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This Is Not Your Parents' CRTC

Posted: 10/18/2012 2:50 pm

Earlier today, the CRTC rejected Bell's proposed acquisition of Astral. The quick, unanimous decision - the hearings wrapped up just over a month ago - leaves no doubt about CRTC chair Jean Pierre Blais' top priority. Simply put, the public (whether as the public interest or as consumers) comes first. This is not a decision many expected. I wrote several pieces on the merger, but thought that the Competition Bureau was a far more difficult regulatory hurdle for the deal.

The CRTC identified multiple problems with the Bell bid (radio, tangible benefits, lack of evidence that bigger is better online), but the conclusion says it all:

The Commission finds that BCE has not discharged its burden and demonstrated that, on balance, this transaction is in the public interest. The benefits proposed would advantage BCE and its services, but the Commission is not persuaded that the transaction would provide significant and unequivocal benefits to the Canadian broadcasting system and to Canadians sufficient to outweigh the concerns described above.

While demonstrating that the transaction is in the public interest is always the language used in these proceedings, the CRTC has in the past focused on the tangible benefits package (ie. the multi-million dollar payments to creator groups) as the primary proxy for public interest. No longer. The CRTC's focus today is unequivocally on the broader public interest with consumer impact the leading concern.

This approach has been building for several months. From the appointment of a consumer chief to Blais raising consumer interventions directly during the Bell-Astral hearing to the creation of a new enforceable wireless code of conduct, the CRTC is leaving no doubt about the prioritization of consumers. Its three year priorities document placed consumer access as the top priority, dropping the prior emphasis on balance. Moreover, the decision to kill LPIF over the objections of creator groups sent another signal that the CRTC was focused intently on consumers and the public interest.

In four months, Blais has transformed the CRTC into a pro-consumer advocate, creating the kind of regulatory agency that until recently was scarcely imaginable. The change is long overdue and credit must go to the new chair and to the government, which has presumably provided the mandate for real change in Canadian telecom and broadcast regulation.

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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>

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  • 10. Open Text Corp.

    Brand value: $624 million Photo: Tom Jenkins, CEO of Open Text Corporation (The Canadian Press) Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 9. Cogeco

    Brand value: $790 million Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 8. Bell Aliant

    Brand value: $1.015 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 7. CGI Group

    Brand value: $1.301 billion Photo: CGI Group founder and chairman Serge Godin, left, and chief executive Michael Roach (The Canadian Press) Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 6. Quebecor

    Brand value: $1.753 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 5. Telus

    Brand value: $3.019 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 4. Shaw

    Brand value: $3.191 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 3. BlackBerry (RIM)

    Brand value: $3.293 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 2. Rogers

    Brand value: $4.087 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

  • 1. Bell

    Brand value: $5.258 billion Source: <a href="http://www.brandfinance.com/offices/canada" target="_hplink">Brand Finance Canada</a>

 

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05:37 AM on 10/19/2012
A good decision all around. And a good person to head up the CRTC. Of course now that Bell is whining to the federal government the first thing Harper will do is veto this decision and have Blais fired.
08:49 PM on 10/18/2012
Killing LPIF was a big blow to small stations...my local station, CHEK, is not owned by a big conglomerate and that decision by the CRTC is making life very difficult for them. So, although I'm happy that they denied Bell the opportunity to simply get bigger and over-bloated, I don't agree with their decision on the LPIF.
08:48 AM on 10/19/2012
If only it worked that way.

During the phony war between the cable and media plutocrats our TV station discontinued all local programing except 6:00 p.m. and 11:00 p.m. newscasts. The dispute ended when the cable billionaires bought up many local TV stations and the CRTC brought in the LPIF, to be paid from the cartel's humongous profits. Instead it became and additional charge on consumer bills. The CRTC huffed and puffed and did nothing.

Bell wound up owing our local TV station. Notwithstanding promises made to the CRTC, none of the local programming was been restored.
12:43 PM on 10/19/2012
As far as I'm concerned, local programming is everything!  Otherwise, a small station is simply a "satellite" for the big networks and ends up employing fewer people!
05:53 PM on 10/18/2012
At last someone behind the hard working Middle Class. Now let's play Hardball with Cell Phone Providers and their rip off pricing. More competition , perhaps Brazil would be interested when they have re-organized our meat packing industry ( that is a sad story). Capt. KEN
05:35 PM on 10/18/2012
there is hope.