MONTREAL - Bell (TSX:BCE) is asking the federal cabinet to direct the CRTC to follow its own policies after the regulatory body nixed its $3.4-billion takeover of Astral Media, but the government says it has no plans to intervene.

Bell said Monday it has asked cabinet to issue a "policy direction'' under Section 7 of the Broadcasting Act, which requires the CRTC to follow its already in-place policies when reviewing change of control transactions in broadcasting.

However, a spokesman for Heritage Minister James Moore said late Monday the government has no jurisdiction to intervene in the decision of the independent body.

"The CRTC held public hearings and has rendered its decision on this matter," press secretary Sebastien Gariepy said in an email.

"CRTC decisions are made independent of the Government of Canada. Cabinet has no legal ability to overturn this decision."

The Canadian Radio-television and Telecommunications Commission turned down the friendly takeover of Astral last week, saying it wasn't in the best interests of Canadians.

CRTC commissioner Jean-Pierre Blais said had the regulator allowed the deal, BCE would have controlled almost 45 per cent of the English TV viewership and almost 35 per cent of the French.

But Bell disagrees, saying Bell and Astral combined would have an English-language TV market share of 33.5 per cent and the combined companies would have a 24.4 per cent stake in the French-language TV market, both within the rules.

The discrepancy arises because Bell included U.S. competitors in the calculations, while the CRTC did not.

As well, it would have become the largest radio station operator in Canada and control over half of TV pay and specialty services.

The telecom giant also says the CRTC overestimated Bell's share of the English-speaking market because it did not include U.S. content viewed by Canadians.

Bell says the CRTC has ignored its own rules, creating new criteria not included in any of its existing policies and never used before, without giving Bell any opportunity to comment.

"In rejecting the Astral transaction, the CRTC rejected its own established policies, creating serious regulatory uncertainty in Canada's vital broadcasting sector," Mirko Bibic, Bell’s chief legal and regulatory officer said in a statement.

"We're requesting that cabinet provide the required guidance to the CRTC to follow its own rules in place, with which the Astral-Bell transaction fully complied."

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  • Canada's 7 Media Giants

  • Postmedia - $1.1 Billion

    Postmedia was born in 2010, when the bankrupt Canwest media chain was broken up. A consortium led by then-National Post CEO Paul Godfrey bought Canwest's newspaper assets, including the National Post, Ottawa Citizen and Calgary Herald, as well as both English-language dailies in Vancouver.<br> <br> Pictured: Postmedia CEO Paul Godfrey<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>

  • Torstar - $1.48 Billion

    Torstar's flagship property is the Toronto Star, Canada's largest newspaper. It also owns the Metroland chain of weeklies and the internationally popular Harlequin, publisher of pulp romances.<br> <br> Pictured: The Toronto Star building in downtown Toronto.<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>

  • Shaw - $4.74 Billion

    Western Canadian cable TV giant Shaw entered the media big leagues with the 2010 purchase of Canwest's broadcasting assets, including the Global TV network. The company was founded by Jim Shaw and is still controlled by his family.<br> <br> Pictured: CEO Brad Shaw<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em><br> <br> <em>CORRECTION: An earlier version of this slide stated that Shaw had purchased Canwest's newspaper assets. It only purchased the broadcasting assets. The company had backed out of an earlier attempt to buy three CTV stations.</em>

  • Quebecor - $9.8 Billion

    Founded by Pierre Peladeau and run by his son, Pierre-Karl Peladeau, Quebecor owns the Sun Media and Osprey newspaper chains, as well as cable provider Videotron, Quebec TV network TVA, and a number of publishing houses.<br> <br> Pictured: Pierre-Karl Peladeau<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>

  • Rogers - $12.1 Billion

    Founded by Ted Rogers, Rogers Communications is a major player in cable TV and wireless services. The company controls Rogers Media, which operates 70 publications, 54 radio stations and a number of TV properties including CityTV and the Shopping Channel.<br> <br> Pictured: CEO Nadir Mohamed<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>

  • Woodbridge (Thomson Reuters) - $13.8B

    Woodbridge is the holding company owned by the billionaire Thomson family. It controls 55 per cent of Thomson Reuters, one of the world's largest news services organizations. Woodbridge's revenue is not reported, but Thomson Reuters reported revenue of $13.8 billion in 2011.<br> <br> Pictured: The late Kenneth Thomson, company chairman, in Toronto in 2003.<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>

  • Bell Canada (BCE) - $18.1 Billion

    BCE is one of Canada's largest corporations, and owns telephone, Internet and TV infrastructure. Its subsidary Bell Media purchased the CHUM group of radio stations in 2006, and Astral Media in 2012. The company also controls CTV, making it a dominant media player in Canada.<br> <br> <em>*Number denotes latest available revenue figure, for parent company</em>


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  • 8. Russia - 0%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 7. Germany - 7.1%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 6. United States - 23.1%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 5. France - 27%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 4. United Kingdom - 31%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 3. Italy - 33%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 2. Japan - 37.5%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>

  • 1. Canada - 81.4%

    Percentage represents value of TV distribution market (cable companies, satellite dish companies) controlled by companies that also create TV content (broadcasters, production companies). Source: <a href="http://www.analysisgroup.com/" target="_hplink">Analysis Group, Inc.</a>


Request for a Policy Direction Pursuant to Section 7 of the Broadcasting Act (Final)