Bell Canada says CRTC vertical integration hearing ‘completely unnecessary’

The CRTC’s upcoming hearing on vertical integration in the broadcasting industry is “completely unnecessary,” Bell Canada's senior vice-president of regulatory and government affairs, Mirko Bibic, told The Wire Report in an interview Tuesday. The commission announced Friday a new public consultation to review its existing policy framework to prevent anti-competitive behaviour in Canada's vertically integrated communications industry. Bibic said the CRTC reviewed its anti-competitive framework two years ago and that it doesn’t require review again. “The rules are there to make sure that if one player acts in an unduly preferential manner against another, the CRTC can step in and deal with it. The CRTC has dealt with numerous undue preference complaints, so they have a whole body of precedents and a whole body of principles they can bring to bear quite quickly,” he said. Bibic added that the commission’s decision to open a consultation after approving Shaw Communications Inc.’s acquisition of Canwest Global Communications Corp. broadcasting assets is “inappropriate.” BCE Inc. announced last month it had entered an agreement to wholly acquire CTVglobemedia Inc. “One of the things we did, because of all the rules that are in place in broadcasting … is we went out and decided to acquire content. For the CRTC to then say, ‘Well now that Shaw has acquired Canwest and Bell is about to about to acquire CTV, let’s look at potentially changing the rules again,’” Bibic said. “It’s completely inappropriate, and it’s actually the most disappointing part of what the commission has done here. For an organization that prides itself on predictability … it’s highly unpredictable for the commission to establish rules, see the industry react to the consequences of those rules, and then decide, ‘Well now that the industry has done what it has done, maybe we should look at those rules again.’” The Canadian Media Production Association (CMPA) previously told the commission that it is difficult for independent producers to negotiate terms of trade with large integrated companies. But Bibic said that is “a misplaced concern” and the groups should not worry. David Ellis, a technology consultant and instructor at York University’s communication studies department, said the decision to hold a hearing on vertical integration is too little too late. “These guys are nuts,” Ellis said of the CRTC. “They let all the horses out of the barn and then they decide to burn the barn down … Bell isn’t going to give back CTV and Shaw isn’t going to give back Global. Once they have that vested interest, I don’t care how many provisions you have about unjust discrimination.” The potential for content exclusivity and content discrimination has emerged as an issue as four large, vertically integrated communications companies—Shaw, Bell, Rogers Communications Inc. and Quebecor Media Inc.—now control the bulk of Canada’s television assets. The CRTC says the aim of the new proceeding is to establish norms for commercial actions in the broadcasting sector and provide players with a fair opportunity to negotiate programming rights and carriage deals. The proceeding will review a 2005 commission framework intended to ensure that negotiations for broadcasting rights between distributors and television programmers are conducted according to “good commercial practices.” “With specific regard to programming rights, the Commission reiterates its view that generally it prefers to see distribution of programs on a non-exclusive basis, as this enhances consumer choice and furthers a competitive workplace,” the commission said in its notice of consultation. Michael Janigan, the Public Interest Advocacy Centre’s (PIAC) executive director, said in an interview that the CRTC’s review of vertical integration at this time is appropriate. “It seems at least to be a prima facie case that there is concern associated with the concentration of media,” Janigan said. “This is certainly not a new concern. It’s one that was expressed by the Kent Commission 30 years ago.” A hearing is scheduled for May 9, 2011 in Gatineau, and the deadline for written comments is March 7, 2011. news@thewirereport.ca

Bell Canada says CRTC vertical integration hearing ‘completely unnecessary’

News | October 27, 2010

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