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MAJOR CHANGE COMING FOR RADIO, TV RULES

Regulation to ease if content protected, CRTC chairman says

Grant Robertson – Globe and Mail

Canada's broadcast regulator is laying the groundwork for a dramatic shakeup of the television and radio industries by suggesting it will entertain "a lighter approach to regulation" as long as support for Canadian programming is upheld.

 

Speaking to broadcasters in British Columbia yesterday, the chairman of the Canadian Radio-television and Telecommunications Commission, Konrad von Finckenstein, gave the first indication of how he plans to reshape the regulator over the next five years.

 

On the heels of a major review of the telecom sector that has paved the way for deregulation of local phone service, Mr. von Finckenstein announced the CRTC is conducting a sweeping assessment of its own TV and radio policies.

 

"In the past, we took a heavily regulated approach in order to nourish our broadcasting system," he said in a speech in Penticton, B.C.

 

"We now feel that there is a need for some rebalancing. We must avoid suffocating the forces of the market. In fact, we must give fuller play to the energy and creativity of market forces."

 

However, Mr. von Finckenstein attached a key condition to the process. Any changes to regulation must fit within the Broadcasting Act, which requires support for domestic programming and access to the broadcasting system for all Canadians.

 

In the face of technological change, radio and TV broadcasters have been arguing for changes to the regulations governing the sector. In radio, some broadcasters want Canadian content requirements reduced, saying it hinders their ability to compete against iPods and Internet radio.

 

TV broadcasters meanwhile are seeking the right to consolidate. In the case of CTVglobemedia Inc., which bought CHUM Ltd. last summer, the company wants to own several stations in one market.

 

"There is no doubt that a new wind is blowing. We have a government that is very keen on less regulation, and that has directed us to accept market forces as the default and regulation as the exception," Mr. von Finckenstein said.

 

"Regulation will always be necessary [in broadcasting].

 

"The question, however, is what level of regulation?."

 

Mr. von Finckenstein said the CRTC has commissioned two communications lawyers - Laurence Dunbar and Christian Leblanc - to conduct the review of its policies. Observers said the regulator appears to be avoiding a complete deregulation of the TV sector, which critics of the industry have feared would lead to less support for Canadian programming.

 

Several times in his speech, Mr. von Finckenstein referred to upholding the principles of the Broadcasting Act, said Marc Raboy, a professor of media policy at McGill University in Montreal.

 

Instead, Mr. Raboy said he views the CRTC's move more as a signal from the regulator that it is willing to reshape the industry through negotiating with the broadcasters. That is, if they are willing to uphold their support of Canadian programming, then the regulator might be willing to bend on concessions such as ownership restrictions.

 

"They're saying we are attuned to the changes taking place in the industry, and to the government taking a lighter hand ... but he keeps coming back to the cultural objectives," Mr. Raboy said. "We'll have to see how he actually puts it into concrete terms."

 

The CRTC isn't bound to implement any conclusions of the report, which will be completed over the next four months.

 

The entire text of the speech can be found here.

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