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Broadcasting Decision CRTC 2005-328
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Ottawa, 18 July 2005 |
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Trinity Broadcasting Network of Canada
Inc.
Across Canada |
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Application 2004-0903-8
Public Hearing in Vancouver, British Columbia
28 February 2005 |
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Trinity Broadcasting Network of Canada – Category 2 specialty
service
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In this decision, the Commission
approves the application for a broadcasting licence to operate a new
Category 2 specialty programming undertaking. |
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The application
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1. |
The Commission received an application by
Trinity Broadcasting Network of Canada Inc. (Trinity) for a broadcasting
licence to operate a national English- and French-language Category 21
specialty programming undertaking to be known as Trinity Broadcasting
Network of Canada. |
2. |
The applicant proposed to offer a service
consisting of balanced religious programs from a variety of Christian
perspectives. The applicant stated that 80% of its programming would be
in English and 20% would be in French. All of the programming would be
drawn from the following categories, as set out in Schedule 1 to the
Specialty Services Regulations, 1990 (the Regulations), as amended
from time to time: |
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1 News
2 (a) Analysis and interpretation
4 Religion
8 (b) Music video clips
(c) Music video programs
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Interventions
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3. |
The Commission received numerous
interventions in support of this application, while Vision TV: Canada’s
Faith Network/Réseau religieux canadien (Vision), Crossroads Television
System (Crossroads) and The Miracle Channel Association (MCA) opposed
the application. |
4. |
Vision is the licensee of the multi-faith
specialty television programming undertaking known as Vision TV.
Crossroads is the licensee of CITS-TV Hamilton, and MCA is the licensee
of CJIL-TV Lethbridge. Both CITS-TV and CJIL-TV are licensed as
over-the-air television stations that are devoted to religious
programming. |
5. |
All three opposing interveners expressed
concern about the applicant’s relationship with the Trinity Broadcasting
Network of the United States (TBN). In this regard, MCA questioned
whether the proposed service would be controlled by non-Canadians. |
6. |
The opposing interveners also contended
that the proposed service would have a negative impact on existing
Canadian undertakings that broadcast religious programming. According to
these interveners, religious broadcasting in Canada is a much smaller
niche market than in the United States. In their view, the Canadian
religious broadcasting market is already well served. |
7. |
Vision further contended that the
applicant’s proposed service would be directly competitive with
Vision TV. MCA raised questions about the applicant’s Registered Charity
Information record with respect to the Canada Revenue Agency. |
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Applicant’s reply
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8. |
In reply, Trinity acknowledged that TBN
would provide funding as well as some of the materials and expertise
needed to develop and successfully launch Trinity Broadcasting Network
of Canada. The applicant nevertheless submitted that it would be
independent from TBN and that, in accordance with Direction to the
CRTC (Ineligibility of Non-Canadians), P.C. 1997-486, 8 April 1997,
as amended by P.C. 1998-1268, 15 July 1998 (the Direction), at least
80 per cent of its board members would be Canadians ordinarily residing
in Canada at all times. |
9. |
Trinity contended that there is a need in
Canada for the programming that would be offered by the proposed Trinity
Broadcasting Network of Canada service, a need that is presently not
filled by any of the licensed religious broadcasters. The applicant
further submitted that TBN’s vast experience in working as an umbrella
organization with broadcasters that provide local religious programming
in other countries would be beneficial to the proposed service. Its
proposed service, through its relationship with TBN, would provide
Canadian Christians with an opportunity to influence the world. |
10. |
In response to MCA’s questions regarding
its Registered Charity Information record with respect to the Canada
Revenue Agency, the applicant stated that it had been audited twice by
the Charitable Division of the Canada Revenue Agency and that no
discrepancies or violations were found. |
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Commission’s analysis and determination
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11. |
In Licensing framework policy for new
digital pay and specialty services, Public Notice CRTC 2000-6,
13 January 2000, the Commission implemented a competitive, open-entry
approach to licensing Category 2 services. While the Commission does
not consider the impact that a new Category 2 service might have on
an existing Category 2 service, it does seek to ensure that newly
licensed Category 2 services do not compete directly with any existing
pay or specialty television service, including any new Category 1
service. |
12. |
In Introductory statement - Licensing
of new digital pay and specialty services, Public Notice CRTC
2000-171, 14
December 2000, and Public Notice CRTC 2000-171-1,
6 March 2001 – Corrected Appendix 2 (Public Notice 2000-171-1),
the Commission adopted a case-by-case approach in determining whether
a proposed Category 2 service should be considered directly competitive
with an analog pay or specialty or existing Category 1 service, although
not with an existing Category 2 service. The Commission examines each
application in detail, taking into consideration the proposed nature
of service and the unique circumstances of the genre in question. |
13. |
In the present case, the applicant stated
that the proposed Trinity Broadcasting Network of Canada service would
focus on a Christian perspective rather than on a multi-faith
perspective, and that the service would provide bilingual religious
programming. The Commission notes that the proposed service would
consist of religious programs from a variety of Christian perspectives
and that its programming would only be drawn from the following
categories: 1 (News), 2(a) (Analysis and interpretation), 4 (Religion),
8(b) (music video clips) and 8(c) (Music video programs). In comparison,
the specialty television programming undertaking known as Vision TV and
the television programming undertakings CITS-TV and CJIL-TV offer more
broadly-based religious services. |
14. |
The Commission further notes that, while
stations operated by MCA and Crossroads are available both over-the-air
and on basic cable service in the communities that they serve, and
Vision TV enjoys carriage on the basic service of most cable systems,
the service proposed by Trinity will be carried only on a digital basis
at the discretion of distributors thus minimizing any financial impact
on existing Canadian undertakings that broadcast religious programming.
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15. |
In light of the above, the Commission is
satisfied that the proposed Trinity Broadcasting Network of Canada
service will not be directly competitive with any analog pay or
specialty or existing Category 1 service, including Vision TV. |
16. |
The Commission notes that Trinity will have
a business relationship with TBN whereby it will provide programming,
technology and other support to Trinity. The Commission also notes
Trinity’s commitment to comply with the Direction by ensuring that a
minimum of 80% of the directors on its board of directors are Canadians
ordinarily residing in Canada at all times. Trinity has confirmed that
it will continue to be controlled by its board of directors. It has also
confirmed that the Board of Directors will govern all aspects of the
licensee, including all financial and operational decisions. Based on
this information, the Commission is of the view that Trinity is a
qualified corporation within the meaning of the Direction. |
17. |
In light of the above, the Commission is
satisfied that the application complies with all applicable terms
and conditions announced in Introductory statement – Licensing
of new digital pay and specialty services – Corrected Appendix 2,
Public Notice 2000-171-1.
Accordingly, the Commission approves the application by Trinity
Broadcasting Network of Canada Inc. for a broadcasting licence to
operate the national English- and French-language Category 2
specialty programming undertaking, Trinity Broadcasting Network of
Canada. |
18. |
The licence will expire 31 August 2011, and
will be subject to the conditions set out in Public Notice 2000-171-1,
as well as to the conditions of licence set out in the
appendix to this decision. |
19. |
The Commission reminds the applicant that
it must adhere to the policy requirements stipulated in Religious
Broadcasting Policy, Public Notice CRTC 1993-78,
3 June 1993, except for the balance requirement given that the proposed
service is a single-faith service. In this regard, the Commission
notes that the licensee is authorized for distribution only at the
specific request of the subscriber. Distributors are not permitted
to package Trinity Broadcasting Network of Canada in such a way that
subscribers are obligated to purchase any other programming service.
As set out in Distribution and linkage requirement for Class 1
and Class 2 licensees, Broadcasting Public Notice CRTC 2005-45,
11 May 2005 and in Distribution and linkage requirements for direct-to-home
(DTH) satellite distribution undertakings, Broadcasting Public
Notice CRTC 2005-46,
11 May 2005, Trinity Broadcasting Network of Canada may be offered
on a "stand-alone" digital discretionary basis. It may also
be offered in a package with other Canadian single or limited point
of view religious services or with non-Canadian religious satellite
services. Distributors are not permitted to offer services such as
Trinity Broadcasting Network of Canada in packages with any other
type of Canadian or non-Canadian programming service. |
20. |
The Commission also reminds the applicant
that it must operate in compliance with the Direction at all times. |
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Issuance of the licence
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21. |
A licence will be issued once the applicant
has satisfied the Commission, with supporting documentation, that the
following requirements have been met: |
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- the applicant has entered into a distribution agreement with at
least one licensed distributor;
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- the applicant has informed the Commission in writing that it is
prepared to commence operations. The undertaking must be operational
at the earliest possible date and in any event no later than 36 months
from the date of this decision, unless a request for an extension of
time is approved by the Commission before 18 July 2008. In order to
ensure that such a request is processed in a timely manner, it should
be submitted at least 60 days before that date; and
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- the applicant has confirmed to the Commission, in writing, that if
it intends to enter into any business arrangement, including
programming supply agreement, shareholders agreements or licence
trademark agreement, with TBN or another third party, it will first
submit the proposed arrangement to the Commission for review to
determine whether the proposed arrangement would cause the applicant
to be in non-compliance with the Direction.
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Secretary General |
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This decision is to be appended to the
licence. It is available in alternative format upon request, and may
also be examined in PDF format or in
HTML at the following Internet site: http://www.crtc.gc.ca
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