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WHAT THE CRTC REGULATES

It regulates all Canadian broadcasting and telecommunications activities and enforces rules it creates to carry out the policies assigned to it; the best-known of these is probably the Canadian Content rules. The CRTC reports to the Parliament Of Canada through the Minister Of Canadian Heritage , which is responsible for the Broadcasting Act, and has an informal relationship with Industry Canada , which is responsible for the Telecommunications Act. Provisions in these two acts, along with less-formal instructions to the CRTC known as Orders-in-council , represent the bulk of the CRTC's jurisdiction, sometimes leaving the CRTC less room to manoeuvre than some critics appear to believe, and the result is that the CRTC is often the lightning rod for policy criticism that could arguably be better directed at the government itself.

Complaints against broadcasters, such as concerns around offensive programming, are dealt with by the Canadian Broadcast Standards Council , an independent broadcast industry association, rather than by the CRTC, although CBSC decisions can be appealed to the CRTC if necessary. However, the CRTC is also sometimes erroneously criticized for CBSC decisions — for example, the CRTC was erroneously criticized for the CBSC's decisions pertaining to the airing of Howard Stern 's terrestrial radio show in Canada in the late 1990s.

The CRTC was originally known as the Canadian Radio-Television Commission. In 1976, jurisdiction over telecommunications services, most of which were then delivered by monopoly common carriers (e.g., telephone companies), was transferred to it from the Canadian Transport Commission although the abbreviation CRTC remained the same. On the telecom side, the CRTC originally regulated only privately held common carriers, such as B.C. Tel (now part of Telus), in which a U.S. company had a substantial stake; Bell Canada, which served Ontario , most of Quebec , and part of the Northwest Territories ; and operations in Newfoundland, the Northwest Territories, Yukon and northern B.C. Other telephone companies, many of which were publicly owned, were regulated by provincial authorities until court rulings during the 1990s affirmed federal jurisdiction over the sector, which also included some fifty small independent incumbents, most of them in Ontario and Quebec.

The commission is not fully equivalent to the U.S. Federal Communications Commission , which has additional powers over technical matters, in broadcasting and other aspects of communications, in that country. In Canada, the Department Of Industry is responsible for allocating frequencies and managing the broadcast spectrum. As a result the CRTC has no involvement in such matters as the availability of spectrum for Mobile Telephone service.


REGULATION OF BROADCAST DISTRIBUTORS

The CRTC has in the past regulated the prices Cable Television broadcast distributors are allowed to charge. In most major markets, however, prices are no longer regulated due to increased competition for broadcast distribution from Satellite Television .

The CRTC also regulates which channels broadcast distributors must or may offer. Per the Broadcasting Act (at §3.(1)(t)(i)) the commission also gives priority to Canadian signals—many non-Canadian channels which compete with Canadian channels are thus not approved for distribution in Canada. The CRTC argues that allowing free trade in television stations would overwhelm the smaller Canadian market, preventing it from upholding its responsibility to foster a national conversation. Some people, however, consider this tantamount to Censorship .

The CRTC's Simultaneous Substitution rules require that when a Canadian network licenses a television show from a US network and shows it in the same time slot, upon request by the Canadian broadcaster, broadcast distributors must replace the show on the US channel with the broadcast of the Canadian channel, along with any overlays and commercials. If '' Seinfeld '' is on Citytv and on NBC , for instance, the cable, satellite, or other broadcast distributor must send the Citytv feed on NBC's channel, even where the NBC version is somehow different, particularly commercials. (These rules are not intended to apply in case of differing ''episodes'' of the same series; this difference may not always be communicated to distributors, although this is rather rare.)

The goal of this policy is to create a market in which Canadian networks can realize revenue through advertising sales in spite of their inability to match the rates that the much larger American networks can afford to pay for syndicated programming. This policy is also why Canadian viewers do not see American advertisements during the Super Bowl , even when tuning into one of the many American networks carried on Canadian televisions. Some Canadians erroneously believe that simultaneous substitution is a uniquely Canadian rule, and decry its influence on Canadian television viewing habits. In actual fact, American cable companies are required by the Federal Communications Commission to follow a very similar policy of Syndication Exclusivity .


REGULATION OF THE INTERNET

In a major May 1999 decision on "New Media", the CRTC held that under the Broadcasting Act the CRTC had jurisdiction certain content communicated over the internet including audio and video, but excluding content that is primarily alphanumeric such as emails and most webpages. It also issued an exemption order committing to a policy of non-interference. {Link without Title}


CONTROVERSIAL DECISIONS


Since 1987, the CRTC has been involved in several controversial decisions:

  • ''' radio station in Quebec, after having previously sanctioned the station for failing to uphold its promise of performance and then, during the years following, receiving about 50 complaints about offensive behaviour by radio jockeys which similarly contravened CRTC rules on broadcast hate speech. Many thousands of the station's fans marched in the streets and on Parliament Hill against the decision, and the parent company of CHOI, Genex Corp., appealed the CRTC decision unsuccessfully to the Federal Court of Canada. The station was later "re-licensed" following its sale to Radio Nord Communications .



  • ''' channel was denied permission to broadcast in Canada on the grounds that it would compete with Telelatino , a Canadian-run channel which already produces shows in Italian. Many Italian-Canadians who either preferred RAI or could not receive Telelatino were, however, using Satellite viewing cards obtained via the US in order to watch RAI, even though these cards were either Grey Market or Black Market , according to different analyses (see below). Following a subsequent review of the CRTC's policy on third-language foreign service, the service was approved in early 2005, but other foreign channels - for instance, those broadcasting in Spanish and therefore also competing with Telelatino's Spanish-/Italian-language broadcasts - remain affected by the policy, which seeks to promote the Canadian production of content.


  • ''' incitement on this station, it was approved by the CRTC as an optional cable and satellite offering, but on the condition that any carrier distributing it must edit out any instances of illegal hate speech. Cable companies declared that these restrictions would make it too expensive to carry Al Jazeera. Although no cable company released data as to what such a monitoring service would cost, the end-result was that no cable company elected to carry the station, either, leaving many Arabic-speaking Canadians using Free-to-air satellite dishes to watch the station. The Canadian Jewish Congress has expressed its opinion that the restrictions on Al Jazeera are appropriate, while the Canadian B'nai Brith is opposed to any approval of Al Jazeera in Canada.


  • ''' Canadians, who believed the network was deliberately being kept out due to its perceived Conservative Bias , particularly given the long-standing availability of services such as CNN and BBC World in Canada. On November 18 , 2004, however, the CRTC approved an application by Fox News to offer its services to Canadians. Fox commenced broadcasting in Canada shortly thereafter.


  • ''') and Labour Union s by licencing two companies, Canadian Satellite Radio and Sirius Canada to offer satellite radio services in Canada. The two companies are in partnership with American firms XM Satellite Radio and Sirius Satellite Radio respectively, and in accordance with the CRTC decision will only need to offer ten percent Canadian content. The CRTC contends that this low level of Canadian content, particularly when compared to the 35 percent rule on local radio stations, was necessary because unlicenced U.S. receivers were already flooding into the country, so that enforcing a ban on these receivers would be nearly impossible (see below). This explanation did not satisfy cultural nationalists, who demanded that the Federal Cabinet overturn the decision and mandate a minimum of 35 percent Canadian content. Supporters of the decision argue that satellite radio can only be feasibly set up as a continental system, and trying to impose 35 percent Canadian content across North America is quite unrealistic. They also argue that satellite radio will boost Canadian culture by giving vital exposure to independent artists, instead of just concentrating on the country's stars, and point to the CRTC's successful extraction of promises to program 10 percent Canadian content on satellite services already operational in the United States as important concessions. {Link without Title} On the other hand some consumers and financial analysts believe that any Canadian content conditions are unnecessarily strict and might hamper the ability of Canadians to legally listen to many of the services currently provided by both providers.


Despite popular perception that the CRTC banned Sirius Canada from broadcasting Howard Stern 's program, this is not the case. Sirius Canada in fact initially ''chose'' not to air Stern based on the ''possibility'' of a future issue with the CRTC, although this decision was reversed in February 2006.


RECEPTION OF NON-CANADIAN SERVICES


While an exact number has not been determined, thousands of Canadians have purchased and used what they contend to be Grey Market radio and television services, licensed in the United States but not in Canada. Users of these unlicenced services contend that they are not directly breaking any laws by simply using the equipment. The equipment is usually purchased from an American supplier (although some merchants have attempted to set up shop in Canada) and the services are billed to an American postal address. The advent of Online Billing and the easy availability of Credit Card services has made it relatively easy for almost anyone to maintain an account in good standing, regardless of where they actually live.

Sec. 9(1)(c) of the Radiocommunication Act creates a prohibition against all decoding of encrypted programming signals, followed by an exception where authorization is received from the person holding the lawful right in Canada to transmit and authorize decoding of the signal. This means receiving the encrypted programming of DishNetwork or DirecTV, even with a grey market subscription, may be construed as unlawful (this remains an unresolved Constitutional issue).

Notwithstanding, possession of DishNetwork or DirecTV equipment is not unlawful as provided by The Radiocommuncation Act Section 4(1)(b), which states:

"No person shall, except under and in accordance with a radio authorization, install, operate or possess radio apparatus, other than (b)a radio apparatus that is capable only of the reception of broadcasting and that is not a distribution undertaking. (radio apparatus" means a device or combination of devices intended for, or capable of being used for, radiocommunication)."

Satellite radio poses a more complicated problem for the CRTC. While an unlicensed satellite dish can often be identified easily, satellite radio receivers are much more compact and can rarely be easily identified, at least not without flagrantly violating provisions against unreasonable Search And Seizure in the Canadian Charter Of Rights And Freedoms . Some observers argued that this influenced the CRTC's June 2005 decision to ease Canadian content restrictions on satellite radio (see above).


STRUCTURE

The CRTC is run by up to 13 full-time (including the chairperson, the vice-chairperson of broadcasting, and the vice-chairperson of telecommunications) and six part-time commissioners appointed by the Cabinet for renewable terms of up to five years. Only full-time commissioners can participate in the decision-making process for telecommunications and all commissioners are involved in broadcasting decisions. The current chairman is Konrad Von Finckenstein , former head of Canada's Competition Bureau.


SEE ALSO



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