Speech
Notes for an address
by Konrad von Finckenstein, Q.C.
Chairman, Canadian Radio-television
and Telecommunications Commission
to the International Institute of Communications
Regulators Forum
London, England
October 20, 2007
(CHECK AGAINST DELIVERY)
Thank you very much. This is my first visit to the Regulators Forum and I'm very glad to have the chance to meet my new colleagues from around the world.
My own background includes commercial and competition law, trade negotiations and service on the Federal Court. And I must admit to this highly specialized group that this is actually my first job in communications. So I am hoping that some of your expertise will rub off on me.
Our mandate
The Canadian Radio-television and Telecommunications Commission, or CRTC, has a double mandate. Under the Broadcasting Act, we regulate all aspects of the Canadian broadcasting system. Under the Telecommunications Act, we regulate common carriers and service providers that fall under federal jurisdiction, although we play only a limited role in regulating wireless telephone service.
Since our mandate is defined in two separate Acts of Parliament, it's not surprising that we take a different regulatory approach to each of the industries we regulate.
Telecommunications
In telecom, we place a high priority on market forces. In fact, the government recently directed us to rely on market forces to the maximum extent possible.
We are therefore continuing to move forward vigorously with deregulation. We want the industry to have the freedom to maximize efficiency. As real competition continues to develop, we seek opportunities to deregulate to the benefit of both industry and consumers.
We have begun to deregulate business phone services in some markets. In residential phone service, we have so far deregulated 65 per cent of the market and are extending the process still further.
Canada has done well through its free economy, and I believe that market forces will continue to be the most productive source of innovations that benefit us all. So we let them work, and we will apply regulation only in cases where they fail to achieve the objectives of the Telecommunications Act.
Broadcasting
In broadcasting it is a somewhat different story. In that field, Parliament has given us a special responsibility. We must place a high priority on the social and cultural contributions that broadcasting can make to the Canadian sense of identity.
This is not easy when you are living in the shadow of the United States, the world's most prolific and successful producer of popular entertainment, as well as vast quantities of news and information.
We share with our American friends much of our way of life, as well as many values, tastes and attitudes. And we share with them the English language – which is the mother tongue of 60 per cent of our population and is widely understood as a second language.
So our broadcasting system must play a key role in preserving and nourishing the distinctiveness of what it is to be Canadian. The Broadcasting Act requires that our system carry a healthy proportion of Canadian content. The diversity of our population must be reflected in both programming content and opportunities for participation in the industry.
Obviously, the free flow of economic forces alone cannot magically realize the aims of this social and cultural agenda. So it is our job as the regulator to see that the privilege of holding a broadcasting licence carries with it a responsibility. Each licensee must help to maintain a system that is distinctively Canadian.
But we are also determined to achieve in broadcasting, just as in telecom, a significant reduction in the regulatory burden on the industry. We believe there are many areas in which lighter and smarter regulation can allow broadcasters greater flexibility and efficiency, while still advancing the objectives of the Broadcasting Act.
Keeping pace with change
Both broadcasting and telecom are experiencing very rapid change right now, and we must work very quickly to keep pace.
A Telecommunications Policy Review panel has produced some frank critiques and excellent recommendations for us. We are devoting a lot of time and human resources to the very complex process of deregulation.
On the broadcasting side, we've been reviewing all our policies on radio and television, including the issues of ownership consolidation and the maintenance of a diversity of viewpoints.
We had a team of outside experts go through all our broadcasting regulations to assess their purpose and relevance, and they have made many recommendations on what should be retained, improved or eliminated.
Convergence
Our two distinct regulatory regimes for telecom and broadcasting have served Canadians well for many years. But we doubt that this dual approach can remain sustainable for very much longer.
As regulators, all of us here are facing the challenge of convergence driven by digital technology. In Canada, telecom companies have been getting into broadcasting distribution. Cable TV distributors have been getting into telephone service. And everybody has been getting into Internet and wireless.
So it would seem to make sense for the CRTC to regulate with convergence in mind.
But at the moment we can't, because we must operate under our two separate legislative mandates. The reality of convergence is making this arrangement more and more of an anachronism. We at the Commission believe that unification is inevitable. However, the legislative authority to accomplish that belongs only to Parliament, so in the interim we will converge as much as possible in terms of operations and regulations.
New Media
On top of these challenges, there is, of course, a new complication. A third stream is rushing in, in the form of New Media.
At the end of 2006, the Commission delivered a report requested by the government on the future environment facing the Canadian broadcasting system. We reported that any negative impact on the broadcasting system by New Media consumption patterns had so far been only marginal. However, we predicted that such impact would increase.
More Canadians – especially younger Canadians – are enthusiastically adopting the unregulated mobile and Internet-based platforms. We underlined the importance of detailed and ongoing study of the development and impact of these new audio-visual media.
New Media Project Initiative
We have now undertaken such a study: the New Media Project Initiative. This is the top-priority mission for our new Policy Development and Research Sector. Its purpose is to provide a solid basis for policy development in the new environment.
Its process is being guided by an advisory committee that includes senior representatives of the government departments and agencies most directly concerned with these issues.
The subjects of study include business models, the needs of consumers and trends in technology.
But our main concern is the impact of New Media on the existing broadcasting system. How will it affect our regulatory responsibilities regarding content and access?
With respect to content, we have chosen to focus on the streaming of commercial television over the Internet and wireless devices. We are concerned with professional programming only, not with the material generated by users.
Issues of access include such items as Internet traffic prioritization, and the definition of what basic telecommunications service shall be.
We began our New Media Project Initiative with extensive research and consultation, some of which took place internationally as well as in Canada.
Now we have moved on to a validation phase of discussion and analysis. This includes panels, workshops and exchanges involving industry, government and consumer groups as well as the CRTC. Our objective is to determine the impact of New Media on our regulatory regime in both broadcasting and telecom.
The third phase will hopefully consist of public hearings.
At the core of our Initiative are three simple questions:
- First, is it necessary to regulate commercial television delivered over the Internet and through mobile devices?
- Then, if it is necessary, can it be done?
- And finally, if it can be done, how should it be done?
We hope that our process will help us define an approach to New Media, a plan of action, and a pathway toward any regulatory or legislative changes that may be necessary.
We have been learning a lot from you, our colleagues around the world, and we look forward to sharing our findings with you. All of us are on a journey into the unknown, and we are all travelling together.
I've tried to give you a brief overview of what we are up to in Canada. I'd like to thank the organizers of the Forum for giving me the opportunity to introduce myself, and I look forward to getting to know you all a little better.
Thank you very much for your attention.
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