CSUA says progress made despite Cabinet rejection of contribution regime appeal

Even though the federal government recently denied an appeal by satellite users including broadcasters of the CRTC’s contribution regime, the executive director of the Canadian Satellite Users’ Association (CSUA) believes the petitioners still made some progress on the issue. Don Braden notes that the parties were able to make the case that contribution funds should not be used for purposes other than supporting the provision of local telephone service in high-cost areas. "We’re disappointed with the decision. But on a broader level, I think we’ve been able to get our message out on not expanding the contribution regime to other things, such as the rollout of broadband. We think the government understands our stance on that front," he tells CCR. In filing the appeal, the petitioners expressed concerns that if no clarification was made on the CRTC policy, the commission could potentially expand the contribution regime to support a wider range of telecommunications social objectives, such as the extension of broadband to rural and remote areas of Canada. While no such explicit clarification has been made, the CSUA feels the government understands its position. In their Aug. 29, 2001 appeal, the CSUA, the Canadian Association of Broadcasters (CAB), and direct-to-home satellite television distributor Star Choice Television Network Inc. argued that they should not be hampered in their efforts to meet the cultural objectives of the Broadcasting Act by having to make financial contributions in support of the social goals of the Telecommunication Act (CCR, Sept. 27/01). The groups had asked the federal Cabinet to overturn a May 2001 CRTC decision that denied a Telesat Canada review and vary application under the Telecommunications Act – Order 2001-435. The government dismissed the appeal on May 28, noting that the order on the telecommunications contribution regime was consistent with government policies to make telecommunications affordable and available throughout Canada (CCR Special Update, May 28/02). "...The government of Canada is of the opinion that it is not in the public’s interest to vary, rescind or refer Order 2001-435 back to the CRTC for reconsideration," the government stated. In Decision 2000-745, the CRTC changed the contribution regime from a per-minute contribution mechanism to a national contribution collection system based on revenues from all telecom service providers, including facilities-based satellite providers such as Telesat, effective Jan. 1, 2001. The CRTC set an interim contribution rate of 4.5 per cent for 2001, which Telesat estimated would cost it about $8.3 million annually and would be passed on to its customers, including broadcasters (CCR, Mar. 29/01). The amount of money paid indirectly by broadcasters and satellite TV providers into the contribution fund diminished this year compared to the inaugural year as the CRTC lowered the contribution rate for 2002 to 1.4 per cent. Bob Power, director of regulatory matters for Telesat, estimates that the company is probably paying about a third of the amount paid in 2001. "The one good piece of news coming out for our customers is that the rate dropped substantially since the decision initially came out in late 2000," Power tells CCR. "But at the same time, it’s additional money that they have to pay and everyone’s watching their bottom line." The Telesat executive is unsure if the CRTC would ever use funds from the contribution regime to rollout broadband. "Certainly, it doesn’t extend to that today. It’s for basic telephony service…But obviously the broadcasters are concerned about where this contribution could go."

CSUA says progress made despite Cabinet rejection of contribution regime appeal

News | 06/07/2002 4:00 am EDT

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