DIVERSITY OF VOICES AND CHOICES IN THE INFORMATION SOCIETY:
SHARED OBJECTIVES AND CHALLENGES

Notes for an address

by Laura Talbot-Allan
Secretary General & Chief Operating Officer
Canadian Radio-television and
Telecommunications Commission

to the International Symposium of the
Carl Bertelsmann Prize 1998

Gütersloh, Germany
September 9, 1998

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On behalf of Madame Bertrand, I would like to thank you for the invitation to this forum and for the opportunity to share with you some of the Commission's recent experiences.

We are very honoured to have been nominated for the Bertelsmann prize.

The diversity of the nominees and the varied nature of their involvement with electronic communications is a testament to the exciting and fundamental changes in the way we interact and do business. Like others, we at the Commission are confronted daily with the need to re-examine our traditional regulatory approaches. We must continue to adapt our approaches in order to realize the broadcasting and telecommunications policy objectives of our legislative mandate.

But while much is changing, constants are also a part of our lives. The means of reaching our national goals may change as a result of the new information age technologies, but the goals of maintaining a healthy economy, a high standard of living, a civil society, strong democratic institutions, and a rich cultural heritage remain the same.

Our national telecommunications goals were perhaps best stated in the Throne Speech of last September: "We will make the information and knowledge infrastructure accessible to all Canadians by the year 2000, thereby making Canada the most connected nation in the world. This will provide individuals, schools, libraries, small and large businesses, rural and Aboriginal communities, public institutions, and all levels of government with new opportunities for learning, interacting, transacting business and developing their social and economic potential." The idea of making Canada the most wired nation on earth is not just a social or cultural objective but an important economic one. In short, it facilitates new solutions for business.

Today, the knowledge-based economy is driving economic growth, not only in Canada but worldwide. Future growth and prosperity for all Canadians depends to a great extent on our ability to do two things: compete and participate in the knowledge-based industries on a world scale and use these new technologies to improve the economics of most other businesses across the country.

I would like to highlight the Commission’s recent experience in dealing with the regulatory challenges that we all face in an increasingly globalized and competitive world. In particular, I would like to focus on our activities that I believe demonstrate an adaptive regulatory response to greater competition and technology advancements — both domestically and internationally — as well to the evolving convergence between the broadcasting and telecommunications industries.

The Commission is a quasi-judicial regulatory body. The Commission operates at arm’s length from the government of the day. For example, the Cabinet of the governing party must agree on any directives that the government gives to the Commission.

In Canada, broadcasting and telecommunications sectors are subject only to federal regulation. As a single level of jurisdiction, the Commission has broad powers and operates with a considerable degree of autonomy. Under this single jurisdictional umbrella, the Commission implements both the Broadcasting Act and the Telecommunications Act. This overarching jurisdiction makes possible a cohesive regulatory framework in an era of convergence.

Our Broadcasting and Telecommunications Acts each set out a number of policy objectives. Notably, these Acts require the Commission to develop policy that will enrich and strengthen Canada’s social and economic fabric. The Broadcasting Act also requires that the Canadian broadcasting system enrich and strengthen Canada culturally. The development of Canadian expression and Canadian voices is a centrepiece of that Act.

Our Canadian experience, shaped largely by geography is unique. Canada is a nation characterized by vast spaces and a widely dispersed population. Because of this, communications has always played a central role in our history, economy and culture. Our proximity to the United States means that, even before the evolution to new communications technologies, we were living in a borderless world. And Canadian talent and companies are flourishing at home and abroad. We believe we in Canada have a unique perspective on the technological and cultural challenges many countries face today.

We are proud that in this environment we have helped create a broadcasting system of diverse and high quality Canadian and non-Canadian programming. With a very high level of cable penetration, most Canadians have access to an incredible variety of Canadian and foreign services. We have the most open market in the world as measured by the amount of non-domestic programming available to Canadians. In addition to the conventional U.S. commercial and public television stations in the basic cable package, the Eligible Satellite Services List includes 38 foreign signals that can be distributed in packages with Canadian discretionary services.

We are also proud that Canada has one of the highest telephony penetration rates in the world, and that core telecommunications services are affordable. We have achieved this while also working toward increased reliance on market forces. Today, Canada has a telecommunications system with many competing service providers, including some which are non-Canadian. This has also permitted the Commission to forbear — or, to in effect, de-regulate — a number of important telecommunications services. For example, in 1995, the Commission forbore from regulating the bulk of services offered by competing long distance carriers under our jurisdiction. We are also, wherever possible, forbearing from services offered by the once monopoly providers of telephone service.

However, we need to maintain and build on our achievements in a digital world. Like the European Commission, the United States and others who grapple with the implications of regulation in a converging and global marketplace, Canada recognizes the importance of getting the regulatory framework "right" — as the European Commission's Green Paper on Convergence puts it.

To do this, we at the Commission realized that we had to look at the big picture. This is why we undertook a major review in early 1997 of our approach to our mandate and operations. It was our goal to find the means, within our existing statutory mandates, to develop regulatory frameworks that facilitate the effectiveness and efficiency of Canadian communications sectors in this increasingly converged world and meet our public interest objectives.

We emerged with a renewed Vision and also issued a public three-year action plan identifying key public hearings, consultations and policy reviews. We've expressed our Vision as: "world-class quality communications, with a distinct Canadian presence, in the public interest". More information on our Vision and related material is in the information packages we've provided.

Our Vision effectively describes tomorrow's regulator and our approach to regulation.

Public consultation has always been the thrust and cornerstone of the Commission's regulatory approach. Increasingly, where it is appropriate, we are moving towards an even more "interactive" approach to regulation, and indeed even further along the regulatory spectrum to an "oversight" model. We are fortunate in Canada because the Commission makes extensive use of public forums, ranging from town halls to formal hearings, and we have been recognized internationally as leaders in this area. We talk with many Canadians to build consensus and develop policy and regulations.

We are building on this tradition by developing a modern, more interactive approach to regulation. For example, in 1996 the Commission turned to Alternate Dispute Resolution (ADR) to resolve certain contentious telecommunications issues relating to the implementation of local competition. We also created a working group called the CRTC Interconnection Steering Committee — or "CISC". With this approach, Commission staff, industry representatives, public advocacy groups and other interested parties identify their requirements and work together to develop the necessary systems and solutions to facilitate the implementation of competition.

We are pleased to be able to say that this process has worked extremely well in getting all of the industry players together to resolve numerous technical and administrative issues. All the players are praising the ADR process and its efficiencies in resolving very complicated issues: bringing more expertise together, more timely answers, and potentially more responsive as circumstances change. Building on this experience, we have now implemented a dispute resolution approach to certain broadcasting issues. Our use of this process in resolving complex issues clearly demonstrates one of the ways our role is evolving.

In broadcasting, we also rely on industry bodies such as the Canadian Broadcast Standards Council to establish industry standards the Commission agrees to, and to administer the standards in certain areas — notably the broadcasting of offensive content. It's our experience that this process has, in the majority of instances, served all parties well, and very few come back to the Commission to be dealt with.

The Commission’s renewed focus on dialogue also extends to international forums, of which this conference is a notable example. To achieve our national policy objectives, we cannot ignore the broader global impact of our actions and the actions of others. In order to accomplish this, we have taken the lead in the establishment of the International Regulatory Forum. In partnership with the Institute of Communications (IIC), a non-profit organization based in London, England, the Commission has initiated a series of ongoing meetings with communications regulators from around the world to exchange ideas and information on regulatory issues, including universality, access and self-regulation. Our next meeting will be held next month in Rome.

We also participate in a number of other international forums, including the North American Broadcasters Association and the World Intellectual Property Organization.

As well, internationally, our regulatory model is highly respected and envied. Many countries are looking to the CRTC to duplicate the "Canadian model" as they establish an independent regulatory body. We have frequent requests for assistance, especially given the World Trade Organization 1997 Agreement on Telecommunications Services that require signatories to establish an independent regulatory function. We have, to date, provided training in partnership with the World Bank, Canadian International Development Agency, Telecommunications Regulatory Affairs India, Columbia and many other countries.

It's perhaps in the area of "New Media" that the regulatory boundaries between broadcasting and telecommunications require the most exploration. In light of this, on July 31st, we issued a call for public comments to explore the role of "New Media" in Canada's communications environment.

Simply put, it is to address three basic themes with regard to the new media. First, in what ways and to what extent does or will new media affect our regulation of traditional broadcasting undertakings of radio, television and cable? Second, to what extent do some or any of the new media services constitute broadcasting or telecommunications services as defined in our two governing Acts. And, if they do, how should we treat them consistent with achieving the objectives of those Acts? Third, to the extent there are issues that fall outside of our legislative jurisdiction, we can use the public forum to provide information and recommendations to the government on broader policy issues.

Our mandate for asking these questions is clear. It is defined by the Broadcasting and Telecommunications Acts. Ensuring the delivery of a wide choice of high-quality Canadian programming to Canadians is a fundamental objective of the Broadcasting Act. Ensuring the availability of reliable and affordable telephone and other telecommunications services to Canadians is fundamental to the Telecommunications Act.

The recent explosion of new media services has not altered these goals. But as broadcasting and telecommunications continue to converge and create new media, the means for achieving these goals are altering. Our job at the Commission is to make sure that we use our regulatory tools to continue to achieve these goals as the communications environment evolves. In doing so, we are not looking to apply existing regulatory models to new media nor have we made any predeterminations with respect to an appropriate policy approach.

In concluding, I would like to emphasize that Canada is ready for the digital world. The two Acts the Commission implements are technology neutral. Our policy goals are clear, our regulatory framework evolving and flexible. We believe that promoting one’s culture is not tantamount to rejecting the culture of others: it’s working with conviction toward building a shared, open culture.

As a regulator, we can no longer operate in isolation. We need to have a grasp of the alliances and joint ventures emerging as part of the global economy. We want to build on our successes. We want to encourage innovation, to provide incentives for research and development, and to be responsive to the unique economic, cultural and social requirements of the people of Canada.

The Commission continues to play a meaningful role in our interconnected world and we are devoting our efforts toward this end. It's our conviction that the economy of the 21st century will largely depend

on the content offered by, and via the new information technologies and that Canadians can and will play a major role through their commitment to dialogue, daring spirit, innovation and diversified choices and voices for citizens.

Thank you again and I look forward to the upcoming discussions.

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Contact: CRTC Communications Branch, Ottawa, Ontario K1A 0N2
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