CRTC rejects EBox undue preference complaint against Oxio

The CRTC found that a Quebec-based independent broadcasting company is in compliance with its broadcasting exemption order despite taking several months to distribute some required local channels and to provide relevant information to consumers. Thursday, the commission released a decision in which it found that 9303-4338 Québec Inc. (Oxio) is in compliance with the broadcasting distribution undertaking (BDU) exemption order -- which sets out the terms and conditions that BDUs serving fewer than 20,000 subscribers must meet in order to operate as exempt undertakings. In Oct. 2020 Quebec-based independent telecom company Ebox Inc. filed an undue preference complaint with the CRTC alleging that Oxio did not carry all of the required local channels in several of the markets it serves. Specifically, Oxio allegedly did not provide the local channels TVA Gatineau (CHOT-DT) and ICI Télé Gatineau (CBOFT-DT) as part of its basic service in the Outaouais Region, Que., nor did it provide ICI Montréal (CFHD-DT) to it’s Montreal, Que., market. “Ebox also filed a screenshot… displaying the list of channels available to users of Oxio’s service, which can be found on its website, showing only channel and television network logos, and in which some channels appear to be missing,” according to the CRTC decision. Ebox requested that the CRTC direct the company to comply with its exemption order and to “temporarily cease marketing its distribution services until it is able to rectify the situation; otherwise this would, in Ebox’s view, constitute an undue preference that Oxio is granting itself in the marketing of its services.” In Dec. 2020 Quebec-based broadcasters Télé Inter-Rives ltée (partly owned by Quebecor Inc.) and RNC Media Inc. filed a joint intervention in the proceeding which supported Ebox’s position. The interveners argued that “many” BDUs and “most” internet protocol television (IPTV) signal distributors omit local and regional signals from their basic service. They added that their websites “have a distinct lack of information” on the origin of the signals, including no mention of the locations associated with the local or regional stations. “The BDU exemption order does not appear to be achieving its objectives” and that their “failure to carry their television signals is resulting in lost revenues for their stations and a loss of local information for their viewers… along with their ability to produce local content,” the interveners told the CRTC, according to Thursday’s documents. Oxio replied in Dec. 2020 that it did in fact offer RNC Media’s local channels in the Outaouais Region and ICI Montréal, contrary to Ebox’s claims. Oxio admitted it did not offer Télé Inter-Rives’ channels because since Oct. 2020 it had technical problems that slowed down the process. After several back-and-forth correspondences with the commission, in Feb. 2021, Oxio said that “it was working to update the channel lineup on its website and that the work should be completed by 15 March 2021.” Télé Inter-Rives also told the commission that it had resolved the technical issues with Oxio and the missing Télé Inter-Rives would be distributed. In a May 2021 reply, Ebox said “that despite the passage of time, Oxio has yet to remedy the instances of non-compliance” and “mentioned that since Oxio is operating without complying with its regulatory obligations, it benefits from an undue preference that has allowed it to gain significant market share since it markets its BDU service at a lower rate due to below-cost pricing.” The commission in its analysis found that since exempt BDUs are not subject to the regulations, Ebox cannot file an undue preference complaint. The CRTC instead treated it as a non-compliance complaint and found Oxio’s mistakes to be corrected. “Although Oxio required several months to implement the necessary solutions to achieve compliance... Oxio has demonstrated a willingness to do so during the course of the proceeding,” the commission wrote. “In regard to the possibility of requiring Oxio to apply for a broadcasting licence for its BDUs, the commission considers that this option is inappropriate… The administrative burden and time required for such a proceeding would be consequences disproportionate to the instances of non-compliance which, in this case, have been corrected.” The commission said in its decision that it will follow up with Oxio in the coming year to ensure that it remains in compliance with the order. -- Reporting by Jenna Cocullo at jcocullo@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

CRTC rejects EBox undue preference complaint against Oxio

Broadcast | November 4, 2021

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