ARCHIVED - Public Notice CRTC 2001-25

The Commission encourages RDI to continue its efforts to ensure distribution of its service in analog mode. The Commission also encourages distributors to continue providing this service to their subscribers in analog mode or to add the analog distribution of this service if it is not currently being carried. The Commission notes that RDI will also benefit from the measures adopted in the policy on the distribution of digital specialty services described in Appendix 2.

Distribution of TVA

In Decision CRTC 98-488, the Commission approved the national distribution of the French-language television service of the TVA network. Class 1 and Class 2 distribution undertakings (including MDS and DTH distribution undertakings) are required to distribute the TVA network signal. Class 3 distribution undertakings are strongly encouraged to do so. The Commission stated that it would be prepared to intervene, if necessary, if licensees of certain Class 3 distribution undertakings were not prepared to offer this service in communities having a significant population of Francophones. The Commission also noted that TVA committed to cooperate with small undertakings in order to lighten the financial burden of distributing this service, notably by providing them with decoders.

As noted above, the Commission has taken measures to ensure the national distribution of the TVA network. This service is currently offered throughout much of Canada. Specifically, it is provided by all licensees serving more than 2,000 subscribers. It is also distributed by 557 (or 31.2%) licensees serving fewer than 2,000 subscribers.

As stated in Decision 98-488, the Commission encourages Class 3 distributors to add TVA to their analog service offering. The Commission emphasizes in this regard that, when distributed on an optional basis, the conventional TVA service can be included in the number of French-language specialty services that are distributed, for the purpose of meeting the required 1:10 minimum ratio.

Distribution of CPAC

The Cable Public Affairs Channel (CPAC) is a programming undertaking operated on a not-for-profit basis as a public service and is funded by member companies of the cable distribution industry. CPAC holds a national service licence and has a national mandate, like CBC and RDI. It distributes the proceedings of the House of Commons in accordance with the exemption order set out in Public Notice CRTC 1992-6.

In Decision CRTC 95-22, the Commission stated that CPAC must reflect Canada's dual linguistic nature, present a balance between different points of view and, in particular, represent the various views held by Canadians in the different regions of the country.

One of the issues raised during the consultation is that, when CPAC is distributed, it is very often in its English-language version. The CPAC signal is distributed in three audio modes: English, French and "floor" sound, or language of origination. Distributors thus have a number of options available, one of which is the use of the second audio program (SAP) to distribute the second language of the signal. It should be noted that, in her last report, the Commissioner of Official Languages pointed out that the responsibility for providing the bilingual distribution of the House of Commons proceedings rests with the House. She further indicated, at the hearing, that a review of the situation was in progress.

Concerning distribution of CPAC the Commission expects distributors to provide this service in the majority language in any given market, and also to offer the SAP signal in the minority language where the technology being used makes this possible.

Moreover, the Commission intends to examine the issue of CPAC's distribution further and will shortly initiate a separate process to determine whether the distribution status of CPAC should be changed, in light of its importance in making the proceedings of the House of Commons available to Canadians.

Distribution of French-language educational television services

During the consultations, a number of interveners expressed concern about a recent Commission decision that denied the mandatory distribution of TFO, for a subscriber fee, by cable distributors in Quebec. In this regard, the Commission reiterates the statement contained in Decision CRTC 2000-72 that it ". supports the distribution of TFO in Quebec and across Canada on a non-mandatory basis." The TFO service has, for many years, been included on the lists of eligible satellite services, and distribution undertakings may distribute TFO on a discretionary basis, without having to request the Commission's permission. The satellite distribution services of ExpressVu and Star Choice already provide the TFO service across Canada.

At the public hearing, Télé-Québec noted that its wish is to be distributed more broadly across Canada, without charge, in a digital environment. The President of Télé-Québec stated: [translation]

As a public educational and cultural broadcaster under the authority of the Quebec government, we understand that it would not be appropriate to require residents outside Quebec to contribute to our funding through compulsory distribution, coupled with a subscription rate, as the Commission itself emphasized in its decision on TFO's application to obtain mandatory tariffed distribution in Quebec. That being acknowledged, we believe that compulsory free distribution of Télé-Québec and TFO in digital mode across Canada would benefit all actors and partners in the French-language broadcasting system. It would also benefit all Francophone communities and all bilingual Canadians, who would receive high-quality French-language educational and cultural services at no extra cost.

 ...the free digital distribution of Télé-Québec and TFO could also be beneficial for French-language cable television operators and specialty services, inasmuch as the addition of Télé-Québec and TFO would enhance the French-language service packages offered to subscribers since the average cost per service of these packages would be reduced by the inclusion of two free services.

After reviewing Télé-Québec's proposal, TFO confirmed by letter to the Commission [translation] "that this recommendation does not reflect the position of TVOntario on this issue and should not be used for this purpose." In its letter, TVOntario noted the statement, contained in its earlier submission to the Commission dated 31 August 2000, that it would be logical for its programs to be available to everyone who wanted them, but that there was a need to provide for financial incentives to achieve this.

The Commission notes the positions of the two educational broadcasters and, in particular, the offer by Télé-Québec to make its service available without charge. When conventional educational services are distributed in digital mode outside their province of origin, they can be included in calculating the number of French-language services offered for the purpose of meeting the required 1:10 minimum ratio.

Other distribution modes

The CBC's regional service provided by satellite

The CBC proposed that Star Choice and ExpressVu be required to distribute one signal of its conventional French-language television service from each of Canada's regions. Until recently, ExpressVu provides two signals, from Montréal and Vancouver. Currently Star Choice offers only the one from Montréal. A number of interveners indicated that subscribing to a DTH service often means that a choice must be made between being able to receive local services, with local news, or receiving French-language specialty services of a national nature, since local stations are not generally available on DTH.

The Commission notes that ExpressVu has the capacity to offer additional regional signals and that Star Choice will have this capacity in February 2001. At the hearing, ExpressVu indicated its willingness to increase the offering of regional signals and stated:

.we are presently considering various alternatives, as you know, to offer local news in certain markets... Along these lines, we are pleased to report to you that we will be starting discussions immediately with Société Radio-Canada and the Francophone communities of the Atlantic Provinces to distribute a Radio-Canada French-language television station from this region, either Moncton or another, when, by the end of the year, we add even more to our programming menu, as we have been doing this year. This addition means, therefore, that our Francophone subscribers will have access to conventional services from Vancouver, Hull, Montréal, Quebec City and the Atlantic Provinces, covering three time zones.

The Commission notes the announcement of 1 February 2001 by ExpressVu that it has added the signal of CBAFT Moncton to its basic offering.

In accordance with its approach to the distribution of the CBC services by cable distributors, the Commission expects satellite service providers to offer regional signals of the CBC in both official languages. The Commission proposes to deal with this issue when it considers the licence renewal of satellite service providers and will take into account their efforts in this regard.

Approach for MDS

The Commission remains of the view that the rather limited transmission capacity of multipoint distribution systems (MDS) continues to warrant special treatment. However, as the technology advances and their channel capacity increases, the Commission expects these systems to offer more French-language services. The Commission proposes to deal with issues relating to the number of specialty services distributed in the minority official language at the time of MDS licensing and licence renewal.

Section 3: Reflection of Francophone minority communities in broadcasting services

Programming services - Television

During the public consultations, several Francophone communities outside Quebec pointed out the inequality of service and the difficulty in accessing French-language broadcasting services. They also criticized the lack of content reflecting their particular circumstances. Generally, associations and individuals from those communities stressed the importance they place on receiving a true and accurate representation of the community in which they live.

The Fédération des communautés francophone et acadienne du Canada stated at the hearing that [translation] "We absolutely must be able to see and hear ourselves, and find out what is happening in our various Francophone and Acadian communities across the country."

A number of comments focused on the need for a wider distribution of regional productions. In the words of the Alliance des producteurs francophones du Canada, [translation] "productions originating in our communities reflect the regional diversity of the country, and actively contribute to portraying the culture of Canada's French linguistic minority communities to other French- and English-language Canadians."

The Commission considers that to adequately meet the needs of French linguistic minority communities and better reflect their realities, a number of elements must come together. These include access to more French-language broadcasting services, increased production of quality programming and better reflection in the programs aired by conventional television broadcasters - public and private, educational, specialty and community services - most of which serve the large Francophone market of Quebec.

The Canadian public broadcaster (CBC)

According to the Broadcasting Act, the programming offered by the CBC, as the national public broadcaster, should:

• be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic miniorities;
• reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions,
• strive to be of equivalent quality in English and in French;
• be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose.

The Commission notes that representatives of the Corporation attended all of the regional consultations and the public hearing. The Corporation is therefore aware of the various concerns and demands of Francophone communities outside Quebec.

Several interveners stated that community reflection can be provided not only by news programming, but by regionally-produced priority programming as well. The prime time broadcasting of programming produced by the Corporation, such as the 75^th anniversary of Manitoba's Cercle Molière aired by the entire network at 8:00 p.m. on 22 November 2000, is an excellent example of how this objective can be achieved. This type of project reinforces the Corporation's role in maintaining Canada's Francophone reality. At the same time, it provides Quebeckers with an opportunity to learn about the dynamic Francophone reality that exists outside Quebec, a reality that, if given the opportunity, could be effectively integrated with programming designed to reflect the reality of Francophones inside Quebec.

During the public hearing, the Vice-president of the CBC's French-language television service pointed out that [translation] "the CBC's French-language service faithfully reflects Canadian realities. Outside Quebec, the French-language network reaches 93% of the Francophone population through its six stations and 15 regional offices. Over the last 10 years, regional stations have continued to produce 1,600 hours of regional and national programming, despite major budget cuts."

The Commission has considered the complaints of several interveners regarding the regional content of the French-language services currently available, as well as the initiatives taken by the CBC to remedy that situation. The Commission also notes that in the recent CBC licence renewal decision, it encouraged the French-language network to intensify its efforts to reflect Canada and its regions to national and regional audiences. Specifically, in Decision CRTC 2000-2, the Commission stated as follows:

French-language news and information programs are an excellent vehicle for reflecting the diversity of French-language communities throughout Quebec and Canada. The Corporation's regional stations have an important role to play in this regard. The Commission encourages the licensee to maintain and even enhance its coverage of the concerns of French-language communities in all parts of Canada in its national news and public affairs programming...

The CBC, in fact, committed to enhance the presence of regional production crews, entering into partnerships with independent producers to produce more programs that focus on Francophones outside Montréal, and continuing to broadcast the weekly magazine-type information program L'accent francophone, which looks at the life of French-language communities outside Quebec. Finally, it will set up an advisory committee consisting of 12 regional representatives to advise it on the needs of regional communities and monitor implementation of the regional plan it proposed at the hearing...

The commitments set out above are a step in the right direction, but the Commission considers that this issue deserves more attention. It expects the CBC to increase its efforts to reflect more effectively the life of Francophones in all of Canada's regions in its information and public affairs programming...

CBC French-language television should maintain and even increase regional production. The supper-hour newscasts are popular and offer a different approach to the coverage of local, regional and national issues compared to the private stations.

Given the role that the CBC plays for all Canadians, the Commission has proposed measures in the distribution section of this report specifying that at least one CBC conventional television network signal in each official language be carried by all broadcasting distribution undertakings in analog mode in Canada. The Commission expects the Corporation to pay particular attention to regional realities and to meet the expectations contained in its licence renewal.

National distribution of the private television network TVA

The majority of Francophone interveners, groups and individuals, reiterated their satisfaction with the Commission's 1998 decision to mandate the national distribution of TVA.

However, several said that they were disappointed with the proportion of the network's programming devoted to regional representation, and some noted that TVA only rarely used independent producers working in the regions.

The Vice-president of the TVA network and of Le Canal nouvelles maintained that, in the time since the national distribution of TVA began 18 months ago, TVA "has sought to reflect more effectively the needs and interests of Francophone communities outside Quebec." For example, he noted that TVA has created an advisory committee composed of representatives of Francophone communities in all regions of the country, and has surpassed its commitment to broadcast at least six special events per year that reflect the Francophone reality outside Quebec. He also expressed a strong interest in collaborating with independent producers outside Quebec: [translation] "We have held more discussions and meetings over the past year, and have high hopes that those discussions will result in new concrete projects in the near future."

The Commission has considered the observations and comments made during the public consultations with respect to TVA programming and notes the company's replies. The Commission reiterates that in deciding to mandate the national distribution of TVA in 1998, it placed particular importance on the specific commitments made by TVA to adequately reflect the reality of Francophone communities outside Quebec, and made adherence to those commitments conditions of licence. The Commission will therefore continue to closely monitor compliance with the commitments, and will review them at the spring 2001 licence renewal hearing for TVA (see Notice of Public Hearing CRTC 2001-2 dated 26 January 2001). The Commission will also wish to be assured that Québecor, who has applied to purchase TVA, subject to the Commission's approval, will maintain, strengthen or improve upon these commitments as appropriate.

Provincial French-language educational television services

Educational television services are under the jurisdiction of provincial educational authorities, from whom they receive their mandates and a portion of their funding. They are subject to the Broadcasting Act and the Direction to the CRTC by the Cabinet (Ineligibility to hold broadcasting licences) which defines the framework within which educational broadcasting services can be licensed. By regulation, the services must be distributed free of charge, as part of the basic service of Class 1 and 2 cable distributors in the province of origin. They appear on the lists of eligible satellite services, and are offered by DTH undertakings. They may also be offered by cable distributors outside their province of origin, but distribution conditions may vary. Because these services are now available outside their province of origin, the educational broadcasters are generally obliged to purchase national program rights.

The Commission is of the view that the free but non-discretionary distribution of Télé-Québec to cable distributors serving Francophone communities across Canada could contribute to the cultural vitality of those communities and have a positive impact on the development of Canadian Francophone broadcasting. According to Télé-Québec's president at the hearing: [translation] "it is our desire that this enriched relationship between Télé-Québec and Francophone communities outside Quebec be one of mutual benefit and prove stimulating for Francophones inside Quebec and outside Quebec, particularly with respect to its programming."

During the public consultations, several interveners indicated that TFO, which is the only French-language broadcaster originating programming outside Quebec, offers programming that more effectively reflects Francophone minorities than that of Quebec broadcasters. In Halifax, the Fédération des parents acadiens de la Nouvelle-Écosse stressed the importance of having TFO programming available in Nova Scotia. It added that through its programming, TFO [translation] "is able to reflect the reality of minority communities, because it has its origins in a minority community." The intervener also pointed out that it is important for children to see that they are not alone and that there are other Francophones in Canada experiencing the same realities as they are: [translation] ".our children.must discover a sense of pride in belonging to the extended family of Francophone Canadians."

Moreover, many of these interveners were of the view that mandatory distribution of TFO in Quebec would have served as the best means to reflect Francophone minorities to Quebec residents. The Commission acknowledges the role that TFO could play in serving this objective. It considers that by combining the efforts of several interested parties with those of public and private broadcasters, educational services and specialty services, the objective of bringing about a better on-screen reflection of minorities can be achieved.

The Commission encourages TFO, cable distributors, those various Francophone and Francophile associations who expressed support for a more extensive distribution of TFO programming outside Ontario, and other interested parties, to discuss the most appropriate funding and distribution options for the carriage of this service beyond Ontario.

Canadian specialty services 

Unlike conventional television networks, which broadcast general interest programming, specialty services generally offer programming designed to meet specific needs. Given the nature of those services, the Commission could determine that some have a national role to play. In such circumstances, the Commission might decide to require a licensee to offer programming that reflects certain national realities. This was done in the case of RDI, and Télé des Arts, licensed by the Commission in September 2000.

• RDI: In Decision CRTC 2000-3 renewing RDI's licence, the Commission specified that RDI's programming must, by condition of licence, reflect the concerns of each of the principal Francophone regions in Canada, i.e., Atlantic Canada, Quebec, Ontario and Western Canada. At least one-third of all the original programs broadcast each year must be regional productions.

• Télé des Arts: The Commission notes that it established, as one of the conditions for approval of Télé des Arts' licence application, that the service must reflect "the unique character of Quebec culture and the needs and circumstances of French-language communities in other parts of Canada." The Commission will also ensure that an equitable percentage of the amounts that Télé des Arts has committed to devote to independent production are allocated to regional productions, either outside Montréal or outside Quebec. As another condition of licence, Télé des Arts must reinvest all of its profits in independent production. A quarter of these profits are to go to productions outside Montréal and a further 25% are to be allocated to productions from outside Quebec. The Commission also required that at least 15% of the budget for original Canadian programming be allocated to programs produced outside Quebec during the first four years of the service's operation, and that this amount increase to 20% beginning in the fifth year of operation.

Several interveners were pleased with the conditions of licence that the Commission imposed on Télé des Arts.

At their licence renewals, the Commission will closely monitor how RDI and Télé des Arts have in fact met their conditions of licence and their commitments to French-language minorities.

Specialty services with distribution across Canada

French-language specialty services are now licensed for distribution on a national basis. Most, however, remain largely unknown to Francophone communities outside Quebec. This is the case with such services as MusiquePlus, RDS, and Canal Famille. RDI is an exception to this rule. So, too, is TV5, which, for historical reasons and because of its low wholesale rate, remains (after RDI) the most widely-distributed, analog-based, French-language specialty service outside Quebec. Where they are available, French-language specialty services are greatly appreciated. At the Vancouver consultations, several parties, supported by a petition, expressed their disapproval of a decision by a local cable operator to replace MusiquePlus with MuchMoreMusic.

The implementation of the digital distribution policy (see Appendix 2) will provide increased distribution for French-language specialty services in minority communities. Therefore, the Commission will examine these specialty services, at the time it considers the renewal of their licences, to determine, if and where appropriate, how they might more effectively ensure that their programming reflects and represents French-language minority communities.

A new national public television service

According to the Alliance des producteurs francophones du Canada, [translation] "although television gives us a window on the world, even in the best case scenario we rarely see ourselves reflected back. French-language television in Canada is most often a one-way street. We can discover the richness of Montréal and Quebec culture, of course, but the reverse almost never happens." The Alliance added that [translation] ".French-language television in Canada does not truly reflect Canada, but rather Montréal."

This observation led to several proposals, including one from the Société nationale de l'Acadie, to establish a national public television service devoted entirely to minority Acadian and Francophone communities. According to the Société nationale de l'Acadie, this proposal stems from its concern that the CBC is not fulfilling its "national role" in terms of regional representation.

The Fédération culturelle canadienne française (FCCF) and the Alliance des producteurs francophones du Canada (APFC) echoed the proposal.

It appears that the concept of a national public television service devoted entirely to minority Acadian and Francophone communities remains in the embryonic stage. In the absence of a specific proposal, the Commission is unable to comment on the matter at this time.

Community television

Cable community channels

The Commission received only a few comments on the use of the cable community channel to meets the needs of communities having Francophone minorities.

In 1999, Canadian cable distributors with systems having more than 2,000 subscribers reported the operation of 240 community channels across Canada, funded by budgets totalling $74,253,000.

Table 3.1: Cable distribution undertakings contributing financially to community channels

Table 3.2: Community channel expenditures

Community radio

In the community radio sector, the Réseau francophone d'Amérique, a private network operated by the Alliance des radios communautaires du Canada (ARCC), was approved on 4 February 1998 (Decision CRTC 98-23). This network currently consists of 17 participating community radio stations and covers the provinces of Newfoundland and Labrador, New Brunswick, Ontario, Manitoba and the Northwest Territories.

Table 4.4: French-language community radio stations (outside Quebec)

Observations

The largest share of comments dealing with the radio sector that were made during the public consultations and at the hearing focused on public radio and the future of French-language community radio in minority communities.

Public radio

At the hearing of 18 October 2000, the CBC's Vice-President of French Radio pointed out the degree of coverage achieved by the Corporation's two French-language radio networks. He noted that La Première Chaîne reaches 98% of the French-speaking population of Canada. Eleven of its 19 basic stations are located outside Quebec and 5 of its offices are located in Francophone minority communities. He added that about 30 hours of national programming are produced, approximately half of which originates in regions outside Quebec, and that each station in the network produces an average of about 40 hours of local programming each week.

In addition, according to the CBC, La Chaîne culturelle serves 81% of Francophones across Canada. La Chaîne culturelle has seven stations, including two in Ontario and one in New Brunswick; a station in Sudbury and a repeater station in Campbellton will soon be added. Applications have also been filed to establish La Chaîne culturelle in Vancouver and Winnipeg.

As part of its recommendations, the CBC requested that the government be advised that it would be appropriate to expand the availability of La Chaîne culturelle by establishing an accelerated coverage plan or by reserving FM frequencies in order to allow the CBC to complete its extension of La Chaîne culturelle service to minority markets.

The principal observations of interveners other than the CBC included the following:

• the CBC stations should be more representative of the realities of minority communities;
• the CBC should increase the number of its transmitters in order to cover more regions;
• the CBC should be encouraged to sign service agreements and agreements for the sharing of its facilities with community radio stations in order to facilitate their emergence;
• French-language radio networks broadcasting on the Internet and via satellite should be made available through inexpensive conventional technological means;
• steps should be taken to ensure that French-language services received in minority communities are more tailored to the realities of their target communities (e.g., more regional than national content).

Community radio

The community radio sector, for the most part represented by ARCC, stated clearly that this sector has proven that it is capable of meeting the needs of communities. Some community groups believe the CBC lacks the funding to provide full coverage of communities where minorities are located. It is therefore crucial in their view, to establish a French-language radio development plan for minority communities in Canada.

Interveners also noted that developing and strengthening this sector can only be achieved by granting community stations priority in the allocation of FM frequencies. Moreover, according to ARCC, there are not enough frequencies currently available and this tends to restrict the number of radio proposals that are filed. Many stakeholders expressed a desire to see the Department of Canadian Heritage's funding criteria raised from 50% to 75% of project costs. The Association canadienne française de l'Alberta considered that Canadian Heritage should establish a radio production fund similar to the fund it established for television.

The President of ARCC, which represents 28 community stations in Canada (17 currently in operation and 11 under development), argued in favour of a more generous distribution of frequencies to community radio stations. He suggested that the CRTC and Industry Canada should reserve non-commercial Class B or Class C FM frequencies in each region where there are a significant number of Francophone minority communities, and should set aside space for community radio stations on digital transmitters. He argued that this would prevent this new broadcasting technology from favouring commercial broadcasters and the CBC over community radio. It was also suggested that a frequency development plan should be defined specifically for community radio stations.

ARCC commended the Commission for its efforts to relax its regulations governing community radio. However, ARCC did express reservations about the criterion for developmental stations that limits transmitter power to no more than 5 watts. ARCC and interveners in many provinces supported an increase to 250 watts in order to allow the establishment of developmental stations in areas outside urban areas, thus making it possible over time to extend coverage to Canadians in large and sparsely populated areas (e.g., villages in parts of Manitoba and Saskatchewan that are separated by considerable distances.)

Some considered that the Commission's policy should contain a more clear assessment of the situation facing French-language community radio stations in minority areas. New Brunswick's Radio-Beauséjour proposed the creation of a new class of licence to be known as "proximity radio." As described, this designation would have the advantage of illustrating the direct relationship between this type of station and its listeners. It would also distinguish between Quebec community stations, which are generally located in an area already served by another broadcaster, and community stations in minority language areas that, outside Quebec, are usually the only French-language voices available over the air.

Other interveners associated with community radio made the following comments:

• community radio stations seek to sign contracts to exchange services with the CBC, both with respect to the sharing of their technical facilities so as to extend the community radio network, and with respect to programs in order to meet the needs of minority communities;
• the Réseau francophone d'Amérique should be extended using equipment purchased with the aid of financing from Canadian Heritage;
• the establishment of a Toronto community radio station is of vital importance to the success of the Réseau francophone d'Amérique;
• community radio stations should have spectrum set aside for them to convert to digital broadcasting;
• cable distribution undertakings should distribute community radio programming in the communities they serve.

Analysis

Allocation and assignment of frequencies

As noted by the CBC in the development of its coverage plan for La Chaîne culturelle and by ARCC in the development of the Réseau francophone d'Amérique, the allocation and assignment of frequencies is one of the principal factors curbing their capacity for development.

The allocation of FM frequencies presents a problem in that such frequencies are becoming increasingly scarce. This shortage of frequencies is more critical in the country's major urban areas. Frequency congestion is a problem that exists in our major cities, despite careful spectrum management by Industry Canada. This situation affects the awarding of new licences by the Commission, which must ensure that new services make the best possible use of the available frequency, in the public interest. The Commission cannot approve new radio undertakings without considering the availability of frequencies. In fact, the scarcity of available frequencies often makes it necessary for the CRTC to examine proposals filed for a particular market for a single frequency under a competitive process, even though such proposals may have very different objectives and may appeal to audiences that are also very different.

In its response to the Governor in Council with respect to Order in Council P.C. 2000-1464 concerning the Toronto market, the Commission formulated a number of recommendations inviting Industry Canada to examine the measures proposed by interveners to increase the number of over-the-air analog and digital radio frequencies available within the frequency spectrum.

In the current context, the CRTC should continue to ensure that all new frequency allocations constitute the best possible use of those frequencies, in the public interest. Accordingly, the CRTC must continue to take into account competitive situations, particularly in major urban areas, where demand far outweighs the availability of frequencies. However, the federal government, as suggested by the CBC and ARCC, and as permitted under Section 26 of the Broadcasting Act, may decide to reserve frequencies for specific purposes. Thus, the government may issue directions to the Commission:

• respecting the maximum number of channels or frequencies for the use of which licences may be issued within a geographical area designated in the order; and
• respecting the reservation of channels or frequencies for the use of the Corporation or for any special purpose designated in the order.

The CBC

In its renewal of the Canadian Broadcasting Corporation's licences, the Commission recognized that the French-language radio service of the CBC is unique and distinct from commercial radio, both in information (La Première Chaîne) and in arts, culture and music (La Chaîne culturelle). It is a service, the Commission noted, that is greatly appreciated by its loyal listeners, that contributes significantly to Francophone expression, and that enhances the overall diversity of French-language radio. The Commission noted, however, as was pointed out in the consultations, that French-language CBC stations should ensure the fair representation on the airwaves of minority communities.

The Commission expects the CBC to implement its commitments as well as the conditions and expectations stated in its licence renewal (CRTC Decision 2000-2), in particular "to take steps to ensure the fair representation, on the airwaves of regional stations and in network programs, of the issues and the concerns of all Francophone groups and communities across the country"; and that La Chaîne culturelle "extend its service coverage to:

• at least 50% of the French-speaking population of each province by the end of the licence term;
• at least 75% of the French-speaking population of New Brunswick and Ontario by the end of the licence term;
• all the provincial capitals by the end of the licence term."

During the consultations, the Commission noted that relations between the CBC and operators of community stations in minority communities generally seemed healthy and constructive.

The CBC's Vice-President of French Radio made mention of this in reference, among other things, to the framework agreement that the CBC has signed with ARCC, which covers several subjects including the sharing of content. The CBC currently provides daily information bulletins to ARCC and places a number of general interest programs at ARCC's disposal. He also noted that regions outside Quebec produce and broadcast close to 2,500 program segments annually throughout Canada on the two French-language networks.

The Commission commends the CBC on its collaboration with community radio stations in minority communities, and encourages it to pursue its discussions with respect to programming, antenna time sharing and access to its transmitter sites, particularly in areas where frequency congestion is very high.

Community broadcasting services

In January 2000, the Commission issued a policy framework for the development of community radio. This policy was widely supported by interested parties. However, some proposed various amendments that would apply specifically to French-language minority community radio stations.

The Commission recently issued PN 2001-19, inviting the public to submit its observations and comments on the revision of the community channel policy and the policy on low-power radio broadcasting. In the rapidly changing world of communications, and in light of the merging and consolidation of broadcasting companies as well as the emergence of new technologies, the Commission recognized the importance of opening up new avenues and proposed a regulatory framework that would integrate the following three sectors: low-power radio, low-power community-based television stations and cable community television channels.

The Commission therefore invites interested parties, including Francophone and Francophile associations, and those involved in community radio broadcasting to take part in the public process announced in PN 2001-19 by submitting their observations concerning the matters raised therein. This process will focus on many of the concerns that have been raised.

The rebroadcasting of community radio by cable systems was raised and discussed on several occasions, particularly as it relates to the interconnection of cable systems in some regions. Although this alternative may be considered in certain cases, technical and financial considerations related to the broadcasting, receiving and distribution of the signal are factors that might limit its feasibility. If particular community radio stations believe that such an option could be effective in their areas, the Commission encourages them to discuss the matter with the cable distribution undertakings concerned.

Financing community radio

Several interveners informed the Commission that, in addition to the availability and accessibility of frequencies, the development of community radio services is frequently related to the issue of project financing.

The public consultations indicated that community broadcasting is an effective means to increase French-language services outside Quebec. Some expressed the view that community broadcasting represents an alternative to the public broadcaster, as well as a tool for the development and enrichment of minority communities. For its part, however, the Commission recognizes that the viability of any community broadcasting proposal is very closely tied to funding.

Matters concerning the criteria, terms and conditions of obtaining financing, are not under the Commission's jurisdiction, but come under the purview of other government bodies. Accordingly, the Commission invites community and Francophone associations to initiate and pursue the steps necessary to make their views known to authorities responsible for such matters as financing.

Section 5: New Media

Referring to the technological progress that has been made in recent years, the Order in Council identified new and other technologies as possible means of enhancing the range of services to Francophones in minority communities.

In a world increasingly oriented toward electronic communications and digital transmission, the fact that new technologies now constitute an additional, non-traditional avenue cannot be overlooked. As the following table shows, Canada has taken the lead in this regard. The number of homes with increasingly powerful personal computers and high-speed Internet access, and the profile of those using these tools, indicate clearly that the dynamics of broadcasting services are bound to change significantly within a few years. This could give Francophone minorities access to a much greater amount of French-language content than they currently have. It could also eliminate the limitations imposed by distance and by the technical costs related to transmission and distribution equipment in regions where, based on economic criteria alone, the number of potential users does not justify the investment.

Table 5.1 Connection rates to the World Wide Web

Source: Price Waterhouse Coopers, November 2000

According to a study by Price Waterhouse Coopers, made public on 16 November 2000, almost half of Canadian households are connected to the World Wide Web. The exact figure for Canada is 48.2%, which compares with 43% in the United States, 38% in Australia and 26% in Europe (France, Great Britain and Germany, for the purposes of this study).

The study shows that Canadians also rank first in terms of the number of hours spent surfing the Net, with an average of 5.1 hours per week, a clear increase over 1999 when the figure was 3.9 hours per week.

The following chart illustrates, among other things, the percentage of Canadian households using the Internet. One notes that between 1998 and 1999, household use has surpassed professional use.

Table 5.2: Distribution of Internet use

Source: Statistics Canada - Services Indicators, 1^st Quarter, 1999 - Household Internet Use Survey, 1999

Over the past three years, use of the Internet has become a common practice for many Canadians, whether they are at work or at home. This technological tool has become the most popular means of communications for a significant proportion of the Canadian population.

Rate of penetration by province

The following section examines the new media as they relate to Francophone minorities, and the level of Internet penetration in the provinces where those minorities reside.

Table 5.3: Rate of Internet penetration (%) in provinces outside Quebec

Source: Statistics Canada - Services Indicators, 1^st Quarter, 1999 - Household Internet Use Survey, 1999

During the consultations, new technologies were discussed largely as means of enhancing Francophone broadcasting services through digital distribution. Few suggestions were made with regard to the use of new media as alternatives for broadening the range of services available to Francophones in minority communities.

Although the statistics in this document indicate that Canadians are among those most connected to the Internet, interveners did not seem to regard the new media as an additional means to complement the conventional services at their disposal for enhancing services delivered in French. With a level of Internet penetration close to 50%, there can be no question that the new technologies constitute an important method of communication.

The Commission considers that the development of new media will help make services more accessible to current and future generations in minority communities. This will enable them to take advantage of more tools and content, thus better ensuring the development of their language and culture in a way that was not possible for previous generations in such communities.

The Commission considers it unlikely that new media will replace conventional radio and television. On the contrary, the Commission believes that new media complement conventional broadcasting services and make it possible to expand distribution, thus making broadcasting services available to users who would otherwise not have had access to them.

For example, in the area of public television, the Commission notes that every day the CBC updates a Web site that includes some 95,000 pages of information and close to 3,000 hours of audio and video material.

The radio sector is also performing well. In the area of public radio, the CBC offers live transmissions of La Première chaîne and La Chaîne culturelle on its Web site. Several privately-owned French-language radio stations also transmit live on the Internet.

The Commission also notes that recent years have witnessed a proliferation of Web sites maintained by licensees of specialty services. For example, LCN rebroadcasts its headlines via the Internet. In general, specialty services have viewed the Internet as a unique opportunity to promote their services while offering Internet users the chance to view segments of their programming.

During the consultations, several interveners stressed that community radio stations lacked the means to become established. In light of recent technological developments, it might be appropriate for community and Francophone associations to explore the opportunities offered by new media for introducing community radio in minority communities. In fact, the Commission is of the opinion that constant improvements in advanced technology and current progress in terms of rebroadcasting of programs will enable new media to become one of the preferred means of transmitting, exchanging and sharing community television and radio broadcasts.

Given the role played by the Internet in complementing conventional broadcasting services, the Commission regards the Internet as an effective means of improving access to certain services in regions where other means are not available and where there are high concentrations of minority Francophone communities. It therefore encourages all players in the Canadian broadcasting system to continue their efforts to make use of the Internet for this purpose.

High-speed Internet connection

According to the Price Waterhouse Coopers study mentioned previously, 22% of Canadian households that are connected to the Internet have a high-speed connection. Last year, this figure was only 18%.

Given that:

• the use of high-speed links makes transmission of broadcasting services more efficient,

• growth in the digital capacity of cable distributors and the technologies used by telecommunications undertakings will continue to promote rapid development of high-speed connections in Canada, and

• the government will make high-speed Internet access available to residents in all communities in Canada by 2004,

the Commission is confident that, in the future, urban and rural minority Francophone communities will have improved access to this distribution medium as a complement to traditional French-language broadcasting services.

Conclusion

The Commission wishes to thank all of the individuals, organizations and associations who participated in the process of public consultation that took place in the fall of last year. Their contributions to the discussion and thoughtful suggestions have been of great assistance to the Commission in preparing this report.

The Commission emphasizes that, consistent with Order in Council 2000-511, one of the principal objectives of this report is to examine the means to foster improved access by Francophones living in minority environments in Canada to broadcasting services in their own language, and to promote a more accurate reflection of their culture and distinctiveness. The Commission considers that the implementation of digital technology will contribute to the achievement of these objectives, as well as the achievement of the broad cultural goals set out in section 3.(1) of the Broadcasting Act.

The Commission is also convinced that the very large transmission capacity of digital technology represents an invaluable opportunity to expand the number of broadcasting services offered to all Canadians, thus giving consumers greater choice.

To this end, the Commission has proposed a number of concrete measures that take into account the current realities, while anticipating future developments as well. In particular, the Commission has put a policy framework in place designed to increase the availability of specialty television services to official language minorities across Canada.

The Commission considers that it cannot serve as the sole instrument for achieving all of the pursued objectives. The Commission is convinced that only the collective effort of all parties involved will make it possible to offer Francophone minorities in Canada a fuller range of broadcasting services that more accurately reflect their reality, thereby enabling them to thrive in the communities they have chosen to make their homes, wherever they are located, thus achieving a better balance. 

Secretary General

This document is available in alternative format upon request and may also be viewed at the following Internet site: http://www.crtc.gc.ca 

Appendix 1

List of recommendations

Section 2: Distribution of French-language broadcasting services

Distribution on digital mode

Paragraph

The Commission has adopted the following policy approach:

Distribution undertakings serving over 2000 subscribers and using the high capacity numeric technology: 750 MHz or up.

a) Licensees of distribution undertakings serving more than 2,000 subscribers and using high-capacity digital technology (750 MHz nominal or more) will be required to offer all English-language and French-language Canadian specialty services and at least one pay television service, but not Category 2 digital specialty services or pay-per-view television services.

Distribution undertakings serving over 2000 subscribers and using digital capacity of technology: less than 750 MHz.

b) Licensees serving more than 2,000 subscribers and using digital technology of lower capacity (less than 750 MHz nominal) will be required to distribute at least one Canadian specialty service in the minority official language for every 10 programming services (Canadian and non-Canadian) distributed in the majority official language.

The Commission emphasizes that the obligation imposed on the licensees to offer services places no obligation on subscribers to subscribe to them. The Commission considers that the choice of whether or not to subscribe to services must remain with the consumer.

Class 3 distribution undertakings having less than 2000 subscribers and using a less high digital capacity numeric technology (550 MHz) utilization of the 1:10 ratio.

All licensees of Class 3 undertakings that use digital technology of a capacity of 550 MHz nominal or more, will be required to distribute at least one Canadian specialty service in the minority official language for every 10 programming services (Canadian and non-Canadian) distributed in the majority official language

Class 3 distribution undertakings interconnected to another system

Furthermore, a Class 3 system that is fully interconnected to another system will be required to provide the same number of minority official language services as the system to which it is interconnected, unless it does not have the capacity to do so.

Accessibility of Canadian specialty services at a moderate cost

The Commission expects distribution undertakings to ensure that specialty services are delivered to subscribers at affordable rates, in compliance with section 3(1)(t)(ii) of the Act, and are packaged in a manner that reflects the needs of official language minorities. To this end, the Commission further expects specialty services to apply wholesale rates that are consistent with those proposed at the hearing.

Distribution on analog mode

The Commission considers that, in the short term, the majority of cable programming services will continue to be provided in analog mode. Accordingly, the Commission has decided not to permit any reduction in the number of French-language services distributed on analog channels in Anglophone markets. All Class 1 and 2 cable systems in Anglophone markets will be required to provide, in analog mode, the same number of Canadian French-language services as that being distributed on analog channels on 10 March 2000 (PN 2000-38).

Distribution of the CBC television services

All cable systems will be required to distribute at least one CBC signal in each official language. In accordance with section 3(1)(m)(vii) of the Broadcasting Act, the Commission considers that the Corporation should assume responsibility for delivering its signals to distributors. Once this occurs, i.e. once the signals have been provided to a distributor's head end, then the distributor will be required to deliver these services to its subscribers and assume responsibility for the associated distribution costs.

Distribution of "Télé des Arts"

The Commission emphasizes that one of the conditions of licence imposed on Télé des Arts stipulates that the service must be made available free of charge to cable distributors who distribute the service on an analog basis in Anglophone markets. The Commission encourages cable distributors to offer the service. Moreover, the Commission notes that its new policy should result in wider distribution of all specialty services in digital mode.

Distribution of Réseau de l'information (RDI)

The Commission encourages RDI to continue its efforts to ensure distribution of its service in analog mode. The Commission also encourages distributors to continue providing this service to their subscribers in analog mode or to add the analog distribution of this service if it is not currently being carried. The Commission notes that RDI will also benefit from the measures adopted in the policy on the distribution of digital specialty services described in Appendix 2.

Distribution of TVA

As stated in Decision 98-488, the Commission encourages Class 3 distributors to add TVA to their analog service offering. The Commission emphasizes in this regard that, when distributed on an optional basis, the conventional TVA service can be included in the number of French-language specialty services that are distributed, for the purpose of meeting the required 1:10 minimum ratio.

Distribution of CPAC

Concerning distribution of CPAC the Commission expects distributors to provide this service in the majority language in any given market, and also to offer the SAP signal in the minority language where the technology being used makes this possible.

Moreover, the Commission intends to examine the issue of CPAC's distribution further and will shortly initiate a separate process to determine whether the distribution status of CPAC should be changed, in light of its importance in making the proceedings of the House of Commons available to Canadians.

Distribution of French-language Educational television services

The Commission notes the positions of the two educational broadcasters and, in particular, the offer by Télé-Québec to make its service available without charge. When conventional educational services are distributed in digital mode outside their province of origin, they can be included in calculating the number of French-language services offered for the purpose of meeting the required 1:10 minimum ratio.

CBC regional service offered by satellite

In accordance with its approach to the distribution of the CBC services by cable distributors, the Commission expects satellite service providers to offer regional signals of the CBC in both official languages. The Commission proposes to deal with this issue when it considers the licence renewal of satellite service providers and will take into account their efforts in this regard.

Approach for MDS

The Commission remains of the view that the rather limited transmission capacity of multipoint distribution systems (MDS) continues to warrant special treatment. However, as the technology advances and their channel capacity increases, the Commission expects these systems to offer more French-language services. The Commission proposes to deal with issues relating to the number of specialty services distributed in the minority official language at the time of MDS licensing and licence renewal.

Section 3: Reflection of Francophone minority communities in broadcasting services

The Commission considers that to adequately meet the needs of French linguistic minority communities and better reflect their realities, a number of elements must come together. These include access to more French-language broadcasting services, increased production of quality programming and better reflection in the programs aired by conventional television broadcasters - public and private, educational, specialty and community services - most of which serve the large Francophone market of Quebec.

Increased regional reflection on the CBC

Given the role that the CBC plays for all Canadians, the Commission has proposed measures in the distribution section of this report specifying that at least one CBC conventional television network signal in each official language be carried by all broadcasting distribution undertakings in analog mode in Canada. The Commission expects the Corporation to pay particular attention to regional realities and to meet the expectations contained in its licence renewal.

National distribution of TVA

The Commission reiterates that in deciding to mandate the national distribution of TVA in 1998, it placed particular importance on the specific commitments made by TVA to adequately reflect the reality of Francophone communities outside Quebec, and made adherence to those commitments conditions of licence. The Commission will therefore continue to closely monitor compliance with the commitments, and will review them at the spring 2001 licence renewal hearing for TVA (see Notice of Public Hearing CRTC 2001-2 dated 26 January 2001). The Commission will also wish to be assured that Québecor, who has applied to purchase TVA, subject to the Commission's approval, will maintain, strengthen or improve upon these commitments as appropriate.

Distribution of TFO outside the province of Ontario

The Commission encourages TFO, cable distributors, those various Francophone and Francophile associations who expressed support for a more extensive distribution of TFO programming outside Ontario, and other interested parties, to discuss the most appropriate funding and distribution options for the carriage of this service beyond Ontario.

RDI and Télé des Arts's compliance with their conditions of licence

At their licence renewals, the Commission will closely monitor how RDI and Télé des Arts have in fact met their conditions of licence and their commitments to French-language minorities.

National distribution of specialty services

The implementation of the digital distribution policy (see Appendix 2) will provide increased distribution for French-language specialty services in minority communities. Therefore, the Commission will examine these specialty services, at the time it considers the renewal of their licences, to determine, if and where appropriate, how they might more effectively ensure that their programming reflects and represents French-language minority communities.

A new national public television service entirely dedicaded to Acadian and francophone minority communities.

It appears that the concept of a national public television service devoted entirely to minority Acadian and Francophone communities remains in the embryonic stage. In the absence of a specific proposal, the Commission is unable to comment on the matter at this time.

The Community television

The Commission invites Francophone organizations and associations to participate in the consultative process announced in Public Notice 2001-19, that relates to community issues, and to explore options set out in the notice for meeting both their local and regional television needs.

Independent production in minority communities

Accordingly, the Commission encourages the various stakeholders to continue their efforts to increase the number of original productions originating in French-language minority communities and aired by Canadian broadcasters. The working group's efforts have already produced results, notably the appointment of an APFC representative to the Board of Directors of the Canadian Television Fund. The Commission encourages the licensees of French-language conventional services, and those of the new specialty services that are to be distributed across Canada in digital mode, to make greater use of independent producers from outside Quebec.

French-language foreign services

In Public Notice 2000-173, the Commission announced its intention to move quickly to review applications for adding non-Canadian services to the lists of eligible satellite services for digital distribution, provided they not compete in whole or in part, with Canadian services.

Section 4: Radio

Allocation and assignment of frequencies

In the current context, the CRTC should continue to ensure that all new frequency allocations constitute the best possible use of those frequencies, in the public interest. Accordingly, the CRTC must continue to take into account competitive situations, particularly in major urban areas, where demand far outweighs the availability of frequencies. However, the federal government, as suggested by the CBC and ARCC, and as permitted under Section 26 of the Broadcasting Act, may decide to reserve frequencies for specific purposes. Thus, the government may issue directions to the Commission:

• respecting the maximum number of channels or frequencies for the use of which licences may be issued within a geographical area designated in the order; and
• respecting the reservation of channels or frequencies for the use of the Corporation or for any special purpose designated in the order.

CBC French radio

The Commission expects the CBC to implement its commitments as well as the conditions and expectations stated in its licence renewal (CRTC Decision 2000-2), in particular "to take steps to ensure the fair representation, on the airwaves of regional stations and in network programs, of the issues and the concerns of all Francophone groups and communities across the country"; and that La Chaîne culturelle "extend its service coverage to:

• at least 50% of the French-speaking population of each province by the end of the licence term;
• at least 75% of the French-speaking population of New Brunswick and Ontario by the end of the licence term;
• all the provincial capitals by the end of the licence term."

Collaboration between CBC and community radio stations

The Commission commends the CBC on its collaboration with community radio stations in minority communities, and encourages it to pursue its discussions with respect to programming, antenna time sharing and access to its transmitter sites, particularly in areas where frequency congestion is very high.

Community radio

The Commission recognized the importance of opening up new avenues and proposed a regulatory framework that would integrate the following three sectors: low-power radio, low-power community-based television stations and cable community television channels.

The Commission therefore invites interested parties, including Francophone and Francophile associations, and those involved in community radio broadcasting to take part in the public process announced in PN 2001-19 by submitting their observations concerning the matters raised therein. This process will focus on many of the concerns that have been raised.

Financing community radio

The Commission invites community and Francophone associations to initiate and pursue the steps necessary to make their views known to authorities responsible for such matters as financing.

Section 5: New Media

Given the role played by the Internet in complementing conventional broadcasting services, the Commission regards the Internet as an effective means of improving access to certain services in regions where other means are not available and where there are high concentrations of minority Francophone communities. It therefore encourages all players in the Canadian broadcasting system to continue their efforts to make use of the Internet for this purpose.

Given that :

• the use of high-speed links makes transmission of broadcasting services more efficient,
• growth in the digital capacity of cable distributors and the technologies used by telecommunications undertakings will continue to promote rapid development of high-speed connections in Canada, and
• the government will make high-speed Internet access available to residents in all communities in Canada by 2004,

the Commission is confident that, in the future, urban and rural minority Francophone communities will have improved access to this distribution medium as a complement to traditional French-language broadcasting services.

Appendix 2

Public Notice CRTC 2001-26

Ottawa, 12 February 2001

A policy to increase the availability to cable subscribers of specialty services in the minority official language

This public notice provides further details and discusses certain amendments that the Commission must make to the Broadcasting Distribution Regulations in order to implement certain of the measures and recommendations related to distribution issues and put forward in the report to the Governor in Council released today (Public Notice CRTC 2001-25). This notice also concludes the process initiated in Public Notice CRTC 2000-38.

Introduction

Following the publication of a proposed policy by the Commission to increase the availability of specialty services in the minority official language for cable subscribers (Public Notice CRTC 2000-38, 10 March 2000), the Governor in Council, on 5 April 2000, issued Order in Council P.C. 2000-511. The Order requested that the Commission, pursuant to the Broadcasting Act (the Act), take its initiative further.

In Public Notice CRTC 2001-25 released today, the Commission announces the results of its consultations on the issues raised by the Governor in Council and on the proposed policy set out in PN CRTC 2000-38. PN CRTC 2001-25 also sets out the reasons underlying the Commission's determinations. The purpose of this public notice is to describe the steps that the Commission intends to follow to put these measures in place, and to provide the technical details and other information that the licensees of distribution undertakings will require in order to prepare for implementation of these measures.

Several of the measures adopted by the Commission will require amendments to the Broadcasting Distribution Regulations (the regulations). Proposed amendments will be issued soon for public comment.

The way of the future: digital distribution

As stated in its report, the Commission has adopted an approach that takes advantage of the implementation of digital distribution to ensure increased distribution of Canadian English- and French-language specialty services.

The Commission notes that a bandwidth of 750 MHz nominal can accommodate 110 analog channels. In digital mode, with the current average compression ratio of 1:8, the same transmission capacity allows a distributor to provide about 77 analog channels and 200 to 250 digital video channels. This is in addition to digital audio channels and Internet service. A bandwidth of 550 MHz nominal can accommodate 77 analog channels. On average, distributors use 70 of these channels to distribute analog signals, which leaves enough bandwidth for them to provide about 30 to 50 digital video channels, plus digital audio channels and Internet service.

The Commission's approach recognizes the difference between analog technology and the various levels of digital technology, and adjusts distribution requirements to suit the technology employed by the distributor.

Requirements of the new policy

Class 1 and Class 2 distribution undertakings

The following requirements will apply to licensees of Class 1 and Class 2 undertakings that distribute programming services to their subscribers in digital mode.

All Class 1 and Class 2 cable distributors using high-capacity digital technology (750 MHz nominal or more) will be required to offer all Canadian English- and French-language specialty services and at least one pay television service except Category 2 digital specialty services and pay-per-view television services. Individual services need only be offered once. If a service is offered on analog, it need not also be offered on digital.

All Class 1 and Class 2 cable distributors using lower-capacity digital technology (less than 750 MHz nominal) will be required to offer at least one Canadian specialty service in the minority official language in either analog or digital mode for every 10 (Canadian or non-Canadian) programming services distributed in the majority official language.

To determine the minimum number of Canadian specialty services in the minority official language that a licensee would be required to distribute, one service will be credited for each licensed programming service in the minority official language that the licensee distributes. These services will include all minority official language specialty services, discretionary services, educational services distributed outside their province of origin, and optional conventional television services. The services will exclude any minority official language programming services that are required to be distributed pursuant to section 17 of the regulations or section 9.(1)(h) of the Act.

For purposes of determining the total number of programming services distributed, all special programming services and exempted services will be excluded. Pay television, pay-per-view and video-on-demand services operating in either official language will be credited as individual services, as will any other English- or French-language programming services that may be distributed by the licensee more than once on either analog or digital channels.

Class 3 distribution undertakings

In its original policy proposal (PN 2000-38), the Commission acknowledged that there are some Class 3 cable licensees who are in the process of deploying digital capacity, and whose licensed areas include significant numbers of people who have a knowledge of the minority official language. It nonetheless proposed to exempt those undertakings from its general policy concerning the distribution of broadcasting services in minority communities.

After weighing the above considerations and noting the pressing demands of many Francophone and Francophile interveners at the public consultations, the Commission has amended its original proposal for Class 3 undertakings. The new approach reflects the principles set out in the report. Although the Commission expects these undertakings to meet certain requirements, the approach makes allowance for their limited size.

The following requirements will apply to licensees of Class 3 undertakings that distribute programming services to their subscribers in digital mode. The Commission intends to amend the regulations and the exemption order for small cable systems proposed in Public Notice CRTC 2000-162 so that they reflect these requirements.

All Class 3 cable distributors using medium-capacity or high-capacity digital technology (550 MHz or more) will be required to distribute at least one Canadian specialty service in the minority official language for every 10 (Canadian or non-Canadian) programming services distributed in the majority official language.

The same approach as that described in paragraph 10 above will be used to determine the minimum number of Canadian specialty services in the minority official language that a Class 3 licensee would be required to distribute.

Furthermore, a Class 3 system which is fully interconnected to another system will be required to provide the same number of Canadian services in the minority official language as the system to which it is interconnected, unless it does not have the technical capacity to do so in spite of the interconnection.

The same approach as that described in paragraph 11 above will be used for purposes of determining the total number of programming services distributed on a Class 3 undertaking.

Exemption from requirements

Where circumstances warrant, for instance where a system's digital conversion lags behind that of other systems, the Commission would be prepared, on receipt of an application and following a public process, to grant the licensee a partial exemption from the above requirements. In such cases, the Commission would expect the licensee's application to indicate how it intends to otherwise serve its subscribers who have a knowledge of the minority official language. The Commission will consider requests for partial exemptions from all cable distributors regardless of the class of undertaking concerned.

Analog distribution

The Commission considers that, in the short term, the majority of cable subscribers will continue to receive their programming services in analog mode. Given this fact, the Commission has decided not to permit any reduction in the number of Canadian French-language services distributed on analog channels in Anglophone markets.

The Commission considers that it would be inconsistent with the goals of its policy if cable distributors serving communities where English is the majority official language could shift, to digital channels, Canadian French-language services that they currently carry on analog channels, thereby reserving their analog capacity for other purposes.

Accordingly, the Commission will require the licensees of all Class 1 and Class 2 cable distribution undertakings operating in Anglophone markets, as that term is described in section 18 of the regulations, to ensure that the number of French-language services distributed on analog channels as of 10 March 2000 (PN 2000-38) is not reduced. The Commission emphasizes that this requirement applies only to the number of French-language services, and not to the nature of the services. This requirement applies whether or not the licensees have commenced the transition from analog to digital distribution.

Distribution of public television

In its report the Commission determined that all distribution undertakings should be required to distribute at least one signal of each of the CBC's English- and French-language conventional television services. The Commission notes that Class 1 and 2 distribution undertakings and DTH distribution undertakings are already required to do so under the regulations.

To implement the Commission's policy regarding the conventional television signals of the CBC, the Commission intends to amend section 32 of the regulations. This section prescribes the television programming services that Class 3 distribution undertakings are required to distribute on their basic service. A similar amendment will also be made to the exemption order for small cable systems proposed in PN CRTC 2000-162.

Multipoint distribution systems

As noted in the report, the Commission does not intend to impose additional requirements on multipoint distribution systems (MDS). The Commission still considers that their limited capacity warrants special treatment. The Commission notes that its practice is to license MDS undertakings as Class 1 cable distribution undertakings. Accordingly, an amendment to the regulations will be required to reflect this policy approach for MDS.

However, the Commission reiterates the expectation contained in its report to the Governor in Council that, as technology evolves and channel capacity increases, the licensees of MDS undertakings should offer more services. Moreover, when licensing or renewing the licences of MDS undertakings, the Commission intends to address issues related to the number of specialty services distributed in the minority official language.

Implementation

As mentioned above, the Commission intends to implement its policy through amendments to the regulations. It expects to announce proposed amendments in the near future. It further expects the public proceeding pertaining to the proposed amendments to be completed in time for them to come into effect on 1 September 2001.

Secretary General

This document is available in alternate format upon request and may also be examined at the following Internet site: www.crtc.gc.ca 

Appendix 3

Order in Council P.C. 2000-511
April 5, 2000

Whereas the Canadian Radio-television and Telecommunications Commission (hereinafter referred to as "the Commission") is responsible for regulating and supervising all aspects of the Canadian broadcasting system to implement the broadcasting policy set out in the Broadcasting Act;

Whereas, among other things, subsection 5(2) of that Act stipulates that the Canadian broadcasting system should be regulated and supervised in a flexible manner that

(a) is readily adaptable to the different characteristics of English- and French-language broadcasting and to the different conditions under which broadcasting undertakings that provide English- or French-language programming operate, and

(b) takes into account regional needs and concerns;

Whereas, among other things, the broadcasting policy for Canada set out in subsection 3(1) of that Act provides that

(a) English- and French-language broadcasting, while sharing common aspects, operate under different conditions and may have different requirements,

(b) the programming provided by the Canadian broadcasting system should be drawn from local, regional, national and international sources, and

(c) a range of broadcasting services in English and in French shall be extended to all Canadians as resources become available;

Whereas the Governor in Council recognizes the current initiative undertaken by the Commission to bring more minority official language specialty services to cable subscribers across Canada in the new digital environment;

Whereas the Governor in Council further considers and assigns high priority to the fact that

(a) broadcasting services should reflect the uniqueness of the Quebec culture and the needs and circumstances of French-language communities in other parts of Canada,

(b) the presence of French-language broadcasting services in the French linguistic minority communities in Canada contributes not only to the vitality and development of the Francophone communities but also responds to the needs of all Canadians who wish to attain a better understanding of both official languages,

(c) the provision of French-language broadcasting services to French linguistic minority communities presents particular and considerable challenges, and

(d) technological and other developments could contribute to meet these challenges;

Whereas subsection 15(1) of that Act provides that the Commission shall, on request of the Governor in Council, hold hearings or make reports on any matter within the jurisdiction of the Commission;

And whereas, in accordance with subsection 15(2) of that Act, the Minister of Canadian Heritage has consulted the Commission with regard to this request;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Canadian Heritage, pursuant to section 15 of the Broadcasting Act, hereby requests the Canadian Radio-television and Telecommunications Commission to seek comments from the public and to report at the earliest possible time, but no later than December 31, 2000, with a view to

(a) assessing the availability and the quality of French-language broadcasting services in the French linguistic minority communities in Canada,

(b) identifying any deficiencies and challenges in the above communities to the provision of French-language broadcasting services -- radio, television, specialty, pay and pay-per-view services -- comprising public, private and community elements, and the availability of French-language broadcasting services on the various broadcasting distribution systems, and

(c) proposing measures to encourage and facilitate access to the widest range of French-language broadcasting services possible in French linguistic minority communities and to ensure that the diversity of French-language communities across Canada is reflected in the Canadian broadcasting system.

Appendix 4

Participants in the 18 October 2000 public hearing

La Fédération des communautés francophones et acadienne du Canada

Canadian Cable Television Association

Look Communications Inc./Craig Wireless International Inc./Image Wireless Communications Inc. (MDS licensees)

Canadian Cable Systems Alliance

La Société nationale de l'Acadie

L'Alliance des radios communautaires du Canada

L'Alliance des producteurs francophones du Canada

Canadian Broadcasting Corporation

Télé-Québec

Le Groupe TVA inc.

Specialty and Premium Television Association

Impératif français

Radio Nord inc.

Le Groupe de radiodiffusion Astral inc.

Le Consortium de télévision Québec Canada

BCE Media/Bell ExpressVu

Dyane Adam, Commissioner of Official Languages

L'Association des juristes d'expression française de l'Ontario

La Fédération culturelle canadienne-française

Locations and dates of the regional consultations in 2000

St. Albert, Alberta - 19 September

Vancouver - 21 September

Saskatoon - 2 October

Toronto - 3 October

Cornwall - 3 October

St. Boniface - 4 October

Sudbury - 5 October

Windsor - 5 October

Moncton - 10 October

Halifax - 12 October

Vanier, Ontario - 16 October