OTTAWA – Canadian television viewers need protection from the “anti-competitive practices of the large broadcasting companies”, according to Telus.
The telco made the comments Wednesday in reference to the “concentration of content ownership” as a result of the recent mergers of Shaw/Canwest and BCE/CTV. Telus suggested that the CRTC implement safeguards designed “to protect consumer choice and competitive pricing” as the Commission prepares to examine the issue of vertical integration at a hearing scheduled to begin on June 20, 2011.
Telus’ proposed safeguards include:
– Distributors should not withhold content from competitors in order to prevent anti-competitive programming blackouts;
– Preferential or exclusive programming rights should not permitted in Canada;
– To ensure fair competition, vertically integrated broadcasters should not benefit from a head-start in launching new programming services; and
– Fees charged for a programming service should be in line with fees charged for other services of equal value to consumers to ensure consumer costs do not skyrocket.
“The unprecedented concentration of market power in the broadcasting sector created by the common ownership of programming services and distribution platforms requires regulatory safeguards to protect consumers,” said Michael Hennessy, Telus’ SVP of regulatory and government affairs, in a statement. “The potential for abuse of market power is real and the risk to consumers is significant. Without proper regulatory safeguards consumers could soon be facing increased costs and reduced choice in their TV viewing options.”
