ARCHIVED -  Public Notice CRTC 1999-118

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Public Notice

See also: 1999-118-1

Ottawa, 19 July 1999

Public Notice CRTC 1999-118
Call for comments on a proposed exemption order for new media broadcasting undertakings
Summary
The Commission calls for comments on a proposed order that would exempt from regulation, without terms or conditions, all new media broadcasting undertakings that provide broadcasting services in whole or in part in Canada. New media broadcasting undertakings are those undertakings that provide broadcasting services over the Internet.
This means that new media broadcasting undertakings would not be subject to licensing by the Commission. The Commission wishes to emphasize that the proposed exemption order does not apply to other broadcasting activities in which a new media broadcasting undertaking may be involved, e.g. over-the-air radio and television broadcasting.
The Commission will accept comments that it receives on or before 31 August 1999.
Background
1.  On 17 May 1999, the Commission issued Broadcasting Public Notice CRTC 1999-84 and Telecom Public Notice CRTC 99-14, Report on New Media (the report). This report set out the Commission's approach for new media broadcasting undertakings.
2.  In the report, the Commission concluded that for those broadcasting undertakings that offer new media services that fall under the definition of "broadcasting" in section 2 of the Broadcasting Act (the Act), regulation is not necessary to achieve the objectives of the Act. It stated that it would issue a proposed exemption order without terms or conditions in respect of all new media broadcasting undertakings that provide broadcasting services over the Internet in whole or in part in Canada.
The Commission's policy on exemption orders
3.  Section 9(4) of the Act states:
  The Commission shall, by order, on such terms and conditions as it deems appropriate, exempt persons who carry on broadcasting undertakings of any class specified in the order from any or all requirements of this Part or of a regulation made under this Part where the Commission is satisfied that compliance with those requirements will not contribute in a material manner to the implementation of the broadcasting policy set out in subsection 3(1).
4.  In Public Notice CRTC 1996-59 dated 26 April 1996, the Commission outlined its policy regarding the use of exemption orders, and stated that it would exempt classes of broadcasting undertakings only where the following two criteria are met:
 ( i) it is evident to the Commission that the licensing and the regulation of the class of undertaking will not result in a significantly greater contribution to the Canadian broadcasting system, whether with respect to the Canadian programming carried by the undertakings of that class, or the expenditures on Canadian programming made by such undertakings; and,
 ( ii) it is evident to the Commission that undertakings operating under the exemption order will not have an undue impact on the ability of licensed undertakings to fulfil their regulatory requirements.
5.  With respect to the first criterion for the use of exemption orders, the Commission noted in the report that, without regulation, the Internet is providing, among other things, Canadian content, as well as valuable sources of information and other services to many Canadians that are otherwise unavailable. The Commission concluded that to impose licensing on new media broadcasting undertakings would not contribute in any way to their development or to the benefits that they have brought to Canadian users, consumers and businesses.
6.  With respect to the second criterion, the Commission considers that new media broadcasting undertakings have not had any detrimental impact on conventional radio and television audiences or on the advertising revenues of traditional broadcasters.
7.  For these reasons, the Commission is of the view that exempting new media broadcasting undertakings is the most appropriate and efficient means of ensuring that the operators of these undertakings are able to concentrate their efforts and resources on serving the cultural and linguistic needs of Canadians.
8.  The Commission is satisfied that compliance with Part II of the Act, and any applicable regulations made thereunder, by persons carrying on new media broadcasting undertakings in whole or in part in Canada, will not contribute in a material manner to the implementation of the policy objectives set out in section 3(1) of the Act.
Proposed exemption order
9.  In light of the foregoing, the Commission calls for public comment on the proposed exemption order set out in the appendix to this notice. The Commission proposes that no conditions for exemption be imposed on new media broadcasting undertakings.
10.  The Commission wishes to emphazise that the proposed exemption order does not apply to other broadcasting activities in which a new media broadcasting undertaking may be involved, e.g. over-the-air radio and television broadcasting. The Commission considers that the provision of new media broadcasting services involves a separate class of broadcasting undertaking for the purpose of the Act.
Call for comments
11.  The Commission invites written comments on the proposed exemption order. The Commission will accept comments that it receives on or before 31 August 1999.
12.  The Commission will not formally acknowledge written comments. It will, however, fully consider all comments and they will form part of the public record of the proceeding, provided that the procedures for filing set out below have been followed.
Procedures for filing comments
13.  Interested parties should send their comments to the Secretary General, CRTC, Ottawa, K1A ON2.
·  Parties must file all submissions in "hard copy format" (i.e. on paper).
·  Comments longer than five pages should include a summary.
14.  The Commission also encourages parties to file electronic versions of their comments by e-mail or on diskette. The Commission's e-mail address for electronically filed documents is procedure.radiodiffusion@crtc.gc.ca
·  Electronic submissions should be in the HTML format. As an alternative, those making submissions may use "Microsoft Word" for text and "Microsoft Excel" for spreadsheets.
·  Please number each paragraph of the comment. In addition, please enter the line ***End of Document*** following the last paragraph. This will help the Commission verify that the document has not been damaged during transmission.
15.  The Commission will make comments filed in electronic form available on its web site at www.crtc.gc.ca in the official language and format in which they are submitted. This will make it easier for members of the public to consult the documents.
Examination of public comments and related documents at the following Commission offices during normal business hours
Central Building
Les Terrasses de la Chaudière
1 Promenade du Portage, Room G-5
Hull, Quebec K1A ON2
Tel: (819) 997-2429 - TDD: 994-0423
Telecopier: (819) 994-0218
Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia B3J 3K8
Tel: (902) 426-7997 - TDD: 426-6997
Telecopier: (902) 426-2721
Place Montréal Trust
1800 McGill College Avenue
Suite 1920
Montréal, Quebec H3A 3J6
Tel: (514) 283-6607 - TDD: 283-8316
Telecopier: (514) 283-3689
Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
Telecopier: (204) 983-6317
530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
Telecopier: (604) 666-8322
CRTC Documentation Centre
55 St. Clair Avenue East
Suite 624
Toronto, Ontario
M4T 1M2
Telephone: (416) 952-9096
Telecopier: (416) 954-6343
CRTC Documentation Centre
Cornwall Professional Building
2125, 11th Avenue
Room 103
Regina, Saskatchewan
S4P 3X3
Telephone: (306) 780-3422
Telecopier: (306) 780-3319
This notice is available in alternative format upon request, and may also be viewed at the following Internet site: http://www.crtc.gc.ca
Secretary General
Appendix to Public Notice CRTC 1999-118
Proposed exemption order
The Commission is satisfied that compliance with Part II of the Broadcasting Act (the Act) and applicable regulations made thereunder by the class of broadcasting undertakings described below will not contribute in a material manner to the implementation of the broadcasting policy set out in subsection 3(1) of the Act.
Therefore, pursuant to subsection 9(4) of the Act, the Commission exempts from the requirements of Part II of the Act and any regulations made thereunder, those persons carrying on in whole or in part in Canada, broadcasting undertakings of the class consisting of new media broadcasting undertakings. New media broadcasting undertakings provide broadcasting services over the Internet, in accordance with the interpretation of broadcasting set out in Broadcasting Public Notice CRTC 1999-84 / Telecom Public Notice CRTC 99-14, Report on New Media, 17 May 1999.

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