Mr. Larry Shaw
Director General
Telecommunications Policy Branch
Industry Canada
300 Slater Street
Ottawa, ON
K1A 0C8

Dear Mr. Shaw:

Re: Canada Gazette, Part I, DGTP-007-04, October 21st, 2004: Proposed Clarification of the Government Satellite-use Policy for the Delivery of Broadcasting Services

Friends of Canadian Broadcasting opposes adoption of the proposed “clarification” on the following grounds:

1. From a procedural fairness point of view, it is inappropriate for the Department to make a substantive change to its satellite-use policy during the period of a CRTC licensing process. Had the proposed changes been adopted, or even announced, before July 8th, 2004, all parties would have had an equitable opportunity to consider them without prejudice to the fairness of the CRTC’s pay radio proceeding. Since the Department did not bring forth its proposal in the nine months following receipt of the CRTC’s October 2003 request and prior to the beginning of CRTC’s process, this proposal should be held in abeyance until the conclusion of the CRTC’s process.

2. The proposed change in satellite-use policy is not a “clarification”, but rather a proposed substantive and fundamental change, which deserves full scrutiny in view of its impact on the future of Canadian broadcasting policy. The substantive nature of the proposed change is documented hereunder.

3. Adoption of the proposed policy would permit the importation into Canada of broadcasting services, the vast majority of which have been developed by foreign programmers, designed for a foreign audience and emanating from a foreign country. This development is entirely inconsistent with Canadian broadcasting policy as expressed in the Broadcasting Act that “each broadcasting undertaking shall make maximum use, and in no case less than predominant use, of Canadian creative and other resources.” [Section 3 (1) (f)].

4. The circumstance which has led to this proposal is not “exceptional”. Satellite technology is not the only means of delivering pay radio services to Canadians. Canadian satellite capacity may be available as early as five years hence, according to evidence presented before the CRTC last month.

5. Government would be prudent to apply strict standards to any claim for “exceptional” treatment. The case that has given rise to this proposal does not meet credible standards.

6. Any argument based upon anxiety regarding grey market penetration places the onus on its proposers to outline in some detail the nature of that threat. In view of the apparent slow take-up of this technology in the United States, and the unlikelihood of Canadian automobile vendors engaging in illegal activity, such a threat appears to be over-stated, and advanced for self-serving reasons.

In view of these arguments, Friends calls on the Department to make no changes to Canada’s satellite-use policy at this time, or at least to defer consideration of any proposed changes pending a full and open review process which would take place following the outcome of the CRTC’s pay radio hearings.

Yours sincerely,
 
Ian Morrison
Spokesperson

cc:  René Bouchard, Director General of Broadcasting Policy and Innovation, Canadian Heritage

Related Documents

January 28, 2005 - Canadian Communication Reports: Nothing unusual about Industry Canada notice on foreign satellites: Shea
CEO of CBC/Standard/Sirius joint venture challenges FRIENDS' assessment of Cancon commitments by satellite radio applicants, optimistic that all three applicants will be licensed.

November 3, 2004 - Policy Brief: Presentation to CRTC re Pay Radio [PN CRTC 2004–6]
The CRTC should not licence the United States-based satellite radio service applicants, or if it does, should impose substantial conditions of licence to address the harm they will inflict on the Canadian market.

September 15, 2004 - Policy Brief: Submission to CRTC re satellite-based radio service applications [PN CRTC 2004-6]
FRIENDS opposes two satellite-based radio applications which in our view pose a threat to the integrity of Canadian broadcasting policy by coming nowhere near established Canadian content exhibition requirements.