Canadian Radio-television and Telecommunications · PDF fileIndustry convergence ... The...

Canadian Radio-television and Telecommunications Commission 2008–2009 Departmental Performance Report

The Honourable James Moore Minister of Canadian Heritage and Official Languages

Canadian Radio-television and Telecommunications Commission 2


Table of Contents

SECTION I: DEPARTMENTAL OVERVIEW............................................................................. 7 1.1 Raison d’être ........................................................................................................................ 8 1.2 Responsibilities .................................................................................................................... 8 1.3 Strategic Outcomes and Program Activity Architecture (PAA).......................................... 9 1.4 Summary of Performance .................................................................................................... 9

2008–2009 Financial Resources ............................................................................................. 9 2008–2009 Human Resources ................................................................................................ 9 2008-2009 Performance Summary ....................................................................................... 10

1.5 Contribution of Priorities to Strategic Outcome ................................................................ 12 1. Canadian programming that reflects Canada’s diversity .................................................. 12 2. Access by Canadians to the broadcasting system............................................................. 14 3. Efficient and effective broadcasting regulation ................................................................ 15 4. New media ........................................................................................................................ 16 5. Industry convergence ........................................................................................................ 17 6. Acquisitions, ownership transfers and other transactions................................................. 18 7. International initiatives ..................................................................................................... 18 8. Access by Canadians to reliable, high-quality telecommunications services................... 19 9. Implementation of the Telecommunications Act objectives through an increased reliance

on market forces................................................................................................................ 20 10. Efficient and effective telecommunications regulation .................................................. 21 11. Human Resources Initiatives .......................................................................................... 22

1.6 Risk Analysis ..................................................................................................................... 23 1.7 Expenditure Profile ............................................................................................................ 23

SECTION II: ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME(S) ... 24 2.1 Strategic Outcome 1........................................................................................................... 25

2.1.1 Program Activity: Canadian Broadcasting .................................................................. 25 Summary Table................................................................................................................. 25 Benefits for Canadians...................................................................................................... 25 Performance Analysis ....................................................................................................... 26 Lessons Learned................................................................................................................ 29

2.1.2 Program Activity: Canadian Telecommunications..................................................... 30 Summary Table................................................................................................................. 30 Benefits for Canadians...................................................................................................... 30 Performance Analysis ....................................................................................................... 31 Lessons Learned................................................................................................................ 32

SECTION III: SUPPLEMENTARY INFORMATION ............................................................... 33 3.1 Financial Highlights........................................................................................................... 34 3.2 Financial Statements .......................................................................................................... 34 3.3 List of Supplementary Information Tables ........................................................................ 34 3.4 Other Items of Interest ....................................................................................................... 34

Minister of Canadian Heritage

and Official Languages Ministre du Patrimoine canadien

et des Langues officielles


The Government of Canada is committed to building a country in which all citizens have the chance to participate in our cultural and economic life. Our Government recognizes the importance of arts and culture in reaching this goal. The agencies and organizations in the Canadian Heritage Portfolio, such as the Canadian Radio-television and Telecommunications Commission (CRTC), are working toward this goal of providing us with opportunities to celebrate and share our rich historical, cultural, artistic, and social heritage. Canadians can take pride in having a distinctive broadcasting system that is complemented by digital technologies. Creators and broadcasters are exploring new platforms and finding innovative ways of sharing our culture with the world. Over the past year, the CRTC has focused its attention primarily on ensuring that the broadcasting system adapts to evolving technologies, for the benefit of all Canadians. In 2008–2009, the CRTC introduced new policies aimed at guiding the system toward a fully digital broadcasting environment. The Commission also launched the National Do Not Call List, a program designed to help Canadians protect their privacy. Additionally, the CRTC has improved its mechanisms to resolve disputes between companies in the broadcasting and telecommunications industries efficiently and with the least amount of impact on consumers. As Minister of Canadian Heritage and Official Languages, I am pleased to present the 2008–2009 Departmental Performance Report of the CRTC. This report provides a detailed account of the Commission’s accomplishments and demonstrates the ways in which it supports the priorities of our Government. I would like to highlight the efforts that CRTC staff have made throughout the year to strengthen the bonds that unite us as Canadians, thus contributing to our collective feeling of pride.

The Honourable James Moore, P.C., M.P.


I am pleased to present the Canadian Radio-television and Telecommunications Commission’s (CRTC’s) Departmental Performance Report for 2008–2009. This report is an opportunity to reflect on the progress the CRTC has made in the past fiscal year, which also marked its 40th anniversary. On September 30, 2008, the CRTC successfully launched the National Do Not Call List. This program is aimed at reducing unsolicited telemarketing calls and protecting the privacy of Canadians. An independent survey found that Canadians—who have so far registered more than six million numbers—now receive fewer telemarketing calls than before. The CRTC will continue to monitor the program’s effectiveness and promote compliance with the telemarketing rules. The CRTC took concrete steps to resolve the limitations of Canada’s 911 services with regard to emergency calls made from cellular phones. The CRTC directed the wireless industry to implement enhanced 911 features by February 1, 2010. These features will enable emergency responders to pinpoint callers’ locations with a higher degree of precision than ever before. By creating the Local Programming Improvement Fund, the CRTC has acted to ensure that television broadcasters in smaller markets are able to provide programming that reflects the needs and interests of all Canadians. Starting in September 2009, television stations in markets of less than one million will be able to draw on these funds to produce local news and local programming. In a world where convergence has become a reality, the CRTC held a public proceeding to consider the accessibility of broadcasting and telecommunications services at the same time. The CRTC also published its inaugural Communications Monitoring Report, which provides a complete picture of the Canadian communications landscape. Finally, the CRTC reacted quickly to the global economic downturn that began during the fall of 2008. In preparing to renew the licences of most private conventional television broadcasters in April 2009, the Commission has narrowed the scope of its public hearing to consider only the most pressing issues. For four decades, the CRTC has played an integral role in the development of Canada’s communications system. However, at no time in the Commission’s history has the pace of change been more rapid or demanding than it is presently. I am proud of the CRTC’s accomplishments in an increasingly converged environment, and look forward to meeting the economic and technological challenges that await us in the year ahead.

Konrad von Finckenstein, Q.C. Chairman


SECTION I: DEPARTMENTAL OVERVIEW


1.1 Raison d’être The Canadian Radio-television and Telecommunications Commission (CRTC) is an independent commission that regulates and supervises the Canadian broadcasting and telecommunications systems in the public interest. The CRTC’s mandate is to ensure that the broadcasting and telecommunications systems serve the Canadian public. The CRTC uses the objectives in the Broadcasting Act and the Telecommunications Act to guide its policy decisions. The CRTC benefits Canadians by balancing their needs with the economic realities of the communications industry. Through its regulatory function, the CRTC addresses, among other matters, economic, social and cultural issues in relations to the communications industry. The Commission promotes:

• a competitive marketplace for Canadian communications entreprises, ensuring best value for money for Canadians and creating jobs

• Canada’s linguistic duality and cultural diversity • enhanced accessibility for people with disabilities, such as closed captioning for persons

who are hearing-impaired and descriptive video for persons who are visually-impaired, and

• the development of mechanisms to address concerns such as abusive comment or violence in the broadcast media, or unjust rates for telecommunications services.

1.2 Responsibilities The CRTC exists under the authority of the Canadian Radio-television and Telecommunications Commission Act of 1985. Its mandate is governed by the Broadcasting Act of 1991 and the Telecommunications Act of 1993. The Broadcasting Act seeks to ensure that all Canadians have access to a wide variety of high-quality Canadian programming. The Telecommunications Act seeks to ensure, among other things, that all Canadians have access to reliable, high-quality telephone and other telecommunications services at affordable prices. The CRTC fulfils its responsibilities through a number of interrelated tasks including:

• issuing, renewing and amending licences for broadcasting undertakings • making determinations on mergers, acquisitions and changes of ownership • approving tariffs and certain agreements for the telecommunications industry • relying on market forces to the greatest extent possible for telecommunications services

and ensuring that regulation, where required, is efficient and effective • monitoring and removing obstacles to competition • resolving competitive disputes • developing and implementing regulatory policies • monitoring, assessing and reviewing, where appropriate, regulatory frameworks to meet

government and CRTC policy objectives • monitoring the programming and financial obligations of broadcasting undertakings to

ensure compliance with regulations and conditions of licence, and • investigating telemarketing complaints and enforcing associated rules.


The CRTC endeavours to ensure that its policies respond to emerging technology and that regulation, where required, is efficient and effective. As a federal organization, the CRTC reports to Parliament through the Minister of Canadian Heritage. The CRTC is listed in Schedule 1.1 of the Financial Administration Act. Its budget and employees are subject to Government of Canada policies and guidelines to ensure excellence and accountability to Canadians. Timeliness, transparency, fairness and predictability are the four principles that guide the work of the CRTC. 1.3 Strategic Outcomes and Program Activity Architecture (PAA)

During 2008–2009, the CRTC was guided by one overarching strategic outcome: to ensure the broadcasting and telecommunications industries contribute to Canada’s cultural, economic and social prosperity. Two program activities have facilitated results under this strategic outcome: Canadian Broadcasting, which deals specifically with activities and priorities from the broadcasting sector, and Canadian Telecommunications, which deals with activities and priorities from the telecommunications sector. 1.4 Summary of Performance 2008–2009 Financial Resources ($ millions)

Planned Spending Total Authorities Actual Spending

45.9 60.2 58.5 2008–2009 Human Resources (Full Time Employees - FTEs)

Planned Actual Difference

460 466 6

S.O. 1 Broadcasting and telecommunications industries that contribute to Canada’s cultural,

economic and social prosperity.

P.A. 1.1 Canadian Broadcasting P.A. 1.2 Canadian Telecommunications


2008-2009 Performance Summary

1 The CRTC Report on Plans and Priorities 2008–2009 can be found at:

http://crtc.gc.ca/eng/publications/reports/rpps/2008_09.htm 2 Forbearance is defined as the authority given to the CRTC to refrain from regulating particular services so long

as this action is consistent with the policy objectives of the Telecommunications Act. 3 The CCTS provides residential and small business customers with an effective, accessible, and consumer-

friendly recourse when they are unable to resolve a disagreement with their telecommunications service provider. It aims to resolve complaints from residential / small-business subscribers about deregulated services.

4 Numbers and figures provided in this report come from the CRTC data collection, unless otherwise specified. 5 Source: Statistics Canada, the 2008 Canadian GDP figure was approximately $1.2 trillion.

Strategic Outcome 1: Broadcasting and telecommunications industries that contribute to Canada’s cultural, economic and social prosperity.

Indicators/ Targets

2008–2009 Performance

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 services2 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.

In 2008, communications industry revenues increased 6% to $54.3 billion4. During that same year, communication industry revenues accounted for nearly 4.4% of Canada’s gross domestic product (GDP)5. Broadcasting revenues accounted for approximately one quarter (26%) of that amount and telecommunications revenues accounted for approximately three quarters (74%).

None identified in CRTC’s 2008–2009 Report on Plans and Priorities1

The CRTC encourages broadcasting and telecommunications companies to resolve their differences through private third-party mediation, negotiations or other means. However, the CRTC’s role in resolving disputes will grow as competition becomes more intense in a converged environment where there is less regulation. In 2008–2009, the CRTC revised its dispute-resolution procedures and created a separate internal group to deal with final-offer arbitration and expedited hearings.These tools create a more predictable and efficient framework, enabling companies to provide improved products and services to Canadians. In 2008–2009, the CRTC was involved in the resolution of 61 disputes.


($ millions) 2008–2009

Program Activity

2007–2008 Actual

Spending6 Main

Estimates Planned

Spending Total

AuthoritiesActual

Spending8

Alignment with Government of Canada

Outcomes

Canadian Broadcasting 29.0 24.6 24.6 32.3 31.1 A vibrant Canadian culture

and heritage (see note 1)

Canadian Telecommunications 26.6 21.3 21.3 27.9 27.4 A fair and secure

marketplace (see note 2)

Total 55.6 45.9 45.9 60.2 58.5

Note 1: The CRTC’s contribution to the Government of Canada outcome “A vibrant Canadian culture

and heritage” is widespread. The CRTC ensures that the conditions are in place to maximize quality, diversity and access to Canadian programming through regulatory and non-regulatory measures. These measures, which include minimum exhibition and expenditure requirements, ensure that the Canadian broadcasting system is distinctly Canadian in its content, and support Canadian artists and producers by creating demand for their creative output.

Note 2: During the past fiscal year, the CRTC has contributed to the Government of Canada outcome of

“a fair and secure marketplace” in various ways. For example, the CRTC: • established a new wireless number portability regulatory framework for small local

telephone companies that enables customers to keep their wireless numbers when they change service providers

• modified, streamlined or eliminated a wide range of economic, non-economic and social regulatory measures after evaluating whether they were still required and efficient

• continued to assess forbearance requests by local exchange carriers on a priority basis • established a National Do Not Call List that helps protect Canadians from unwanted

telemarketing calls • ensured that effective safeguards exist for consumers in deregulated markets by working

with the CCTS, and • contributed to a more predictable telecommunications trade environment in Canada by

streamlining telecommunications procedures.

6 Actual spending for 2007-2008 and 2008-2009 increased. During that period, the CRTC 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 related billing impact for broadcasting and telecommunication industries are noted in Broadcasting Circular 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://crtc.gc.ca/eng/archive/2007/c2007-9.htm.

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Plan

s and

Prio

ritie

s (R

PP) 2

008-

2009

for t

his s

ectio

n of

prio

rity

1.b)

wer

e no

t com

plet

ed o

r im

plem

ente

d as

pla

nned

. Fo

r in

stan

ce, t

he R

PP st

ates

that

“th

e C

RTC

exp

ects

to a

nnou

nce

its d

eter

min

atio

n by

ear

ly 2

008”

rega

rdin

g its

pol

icy

on “

hits

”).

The

polic

y w

as is

sued

in

Febr

uary

200

9.

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

14

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

2. A

cces

s by

Can

adia

ns to

the

broa

dcas

ting

syst

em

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort C

anad

ian

cultu

ral

pros

perit

y.

a. In

trodu

ctio

n of

new

se

rvic

es

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Met

•

The

CR

TC c

ompl

eted

its p

roce

edin

g w

ith re

spec

t to

appl

icat

ions

pro

posi

ng n

ew h

igh-

defin

ition

ove

r-th

e-ai

r tel

evis

ion

serv

ices

. It d

enie

d ap

plic

atio

ns d

ue to

insu

ffic

ient

co

mm

itmen

ts to

loca

l pro

gram

min

g.

• Th

e C

omm

issi

on a

lso

bega

n co

nsul

tatio

ns w

ith b

road

cast

ers t

o de

al w

ith th

e lo

ng-te

rm

effe

cts o

f the

dig

ital t

rans

ition

, whi

ch is

sche

dule

d fo

r Aug

ust 2

011.

Cul

tura

l pro

sper

ity in

the

new

m

edia

era

is e

nhan

ced

by th

e tra

nsiti

on o

f Can

adia

n m

edia

to

digi

tal t

echn

olog

y. T

his s

hift

will

in

crea

se a

cces

s to

Can

adia

n co

nten

t thr

ough

var

ious

dig

ital

plat

form

s. b.

Ava

ilabi

lity

of se

rvic

es to

pe

rson

s with

di

sabi

litie

s

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Met

•

The

Com

mis

sion

initi

ated

a p

roce

edin

g to

dea

l with

the

La M

agné

toth

èque

11 re

ques

t for

m

anda

tory

bas

ic d

istri

butio

n on

bro

adca

stin

g di

strib

utio

n un

derta

king

s. A

dec

isio

n is

ex

pect

ed in

200

9.

• In

Nov

embe

r 200

8, th

e C

RTC

hel

d a

publ

ic h

earin

g to

add

ress

unr

esol

ved

ques

tions

co

ncer

ning

acc

essi

bilit

y to

tele

com

mun

icat

ions

and

bro

adca

stin

g se

rvic

es.

•

The

broa

dcas

ting

com

pone

nt o

f the

pub

lic h

earin

g ad

dres

sed

acce

ss to

clo

sed

capt

ioni

ng,

desc

ribed

vid

eo a

nd c

usto

mer

serv

ice

prov

ided

by

broa

dcas

ting

dist

ribut

ion

unde

rtaki

ngs.

In

add

ition

, in

2007

, Eng

lish-

and

Fre

nch-

lang

uage

clo

sed-

capt

ioni

ng w

orki

ng g

roup

s es

tabl

ishe

d pr

opos

ed q

ualit

y st

anda

rds t

hat f

orm

ed p

art o

f the

pro

ceed

ing’

s pub

lic re

cord

s. •

A re

gula

tory

pol

icy

on a

cces

sibi

lity

is e

xpec

ted

to b

e re

leas

ed in

the

sum

mer

of 2

009.

Ensu

ring

bette

r ser

vice

for

pers

ons w

ith v

isua

l dis

abili

ties

incr

ease

s the

Can

adia

n cu

ltura

l an

d so

cial

pro

sper

ity.

11

Fr

ench

-lang

uage

serv

ice

for p

erso

ns w

ith v

isua

l dis

abili

ties.

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

15

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

3. E

ffic

ient

and

eff

ectiv

e br

oadc

astin

g re

gula

tion

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort C

anad

ian

cultu

ral,

soci

al a

nd e

cono

mic

pro

sper

ity.

a. N

ew a

nd

sim

plifi

ed

regu

lato

ry

mea

sure

s

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Met

•

As p

art o

f its

pol

icy

fram

ewor

k re

view

, the

CR

TC is

revi

ewin

g its

ope

ratio

nal p

roce

dure

s to

furth

er re

duce

the

time

and

reso

urce

s req

uire

d fr

om b

oth

the

licen

sees

and

the

CR

TC.

• Th

e C

RTC

dev

elop

ed a

new

regu

lato

ry fr

amew

ork

for b

road

cast

ing

dist

ribut

ion

unde

rtaki

ngs a

nd d

iscr

etio

nary

serv

ices

. •

The

CR

TC re

view

ed it

s app

roac

h to

dis

pute

reso

lutio

n fo

r the

bro

adca

stin

g se

ctor

. In

Janu

ary

2009

, it r

elea

sed

new

pro

cedu

res f

or c

odify

ing

prac

tices

, med

iatio

n, fi

nal-o

ffer

ar

bitra

tion

and

expe

dite

d he

arin

gs.

• Th

e C

RTC

initi

ated

a p

olic

y pr

ocee

ding

—to

be

held

in th

e fa

ll of

200

9—to

dev

elop

a n

ew

fram

ewor

k to

lice

nse

conv

entio

nal a

nd d

iscr

etio

nary

tele

visi

on se

rvic

es in

the

curr

ent

econ

omic

env

ironm

ent.

The

sim

plifi

catio

n of

bro

adca

stin

g re

gula

tory

mea

sure

s con

tribu

tes t

o re

lyin

g on

mar

ket f

orce

s to

the

max

imum

ext

ent f

easi

ble.

Whe

n re

gula

tion

is re

quire

d, th

e C

RTC

is

com

mitt

ed to

usi

ng m

easu

res t

hat

are

targ

eted

and

min

imal

ly

intru

sive

. Thi

s app

roac

h pr

ovid

es

adde

d fle

xibi

lity

whi

le re

tain

ing

the

regu

latio

ns n

eces

sary

to C

anad

ian

cultu

ral a

nd e

cono

mic

pro

sper

ity.

b.A

ccel

erat

ed

serv

ice

deliv

ery

for

publ

ic-

hear

ing

proc

esse

s

New

Ex

pect

atio

ns S

omew

hat12

Met

•

The

CR

TC c

reat

ed a

nd im

plem

ente

d an

exp

edite

d he

arin

g pr

oces

s for

bro

adca

stin

g ow

ners

hip

trans

actio

ns. D

ecis

ions

are

now

issu

ed w

ithin

35

days

follo

win

g ad

jour

nmen

t of

a h

earin

g, w

hich

is a

n im

prov

emen

t ove

r the

pre

viou

s ave

rage

of a

roun

d 60

day

s. •

The

expe

dite

d pr

oces

s for

pub

lic h

earin

gs w

as c

ontin

gent

upo

n se

curin

g ad

ditio

nal

fund

ing.

Giv

en th

e ec

onom

ic d

ownt

urn,

and

the

impa

ct th

at su

pple

men

tary

fund

ing

wou

ld

have

had

on

the

fee

paye

rs, t

his a

ctiv

ity w

as c

ance

lled.

•

In 2

008–

2009

, the

Com

mis

sion

hel

d 14

pub

lic h

earin

gs o

n br

oadc

astin

g, c

ompa

red

to 1

7 th

e pr

evio

us y

ear.

•

89%

of a

pplic

atio

ns th

at d

o no

t req

uire

a p

ublic

pro

cess

wer

e de

alt w

ith w

ithin

2 m

onth

s (a

bove

80%

targ

et) a

nd 9

2% w

ithin

3 m

onth

s (ab

ove

90%

targ

et).

•

For a

pplic

atio

ns p

roce

ssed

by

publ

ic n

otic

e or

not

ice

of c

onsu

ltatio

n:

o

with

out i

nter

vent

ions

: 98%

wer

e de

alt w

ith w

ithin

6 m

onth

s (ab

ove

80%

targ

et) a

nd

100%

with

in 8

mon

ths (

abov

e 90

% ta

rget

) o

w

ith in

terv

entio

ns: 9

7% w

ere

deal

t with

with

in 8

mon

ths (

abov

e 80

% ta

rget

) and

10

0% w

ithin

10

mon

ths (

abov

e 90

% ta

rget

) •

40%

of r

enew

al a

pplic

atio

ns p

roce

ssed

by

publ

ic n

otic

e/no

tice

of c

onsu

ltatio

n w

ere

deal

t w

ith w

ithin

8 m

onth

s (be

low

80%

targ

et)13

and

92%

with

in 1

0 m

onth

s (ab

ove

90%

targ

et).

The

acce

lera

ted

serv

ice

deliv

ery

and

serv

ice

stan

dard

s are

way

s to

help

th

e br

oadc

astin

g in

dust

ry re

ceiv

e tim

ely

deci

sion

s and

pre

dict

able

se

rvic

e, th

ereb

y co

ntrib

utin

g to

ec

onom

ic p

rosp

erity

.

12

So

me

elem

ents

of t

he R

epor

t on

Plan

s and

Prio

ritie

s (R

PP) 2

008-

2009

for t

his s

ectio

n of

prio

rity

3.b)

wer

e no

t com

plet

ed o

r im

plem

ente

d as

pla

nned

. Fo

r in

stan

ce, t

he R

PP st

ates

: “I

n 20

08–2

009,

the

CR

TC w

ill: d

evel

op su

ppor

ting

serv

ice

stan

dard

s (ex

pedi

te p

roce

ss);

incr

ease

the

num

ber o

f pub

lic h

earin

gs (.

..)”

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

16

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

4. N

ew m

edia

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort C

anad

ian

soci

al,

cultu

ral a

nd e

cono

mic

pro

sper

ity.

The

New

M

edia

In

itiat

ive

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Mos

tly14

Met

•

The

CR

TC c

ontin

ued

the

stud

y it

had

initi

ated

in 2

007–

2008

on

the

cultu

ral,

econ

omic

an

d te

chno

logi

cal i

ssue

s ass

ocia

ted

with

bro

adca

stin

g in

the

new

med

ia e

nviro

nmen

t.

• In

May

200

8, th

e C

RTC

pub

lishe

d Pe

rspe

ctiv

es o

n C

anad

ian

Broa

dcas

ting

in N

ew M

edia

–

a co

mpi

latio

n of

rese

arch

and

stak

ehol

der v

iew

s on

the

broa

dcas

ting

in n

ew m

edia

en

viro

nmen

t.

• D

urin

g 20

08–2

009,

the

CR

TC in

itiat

ed a

com

preh

ensi

ve p

ublic

pro

ceed

ing

to re

view

C

anad

ian

broa

dcas

ting

in th

e ne

w m

edia

env

ironm

ent,

and

to d

eter

min

e th

e ap

prop

riate

po

licy

resp

onse

. A d

ecis

ion

is e

xpec

ted

in Ju

ne 2

009.

The

rese

arch

pro

vide

d re

leva

nt

info

rmat

ion

for t

he p

ublic

pr

ocee

ding

, whi

ch e

xam

ined

br

oadc

astin

g in

new

med

ia

envi

ronm

ent.

It al

so e

xplo

red

whe

ther

the

Com

mis

sion

’s

appr

oach

of e

xem

ptin

g ne

w m

edia

br

oadc

astin

g un

derta

king

s and

m

obile

tele

visi

on b

road

cast

ing

unde

rtaki

ngs r

emai

ns a

ppro

pria

te.

13

Of t

he 1

38 a

pplic

atio

ns d

ealt

with

in 2

008–

2009

, ove

r 50

invo

lved

the

rene

wal

of c

able

lice

nces

. The

maj

ority

of t

hose

rene

wal

s req

uire

d re

view

ing

licen

sees

' per

form

ance

ove

r a 1

5-ye

ar p

erio

d so

as t

o re

flect

subs

tant

ive

chan

ges i

n re

gula

tory

fram

ewor

ks a

nd to

add

ress

non

-com

plia

nce

issu

es.

As a

ll re

new

als w

ere

com

plet

ed p

rior t

o th

e lic

ence

exp

iry d

ate

of A

ugus

t 31,

200

8, fa

ilure

to m

eet t

he 8

mon

th ta

rget

had

no

mat

eria

l im

pact

on

thos

e lic

ense

es.

14

Som

e el

emen

ts o

f the

Rep

ort o

n Pl

ans a

nd P

riorit

ies (

RPP

) 200

8-20

09 fo

r thi

s sec

tion

of p

riorit

y 4)

wer

e no

t com

plet

ed o

r im

plem

ente

d as

pla

nned

. Fo

r in

stan

ce, t

he R

PP st

ates

that

: “Th

e th

ird p

hase

of t

he p

roje

ct (N

ew M

edia

Pro

ject

Initi

ativ

e) w

ill c

onsi

st o

f pub

lic p

roce

edin

gs to

add

ress

opp

ortu

nitie

s and

is

sues

, and

det

erm

ine

the

appr

opria

te p

ublic

-pol

icy

resp

onse

.”

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

17

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

5. In

dust

ry c

onve

rgen

ce

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort C

anad

ian

econ

omic

and

cul

tura

l pro

sper

ity.

Exam

inat

ion

of c

onve

rged

en

viro

nmen

t

New

Expe

ctat

ions

Mos

tly15

Met

•

For t

he fi

rst t

ime

in h

isto

ry, t

he C

RTC

com

bine

d its

bro

adca

stin

g an

d te

leco

mm

unic

atio

ns

data

into

a C

omm

unic

atio

ns M

onito

ring

Rep

ort.

The

expa

nded

repo

rt in

clud

es m

ore

inte

rnat

iona

l com

paris

on a

nd d

ata

on th

e av

aila

bilit

y of

bro

adba

nd a

cros

s Can

ada.

•

The

Com

mis

sion

col

labo

rate

d w

ith o

ther

gov

ernm

ent d

epar

tmen

ts b

y ra

tiona

lizin

g re

porti

ng o

blig

atio

ns fo

r ind

ustry

. •

A tw

o-pa

rt re

sear

ch in

itiat

ive

was

und

erta

ken

to st

udy

conv

erge

nce

issu

es a

s the

y af

fect

ot

her c

ount

ries a

nd p

ublic

-pol

icy

resp

onse

s tha

t are

bei

ng d

evel

oped

. The

resu

lts w

ill b

e sh

ared

with

all

21 A

sia

Paci

fic E

cono

mic

Coo

pera

tion

(APE

C) m

embe

rs se

ekin

g in

form

atio

n on

con

verg

ence

at t

he n

ext A

PEC

Tel

ecom

mun

icat

ions

and

Info

rmat

ion

Wor

king

Gro

up m

eetin

g to

be

held

in M

exic

o in

Sep

tem

ber 2

009.

•

In 2

008–

2009

, the

CR

TC a

nd S

tatis

tics C

anad

a im

plem

ente

d an

agr

eem

ent t

o co

llabo

rate

on

dat

a co

llect

ion

from

tele

com

mun

icat

ions

serv

ice

prov

ider

s to

elim

inat

e ov

erla

p an

d us

e co

mm

on m

etho

dolo

gy.

By

achi

evin

g gr

eate

r eff

icie

ncy

and

accu

racy

of d

ata

colle

ctio

n an

d re

porti

ng, t

he C

RTC

pro

duce

s a

mor

e co

mpl

ete

over

all p

ictu

re o

f th

e co

mm

unic

atio

ns in

dust

ry.

Col

labo

ratio

n w

ith g

over

nmen

t de

partm

ents

(in

parti

cula

r, In

dust

ry C

anad

a an

d St

atis

tics

Can

ada)

resu

lted

in g

reat

er

effic

ienc

y an

d ac

cura

cy o

f dat

a co

llect

ion

and

repo

rting

, whi

le

crea

ting

a m

ore

effic

ient

en

viro

nmen

t for

the

regu

late

d se

ctor

s by

ratio

naliz

ing

thei

r re

porti

ng o

blig

atio

ns.

15

Som

e el

emen

ts o

f the

Rep

ort o

n Pl

ans a

nd P

riorit

ies (

RPP

) 200

8-20

09 fo

r thi

s sec

tion

of p

riorit

y 5)

wer

e no

t com

plet

ed o

r im

plem

ente

d as

pla

nned

. For

in

stan

ce, t

he R

PP st

ates

: “Th

e C

RTC

will

exa

min

e th

is c

onve

rged

env

ironm

ent t

o be

tter u

nder

stan

d its

impa

ct o

n cu

rren

t pol

icie

s and

regu

latio

ns.”

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

18

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

6. A

cqui

sitio

ns, o

wne

rshi

p tr

ansf

ers a

nd o

ther

tran

sact

ions

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort C

anad

ian

econ

omic

pro

sper

ity

a. R

evie

w

owne

rshi

p tra

nsac

tions

Ong

oing

Expe

ctat

ions

Met

•

The

CR

TC c

ompl

eted

revi

ews a

nd a

ppro

vals

of 4

4 ow

ners

hip

appl

icat

ions

from

lice

nsed

br

oadc

astin

g un

derta

king

s. Th

is n

umbe

r is l

ower

than

in 2

007–

2008

whe

n th

e C

RTC

co

mpl

eted

revi

ews a

nd a

ppro

vals

of 6

4 ow

ners

hip

appl

icat

ions

. The

dec

reas

e in

the

num

ber o

f app

licat

ions

dea

lt w

ith c

an b

e at

tribu

ted

to v

ario

us fa

ctor

s, su

ch a

s the

ec

onom

ic si

tuat

ion.

App

licat

ions

wer

e ev

alua

ted

usin

g a

serie

s of c

ritar

ia in

clud

ing

econ

omic

ben

efits

and

co

nsid

erat

ion

for t

he d

iver

sity

of

voic

es.

b. S

tream

line

colle

ctio

n an

d re

view

of

ann

ual

filin

gs

New

Ex

pect

atio

ns M

et

• Th

e C

RTC

com

plet

ed th

e fir

st o

f tw

o ph

ases

of i

mpl

emen

tatio

n of

the

repo

rting

pro

cess

de

scrib

ed in

Bro

adca

stin

g C

ircul

ar C

RTC

200

8-716

. Pha

se I

cons

iste

d of

the

impl

emen

tatio

n of

the

repo

rting

mec

hani

sm o

ver a

12-

mon

th p

erio

d w

ith se

lect

ed

corp

orat

e gr

oups

.

Stre

amlin

ing

the

owne

rshi

p-fil

ing

proc

ess p

rovi

des g

reat

er

flexi

bilit

y an

d ea

ses t

he

adm

inis

trativ

e bu

rden

on

broa

dcas

ters

and

the

CR

TC.

O

pera

tiona

l Pr

iori

ties

Typ

e St

atus

L

inka

ges t

o St

rate

gic

Out

com

e(s)

7. In

tern

atio

nal i

nitia

tives

St

rate

gic

Out

com

e 1

The

resu

lts a

chie

ved

tow

ard

this

pr

iorit

y su

ppor

t Can

adia

n ec

onom

ic a

nd c

ultu

ral p

rosp

erity

.

Inte

rnat

iona

l ac

tiviti

es

fram

ewor

k

New

Expe

ctat

ions

Met

Th

e C

RTC

con

duct

ed si

gnifi

cant

wor

k re

late

d to

inte

rnat

iona

l ini

tiativ

es. F

or e

xam

ple,

it:

• es

tabl

ishe

d a

fram

ewor

k fo

r its

inte

rnat

iona

l act

iviti

es, i

nclu

ding

a re

late

d In

tern

atio

nal

Out

reac

h Pl

an, w

hich

is n

ow b

eing

impl

emen

ted

• ho

sted

the

Can

adia

n C

hapt

er o

f the

Inte

rnat

iona

l Ins

titut

e of

Com

mun

icat

ions

’ (II

C’s

) an

nual

con

fere

nce

in D

ecem

ber 2

008

• w

ill h

ost t

he tw

o-da

y m

eetin

g of

the

Inte

rnat

iona

l Cha

pter

of t

he II

C R

egul

ator

s For

um in

O

ctob

er 2

009

in M

ontre

al, a

nd

• or

gani

zed

mee

tings

bet

wee

n se

nior

CR

TC o

ffici

als t

heir

inte

rnat

iona

l cou

nter

parts

.

Exch

ange

s with

oth

er

inte

rnat

iona

l org

aniz

atio

ns

prov

ides

CR

TC w

ith a

dditi

onal

to

ols t

o m

ake

info

rmed

ana

lyse

s an

d de

cisi

ons.

16

Impl

emen

tatio

n of

the

Broa

dcas

ting

Ow

ners

hip

Info

rmat

ion

Annu

al F

iling

, Inf

orm

atio

n B

ulle

tin, O

ttaw

a, 2

1 N

ovem

ber 2

008

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

19

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

8. A

cces

s by

Can

adia

ns to

rel

iabl

e, h

igh-

qual

ity te

leco

mm

unic

atio

ns se

rvic

es

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort s

ocia

l pro

sper

ity.

a. A

cces

sibi

lity

initi

ativ

es –

re

view

of

fram

ewor

k

Prev

ious

ly

com

mitt

ed

to

Exce

eded

17 E

xpec

tatio

ns

• Th

e re

view

of t

he a

cces

sibi

lity

of c

omm

unic

atio

ns se

rvic

es b

y pe

rson

s with

dis

abili

ties

fram

ewor

k w

as c

arrie

d ou

t und

er b

oth

the

Tele

com

mun

icat

ions

Act

and

the

Broa

dcas

ting

Act.

• In

200

8, th

e C

RTC

laun

ched

a fu

lly c

onve

rged

pub

lic p

roce

edin

g.

• Th

e re

sult

will

be

a co

nver

ged

regu

lato

ry p

olic

y, w

hich

will

be

issu

ed in

July

200

9.

The

outc

ome

of th

is p

roce

edin

g is

inte

nded

to se

t the

stag

e fo

r a

com

mun

icat

ions

syst

em th

at

resp

onds

to th

e ch

angi

ng n

eeds

of

Can

adia

ns a

nd th

e in

dust

ry.

b. N

atio

nal D

o N

ot C

all L

ist

Prev

ious

ly

com

mitt

ed

to

Exce

eded

18 E

xpec

tatio

ns

• Su

cces

sful

ly la

unch

ed th

e N

atio

nal D

o N

ot C

all L

ist (

DN

CL)

on

Sept

embe

r 30,

200

8.

• A

ppro

xim

atel

y 79

0,00

0 te

leco

mm

unic

atio

ns n

umbe

rs w

ere

regi

ster

ed o

n th

e fir

st d

ay o

f op

erat

ion

and

6.7

mill

ion

num

bers

wer

e re

gist

ered

as o

f the

end

of M

arch

200

9.

• C

anad

ians

(84%

) are

aw

are

of th

e D

NC

L an

d 80

% o

f reg

istra

nts r

ecei

ve fe

wer

/no

calls

.19

The

CR

TC la

unch

ed th

e D

NC

L to

pro

tect

Can

adia

ns a

gain

st

unw

ante

d te

lem

arke

ting

calls

, an

d to

hel

p en

sure

thei

r priv

acy.

c. T

hird

par

ty

to in

vest

igat

eco

mpl

aint

s

New

Ex

pect

atio

ns S

omew

hat20

Met

•

No

resp

onde

nts t

o th

e C

RTC

’s R

eque

st fo

r Pro

posa

l met

the

man

dato

ry re

quire

men

ts se

t out

in

the

requ

est f

or p

ropo

sal p

roce

ss. T

here

fore

, the

CR

TC h

as a

ssum

ed th

ese

resp

onsi

bilit

ies.

Com

plai

nts i

nves

tigat

ion

and

follo

w-u

p he

lps r

educ

e un

wan

ted

tele

mar

ketin

g ca

lls.

d. E

nfor

ce-

men

t and

in

vest

iga-

tion

of

com

pani

es

who

vio

late

D

NC

L ru

les

New

Ex

pect

atio

ns M

et

• Pr

oces

s est

ablis

hed

for e

nfor

cem

ent a

nd in

vest

igat

ion.

•

On

aver

age,

the

CR

TC re

ceiv

ed m

ore

than

1,00

0 co

mpl

aint

s per

day

from

the

Nat

iona

l DN

CL

oper

ator

bet

wee

n Se

ptem

ber 3

0, 2

008

and

Mar

ch 3

1, 2

009.

Whi

le th

is is

a si

gnifi

cant

num

ber

of c

ompl

aint

s, it

repr

esen

ts le

ss th

an 2

% o

f the

num

bers

regi

ster

ed o

n th

e lis

t.

• Th

e C

omm

issi

on is

sued

70

war

ning

lette

rs to

tele

mar

kete

rs a

s of M

arch

30,

200

9.

• In

34

case

s, te

lem

arke

ters

hav

e br

ough

t the

mse

lves

into

com

plia

nce

with

rule

s as a

resu

lt of

th

e es

tabl

ishe

d fa

cilit

atio

n pr

oces

s. C

RTC

em

ploy

ees w

orke

d w

ith th

e te

lem

arke

ters

to h

elp

them

und

erst

and

and/

or in

trodu

ce p

roce

dure

s tha

t wou

ld re

sult

in c

ompl

ianc

e.

The

CR

TC ta

kes a

ctio

n ag

ains

t ab

uses

or m

isus

e of

the

Nat

iona

l DN

CL

to p

rote

ct

Can

adia

ns.

17

Som

e el

emen

ts o

f the

Rep

ort o

n Pl

ans a

nd P

riorit

ies (

RPP

) 200

8-20

09 fo

r thi

s sec

tion

of p

riorit

y 8.

a) e

xcee

ded

plan

ned

impl

emen

tatio

n. F

or in

stan

ce, t

he

RPP

stat

es: “

In th

e co

min

g ye

ar, t

he C

RTC

inte

nds t

o re

view

its f

ram

ewor

k on

acc

ess t

o co

mm

unic

atio

ns se

rvic

es b

y pe

rson

s with

dis

abili

ties.”

The

revi

ew

orig

inal

ly p

lann

ed w

as a

imed

at p

rovi

ding

gre

ater

acc

essi

bilit

y to

tele

com

mun

icat

ions

serv

ices

for p

erso

ns w

ith d

isab

ilitie

s. 18

So

me

elem

ents

of t

he R

epor

t on

Plan

s and

Prio

ritie

s (R

PP) 2

008-

2009

for t

his s

ectio

n of

prio

rity

8.b)

exc

eede

d pl

anne

d im

plem

enta

tion.

For

inst

ance

, the

R

PP st

ates

: “Th

e lis

t sho

uld

be la

unch

ed b

y 30

Sep

tem

ber 2

008

(...)”

The

Nat

iona

l DN

CL

fore

cast

s of r

egis

trant

s wer

e ba

sed

parti

ally

on

the

Aus

tralia

n ex

perie

nce,

whe

re m

ore

than

2.3

mill

ion

num

bers

wer

e ad

ded

to th

e co

untry

’s D

o N

ot C

all R

egis

ter i

n its

firs

t yea

r of o

pera

tion.

19

Vo

xPop

– V

oice

of t

he p

eopl

e su

rvey

, Har

ris-D

ecim

a fo

r the

Mar

ketin

g R

esea

rch

and

Inte

llige

nce

Ass

ocia

tion

(MR

IA),

Mar

ch 2

009.

20

So

me

elem

ents

of t

he R

epor

t on

Plan

s and

Prio

ritie

s (R

PP) 2

008-

2009

for t

his s

ectio

n of

prio

rity

8.c)

wer

e no

t com

plet

ed o

r im

plem

ente

d as

pla

nned

. Fo

r in

stan

ce, t

he R

PP st

ates

: “In

Del

egat

ion

of th

e C

omm

issi

on’s

inve

stig

ativ

e po

wer

s with

rega

rd to

Uns

olic

ited

Tele

com

mun

icat

ions

Rul

es c

ompl

aint

s (T

elec

om D

ecis

ion

CR

TC 2

008-

6), t

he C

omm

issi

on d

eter

min

ed th

at it

wou

ld d

eleg

ate

the

inve

stig

atio

n of

com

plai

nts (

…) t

o an

out

side

party

.”

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

20

Ope

ratio

nal

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

9. Im

plem

enta

tion

of th

e Te

leco

mm

unic

atio

ns A

ct o

bjec

tives

thro

ugh

an in

crea

sed

relia

nce

on

mar

ket f

orce

s

Stra

tegi

c O

utco

me

1 Th

e re

sults

ach

ieve

d to

war

d th

is

prio

rity

supp

ort e

cono

mic

pr

ospe

rity

by a

llow

ing

mar

ket

forc

es to

pre

vail

to th

e gr

eate

st

exte

nt p

ossi

ble.

a.

Loc

al

forb

eara

nce

Ong

oing

Expe

ctat

ions

Met

•

The

CR

TC a

sses

sed

requ

ests

from

loca

l exc

hang

e ca

rrie

rs o

n a

prio

rity

basi

s. •

Dur

ing

2008

–200

9, th

e C

RTC

issu

ed 4

0 de

cisi

ons,

repr

esen

ting

191

exch

ange

s. •

As o

f the

end

of M

arch

200

9, th

e C

RTC

had

refr

aine

d fr

om re

gula

ting:

o

resi

dent

ial l

ocal

serv

ices

in 4

81 e

xcha

nges

serv

ed b

y th

e in

cum

bent

loca

l exc

hang

e ca

rrie

rs (I

LEC

s),21

repr

esen

ting

77%

of p

hone

line

s, an

d

o b

usin

ess l

ocal

exc

hang

e se

rvic

es in

145

exc

hang

es se

rved

by

ILEC

s, re

pres

entin

g 68

%

of p

hone

line

s. •

The

CR

TC c

ondu

cted

a p

roce

ss to

est

ablis

h a

fram

ewor

k fo

r for

bear

ance

in sm

all I

LEC

te

rrito

ries a

nd e

xpec

ts to

issu

e a

deci

sion

in Ju

ne 2

009.

Serv

ice

prov

ider

s ope

rate

und

er

few

er re

gula

tions

, whi

ch h

elps

the

indu

stry

func

tion

in a

com

petit

ive

envi

ronm

ent.

b. Im

plem

en-

tatio

n of

a

new

pol

icy

dire

ctiv

e

New

Ex

ceed

ed E

xpec

tatio

ns22

•

In 2

007,

the

CR

TC se

t out

a p

lan

to re

view

seve

n ec

onom

ic re

gula

tory

mea

sure

s in

the

2008

–200

9 fis

cal y

ear.

One

of t

hose

mea

sure

s was

revi

ewed

ahe

ad o

f sch

edul

e in

200

7 an

d si

x w

ere

revi

ewed

or d

ispo

sed

of in

200

8–20

09. I

n ad

ditio

n, tw

o m

easu

res s

ched

uled

for

2009

–201

0 w

ere

revi

ewed

a y

ear a

head

of s

ched

ule.

The

maj

ority

of t

hese

mea

sure

s wer

e m

odifi

ed, s

tream

lined

or e

limin

ated

, suc

h as

: o

tarif

f pro

cess

es

o s

harin

g gr

oups

23

o th

e in

tern

atio

nal l

icen

ce re

gim

e o

agr

eem

ents

bet

wee

n co

mpe

titiv

e lo

cal e

xcha

nge

carr

ier a

nd m

unic

ipal

ities

-911

serv

ice

o

the

pric

e-flo

or te

st, a

nd

o n

ine

repo

rting

requ

irem

ents

.

By

stre

amlin

ing

tele

com

mun

icat

ions

pro

cedu

res,

incl

udin

g ap

prov

al m

echa

nism

s fo

r ret

ail a

nd c

ompe

titiv

e lo

cal

exch

ange

car

rier t

ariff

s, th

e C

RTC

ha

s eas

ed th

e re

gula

tory

bur

den

for t

elec

omm

unic

atio

ns

entre

pris

es, a

nd c

ontri

bute

d to

a

mor

e pr

edic

tabl

e te

leco

mm

unic

atio

ns tr

ade

envi

ronm

ent i

n C

anad

a.

21

A

n ex

chan

ge is

the

basi

c un

it fo

r the

adm

inis

tratio

n an

d pr

ovis

ion

of te

leph

one

serv

ice

by a

n in

cum

bent

loca

l exc

hang

e ca

rrie

r. 22

So

me

elem

ents

of t

he R

epor

t on

Plan

s and

Prio

ritie

s (R

PP) 2

008-

2009

for t

his s

ectio

n of

prio

rity

9.b)

exc

eede

d pl

anne

d im

plem

enta

tion.

For

inst

ance

, the

R

PP st

ates

: “(…

) the

CR

TC c

reat

ed a

thre

e-ye

ar a

ctio

n pl

an th

at e

stab

lishe

d a

sche

dule

for t

he re

view

of v

ario

us re

gula

tory

mea

sure

s (…

) In

the

com

ing

year

the

CR

TC w

ill c

ontin

ue to

add

ress

regu

latio

ns id

entif

ied

in th

e ac

tion

plan

.” In

add

ition

to a

ll m

easu

res s

ched

uled

for 2

008-

2009

, tw

o pl

anne

d fo

r 200

9-20

10 w

ere

revi

ewed

in 2

008-

2009

. 23

A

shar

ing

grou

p de

scrib

es th

e us

e by

two

or m

ore

pers

ons,

in a

n ar

rang

emen

t not

invo

lvin

g re

sale

, of a

tele

com

mun

icat

ions

serv

ice

leas

ed fr

om a

com

pany

. Sh

arin

g gr

oup

rule

s allo

w sm

alle

r use

rs to

com

bine

thei

r usa

ge o

f a te

leco

mm

unic

atio

ns se

rvic

e in

ord

er to

obt

ain

an e

cono

mic

adv

anta

ge fr

om th

e sh

ared

us

e of

dis

coun

ted

serv

ices

that

are

oth

erw

ise

only

ava

ilabl

e to

larg

e cu

stom

ers.

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

21

• D

urin

g 20

08–2

009,

the

CR

TC re

view

ed fi

ve so

cial

and

oth

er n

on-e

cono

mic

regu

lato

ry

mea

sure

s. Th

e m

ajor

ity o

f the

se m

easu

res w

ere

mod

ified

, stre

amlin

ed o

r elim

inat

ed,

incl

udin

g: th

e re

tail

qual

ity-o

f-se

rvic

e re

gim

e (r

evie

wed

17

indi

cato

rs a

nd a

ssoc

iate

d pe

rfor

man

ce st

anda

rds)

and

17

info

rmat

ion

requ

irem

ents

. O

pera

tiona

l Pr

iori

ties

Typ

e St

atus

L

inka

ges t

o St

rate

gic

Out

com

e(s)

10. E

ffic

ient

and

eff

ectiv

e te

leco

mm

unic

atio

ns r

egul

atio

n

Stra

tegi

c ou

tcom

e 1

The

resu

lts a

chie

ved

unde

r thi

s pr

iorit

y su

ppor

t eco

nom

ic a

nd

soci

al p

rosp

erity

. a.

Indu

stry

se

lf-re

gula

tion

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Met

•

In A

ugus

t 200

8, th

e C

omm

issi

oner

for C

ompl

aint

s for

Tel

ecom

mun

icat

ions

Ser

vice

s Inc

. (C

CTS

) met

the

cond

ition

s of a

ppro

val s

et b

y th

e C

RTC

rega

rdin

g th

e or

gani

zatio

n’s

man

date

, stru

ctur

e an

d op

erat

ing

proc

edur

es.

• Th

e C

CTS

enf

orce

d m

anda

tory

mem

bers

hip

requ

irem

ents

for t

elec

omm

unic

atio

ns se

rvic

e pr

ovid

ers (

TSP)

(mem

ber T

SPs n

ow a

ccou

nt fo

r alm

ost 9

5% o

f ret

ail t

elec

omm

unic

atio

ns

reve

nues

). •

Publ

ic a

war

enes

s cam

paig

n to

be

revi

ewed

by

CC

TS b

oard

in se

cond

qua

rter 2

009.

•

Mor

e th

an 6

,000

cus

tom

ers c

onta

cted

the

CC

TS in

its f

irst c

ompl

ete

year

of o

pera

tion.

•

Mor

e th

an 2

,000

com

plai

nts w

ere

rece

ived

, 61%

of w

hich

wer

e su

cces

sful

ly re

solv

ed

follo

win

g th

e ag

ency

’s in

itial

invo

lvem

ent.

Can

adia

ns n

ow h

ave

clea

r re

cour

se fo

r lod

ging

com

plai

nts

abou

t non

-reg

ulat

ed

tele

com

mun

icat

ions

serv

ices

.

b. S

tream

lined

te

leco

m-

mun

icat

ions

pr

oced

ures

:

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Met

•

On

21 A

ugus

t 200

8, th

e C

RTC

ann

ounc

ed it

wou

ld e

nd it

s req

uire

men

t to

appr

ove

reta

il ta

riff f

iling

s tha

t met

cer

tain

crit

eria

, and

furth

er st

ream

lined

the

appr

oval

mec

hani

sm fo

r ot

her r

etai

l tar

iff fi

lings

. •

Stre

amlin

ed re

tail

and

who

lesa

le ta

riff-

appr

oval

mec

hani

sms w

ere

in p

lace

as o

f Oct

ober

6,

200

8.

• Fo

r the

per

iod

Apr

il 1,

200

8 to

Mar

ch 3

1, 2

009,

542

reta

il an

d w

hole

sale

app

licat

ions

w

ere

proc

esse

d. O

f the

se, 9

5% w

ere

disp

osed

of w

ithin

two

mon

ths a

nd 9

8% w

ere

disp

osed

of w

ithin

four

mon

ths.

•

94%

of T

ype

124 a

pplic

atio

ns u

nder

Par

t VII

of t

he C

RTC

Tel

ecom

mun

icat

ions

Rul

es o

f Pr

oced

ure

wer

e is

sued

with

in fo

ur m

onth

s of c

lose

of r

ecor

d (a

bove

90%

targ

et).

• 93

% o

f Typ

e 225

app

licat

ions

und

er P

art V

II w

ere

issu

ed w

ithin

eig

ht m

onth

s of c

lose

of

reco

rd (w

ell a

bove

85%

targ

et).

By

decr

easi

ng a

nd st

ream

linin

g ta

riff f

iling

s, th

e C

RTC

hel

ps

impr

ove

timel

ines

and

regu

lary

co

sts.

Mee

ting

serv

ice

stan

dard

s en

sure

s tim

elin

ess a

nd

pred

icta

bilit

y, w

hich

hel

ps

tele

com

mun

icat

ions

ent

repr

ises

w

ith th

eir b

usin

ess p

lann

ing,

and

re

mov

es b

urde

n fr

om in

dust

ry.

24

Ty

pe 1

app

licat

ions

gen

eral

ly d

o no

t inv

olve

mul

tiple

par

ties o

r rai

se si

gnifi

cant

pol

icy

issu

es.

25

Type

2 a

pplic

atio

ns in

volv

e m

ultip

le p

artie

s or r

aise

sign

ifica

nt p

olic

y is

sues

.

Can

adia

n Ra

dio-

tele

visi

on a

nd T

elec

omm

unic

atio

ns C

omm

issi

on

22

• Fo

ur p

ublic

tele

com

mun

icat

ions

pro

ceed

ings

wer

e he

ld c

ompa

red

to th

ree

in 2

007–

2008

.

Man

agem

ent

Prio

ritie

s T

ype

Stat

us

Lin

kage

s to

Stra

tegi

c O

utco

me(

s)

11. H

uman

Res

ourc

es In

itiat

ives

a.

Mod

erni

-zi

ng m

ana-

gem

ent o

f hu

man

re

sour

es

New

Expe

ctat

ions

Mos

tly26

Met

Th

roug

h its

Fut

ure

Dire

ctio

n st

rate

gic

plan

ning

, the

CR

TC se

t fiv

e H

R p

riorit

ies:

job

stan

dard

izat

ion,

con

tinui

ty p

lann

ing,

lead

ersh

ip d

evel

opm

ent,

CR

TC u

nive

rsity

and

job

rota

tion.

Th

e C

RTC

has

com

plet

ed th

e fir

st p

hase

of i

mpl

emen

tatio

n fo

r eac

h of

thes

e pr

iorit

ies,

with

the

exce

ptio

n of

the

last

one

. b.

Tra

inin

g an

d re

-ed

ucat

ion

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Mos

tly27

Met

Th

e C

RTC

off

ered

trai

ning

and

edu

ctio

n op

portu

nitie

s—su

ch a

s the

Orie

ntat

ion

Fair,

B

road

cast

ing

and

Tele

com

101

, wor

ksho

ps a

nd k

now

ledg

e tra

nsfe

r ses

sion

s by

retir

ing

empl

oyee

s—to

all

empl

oyee

s. c.

Rec

ruit-

men

t and

hi

ring

Prev

ious

ly

com

mitt

ed

to

Expe

ctat

ions

Som

ewha

t28 M

et

• C

RTC

recr

uite

d an

d hi

red

spec

ializ

ed p

erso

nnel

for s

peci

fic n

eeds

. •

Due

to it

s fin

anci

al si

tuat

ion,

the

CR

TC d

id n

ot re

-laun

ch it

s pos

t-sec

onda

ry re

crui

tmen

t ca

mpa

ign

in 2

008.

The

CR

TC re

lied

inst

ead

on e

xist

ing

stud

ent p

rogr

ams s

uch

as th

e Fe

dera

l St

uden

t Wor

k Ex

perie

nce

Prog

ram

. d.

Suc

cess

ion

plan

New

Expe

ctat

ions

Met

•

A c

ontin

uity

pla

nnin

g re

port

was

dev

elop

ed a

nd im

plem

enta

tion

is n

ow u

nder

way

. •

The

CR

TC la

unch

ed e

xecu

tive

colle

ctiv

e st

affin

g pr

oces

ses f

or c

urre

nt a

nd fu

ture

vac

anci

es.

Stra

tegi

c O

utco

mes

1

The

CR

TC is

com

mitt

ed to

m

aint

aini

ng a

nd p

rom

otin

g a

high

ly sk

illed

wor

kfor

ce th

at

can

adap

t to

cont

inou

sly

evol

ving

com

mun

icat

ion

indu

strie

s.

e. D

iver

sity

Pr

evio

usly

co

mm

itted

to

Expe

ctat

ions

Som

ewha

t29 M

et

• Th

e C

RTC

ach

ieve

d a

15%

recr

uitm

ent r

ate

for v

isib

le m

inio

ritie

s com

pare

d to

a ta

rget

of 3

0%.

• O

f 15

post

-sec

onda

ry g

radu

ates

recr

uite

d in

fall

2007

, 27%

wer

e vi

sibl

e m

inor

ities

.

26

So

me

elem

ents

of t

he R

epor

t on

Plan

s and

Prio

ritie

s (R

PP) 2

008-

2009

wer

e no

t com

plet

ed o

r im

plem

ente

d as

pla

nned

. Fo

r ins

tanc

e, th

e R

PP st

ates

: “…

the

CR

TC w

ill c

ontin

ue to

max

imiz

e th

e fle

xibi

lity

it ha

s und

er th

e ne

w le

gisl

atio

n to

attr

act,

recr

uit a

nd d

evel

op th

e ta

lent

and

exp

ertis

e it

need

s (…

)”

27

Som

e el

emen

ts o

f the

Rep

ort o

n Pl

ans a

nd P

riorit

ies (

RPP

) 200

8-20

09 w

ere

not c

ompl

eted

or i

mpl

emen

ted

as p

lann

ed.

For i

nsta

nce,

the

RPP

stat

es: “

(…)

the

Com

mis

sion

will

pro

vide

a v

arie

ty o

f tra

inin

g an

d re

-edu

catio

n op

portu

nitie

s.” T

he m

ain

fore

cast

ed a

ctiv

ity w

as th

e de

velo

pmen

t of a

trai

ning

pla

n fo

r em

ploy

ees a

nd m

anag

ers.

28

Som

e el

emen

ts o

f the

Rep

ort o

n Pl

ans a

nd P

riorit

ies (

RPP

) 200

8-20

09 w

ere

not c

ompl

eted

or i

mpl

emen

ted

as p

lann

ed.

For i

nsta

nce,

the

RPP

stat

es: “

The

Com

mis

sion

succ

essf

ully

com

plet

ed it

s firs

t pos

t-sec

onda

ry re

crui

tmen

t cam

paig

n in

200

7/20

08. (

…) T

he C

RTC

will

laun

ch a

noth

er c

ampa

ign

in

Sept

embe

r 200

8.”

29

Som

e el

emen

ts o

f the

Rep

ort o

n Pl

ans a

nd P

riorit

ies (

RPP

) 200

8-20

09 w

ere

not c

ompl

eted

or i

mpl

emen

ted

as p

lann

ed.

As s

uch,

it st

ates

: “(…

) the

CR

TC is

co

mm

itted

to e

nsur

ing

that

30%

of i

ts n

ew h

ires i

n 20

08/0

9 ar

e vi

sibl

e m

inor

ities

.”


1.6 Risk Analysis No risk analysis was presented in the 2008–2009 RPP. 1.7 Expenditure Profile

43.3

45.6

45.8

45.9

47.5

48

56.5

60.2

46.5

47.6

55.6

58.5

0 10 20 30 40 50 60 70

2005-06

2006-07

2007-08

2008-09

Fisc

al Y

ears

$ Millions

Actual SpendingTotal AuthoritiesPlanned Spending

Spending Trends

Voted and Statutory Items ($ millions)

Vote # or Statutory Item (S)

Canadian Radio-television and Telecommunications Commission

2006–2007Actual

Spending

2007–2008Actual

Spending

2008–2009 Main

Estimates

2008–2009Actual

Spending 45 Program expenditures 2.3 9.9 - 12.2

(S) Contributions to employee benefit plans 5.4 5.5 5.5 5.9

Total 7.7 15.4 5.5 18.1 Actual spending for 2007–2008 and 2008–2009 increased. During that period, the CRTC received temporary funding to address an increased workload related to its legislative and regulatory responsibilities. Total spending in these years also include authorized operating budget carry-forward amounts and applicable Treasury Board vote transfers. Details on the approved increases and related billing impact for broadcasting and telecommunication industries are notes in Broadcasting Circular 2007-9 and Telecom Circular CRTC 2007-18 dated December 21, 2007. More information about these decisions is available at: http://crtc.gc.ca/eng/archive/2007/c2007-9.htm. CRTC actual spending totalled $58.5 million in 2008-09 ($18.1 million related to voted and statutory items and $40.4 million for expenditures netted against revenue (i.e. vote-netted revenue – see section on Sources of Respendable and Non-respendable Revenue for additional information)).


SECTION II: ANALYSIS OF PROGRAM ACTIVITIES BY STRATEGIC OUTCOME(S)


2.1 Strategic Outcome 1: Broadcasting and telecommunications industries that contribute to Canada’s cultural, economic and social prosperity.

Program Activity by Strategic Outcome 2.1.1 Program Activity: Canadian Broadcasting30

Summary Table 2008–2009 Financial Resources ($ millions) 2008–2009 Human Resources (FTEs)

Planned Spending

Total Authorities

Actual Spending Planned Actual Difference

24.6 32.3 31.1 248 239 9

Expected Results

Indicators And Targets

Performance Status

Performance Summary

Realize the social and cultural policy objectives of the Broadcasting Act by ensuring the predominance of Canadian content and by providing Canadians with access to the broadcasting industry—as participants and audiences.

Expected Results Met The CRTC issued 355 policy and regulatory decisions, including decisions re-iterating the predominance of Canadian programming services. In addition, a policy process was initiated to establish a regulatory framework for the group-based licensing of conventional television.

Despite the current economic context, the broadcasting sector remains predominantly Canadian. Many measures were achieved or initiated during 2008–2009 to further the policy objectives of the Broadcasting Act or to support the industry in difficult economic times.

Study new media and how they contribute to the objectives of the Broadcasting Act.

None identified in CRTC 2008–2009 Report on Plans and Priorities

Expected Results Met The CRTC completed a public proceeding to address the opportunities and issues raised by broadcasting in new media, and to determine an appropriate policy response, in preparation for the Commission’s decision to be released in June 2009.

The proceeding examined the broadcasting in new media environment and explored whether the Commission’s regulatory position of exemption orders for new media broadcasting undertakings and mobile television broadcasting undertakings continues to be appropriate.

Benefits for Canadians Canadian broadcasting makes a significant contribution to the Canadian economy and to Canadians’ cultural identity. The CRTC ensures that Canadians have access to a diversity of quality Canadian programming. 30 The Canadian broadcasting program activity definition: The Broadcasting Act requires the Canadian Radio-television and Telecommunications Commission regulate and monitor broadcasters and broadcasting services, including radio, television, cable distribution and direct-to-home satellite systems, through the issuance of licences. This program is important to ensure the predominance of Canadian content and by providing Canadians with full access to the broadcasting system as participants in the industry and as audiences.


In 2008, total broadcasting revenues in Canada were $14 billion, an increase of 7% over that of the previous year. Of that total, 11% was derived from radio broadcasters, 39% from television and 50% from broadcasting distribution undertakings (BDU) broadcasting activities. The broadcasting industry employs more than 32,700 Canadians, provides a wide range of services that connect Canadian citizens and businesses, and contributes to their cultural, economic and social prosperity. In 2008, broadcasters contributed more than $2.5 billion towards the development, creation and exhibition of Canadian content and talent. The news and entertainment programming broadcast by hundreds of Canadian television services—and information and music distributed by hundreds of Canadian radio services—plays an essential role in nurturing and reflecting the cultural identity of Canada. Through its regulatory and monitoring activities, the CRTC ensures that all Canadians have access to an extensive range of Canadian and foreign programming services. The CRTC also ensures a predominance of Canadian services. Demonstration – some facts and statistics As of December 31, 2008, there were approximately 707 television services authorized to broadcast in Canada, a 3% increase from 2007. Of these, 24% were conventional television services, and 29% were Canadian speciality, pay-per-view and video-on-demand services. The remaining 47% were community-related services and non-Canadian satellite services authorized for distribution. Conventional television stations must devote at least 60% of the broadcast year and not less than 50% of the evening broadcast period (6 p.m. to midnight) to Canadian programs, and must broadcast at least eight hours per week of priority programming such as drama, documentaries, music and variety programs during prime time. English-language television ownership groups are also expected to ensure that at least 75% of the priority programming they broadcast is produced by independent production companies. For its part, TVA is expected to allocate minimum annual expenditures of $20 million for independently produced French-language programming. Approximately 90% of Canadian households subscribe to a broadcasting distribution undertaking service such as satellite or cable. Discretionary television channels are required to broadcast minimum amounts of Canadian programs and spend a minimum percentage of their revenues on the production of Canadian programs, depending on the nature or genre of the programming service. Performance Analysis Considering the economic context and the CRTC financial situation, the CRTC provided valuable results to Canadians, for both planned and unplanned activities, through its Canadian broadcasting program activity and managed to fully deliver on its mandate under the Broadcasting Act.


Planned Activities Results Regulatory Review Over the past fiscal year, among other cultural and economic measures, the CRTC has introduced many changes to its policy and regulatory approaches. For example, in April 2008, the Commission held a public hearing to review the regulatory framework for broadcasting distribution undertakings and discretionary services. Licences Awards, Amendments and Renewals In 2008–2009, the CRTC reviewed 502 applications for new services and licence amendments and renewals. It held 14 public hearings over 54 days and issued 97 notices announcing applications and calling for comments on various policy-related matters. These processes generated a total of 19,529 comments and interventions. Compared to 2007–2008, these numbers represent a 9% increase in the regulatory activities performed by the CRTC. Results Partially Met As explained in Section I, some of the CRTC’s expected results were partially met. This can be explained by three major reasons: 1. During the last half of the year, a significant reduction in advertising revenues put conventional broadcasters in difficult situations. As a result, the CRTC revised its traditional approach for the renewal of conventional television licences. The Commission announced a two-step public process that would narrow the scope of the April 2009 licence renewal hearings to consider short-term regulatory relief for conventional broadcasters. It also announced that it would hold a policy proceeding in the fall of 2009 to examine the modalities and conditions for licensing based on ownership groups, investigate alternative support mechanisms for local programming and establish the appropriate minimum levels of spending on Canadian programming by English-language television broadcasters. 2. When planning its activities for 2008–2009, the CRTC anticipated an increase in its budget based on fees collected from licensees. Because of the economic decline, however, the Commission decided not to pursue this approach. Thus, the Commission had to cut back on some activities. For example, it cancelled its plan for accelerated public hearing processes and associated service standards. 3. Four main unplanned activities took precedence over some planned activities and stretched the CRTC’s resources.


Important Results Linked to Unplanned Activities TQS ownership In the spring of 2008, TQS inc. was in technical bankruptcy. In June 2008, the CRTC held a public hearing and issued a decision approving the transfer of effective control of the television network and renewal of its broadcasting licences. This process took place in an extremely short timeframe under intense public pressure: the application was received only weeks before the hearing was to take place, the TV service was on the brink of ceasing operations, and the new owners threatened not to proceed with the acquisition if the CRTC did not eliminate its requirement that the service broadcast new programming. Ultimately, the CRTC was able to strike an acceptable balance. In light of TQS’s financial situation, the new owners were granted relief through a reduction in local news requirements to two hours per week in Montreal and Quebec City, on the condition that these obligations would be reviewed in the spring of 2011. Order in Council proceedings i) Order-in-Council on the availability of broadcasting services in official-language minority communities In Order in Council P.C. 2008-1293, the Governor-in-Council directed the CRTC to call for comments from the public, and report on three issues by March 31, 2009. The Commission was to: • examine the availability and quality of English- and French-language broadcasting services

in Canada’s anglophone and francophone minority communities • identify any deficiencies and challenges in the provision of official-language broadcasting

services in those communities, and • propose measures to encourage and facilitate access to the widest possible range of official-

language broadcasting services in official-language minority communities and ensure that the diversity of these communities is reflected in the Canadian broadcasting system as a whole.

In spite of an extremely heavy regulatory agenda, the CRTC was able to schedule a public hearing from January 13-16, 2009, examine and consider the written comments submitted prior to, and the oral presentations made at, the hearing, and submit its report on March 30, 2009. ii) Order in Council on the licensing of new radio services in Ottawa/Gatineau On August 26, 2008, in Broadcasting Decision CRTC 2008-222, the CRTC approved the applications by Astral Media Radio Inc. and by Frank Torres, on behalf of a corporation to be incorporated, for broadcasting licences to operate new English-language commercial FM radio stations to serve Ottawa and Gatineau. On November 20, 2008, by Orders-in-Council P.C. 2008-1769 and P.C. 2008-1770, the Governor-in-Council referred the decision back to the CRTC for reconsideration and hearing.


The Orders-in-Council expressed the opinion that it is material to the reconsideration and hearing that the Commission fully consider and explain its approach to evaluating the needs of official-language minority communities and how it applies in this case. The Commission held a public hearing beginning on March 31, 2009 to consider the applications. The completion of this process will follow in early 2009–2010. Single point of contact for small undertakings The establishment of a single point of contact for small broadcasting undertakings was launched in November 2008 to facilitate the licencee-application process. As of March 31, 2009, the Broadcasting Liaison team dealt with 375 requests for information. Lessons Learned In achieving its results during the 2008–2009 fiscal year, the CRTC learned a number of lessons, such as: • The importance of reviewing existing regulatory frameworks to ensure they are still

relevant and required. • Broadcasting is increasingly viewed as comprising of programming available on a

multiplicity of platforms. An adequate revenue base for the continued production of quality Canadian programming requires a systemic regulatory approach that takes into account the contributions of all platforms.

• Official-language minority communities must have appropriate access to television services.

• Public and community radio stations play important roles in official-language minority communities.

• Community reflection in the programming of the services available in the Canadian broadcasting system can be improved.

• There is a need for steady and reliable funding for the implementation and management of community radio stations.

• In the medium and long terms, new media are important components to ensuring access to a maximum number of services and to enable a better reflection of official-language minority communities within Canada’s broadcasting system

• While the CRTC continues to rely on measures that are targeted and minimally intrusive in regulating and monitoring the Canadian broadcasting system, the CRTC has to have the capacity to intervene swiftly and effectively to meet cultural, social and economic prosperity priorities as set in its mandate.

• Streamlining initiatives will continue to be a priority.


2.1.2 Program Activity: Canadian Telecommunications31

Summary Table 2008–09 Financial Resources ($ millions) 2008–09 Human Resources (FTEs)

Planned Spending

Total Authorities

Actual Spending Planned Actual Difference

21.3 27.9 27.4 212 227 15

Expected Results

Indicators and

Targets Performance

Status Performance

Summary Ensure that Canadians have access to affordable, reliable telephone and other high-quality telecommunications services through an increased reliance on market forces, and that regulation, where required, is effective and efficient.

None identified in CRTC 2008–2009 Report on Plans and Priorities

Expected results met Canadians can count on a telecommunications industry that is increasingly less burdened by regulatory measures, relies more than ever on market forces and continues to provide affordable, reliable and high-quality telecommunications services.

The following key accomplishments contributed toward the CRTC’s Canadian Telecommunications program activity expected results: • The National DNCL was launched and is operating,

and the Commission has introduced associated enforcement activities.

• Through 40 local forbearance decisions issued in 2008–2009, the CRTC refrained from regulating residential and business local services in a total of 191 exchanges.

• The CRTC reviewed eight economic regulatory measures—which exceeded the planned number of reviews in 2008–2009—and five non-economic and social measures, which meets the planned number of reviews in 2008–2009.

• The CCTS met conditions of approval in August 2008. • The CRTC streamlined procedures for dealing with

tariff applications. • The CRTC met service standards applications for Part

VII (CRTC Telecommunications Rules of Procedure).

Benefits for Canadians Total telecommunications revenues in Canada increased from $34.8 billion in 2007 to $36.8 billion in 2008, a 5.6% increase. The telecommunications industry employs 110,22832 Canadians and is a vital element of the Canadian economy. It provides a wide range of services that connect Canadian citizens and businesses.

31 The Canadian Telecommunications program activity definition: The Telecommunications Act requires that the Canadian Radio-television and Telecommunications Commission regulate and supervise the telecommunications industry by approving tariffs and fostering competition. The Commission’s regulation of the telecommunications industry is based on an increased reliance on market forces and, where required, effective and efficient regulation. As a result of the Commission’s regulation of the telecommunications industry, Canadians have access to reliable telephone and other high-quality telecommunications services at affordable prices. 32 This figure is calculated as the average of the total monthly numbers between April 2008 and March 2009 from

Statistics Canada. Table 281-0023 - Employment (SEPH), unadjusted for seasonal variation, by type of employee for selected industries classified using the North American Industry Classification System (NAICS), monthly (persons), CANSIM (database).


Through its regulatory and monitoring activities, the CRTC ensures that all Canadians enjoy reliable, affordable and high-quality telecommunications services, wherever they live. The CRTC must ensure that the marketplace is competitive and that it regulates only where market forces do not protect consumers. Examples of direct benefits to Canadians include: • Through the National DNCL, the CRTC helps protect Canadians’ privacy. • Through the establishment of the CCTS, Canadians now have recourse for complaints

about telecommunications services in non-regulated areas. • Through increased competition, consumers are offered greater choice and pricing flexibility

then ever before for telecommunications services. Canada compares favourably with other countries. Canada has the highest proportion of households with broadband connections among G7 countries. Prices for wireline and wireless service are in the middle average of those in other countries.33 Performance Analysis In 2008–2009, the CRTC delivered on its expected results and priorities for the Canadian telecommunications program activity and met its expectations as stated in the 2008–2009 RPP. The performance of this program activity is mainly shown in Section I. The following four activities are examples of key accomplishments for this program activity:

Streamlined telecommunications procedures Through its efforts to streamline telecommunications procedures, including approval mechanisms for retail and competitive local exchange carrier tariffs, the CRTC has contributed to a more efficient telecommunications trade environment in Canada. Streamlining procedures has helped ease the regulatory burden on telecommunications service providers. Because of recent changes by the CRTC, service providers operate under fewer regulations than ever before, and the CRTC’s decisions are issued in a timelier manner, which is better for industry. Among other measures, the CRTC has:

• streamlined the tariff-approval process • eliminated the retail quality-of-service rate-adjustment plan and streamlined reporting

requirements • reviewed the price-floor test • eliminated and modified certain monitoring and reporting requirements • helped to protect consumers through a strengthened framework for competition, and • reviewed its disconnection and deposit policies.

33 Detailed data on how Canada compares internationally can be found in the Communications Monitoring Report

2009 at http://www.crtc.gc.ca/eng/publications/reports/policymonitoring/2009/cmr.htm


Internet traffic management In April 2008, the Canadian Association of Internet Providers (CAIP) asked the CRTC to direct Bell Canada to stop “traffic shaping”34 its wholesale Asymmetric Digital Subscriber Line services and the wholesale service known as Gateway Access Service (GAS). Traffic shaping refers to slowing the transfer rates of all peer-to-peer file-sharing applications during peak periods. Bell Canada began shaping the Internet traffic of its own retail customers in October 2007 and that of its Internet service provider GAS customers in March 2008. On November 20, 2008, the Commission denied CAIP’s request, but launched a proceeding to review the existing and emerging Internet traffic-management practices that were beyond the scope of the initial proceeding. CAIP has since appealed the CRTC’s decision. New regulatory frameworks for small local telephone companies The CRTC established a regulatory framework for the implementation of wireless number portability in the territories of the small local telephone companies at the end of 2008. It also launched a process to determine a framework for refraining from regulating local exchange service in those same territories. Wireless 911 services Over the past year the Commission made important progress in protecting Canadians by making changes to 911 emergency services for wireless customers. At times, emergency responders have difficulty locating people calling 911 from wireless devices, so the CRTC asked wireless service providers to find a technical solution. As a result, the industry developed requirements for a solution that will use specialized technology, such as global positioning systems, to improve public safety. The CRTC has directed providers to upgrade their 911 emergency services by February 1, 2010. Lessons Learned In achieving its results during the 2008–2009 fiscal year, the CRTC learned a number of lessons, such as: • The importance of reviewing existing regulatory frameworks to ensure they are still

relevant and required. • The CRTC gained experience in delivering a new consumer-protection program: the

National DNCL. • The importance of streamlining initiatives to ensure that regulation, where required, is

efficient and effective, and • The need to take advantage of emerging technologies to better serve the

telecommunications industry and the Canadian public. 34 In its application CAIP also referred to activities by Bell Canada to "shape," "throttle," and "choke" Internet

traffic. The term "traffic shaping" covers all of these expressions.


SECTION III: SUPPLEMENTARY INFORMATION


3.1 Financial Highlights ($ millions) Condensed Statement of Financial Position At End of Year (March 31, 2009) % Change 2009 2008

ASSETS Total Assets 37% 4.1 3.0 TOTAL 37% 4.1 3.0

LIABILITIES Total Liabilities 2% 17.5 17.1 EQUITY Total Equity -5% (13.4) (14.1)

TOTAL 37% 4.1 3.0 ($ millions) Condensed Statement of Financial Position At End of Year (March 31, 2009) % Change 2009 2008

EXPENSES Total Expenses 9% 75.4 68.9 REVENUES Total Revenues 2% 55.9 54.9

NET COST OF OPERATIONS 39% 19.5 14.0 3.2 Financial Statements A complete copy of the Financial Statements is available at http://www.crtc.gc.ca/eng/publications1.htm 3.3 List of Supplementary Information Tables The table Sources of Respendable and Non-respendable Revenue is available on the website of the Treasury Board of Canada Secretariat at the following address: www.tbs-sct.gc.ca/estsd-bddc/index-eng.asp The table CRTC User Fees / External Fees is available on the website of the Treasury Board of Canada Secretariat at the following address: www.tbs-sct.gc.ca/estsd-bddc/index-eng.asp 3.4 Other Items of Interest A complete list of CRTC Commissioners 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/glossary-glossaire.htm

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