|
| |
::TECHNOLOGY NEWS::
LE Newsletter - February 2, 2012
|
| |
Executives Outline CRTC Challenges
Source:
www.globeandmail.com - By Rita Trichur And Steve Ladurantaye
(Jan 25, 2012) The blurring of the lines between
media and
telecommunications
is creating a formidable problem for Ottawa.
And that convergence challenge will dominate the agenda of the
Canadian Radio-television and Telecommunications Commission as
the federal government looks for a permanent replacement for
former chairman Konrad von Finckenstein, whose term expired this
week.
Acting chairman Leonard Katz, who assumed that role Wednesday,
says the commission's top priorities involve follow-up work on
two recent decisions. The first provided a new framework for
regulating "vertically-integrated" companies, which distribute
television and own broadcasting licenses, such as Shaw
Communications Inc. SJR.B-T and BCE Inc. BCE-T The second
introduced new rules for fees that smaller Internet providers
are charged to lease space on the networks of larger providers.
"I think we are going to continue on that road and try and
provide as much clarity and transparency as quickly as
possible," said Mr. Katz, who has served as the CRTC's
vice-chairman of telecommunications since October 2007.
His current term as commissioner expires in October. For time
being, he is remaining mum on whether he is harbouring ambitions
to become the next full-time chairman.
While his plate as interim chairman already appears quite full,
companies in both the media and telecommunications sectors say a
slew of other challenges also lie ahead for the commission.
Here is a sampling of what industry executives had to say:
Corus Entertainment Inc.
Corus CJR.B-T chief executive officer John Cassaday says the
CRTC should play a key role in fostering a Canadian-owned, but
globally competitive, broadcasting industry.
"We need to stop loading up Canadian players with new rules, as
these unregulated players come in and compete directly with us,"
he said.
"We certainly take the view that we can compete effectively with
them, as incumbents we have huge competitive advantages, but we
need to have the freedom to meet the needs of our viewers and
listeners without the additional regulation that continues to be
imposed."
One example, he said, are the rules that put limits on the
number of movies that broadcasters can offer in a week.
"Our basic view is that within the genre that we're appealing to
we should be allowed ... to put the programs on that viewers
want to watch."
Telus Corp.
Michael Hennessy, Telus T-T' senior vice-president for
regulatory and government affairs, agrees the CRTC will face the
enormous task of defining the future of broadcasting in a
converged world.
While the broadcasting industry is heavily protected to fund the
production of Canadian content, it is facing sharper competition
due to over-the-top television, like Netflix, and
video-on-demand.
At the same time, the CRTC wants cable and satellite providers
to offer customers more à la carte programming options. "You
have to have more flexible (TV) packaging or people are going to
abandon the system," says Mr. Hennessy.
But that could fuel tension between TV providers and specialty
broadcasters that have traditionally counted on bundling of
channels to gain subscribers and revenues.
Rogers Communications Inc.
The CRTC's big challenge on the broadcasting side is going to be
fostering Canadian content in a way that doesn't drive consumers
off the regulated system and on to the Internet, said Ken
Engelhart, senior vice-president for regulatory affairs at
Rogers Communications Inc. RCI.B-T
In particular, Rogers wants the commission to be more flexible
with its regulations to ensure that companies can put content on
all platforms, including its regulated video-on-demand service.
Rogers has faced restrictions on programming on its on-demand
service, but faces no such constraints on putting that same
content online or on cellphones.
Mr. Engelhart argues that disparity makes no sense in an age
when consumers are able to obtain and view programming on
multiple screens.
"We need a Canadian content system but the regulations have to
be careful and thoughtful - and not restrict customer choice,"
said Mr. Engelhart.
BCE Inc.
While the CRTC gets "top marks" for improving the timeliness of
its decisions and the transparency of its processes, its record
on providing a predictable business environment has been
"extremely weak," says Mirko Bibic, senior vice-president of
regulatory and government affairs at BCE Inc. "If there is one
thing a new chair needs to improve, it is the record of
predictability," he said. "It is so, so important because
businesses need to know what the rules are going to be and have
faith that the rules are going to be the rules."
The commission's regulatory "flip-flops" have created
uncertainty in the industry, he said. For example, its 2011
vertical integration decision reversed a previously stated goal
of deregulating mainstream news and sports channels, along with
a 2009 decision to maintain a hands-off approach to new media,
he said.
"Now with the vertical integration decision, I mean there is no
doubt that the CRTC regulates new media content - absolutely no
doubt."
In December, the CRTC decided that BCE had given itself an
unfair competitive advantage by striking deals with the National
Football League and National Hockey League to offer their game
content exclusively on Bell's mobile network. Those deals,
however, preceded its 2011 vertical integration decision and
were expected to be grandfathered. BCE plans to issue its
response at the end of this month.
Score Media
Score Media SCR-T, however, takes a strikingly different view
about the CRTC's approach to new media.
"The big decision for us has already been made - when they
decided not to touch the Internet. It was a pretty ballsy move
for them, quite honestly, given the history," says chief
executive John Levy.
"Keeping hands off the Internet just means more Canadians have
an opportunity to express themselves in an even playing field. I
think the CRTC can be very proud of what has been accomplished
in the last 40 years. It has allowed, in a very unbalanced North
American market, Canadian broadcasters and talent to have the
opportunity to move forward."
Manitoba Telecom Services Inc.
On the wireless side, there is growing concern among industry
players that provinces like Ontario and Manitoba are stepping
into the regulatory vacuum left by the CRTC with proposed
consumer protection legislation.
Those bills aim to tackle growing consumer grievances around
issues like data notification on wireless devices, opaque
contract language and the unlocking of mobile phones.
The industry, however, would prefer that the CRTC set national
standards, so that businesses are not grappling with different
rules in different provinces. Failing to do so would create a
"patchwork approach" that would drive up compliance costs, said
Chris Peirce, chief corporate officer for MTS Allstream Inc.
|
|
| |
|
::ENTERTAINMENT NEWS WITH A CANADAN TWIST::
