Radio / Television News

Chair sets out his “re-balancing” act for broadcast


PENTICTON – Since Konrad von Finckenstein’s appointment as CRTC chair in January, there has been much to say on the telecom file, but many in broadcasting has wondered where he stood and in what sort of direction the Commission will go on that side of its business..

Wonder no longer.

In a speech to the British Columbia Association of Broadcasters on Thursday, von Finckenstein outlined the Commission`s very ambitious goals, which reflect the “market forces” approach of our federal government.

There were four main points in the B.C. speech, which we all might look back on as the day a whole lot of things broadcast began to change.

1. A two-person Broadcast Policy Review Panel (Fasken Martineau DuMoulin lawyers Laurence Dunbar of Toronto and Christian Leblanc of Montreal) has been launched and will report back to the Commission in August. Similar to the 2005 Telecom Policy Review Panel which caused a sea-change in telecom, this new broadcasting report has the potential to do the very same for broadcast.

“This study will ask three questions about each policy or regulation,” said von Finckenstein. “First, what was its original purpose?; Second, what is its relevance and effectiveness with respect to present and future needs?; And third, should it be retained, improved, streamlined or eliminated in order to serve the purposes of the Broadcasting Act most efficiently and economically?

“In addition, the study will make recommendations to maximize the reliance on market forces, always keeping in mind the overriding twin objectives of Canadian content and access to the system,” he said

2. What they have to say may or may not affect what the Commission does. It may cause changes in the recently released new radio policy and the to-be-released next week over-the-air TV policy.

“It will then be published and will serve as an input into our policy proceedings for the specialty services and BDUs. It may also lead us to take a second look at certain aspects of our radio and over-the-air television policies,” he added.

3. Market forces will dictate how the Commission regulates broadcast from now on, as long as such decisions don’t undermine the cultural and social objectives of the Broadcasting Act. The Commission will take a hard look at how it licenses everything.

“The question, however, is what level of regulation. We must now attempt to let market forces unleash creativity, produce efficiencies and create value — as long as it does not detract from the twin overriding objectives,” said von Finckenstein.

And why? “First, new technologies and new media are flooding into the industry. Digital broadcasting. High-definition TV. TV shows on the Internet. Audio and video streaming and downloading. Podcasting. It’s a world of multiple platforms and the list keeps growing. Many of these technologies simply bypass our existing regulatory structures,” said the chair.

“Our second reason for wanting to operate with a lighter touch is this: in the past, we took a heavily regulated approach in order to nourish our broadcasting system so as to allow it to fulfill the objectives of the Broadcasting Act in the face of the North American reality. We’ve been very successful and as a result we have a healthy and flourishing system.

“We now feel there is a need for some rebalancing. We must avoid suffocating the forces of the market. In fact, we must give fuller play to the energy and creativity of market forces – as long as they work towards the objectives of the Act. Take, for example, the question of licensing. Should additional licences be granted in a particular area? Our purpose is to build a broadcasting system that reflects Canada, and our licensing decisions will serve that purpose,” he said.

4. Von Finckenstein wants the broadcast industry to create its own self-made rules to deal with various new issues as they come up. The first test will be the establishment of a cross-Canada All Channel Alert System (similar to the U.S. Emergency Broadcast System.) If the industry doesn’t answer the bell by creating a “swift, reliable and robust,” emergency alert system, the Commission will step in and create one for the industry.

“Over the next five years I will be encouraging the industry to improve our broadcasting system through self-designed initiatives and self-made rules. Surely this is preferable to having rules imposed by the CRTC or by the government. A case in point is the establishment of a cross-Canada All Channel Alert system,” he said.

“We will work with you in this process and we will be monitoring closely how the voluntary approach is working. We are optimistic that the need to impose prescriptive measures will not be required.”

And you thought last year’s regulatory calendar was crazy-busy…