportunities
For the 2009–2010 fiscal year, the CRTC plans to spend $46 million to meet the expected results of its program activities and contribute to its strategic outcome. This amount represents a decrease of approximately 19 per cent, or $10.8 million, compared to the 2008–2009 fiscal year. This change is primarily attributable to the end of temporary funding that the
Commission received during the two previous fiscal years.
When compared to previous years, the total spending for fiscal years 2007–2008 (actual) and 2008–2009 (forecast) increased. The Commission received temporary funding to address an increased workload related to its legislative and regulatory responsibilities. The amounts for these years also include authorized operating budget carry-forward amounts and applicable Treasury
Board vote transfers.
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. More information about these decisions is available online at the following address: http://www.crtc.gc.ca/eng/archive/2007/c2007-9.htm
The figure below illustrates the CRTC’s spending trend from 2005–2006 to 2011–2012.
For the 2005–2006 to 2007–2008 periods, the total-spending figures include all Parliamentary appropriation and revenue sources, including: 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.
For fiscal years 2009–2010 to 2011–2012, the total-spending figures correspond to the planned vote-netted revenues2. Supplementary funding and carry-forward adjustments are unknown and therefore not reflected.
Vote # or Statutory Item (S) | Truncated Vote or Statutory Wording | 2009-10 Main Estimates |
2008-09 Main Estimates |
---|---|---|---|
45 | Program expenditures | - | - |
(S) | Contributions to employee benefit plans | 5.4 | 5.5 |
Total | 5.4 | 5.5 |
Canadians have access to a wide variety of high-quality, Canadian-produced programming and to reliable, affordable and high-quality telecommunication services. |
Financial Resources ($ millions) | Human Resources (FTEs) | |||||
---|---|---|---|---|---|---|
2009–10 | 2010–11 | 2011–12 | 2009–10 | 2010–11 | 2011–12 | |
16.7 | 16.7 | 16.7 | 133 | 133 | 133 |
Program Activity Expected Results | Performance Indicators | Targets |
---|---|---|
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 have access to the broadcasting system as licensees of new services, as audiences for high-quality programming and as participants in Commission proceedings. | The performance is measured by the number of applications received, the number of proceedings initiated by the CRTC, the number of interventions filed with the Commission and the number of Canadian broadcasting services licensed as a result of the proceedings. | Increase number of proceedings for new services by 10 per cent. |
Program Activity Summary: The CRTC has the authority to regulate and supervise all aspects of the Canadian broadcasting system. The CRTC derives this authority from the Broadcasting Act (S.C. 1991, c. 11, as amended).
The Commission regulates more than 2,000 broadcasters, including television, cable distribution, AM and FM radio, pay and specialty television, direct-to-home satellite, multipoint distribution systems, subscription television and pay-audio providers.
The CRTC holds public hearings, round-table discussions and informal forums to obtain input from the public and interested parties. The Commission also welcomes written comments.
In 2009–2010, the CRTC expects to process 1,000 broadcasting applications.
Planning Highlights: To achieve the program activity’s expected results, the CRTC will:
Financial Resources ($ millions) | Human Resources (FTEs) | |||||
---|---|---|---|---|---|---|
2009–10 | 2010–11 | 2011–12 | 2009–10 | 2010–11 | 2011–12 | |
13.4 | 13.5 | 13.5 | 130 | 130 | 130 |
Program Activity Expected Results | Performance Indicators | Targets |
---|---|---|
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 to be more innovative in the provision of services. | The percentage of Canadians who have access to wire line and wireless services. The average percentage increase in Primary Exchange Service rates for a given year. The number of complaints we receive 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 the the service providers deliver high-quality services. Ensure there is no increase, from the current level, in the number of quality-of-service complaints. |
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 target is to remove regulatory obstacles to maximize the reliance on market forces, foster an efficient and competitive market, as well as to regulate only in cases where the market fails to fulfill the Telecommunication Act’s objectives. Historically, competitor revenue growth has been approximately two per cent per year. The Commission's target is for the continuation of this trend. |
Program Activity Summary: The CRTC derives its regulatory authority over telecommunications from the Telecommunications Act (S.C. 1993, c. 38, as amended) and the Bell Canada Act (S.C. 1987, c.19, as amended). The CRTC has the authority to regulate and
supervise Canada’s telecommunications carriers and service providers.
The CRTC also has the authority to refrain from regulating particular services so long as its actions are consistent with the policy objectives of the Telecommunications Act, and do not unduly impair competition. Since the late 1990s, the Commission has refrained from regulating a significant portion of telecommunications services when there is sufficient free-market
competition to protect the interests of Canadians.
In December 2006, the governor-in-council issued a policy direction to the Commission to rely on market forces to the maximum extent feasible as the means of achieving the Telecommunications Act’s policy objectives.
The CRTC regulates the more than 80 telecommunications carriers in Canada.
The CRTC holds public processes, round-table discussions and informal forums to obtain input from the public and interested parties. The Commission also welcomes written comments.
In 2009–2010, the CRTC expects to process approximately 1000 applications from the telecommunications industry.
Planning Highlights: To achieve the program activity’s expected results, the CRTC will:
The following program activity supports all strategic outcomes within the CRTC.
Financial Resources ($ millions) | Human Resources (FTEs) | |||||
---|---|---|---|---|---|---|
2009–10 | 2010–11 | 2011–12 | 2009–10 | 2010–11 | 2011–12 | |
15.9 | 16 | 16 | 162 | 162 | 162 |
*Internal Services are a new program activity for all federal organizations. They are defined by the Treasury Board of Canada Secretariat as follows:
Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: management and oversight, communications, legal, human resources management, financial management, information management, information technology, real property, materials, acquisitions, and travel and other administrative services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.
Program Activity Summary: This section is intended to establish expectations for Internal Services and monitor overall service performance of the Commission. The CRTC has a governance mechanism and procedures in place to ensure that services are delivered in a timely and cost-effective manner.
The coordination of all public processes and hearings is managed by the Secretary General, and falls under this program activity.
The CRTC already has a full schedule of public consultations and processes planned for 2009–2010. These hearing will focus on issues such as: radio licence applications and renewals, conventional television licence renewals, Internet traffic management practices, CBC/SRC licence renewals, the mandatory channel carriage under paragraph 9(1)h) of the Broadcasting Act, and
community broadcasting television and radio policy consultations. During 2009–2010, the Commission expects to issue decisions on hearings that took place in 2008–2009, such as new media, accessibility and official languages, and undertake follow-up activities.
As a federal quasi-juridical commission, the Commission relies on legal advice for its public processes, complaints-treatment methods and decisions. The CRTC’s legal services provide input in all aspects of the Commission’s work.
Strategic communications are essential to ensure that Canadians and stakeholders have access to timely, up-to-date and clear information. Communications services provide advice and support to all areas of the CRTC and manage any complaints. In a given year, these services respond to an average of more than 22,700 telephone calls and 23,000 letters of inquiries and complaints. With the
advent of the National Do Not Call List, the Commission expects that correspondence will increase significantly during 2009–2010.
The CRTC strives to expand its international dialogue to better study the scope of the alliances and companies that are formed around the world, and to better understand the pressures that these new arrangements bring to bear on the Canadian market. For instance, the CRTC will host the International Institute of Communications conference in Montreal from October 24 to 27,
2009.
The CRTC will continue to attend conferences, and consult and meet with Canadian and international stakeholders, to gain a better understanding of the evolution of the communications environment.
Planning Highlights: To achieve the program activity’s expected results, the CRTC will:
Over the next three years, each of CRTC’s three program activities will give Canadians access to a wide variety of high-quality, Canadian-produced programming, and to reliable, affordable and high-quality telecommunication services. More specifically, Canadians will realize the following economic, cultural and social benefits:
This information is available on the website of the Treasury Board of Canada Secretariat at the following address: www.tbs-sct.gc.ca/rpp/st-ts-eng.asp
This information is available on the website of the Treasury Board of Canada Secretariat at the following address: www.tbs-sct.gc.ca/rpp/st-ts-eng.asp
This information is available on the website of the Treasury Board of Canada Secretariat at the following address: www.tbs-sct.gc.ca/rpp/st-ts-eng.asp
A complete list of CRTC members is available at: www.crtc.gc.ca/eng/about/commissioners.htm
The list of CRTC contacts and offices can be found at: www.crtc.gc.ca/eng/contact.htm
The list of legislation, statutes and regulations related to the CRTC can be found at:
www.crtc.gc.ca/eng/statutes-lois.htm
Definitions of terminology used in this document can be found at: http://www.crtc.gc.ca/eng/glossaries-glossaires.htm
1 Internal Services is a new program activity for all federal organizations. The strategic outcomes, performance indicators and targets have not yet been developed for Management, Resources and Results Structure.
2 The CRTC is funded through fees recovered from the industries it regulates. The Commission has been granted vote-netting authority by Treasury Board and Parliament. Vote-netting is a way of funding selected government programs or activities whereby Parliament authorizes a department or agency to apply revenues towards costs directly incurred for specific activities. The Part I broadcasting licence fees and the telecommunications fees are used to finance the Commission’s operating budget.