CRTC opens Canada’s North to local telephone competition

OTTAWA-GATINEAU, December 14, 2011. The Canadian Radio-television and Telecommunications Commission (CRTC) announced that it is opening Canada’s North to local telephone competition. Residents in many parts of the Yukon, Northwest Territories and Nunavut will have the option to choose from competing telephone service providers as of May 1, 2012.

“For the first time, many northern residents will be able to choose an alternate local telephone service provider,” said Leonard Katz, the CRTC’s Vice-Chairman of Telecommunications. “Competition will be introduced as soon as possible to bring choice and innovative options to Canada’s North.”

In its ruling, the CRTC has also denied Northwestel’s request to raise by $2 the rates for residential and business local telephone service. Such an increase is not justified at this time and is inconsistent with the current regulatory regime. Moreover, the CRTC found that Northwestel has insufficiently invested in its network despite its strong financial performance during the past few years, and is concerned that the company’s aging infrastructure is affecting the quality and reliability of its service.

Northwestel must provide, within the next six months, a plan detailing how it will modernize its network. This will form the basis of the CRTC’s comprehensive review of Northwestel’s infrastructure and services over the next two years.

“We are disappointed that Northwestel, which has until now been the sole provider of local telephone service in the North, has not made a greater effort to improve its services,” Mr. Katz added. “Many communities have been plagued by service outages and certain features are not widely available to customers. Northern residents deserve to have access to reliable and high-quality services comparable to those offered in the rest of the country.”

During the next two years, the CRTC will closely monitor the situation in the North as local competition is implemented.

Today’s decision follows a proceeding that included a public hearing that was held in Yellowknife, N.W.T., on October 4 and 5, 2011. 

Telecom Regulatory Policy CRTC 2011-771

Telecom Notice of Consultation CRTC 2011-302

Telecom Regulatory Policy CRTC 2011-771

The CRTC

The CRTC is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

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The CRTC takes radio stations to task for their inappropriate use of musical montages

OTTAWA-GATINEAU, November 24, 2011-The Canadian Radio-television and Telecommunications Commission (CRTC) announced that it is restricting the use of musical montages by two Francophone commercial radio stations. A condition of licence has been imposed on Astral’s station CKTF-FM and Cogeco’s station CKOI-FM limiting their broadcasting of montages to no more than 10% of total programming per week.

A musical montage is a compilation of excerpts from a number of songs played without interruption. Although it may contain excerpts from several songs, a montage is considered a single piece of music for purposes of calculating the levels of Canadian content and French-language vocal music (FVM). Used properly, montages allow audiences to sample selections that would not otherwise be broadcast, or to discover new artists.

CKTF-FM and CKOI-FM were broadcasting up to 18% of long montages composed almost exclusively of popular English-language and non-Canadian music. Given that CKTF-FM’s licence was also up for renewal, the Commission imposed a four-year renewal period on the licensee.

The CRTC also imposed a shorter renewal period of five years on RNC Media’s station CFTX-FM because of its failure to comply with the regulations on the required levels of FVM.

 In an information bulletin published today, the CRTC consolidated its goals and its expectations with regard to the use of montages and specified what would constitute an inappropriate use of montages. It also announced that it may impose conditions of licence similar to those imposed on CKTF-FM and CKOI-FM to all broadcasters who allot more than 10% of their programming to montages in their broadcast week.

“There is a widespread trend on the part of some French-language broadcasters to use montages inappropriately,” commented Tom Pentefountas, the CRTC’s Vice Chairman of Broadcasting. “Some licensees appear to be using montages to circumvent the requirements for French-language vocal music. We are finding that for some Francophone commercial stations, the current quotas represent a particular challenge given their target audience and the market they serve.”

In view of this situation, the CRTC will gather data on the French-language private radio industry and on the Francophone music industry in order to more fully understand the problem.

 The CRTC will hold a symposium in the winter of 2012 to discuss with key stakeholders the results of this data gathering, the evolution of the market for French-language music, and the role of radio in the broadcast and promotion of FVM. The CRTC will reconsider its regulatory requirements with respect to FVM and montages when it undertakes a more comprehensive review of policies affecting the Francophone commercial radio sector. This review should be initiated in 2012.

Broadcasting Decision 2011-725

Broadcasting Decision 2011-726

Broadcasting Decision 2011-727

Information Bulletin 2011-728

The CRTC

The CRTC is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

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CRTC supports choice of Internet services

OTTAWA-GATINEAU, November 16, 2011 — The Canadian Radio-television and Telecommunications Commission (CRTC) introduced a new way for large telephone and cable companies to charge independent Internet service providers (ISPs) for the use of their networks. This wholesale billing model, which is based on capacity, will give independent ISPs added flexibility in offering competitive and innovative services to Canadians.

The CRTC does not regulate rates or set bandwidth caps for retail Internet customers. To encourage greater competition, the CRTC requires that large telephone and cable companies sell access to their networks to independent ISPs, under specific terms and conditions. Canadians can then choose between multiple ISPs.

Under the CRTC’s new capacity-based approach, large telephone and cable companies will sell wholesale bandwidth to independent ISPs on a monthly basis. Independent ISPs will have to determine in advance the amount they need to serve their retail customers and then manage network capacity until they are able to purchase more. Alternatively, large companies can continue to charge independent ISPs a flat monthly fee for wholesale access, regardless of how much bandwidth their customers use. Both billing options give independent ISPs the ability to design service plans and charge their own customers as they see fit.

“Our aim is to foster a marketplace in which Canadians have as many options as possible for their Internet services,” said Konrad von Finckenstein, Q.C., Chairman of the CRTC. “Independent ISPs provide an alternative to the large telephone and cable companies, but must rely on these same companies for certain elements of their network. Under the capacity-based model announced today, they will have to forecast their usage and plan accordingly.”

The same requirements will now apply to all large telephone and cable companies, ensuring that independent ISPs can choose between different wholesale providers under similar terms.

The rates approved by the CRTC will allow the large companies to recover their costs and provide them with incentives to continue investing in their networks to meet future increases in Internet traffic.

In addition, the CRTC approved a flat-rate only model for wholesale business services.

Telecom Regulatory Policy CRTC 2011-703

Telecom Regulatory Policy CRTC 2011-704

The CRTC

The CRTC is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.

CRTC approves new disconnection and deposit code for home telephone services

OTTAWA-GATINEAU, November 14, 2011 —The Canadian Radio-television and Telecommunications Commission (CRTC) approved a new disconnection and deposit code for home telephone services where prices are not regulated. The code will apply to both large telephone companies and their competitors starting on May 14, 2012.

Earlier this year, the CRTC asked representatives from the telecommunications industry and consumer groups to develop a streamlined code. As a result of this collaboration, the new code sets out clear obligations regarding:

• the grounds for disconnection if a subscriber fails to pay his or her bill
• the notice that phone companies must provide before disconnecting a telephone line
• the hours and days during which companies may disconnect service
• restoration of service when a telephone line is disconnected in error
• provisions to avoid disconnection during disputes over billing, and
• the maximum of any deposit a company may request and the interest it must pay on the deposit.

“Too often in the past, Canadians have encountered different policies from companies where their home telephone service is disconnected or they must provide a deposit,” said Leonard Katz, the CRTC’s Vice-Chairman of Telecommunications. “We appreciate the industry’s cooperation and support in developing a streamlined code. We believe that self-regulatory initiatives such as this are the preferred option for consumers and the industry.”

The code will be enforced by the telecommunications industry’s ombudsman, the Commissioner for Complaints for Telecommunications Services (CCTS). Established in 2007, the CCTS has well-established processes to handle consumer complaints about telecommunications services in an independent and fair manner.

In the few markets that are still regulated by the CRTC, where consumers do not have access to competitive alternatives, the traditional telephone company will continue to adhere to its existing disconnection and deposit policies. These policies are enforced by the CRTC.

Telecom Decision CRTC 2011-702

 The CRTC is an independent public authority that regulates and supervises broadcasting and telecommunications in Canada.