Broadcasting on the Internet to remain unregulated for the time being: CRTC

The CRTC has decided to keep its hands off regulating broadcast activities on the Internet, at least for now. Speaking with Tech Media Reports in the wake of the decision, CRTC chair Konrad von Finckenstein says there wasn't enough evidence to support regulating broadcasting on the Internet and mobile devices, but notes a shorter time span for reviewing new media next time is necessary because of its constantly changing nature. “We want to make sure we don’t miss anything, so that’s why we said at least in five , may be earlier we will have another review,” von Finckenstein tells Tech Media Reports. The CRTC also called for a holistic national digital strategy. This is important to addressing the challenges of new media in a broad way, rather than in a piece-meal approach, von Finckenstein said. Asked what he expects in openly calling for the creation of a national digital strategy, von Finckenstein says new media has a broad definition that encompasses many aspects and he’s just playing his role in pointing out its significance, which he equated to the Industrial Revolution. “I am just pointing out that my mandate as the mandate of the CRTC is restricted to the Broadcasting Act,” he says, adding that it’s important to examine such a strategy from a holistic viewpoint in order to boost Canada’s opportunities in the new media sector. In justifying the exemption order on new media von Finckenstein says although there’s been a growth in the importance of broadcasting on the Internet, regulatory intervention is not necessary because it will hamper innovation. “We found that the Internet and mobile devices are acting in a complementary fashion to the traditional broadcasting system. Any intervention on our part would only get in the way of innovation,” he said in a statement. The decision to exempt new media from regulation upholds a similar ruling by the CRTC in 1999. In explaining the exemption in today’s ruling, the CRTC says broadcasting in new media has opened opportunities in Canada’s broadcast system, and that it does not threaten traditional broadcasters from meeting their obligations. “In fact, new media is currently being used in a complementary manner by many broadcasters for activities such as providing audiences with the ability to catch up on missed programs, promoting broadcast offerings and building brand loyalty,” the commission said. “For the reasons set out above, the commission does conclude that traditional broadcasting frameworks should not be imposed in the new media environment without evidence that intervention is warranted.” But the commission also ruled that new media is dynamic and its constantly changing trends need to be monitored. The commission is therefore introducing a reporting requirement for new media broadcasting services with the aim of collecting data that could be used in future reviews. One of the sticking points at the new media hearing in February was whether broadcasting on the Internet should be defined according to the regulations of the Broadcasting Act. While affirming that broadcasting in new media conforms to the definition in the Act, the CRTC ruled that it does not intend to regulate it. The commission is, however, referring the case to the Federal Court of appeal, asking the court to rule on whether ISPs should be regulated as broadcasters. Asked why the CRTC couldn’t determine this on its own, von Finckenstein says such a decision would have been appealed. “If we did, then undoubtedly somebody would appeal it and it would go to the Federal court. It is an open question. I think we heard varied convincing opinions from both sides saying what we can do and why we can’t do it. Rather than waste everybody’s time and effort on it, let’s get clarity. Let’s find out whether the Broadcasting Act applies to the distribution of broadcasting materials for ISPs or not and once we know then we can proceed,” he says. The CRTC expects to refer the issue to the Federal Court of Appeal within the next month.

Broadcasting on the Internet to remain unregulated for the time being: CRTC

Broadcast | June 4, 2009

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