Newsmakers: First impressions of the new CRTC chair

As has been widely reported, on January 25 Minister of Canadian Heritage Bev Oda appointed former Competition Bureau of Canada head and Federal Court of Canada justice Konrad von Finckenstein as the new chairperson of the CRTC. While most in the industry were reserved about the appointment and adopted a wait-and-see attitude, Ken Stein, senior VP of corporate and regulatory affairs at Shaw Communications Inc., did say that von Finckenstein is "obviously qualified," and praised his "pro-competition" track record. Similarly, Friends of Canadian Broadcasting spokesman Ian Morrison said "there’s certainly nothing in his background that would suggest that he would be in any way a pushover for any of the regulated interests" he’d be presiding over. Below is an edited take on the appointment from consulting firm SeaBoard Group.SeaBoard sees a busy calendar for the new chairman...First (and probably foremost) on his plate are the following issues, all of which require expeditious and deft handling:A growing dispute between the Canadian Television Fund and service providers such as Shaw Communications and Vidéotron ltée; private sector contributors to the fund are increasingly annoyed by the requirement they have to add to the subsidies paid to Canada’s public broadcaster – a competitor. Shaw and now Vidéotron have announced that they are withholding contributions to the fund until its program allocation mandate is changed.The proceedings of the hearing to consider the contributions which over the air television licensees should make to the production, acquisition and broadcast of Canadian programming – including the possibility of levying a fee for carriage against Broadcast Distribution Undertakings for the carriage of local signals.The call by the cable industry for added regulatory freedoms – the arguments that ‘that which is good for the goose’ (think telecom), it would only be fair if that gander was so treated as well.Canada’s broadcasters will probably be affected most by the selection of Mr. von Finckenstein as the commission’s guiding hand. Proponents of broadcast fee-for-carriage and companies flourishing under the benevolent umbrella held by the invisible hand of government, CanWest Global comes to mind, are probably disappointed.SeaBoard believes that Mr. von Finckenstein will bring the regulation of Canada’s broadcasters into line with the other sectors under his domain - market forces remain the watchword. We expect notions like additional fees from cable companies to subsidize Canada’s broadcast industry to receive short shrift.Mr. von Finckenstein’s history leads us to believe his future decisions will have consumers best interests at heart. As a federal court judge, Mr. von Finckenstein shot down the Canadian recording industry’s demands two years ago to have internet service providers turn over names of computer users who were allegedly downloading and trading music illegally – a decision widely regarded as a victory for consumer privacy. This was in the face of intense industry pressure, both within Canada and from the United States. Mr. von Finckenstein wasn’t fazed....Certainly the appointment of Mr. von Finckenstein further reinforces the CRTC’s new market orientation. We take this as a very positive move. Our corporate gladiators will be free to do battle for the business of Canadians – but our referee will be in the fray too, with whistle ready to safeguard the public interest.

Newsmakers: First impressions of the new CRTC chair

News | 01/31/2007 5:00 am EST

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