Canadian Radio-television and Telecommunications Commission - Controversial Decisions

Controversial Decisions

Since 1987, the CRTC has been involved in several controversial decisions:

• Milestone Radio: In two separate rounds of license hearings in the 1990s, the CRTC rejected applications by Milestone Radio to launch a radio station in Toronto which would have been Canada's first urban music station; in both cases, the CRTC instead granted licenses to stations that duplicated formats already offered by other stations in the Toronto market. The CRTC finally granted a license to Milestone in 2000, after a cabinet order-in-council directed the commission to license two new radio stations that reflected the cultural diversity of the Toronto market, and CFXJ-FM launched in 2001.

• CHOI-FM: The CRTC announced it would not renew the licence of the popular CHOI-FM radio station in Quebec City, after having previously sanctioned the station for failing to uphold its promise of performance and then, during the years following, receiving about 50 complaints about offensive behaviour by radio jockeys which similarly contravened CRTC rules on broadcast hate speech. Many thousands of the station's fans marched in the streets and on Parliament Hill against the decision, and the parent company of CHOI, Genex Corp., appealed the CRTC decision unsuccessfully to the Federal Court of Canada. The station was later sold to RNC Media, but instead of renewing its license the CRTC issued RNC a license to launch a new radio station on the same frequency.

• CBC Newsworld: The CRTC licensed the CBC on November 30, 1987 to provide a national all-news television network. Its competitor applicant, Alberta-based Allarcom, appealed this decision to the Canadian House of Commons. It was overturned and there were questions of whether federal politicians should meddle in CRTC decisions. Because of this the network launch was delayed from September 1, 1988 to July 31, 1989.

• RAI International: In Summer 2004, this Italian government controlled channel was denied permission to broadcast independently in Canada on the grounds that it had acted and was likely to act contrary to established Canadian policies. RAI International's latest politically appointed President (an avowed right wing nationalist and former spokesperson for Giorgio Almirante, the leader of the post-fascist party of Italy) had unilaterally terminated a 20-year-old agreement and stripped all of its 1,500 to 2,000 annual hours of programming from TLN Telelatino, a Canadian-run channel which had devoted 95% of its prime time schedule to RAI programs for 20 years since TLN was founded. All Italian-Canadians were denied RAI programming by RAI International's removal of its programming from the Canadian marketplace, a move intended to create a public outcry and a threat that Canadians would resort to using satellite viewing cards obtained via the US in order to watch RAI, even though these cards were either grey market or black market, according to different analyses (see below). Following unprecedented foreign led and domestic political interference with the CRTC's quasi-judicial independent regulatory process, within 6 months of its original decision, an abrupt CRTC "review" of its policy on third-language foreign services determined to drop virtually all restrictions and adopt a new "open entry" approach to foreign controlled "third language" (non-English, non-French) channels.

• Al Jazeera: Was approved by the CRTC in 2004 as an optional cable and satellite offering, but on the condition that any carrier distributing it must edit out any instances of illegal hate speech. Cable companies declared that these restrictions would make it too expensive to carry Al Jazeera. Although no cable company released data as to what such a monitoring service would cost, the end-result was that no cable company elected to carry the station, either, leaving many Arabic-speaking Canadians using free-to-air satellite dishes to watch the station. The Canadian Jewish Congress has expressed its opinion over possible anti-Semitic incitement on this station and that the restrictions on Al Jazeera are appropriate, while the Canadian B'nai Brith is opposed to any approval of Al Jazeera in Canada. The CRTC ruling applied to Al Jazeera and not to its English-speaking sister network Al Jazeera English, which was launched two years after the ruling.

• Fox News: Until 2004, the CRTC's apparent reluctance to grant a digital licence to Fox News under the same policy which made it difficult for RAI to enter the country - same-genre competition from foreign services - had angered many conservative Canadians, who believed the network was deliberately being kept out due to its perceived conservative bias, particularly given the long-standing availability of services such as CNN and BBC World in Canada. On November 18, 2004, however, the CRTC approved an application by cable companies to offer Fox News on the digital cable tier. Fox commenced broadcasting in Canada shortly thereafter.

• Satellite radio: In June 2005, the CRTC outraged some Canadian cultural nationalists (such as the Friends of Canadian Broadcasting) and labour unions by licencing two companies, Canadian Satellite Radio and Sirius Canada to offer satellite radio services in Canada. The two companies are in partnership with American firms XM Satellite Radio and Sirius Satellite Radio respectively, and in accordance with the CRTC decision will only need to offer ten percent Canadian content. The CRTC contends that this low level of Canadian content, particularly when compared to the 35% rule on local radio stations, was necessary because unlicenced U.S. receivers were already flooding into the country, so that enforcing a ban on these receivers would be nearly impossible (see below). This explanation did not satisfy cultural nationalists, who demanded that the federal cabinet overturn the decision and mandate a minimum of 35% Canadian content. Supporters of the decision argue that satellite radio can only be feasibly set up as a continental system, and trying to impose 35% Canadian content across North America is quite unrealistic. They also argue that satellite radio will boost Canadian culture by giving vital exposure to independent artists, instead of concentrating just on the country's stars, and point to the CRTC's successful extraction of promises to program 10% Canadian content on satellite services already operational in the United States as important concessions. Despite popular perception that the CRTC banned Sirius Canada from broadcasting Howard Stern's program, this is not the case. Sirius Canada in fact initially chose not to air Stern based on the possibility of a future issue with the CRTC, although the company reversed its decision and began offering Howard Stern in 2006.

• 2008 Ottawa radio licences: On November 21, 2008, federal Minister of Canadian Heritage and Official Languages James Moore issued a statement calling on the CRTC to review its approval of two new radio stations, Frank Torres' CIDG-FM and Astral Media's CJOT-FM, which it had licensed in August 2008 to serve the Ottawa-Gatineau radio market. Moore asked the commission to assess whether the francophone population of the Ottawa-Gatineau area was sufficiently well-served by existing French radio services, and to consider licensing one or more of the French language applications, which included a Christian music station, a community radio station and a campus radio station for the Université du Québec en Outaouais, in addition to or instead of the approved stations. The review ultimately identified a viable frequency for a third station, and CJFO-FM launched in 2010.

• Bell Canada usage-based billing: On October 28, 2010, the CRTC handed down its final decision on how wholesale customers can be billed by large network owners. Under the plan which starts within 90 days, Bell will be able to charge wholesale service providers a flat monthly fee to connect to its network, and for a set monthly usage limit per each ISP customer the ISP has. Beyond that set limit, individual users will be charged per gigabyte, depending on the speed of their connections. Customers using the fastest connections of five megabits per second, for example, will have a monthly allotment of 60 GB, beyond which Bell will charge $1.12 per GB to a maximum of $22.50. If a customer uses more than 300 GB a month, Bell will also be able to implement an additional charge of 75 cents per gigabyte. In May 2010, the CRTC ruled that Bell could not implement its usage-based billing system until all of its own retail customers had been moved off older, unlimited downloading plans. The requirement would have meant that Bell would have to move its oldest and most loyal customers. The CRTC also added that Bell would be required to offer to wholesale ISPs the same usage insurance plan it sells to retail customers. Bell appealed both requirements, citing that the rules do not apply to cable companies and that they constituted proactive rate regulation by the CRTC, which goes against government official policy direction that the regulator only intervene in markets after a competitive problem has been proven. In Thursday's decision, the CRTC rescinded both requirements, thereby giving Bell the go-ahead to implement usage-based billing. This ruling according to Teksavvy handcuffs the competitive market. This has been asked by Stephen Harper and Parliament to have the decision reviewed. According to a tweet by Industry Minister Tony Clement, unless the CRTC reverses this decision, the government will use its override power to reverse the decision.