Heritage Minister offers an enlightening tweet
OTTAWA – They heard directly from from 150 stakeholders and read through more than 2,000 interventions and today the Broadcast an Telecom Legislative Review panel released their summary of all of that.
It’s not too exhaustive, nor does it tie any points of view back to specific stakeholders (that can be found in the individual submissions which are all now online) but the report highlights the areas of tension identified in their consultations – and really, the same tensions fought over in the industry for years.
(Ed note: The newsiest bit of the day was a single tweet from Heritage Minister Pablo Rodriguez, who has said precious little about this process and what he thinks about it since he replaced Mélanie Joly – who spent three years in the job doing nothing but talking – 11 months ago.
Rodriguez’ tweet, pictured above, could be viewed as tipping the government’s hand on what it will actually do when it comes time to legislate, or one could read it as a plea for support from the industry so that his government is still in power when it comes time to craft new law after the BTLR panel submits its final report in January 2020. Something along the lines of “if you want these changes you’ve asked for, the Liberals need to form the next government” is one way to interpret it.
However, you’d have to ask the committee which planned and wrote the tweet what they mean to say between those lines… ISED Minister Navdeep Bains, has yet made no public comment on the interim report.)
The report breaks down four themes.
THEME A: Reducing barriers to access by all Canadians to advanced telecommunications networks
One area of consensus: Affordable access to high-quality broadband networks, both wireline and wireless, is essential to Canadians’ ability to participate in digital society.
On economic regulation of telecommunications the tension is, unsurprisingly, between facilities-based versus more open access (the report didn’t actually mention MVNOs, however, the topic which has been all the rage for months in wireless circles). Of course, most of the interventions were sent before the Government issued its latest CRTC policy direction, which the report fails to mention. But that should not impede their recommendations, or should it?
On broadband deployment, consensus that government intervention is needed to connect remote communities, including Indigenous communities. Better coordination and planning would be required from all sectors involved.
On the access to passive infrastructure, the tension is between municipalities and utilities on the one side who want to control the infrastructure and prices they can charge and network operators on the other who want the CRTC to set all rules and rates. Both see the need for larger networks with more points of interconnection that will require either agreement and collaboration or federal coercive powers.
THEME B: Supporting the creation, production and discoverability of Canadian content
More funding for the production of Canadian content is required due to reduction of advertising and subscription revenue. “Almost all interested parties advocated for equity in the application of sales taxes between Canadian and foreign companies even though this issue is outside the scope of the communications legislative framework,” the report reads. That’s up to the Minister of Finance.
Most of the parties recommend maintaining the existing foreign ownership rules while imposing more obligations to pay for Cancon – and to make that content discoverable – on foreign companies.
On the local news front, many mentioned the devastating effect that the transfer of advertising revenue from TV to digital platforms but strangely, there was little mention of the impact of that on the radio industry in the report.
THEME C: Improving the rights of the digital consumer
Affordable access to the internet for low-income and Canadians with accessibility needs has been discussed as well as the need for better communication standard to meet the needs of Canadians with disabilities.
Several interested parties submitted that communications regulation should have a role in ensuring the provision of accurate, independent and trusted news and information, and that legislation should include a policy objective to this end.
Digital literacy was also mentioned and it was suggested the CRTC should be given responsibility for digital literacy and the education component of it.
Privacy is a big concern but probably outside the scope of this panel, it said.
THEME D: Renewing the institutional framework for the communications sector
The sense we got is that everything was proposed, and no consensus is visible between the allocation of responsibilities of the various government institutions.
On the regulatory toolkit and composition of the CRTC, AMPs (administrative monetary penalties) on the broadcasting side has been widely discussed. More diversity at the CRTC is also mentioned.
We at Cartt.ca have been reporting extensively on these submissions, over 30 of which we received back in January, so you may not have been surprised by What We Heard – and it’s worth saying that it seems not many of the interventions were really about the future but more about fixing the problems of today.
The Panel will have access to research and international experience which will be more useful and we are hopeful that these talented individuals will produce a final report that will be useful to the federal government, whomever forms it.
While the major industry companies made no official response, there were some who were heartened, and worried, by what they read (besides the Minister).
The Coalition for the Diversity of Cultural Expressions (CDCE) for its part “is concerned about the future of Canadian culture. The report released today by the panel… includes several observations from cultural sector organizations on the challenges they face in the digital age, particularly the promotion and funding of local and national content.
The CDCE is concerned that the revision of the legislative framework could take years, to the detriment of artists, creators, professionals and companies in the cultural sector, as well as the quality, quantity and diversity of the works produced. Therefore, the CDCE is calling for immediate action.”
The Directors Guild (DGC) reiterated the same message: “The Canadian film & television sector delivered a resounding message to this panel, the same message the DGC has been hammering home for three years: Canadians will be better served modernised rules of our broadcast and telecommunications systems to make sure all players that benefit from the Canadian system also contribute to producing original Canadian programming. As the findings show, we now have broad agreement in the sector that short-term measures are needed to ensure foreign digital services are doing their part. Last week, CRTC Chair Ian Scott echoed this message. We call on both the Government and the Commission to act.”
The Chair of the panel, Janet Yale, concluded: “The perspectives and recommendations provided to us will help inform and strengthen our work. We will now focus on completing our final report, with recommendations for legislative change, by January 2020.”
For its part, consumer group OpenMedia, really didn’t care for the Minister’s tweet “OpenMedia is pleased to see our community’s key concerns reflected in the report’s themes such as reducing Canadians’ barriers to telecommunications networks, net neutrality and affordable access for low-income Canadians. It is extremely concerning however, that Minister Rodriguez seems to have already concluded the government’s course of action on some of these issues before even receiving the panel’s recommendations. If the outcome is already predetermined, how can we be expected to trust the legitimacy of this consultation? The government must respect its own process if it wants to maintain any credibility on these issues.”
“Canada’s independent producers share the government’s goal of a strong, vibrant sector that will continue to produce compelling Canadian stories for the screen for both domestic and international audiences,” said CMPA president and CEO Reynolds Mastin in a statement. “Key to meeting this objective, in an increasingly global media ecosystem, is a legislative foundation that allows Canadian producers to own and control the intellectual property they develop and create.”
Friends of Canadian Broadcasting was a bit harsher in its assessment, saying today’s report “is a non-event that reinforces how Canada’s regulatory system gives foreign companies like Netflix immense advantages over their Canadian competitors… And with each further day of inaction, unregulated foreign broadcasters like Netflix tighten their stranglehold on Canada’s attention.”
“Every day that passes is another day for Netflix to steal market share from their Canadian competitors, thanks to inexplicable inaction from Canadian politicians and regulators,” said Friends spokesperson Daniel Bernhard. “Canada’s unwillingness to apply the rules to Netflix saves them almost $1 million per day. That’s $1 million per day which is not invested in Canadian storytelling. Such is the sorry state of Canada’s cultural policy.”
