CRTC chairman: regulating telecom and broadcasting together is inevitable

In his speech Saturday to the International Institute of Communications Regulators Forum in London, England, CRTC chairman Konrad von Finckenstein outlined all of the responsibilities of the commission and gave his international audience a glimpse at how the regulator is handling the constantly evolving communications industry, and how it would like to regulate in the future. Telecommunications: Von Finckenstein noted the federal government has directed the commission to rely on market forces to the "maximum extent possible," and as a result it has so far deregulated 65% of the market. "Canada has done well through its free economy, and I believe that market forces will continue to be the most productive source of innovations that benefit us all," said von Finckenstein. "So we let them work, and we will apply regulation only in cases where they fail to achieve the objectives of the Telecommunications Act." Broadcasting: "In broadcasting it is a somewhat different story," said the chairman. "In that field, Parliament has given us a special responsibility. We must place a high priority on the social and cultural contributions that broadcasting can make to the Canadian sense of identity." While the CRTC seeks a reduced regulatory burden in broadcasting just as it has in telecom, von Finckenstein explained that economic forces alone will not "realize the aims of this social and cultural agenda." As well, with the United States, the world's largest producer of popular entertainment, as our neighbour, the commission has an increased role of helping our broadcasting system preserve the "distinctiveness of what it is to be Canadian." But von Finckenstein added, "We believe there are many areas in which lighter and smarter regulation can allow broadcasters greater flexibility and efficiency, while still advancing the objectives of the Broadcasting Act." New Media: With more Canadians adopting unregulated mobile and Internet-based platforms, the CRTC has begun its New Media Project Initiative to study the development and impact of these new audio-visual media. "The subjects of study include business models, the needs of consumers and trends in technology," said the chairman. "But our main concern is the impact of new media on the existing broadcasting system. How will it affect our regulatory responsibilities regarding content and access?" In analyzing content the commission is focusing on the streaming of commercial television over the Internet and wireless devices, and issues of access include Internet traffic prioritization and the definition of what basic telecommunications service shall be. Said von Finckenstein, "We hope that our process will help us define an approach to new media, a plan of action, and a pathway toward any regulatory or legislative changes that may be necessary. The Future: The international audience heard that the commission will continue to focus on deregulating the telecom industry, and has been reviewing the broadcasting regulations to see which should be retained, improved or eliminated. It also heard that increasing industry convergence is making it more difficult to regulate telecommunications and broadcasting separately. "As regulators, all of us here are facing the challenge of convergence driven by digital technology," said von Finckenstein. "In Canada, telecom companies have been getting into broadcasting distribution. Cable TV distributors have been getting into telephone service. And everybody has been getting into Internet and wireless." The logical solution, said the chairman, would be to "regulate with convergence in mind." He continued, "But at the moment we can't, because we must operate under our two separate legislative mandates. The reality of convergence is making this arrangement more and more of an anachronism. We at the commission believe that unification is inevitable. However, the legislative authority to accomplish that belongs only to Parliament, so in the interim we will converge as much as possible in terms of operations and regulations." The full transcript of von Finckenstein's speech can be accessed at the CRTC website or by clicking here.

CRTC chairman: regulating telecom and broadcasting together is inevitable

Broadcast | October 24, 2007

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