ARCHIVED - Public Notice CRTC 2001-129

Public Notice CRTC 2001-129

Ottawa, 21 December 2001

Proposed policy framework for community-based media

Table of content

Paragraph

Background

1

Current policies for community-based media
Community channel policy
Low-power television
Low-power radio

5
5
9
10

Summary of interventions
The community channel
Low-power television
Low-power radio

14
16
25
30

Community-based media today
The community channel
Low-power community television
Low-power radio

32
32
34
38

Proposed policy framework for community-based media

39

Objectives for community-based media

41

The community channel - a proposed policy revision

46

Role and objectives

46

Local programming

49

Toronto, Montréal and Vancouver

51

Access programming

53

Promotion of citizen access and training

61

Financial support

62

Advertising
Small cable systems

69
78

Sharing the community channel with complementary programming

80

Self-promotion

84

Limits on self-promotion

88

Licensing and ownership

92

Standards

99

Monitoring

100

Special programming services

101

DTH satellite community channels

103

Community-based television

104

Proposed policy and licensing framework

104

Two types of community-based television

106

General policies
Objectives
Ownership
Canadian content
Local programming
Citizen participation
Advertising and financing
Regulations and codes
Application Forms

111
111
114
116
117
119
121
124
125

Policies specific to community-based low-power television undertakings

126

Definition of low-power television
Carriage by broadcast distribution undertakings
Calls for competing applications
Developmental community-based television
Replacement of existing policy for remote stations

126
128
130
131
135

Policies specific to community-based digital services

137

Carriage by broadcast distribution undertakings
Nature of service and proposed service area
Calls for competing applications

137
139
140

Low-power radio

141

Licensing policy for low-power radio broadcasting

144

Objectives
Classes of low power radio undertakings
Calls for competing applications
Defining markets where low-power frequencies are scarce
Priority system for assessing competing applications
Application of the Radio Regulations

145
147
148
149
150
152

Implementation

154

Call for comments

156

Procedures for filing comments

158

Appendix

In this public notice, the Commission sets out its proposed policy framework for community-based media, and invites public comment on these proposals. This notice includes proposed revisions to the 1991 community channel policy, and a proposed policy and licensing framework for a new class of licence, namely a community-based television programming undertaking. The Commission also proposes some revisions to the licensing policy for low-power radio.

The development of this integrated policy approach to community-oriented programming undertakings stems from the merging of the public processes initiated by Public Notice CRTC 2000-127 entitled Call for comments on a licensing framework for low-power community television undertakings in urban areas, and Public Notice CRTC 2001-19 entitled Review of community channel policy and low-power radio broadcasting policy.

Background

1.

In Public Notice CRTC 2000-127 dated 1 September 2000, the Commission invited public comment on a licensing framework for low-power community television stations in urban areas. In the notice, the Commission asked for views regarding a number of questions relating to the ownership and operation of such undertakings, the nature of programming, advertising, participation by the community, and what status low-power community stations should have with respect to carriage by broadcast distribution undertakings.

2.

On 5 February 2001, the Commission issued Public Notice 2001-19 soliciting comments on its Review of the community channel policy and licensing policy for low-power radio. In that notice, the Commission noted that in recent years, various individuals and community groups - particularly French-language groups in Quebec - have expressed concern over the future of the community channel as well as a perceived reduction in opportunities for access and the reflection of local community issues.

3.

The notice included a number of questions relating to the role and objectives of the community channel, community access and training, financial support, whether such channels should be licensed as separate programming undertakings, and the programming they should provide. Further, the notice sought comment on issues related to low-power radio, including the role and objectives of these undertakings, licensing and programming requirements.

4.

The Commission advised that the development of a licensing framework for low-power community television stations would be considered in conjunction with the review of the community channel and low-power radio policies, in order to allow development of an integrated policy approach to community-oriented programming undertakings.

Current policies for community-based media

Community channel policy

5.

The existing community channel policy (Public Notice CRTC 1991-59 dated 5 June 1991) states that the role of the community channel should be primarily of a public service nature, facilitating self-expression though free and open access by members of the community. In addition, community programming should complement that provided by conventional broadcasters. Operators of community channels are expected to meet a number of objectives designed to foster the development of programming that reflects the local community and actively promotes public participation.

6.

The Community channel policy emphasizes the provision of the widest possible opportunity for self-expression. It states that licensees should actively encourage participation by groups and individuals, consult with the community to determine the best programming mix, reflect the bilingual and multicultural nature of the community and provide regular training opportunities.

7.

Although the distribution of a community channel is optional for cable licensees, Class 1 licensees must contribute 5% of gross revenues from broadcasting to Canadian programming through the Canadian Television Fund (CTF) or in combination with another certified fund, and are allowed to reduce this contribution by between 2% and 3.5% if they maintain a community channel. Also, community channels are permitted to sell sponsorship messages but are prohibited from broadcasting commercial spot advertising.

8.

The Broadcasting Distribution Regulations (the Distribution Regulations) restrict the kinds of programming that may be distributed on the community channel. Community programming is defined as programming produced by a cable licensee or members of the community served by an undertaking. Programming may be exchanged between systems, but non-adjacent systems should devote no more than 40% of the community channel's schedule to non-local programs.

Low-power television

9.

In Public Notice CRTC 1987-8, entitled Regulations respecting television broadcasting, the Commission outlined a policy for low-power television undertakings operating in remote or underserved communities. The notice referred to such undertakings as "remote stations." According to the policy, remote stations should develop community-oriented programming that contributes to the diversity of television services within the community. The policy allows for the broadcast of non-Canadian programs, but stipulates that remote stations must also fulfil the requirements of the Television Broadcasting Regulations, 1987 (Television Regulations) or any condition of licence regarding Canadian content. Advertising is permitted under the policy, in accordance either with the Television Regulations or as stipulated by condition of licence. Although the Commission's policy does not preclude profit-oriented ownership arrangements, it states that remote stations should be owned by organizations whose membership is primarily made up of representatives of the community at large.

Low-power radio

10.

In Public Notice CRTC 1993-95, the Commission set out a priority system for licensing low-power radio undertakings in areas where available frequencies are scarce. These areas include Vancouver/Victoria, Montréal, and Southern Ontario. The Commission identified two priority classifications for services, namely Priority A and Priority B. Priority A services include:

a) Originating conventional, not-for-profit

b) Originating conventional for-profit

c) Rebroadcasts of local stations

d) Rebroadcasts of distant signals

11.

They take precedence in the order shown above, over Priority B services. Priority B services include not-for-profit information services (traffic, weather, etc.) and commercial announcement services.

12.

The 1993 policy states that the Commission will issue a call when it receives applications for low-power radio services in areas where frequencies are scarce. Calls will not be issued in other areas.

13.

Low-power radio services are subject to the Radio Regulations, 1986 (the Radio Regulations) with respect to Canadian content, local programming and French-language vocal music. They must also adhere to relevant Commission policies such as the Community radio policy (Public Notice CRTC 2000-13), Campus radio policy (Public Notice CRTC 2000-12), Ethnic broadcasting policy (Public Notice CRTC 1999-117) and Religious broadcasting policy (Public Notice CRTC 1993-78).

Summary of interventions

14.

The Commission received 706 responses to PN 2001-19. Of those, 576 related to English-language broadcasting, while 130 relating to French-language broadcasting. Forty-two interventions were submitted in response to PN 2000-127; 30 related to English-language issues, while 12 related to French-language issues. The majority of comments responding to PN 2001-19 were short letters from individuals and community groups supporting the activities of their local community channel.

15.

The balance of interventions were submitted by interest groups, including Public Interest Advocacy Centre (PIAC), Communications and Diversity Network (CDN) and the Canadian Film and Television Production Association (CFTPA); community broadcasters, represented primarily by La Fédération des Télévisions communautaires autonomes du Québec; commercial broadcasters, represented by the Canadian Association of Broadcasters (CAB); and the broadcast distribution sector, including the Canadian Cable Television Association (CCTA) and individual cable and direct-to-home (DTH) satellite licensees.

The community channel

16.

Fifteen of the submissions from individuals addressed specific issues cited in PN 2001-19. Many of these interveners stated that the community channel should be non-commercial, not-for-profit, and operated by an organization representative of the community.

17.

A number of individuals stated that community channels needed better local programming, and that they should provide more access by community groups. Some former volunteers claimed that community access no longer exists on some systems, and that all of the programming is now produced by the cable company.

18.

Several interveners, particularly those based in Quebec, indicated that the content of the community channel now resembles the programming of a specialty television network that no longer reflects individual local communities. They also claimed that community channels are being used by cable licensees as tools to promote their companies' products and services. Many contended that community channels should be operated at arm's length from the cable company, and funded through a mandatory contribution from the cable operator.

19.

A number of interveners - individuals, advocacy groups and government agencies, notably from Quebec - also recommended that a portion of the CTF be set aside to support the production of community programming by not-for-profit organizations.

20.

The CAB stated that the existing community channel policy is still relevant, but that its principles are not being fully observed by cable licensees, particularly in the areas of programming and open access. The CAB asserted that cable licensees are catering more and more to mass audiences rather than offering distinct local programming, and that the Commission should adopt a more stringent monitoring process to ensure the channels uphold their public service role.

21.

The CAB also stated that there is no need to license community channels. It added that commercial broadcasters consider it imperative that cable contributions to the CTF not be reduced, and that the funding formula should thus be maintained.

22.

In the CCTA's view, the Community channel policy has been a tremendous success in terms of promoting local reflection, expression, training and access, and no changes are necessary. The cable industry association stated that the community channel plays a fundamental role in reflecting and supporting the local community by providing valuable opportunities for members of the community to become involved in television programming, and acts as an important vehicle for community groups to organize and produce activities like fundraising telethons for charities. The CCTA noted that a number of community channels have undergone format changes to better reflect the range of diverse interests within the community. It added that programs such as magazine shows afford access to more local groups and increase audience reach by providing attractive content and strong production values.

23.

The cable sector stated that industry consolidation has benefited the community channel by providing increased opportunities to share resources and supply additional support where appropriate. Cable operators see no need to issue separate licences to operate the community channel, and cited the additional regulatory and administrative burden that would result for both the Commission and licensees. While the CCTA did not advocate the sale of commercial advertising on the community channel, it did propose measures to increase the amount of money that smaller Class 1 cable systems may contribute to community reflection. Cable operators also requested that the limited use of full-motion video in sponsorship messages and a description of sponsors' products and services be allowed.

24.

Both of the DTH satellite companies - Bell Expressvu and StarChoice - contended that their nation-wide service mandates should not preclude them from providing an outlet for local expression and community-based Canadian programming. The DTH licensees proposed that local expression be based on communities of interest to allow them to offer broadly-based community channels to their subscribers should they wish to do so.

Low-power television

25.

Most interveners commenting on the matter stated that low-power television stations in urban areas should be not-for-profit, community-based operations with access open to the public. Most were also of the view that these stations could be allowed to advertise, with certain restrictions, and should have high Canadian and local programming requirements.

26.

Cable operators stated that low-power stations should have carriage rules similar to those of Category 2 digital licences. They did not consider that advertising by low-power TV stations would detrimentally affect community channels.

27.

The CAB contended that low-power television stations should be required to offer services that complement the programming already available in the community so as not to compete with existing conventional television stations. It also suggested that such stations should be owned and managed by not-for-profit community organizations, and should be required to offer 80% Canadian content with a community focus throughout the broadcast day. The CAB did not believe that low-power community stations should be accorded the same priority status on distribution systems as local television broadcasters. It added that the carriage of a low-power station by a distribution undertaking should, in all circumstances, require authorization by the Commission through a public process. The CAB also stated that the digital distribution of a low-power station might be approved following a public process, but that this should only be considered once existing services licensed for digital carriage have been accommodated.

28.

Individual interveners were divided in their views as to who should be licensed to operate low-power community television stations. A number stated that they should be owned and controlled by not-for-profit community organizations, while others argued that there should be opportunities for local entrepreneurs to operate for-profit community undertakings.

29.

In its intervention, Industry Canada indicated that the operation of low-power community television on channels 60 to 69 would compromise the development of the Department's plans for the medium and long term use of channels in that portion of the spectrum. Industry Canada advised that, unless there are extraordinary circumstances, it will not issue broadcasting certificates for low-power TV stations proposing to use channels 60 to 69. It also indicated that broadcasting certificates issued for stations below channel 60 will carry a condition notifying the licensees of a possible requirement to move to other channels in the future if the transition to digital television so requires.

Low-power radio

30.

Relatively few interveners commented on low-power radio. The CAB stated that the main focus of low-power radio should be to increase the diversity of voices in radio, and that the priority should be not-for-profit and niche-focused services, as opposed to new competition for commercial services. The CAB also stated that cross-ownership between low-power radio and low-power television stations should be avoided to promote true diversity of voices.

31.

The Commission has taken the interveners' views and proposals into consideration in the development of its proposed policies, and wishes to thank all those who have thus far participated in this process.

Community-based media today

The community channel

32.

The regulatory change introduced in the Distribution Regulationsremoved the obligation that cable operators provide a community channel. This raised some concern at the time among community groups as to whether the flexibility might result in a reduction in the number of community channels. However, the number of community channels has actually increased from 746 in 1997 to 851 in the year 2000, and the number of cable systems making financial contributions to community channels has increased slightly from 238 to 245. In that period, overall funding for local expression has also increased slightly, with cable licensees contributing $79.7 million to local expression in 2000 compared to $78 million in 1997.

33.

The Commission acknowledges the concerns raised by a number of interveners, particularly regarding the issues of local programming and community access, and has proposed measures to respond to these issues. The Commission also recognizes the efforts of those cable companies who have endeavoured to ensure that the channel continues to be a vital resource for the local community.

34.

Under the existing policy for remote stations, low-power television stations serve remote communities that have no competing local or regional television service, and no regularly operating community channel. The number of low-power television undertakings in the broadcasting system remains limited. There are currently some 20 low-power television stations across Canada that originate programming. Many of these undertakings primarily rebroadcast the programming of the CBC Northern Television Service, while providing some locally-originated programs. Most low-power stations broadcast a couple of hours of local programming per day, consisting of local events, sports, council meetings, church services, bingo and community announcements.

35.

Given the increasing spectrum congestion, there is limited scope to license community stations in the major metropolitan centres in Canada. There is, however, more flexibility in rural and remote areas, particularly for use of low-power UHF television channels. The phrase rural and remote means areas that are at least 60 km from a major metropolitan centre and fall outside the Windsor-Quebec City corridor and the lower mainland of British Columbia.

36.

There is growing pressure on the UHF band from non-broadcast users such as wireless and land mobile. Given Industry Canada's policy regarding the use of channels 60 to 69 for low-power services, and other possible limitations on much of the UHF spectrum below channel 60, the Commission expects that there will be only limited possibilities for the future growth of low-power community stations in urban areas.

37.

With respect to the issue of cable distribution of low-power community stations, vacant analog cable channels are a scarce commodity: currently, more than half of the country's subscribers are served by systems that have no unused analog channels. Many of these undertakings are also experiencing capacity pressure on their digital bands.

Low-power radio

38.

There are currently 111 originating low-power radio stations licensed in Canada, including 14 community stations, 10 campus stations, 30 religious stations, 16 Native undertakings and 41 tourist/travel services.

Proposed policy framework for community-based media

39.

This section sets out the Commission's proposed policy framework for community-based media. Following are the revised Community channel policy and the Licensing policy for low-power radio, which include the proposed revisions and those elements of the current policies that will be retained, and a proposed policy for community-based television programming undertakings. In a few instances, the Commission sets out options it is considering to deal with specific issues, and seeks further public comment regarding those options.

40.

In preparing its proposed policies, the Commission took into consideration, in addition to the interventions that were submitted, a number of other factors, including trends with respect to local programming in the Canadian broadcasting system, the role of new media in providing local reflection, and the regulatory approaches of other countries with respect to community-based media. The Commission also analyzed the logs and tapes of a number of community channels across Canada to assess the differing styles and content of these services at the present time.

Objectives for community-based media

41.

In PN 2001-19, the Commission noted that during the past several years, the communications environment has continued to evolve at a rapid pace. This has led, among other things, to a high degree of media consolidation and cross-media ownership with integrated broadcasting companies at both the national and regional levels of the Canadian broadcasting system. Quite apart from some associated benefits, this trend may result in a system with fewer players in conventional television, radio and broadcast distribution and, for certain licensees, a reduction in programming reflecting local and community concerns.

42.

Within this context, the Commission has established the following as the objectives of its proposed new policies:

• To ensure the creation and exhibition of more locally-produced, locally-reflective community programming.

• To foster a greater diversity of voices and alternative choices by facilitating new entrants at the local level.

43.

Given the limited development of low-power, over-the-air community television stations and the limited potential for growth in this sector due to the lack of spectrum in major urban centres, the Commission is of the view that the cable community channel is and will continue to be for the foreseeable future, the primary vehicle for the delivery of access programming and other community-based programming.

44.

Nevertheless, other community-based television services, with fewer regulatory requirements relating to ownership, advertising and access, may facilitate the entry of new players - either commercial or not-for-profit - into the broadcasting system to provide a greater diversity of voices at the local level.

45.

Since the Commission's programming objectives for community-based media in radio are met through the community, campus and Native radio policies, no major revisions are proposed for the licensing policy for low-power radio. The Commission does propose general objectives for low-power radio, and a revised approach to issuing calls for low-power radio applications.

The community channel - a proposed policy revision

Role and objectives

46.

The 1991 Community channel policy states that the role of the community channel should be primarily of a public service nature, facilitating self-expression through free and open access by members of the community. It also sets out a number of expectations for licensees to ensure that the objectives of the policy are fulfilled.

47.

The Commission considers that the role and objectives of the community channel, as set out in the existing policy, remain valid and reiterates them with some minor revisions:

• engender a high level of citizen participation and community involvement in community programming;

• actively promote citizen access to the community channel and provide and promote the availability of related training programs;

• provide feedback mechanisms, such as advisory boards, to encourage viewer response to the range and types of programs aired;

• seek out innovative ideas and alternative views;

• provide a reasonable, balanced opportunity for the expression of differing views on matters of public concern;

• reflect the official languages, ethnic and Native composition of the community;

• provide coverage of local events; and,

• publicize the program schedule.

48.

However, the Commission has determined that clarification of specific provisions of the policy, and the establishment of additional measurable standards - particularly in the areas of local programming and community access - are necessary to ensure the fulfilment of these objectives.

Local programming

49.

In the 1991 policy, the Commission noted that its concern with respect to cable system interconnection was the retention of the local flavour of the community channel, and stated that no more than 40% of the community programming schedule may be devoted to non-local programs. However, the existing policy does not clearly define "local" programming, nor does it indicate over what time period the 40% non-local programming should be measured.

50.

In order to ensure that the programming of the community channel is truly local and reflective of the community it is serving, the Commission proposes the following provision and definition:

Licensees who provide community programming services should devote not less than 60% of the programming aired in each broadcast week to the broadcast of local community programming.

For the purposes of this policy, local community programming is programming that is reflective of the community, and produced by the licensee in the licensed service area or by members of the community in the licensed service area. Programs produced in other licensed areas within the same municipality will also be considered local programming.

Toronto, Montréal and Vancouver

51.

While there is no doubt that major metropolitan centres such as Toronto, Montréal and Vancouver can be considered "communities", it is also a fact that within these cities are many vibrant, distinct communities that should be reflected in the programming of the community channel.

52.

Therefore, the Commission will expect licensees who provide community programming in the greater Toronto, Montréal and Vancouver areas to set out their plans and commitments at licence renewal time as to how they will reflect the various communities within these larger urban centres.

Access programming

53.

In PN 1997-25, the Commission stated that it would be willing to consider proposals by distributors at the time of licensing or licence renewal that would permit greater flexibility in how they provide public access. This was done at a time when the prospect of significant competition among terrestrial distributors seemed imminent.

54.

As part of this process, the Commission reviewed the logs and videotapes of a number of community channels across Canada. This review revealed varying degrees of community participation in the production of community programming. Some community channels exhibited a significant degree of citizen involvement, while others appeared to have very little creative input from members of the community they are serving.

55.

In the 1991 Community channel policy, the Commission stated that:

Citizen participation is the cornerstone of the community channel. The factor that most distinguishes the content of community programming from conventional television services is the ability of community programming to turn the passive viewer of television into an active participant. From this participation flows programming of a nature that is as varied as the imagination and skills of the participants.

Licensees are expected to give the community the widest opportunity for self-expression by actively encouraging groups and individuals to present program ideas, produce their own programs with the help of the licensee's staff, and submit videotapes and films produced by them for replay by the licensee.

56.

In addition to ensuring that the community channel is reflective of the community it is serving, it is also essential that the channel be a vehicle for self-expression for that community.

57.

Therefore, licensees who provide a community channel should devote at least 50% of the community programming schedule in each broadcast week to the airing of programming produced by individuals or groups in the community served by the undertaking, either assisted or unassisted by the licensee.

58.

The Commission recognizes that this proposal may represent a significant challenge for certain community channel operators. However, in the Commission's view, a major commitment to citizen participation is essential to fulfil its objectives for community-based media.

59.

Licensees should actively consult members of the community to determine the mix, scope and types of programs that best serve the needs and interests of the community at large. In some instances, licensees have established formal advisory boards while, in other cases, informal feedback from volunteers serves this purpose.

60.

Licensees are reminded that the community channel should reflect the official languages, as well as the multicultural and Native reality of their communities. It should also make special efforts to meet the needs of the disabled and other minority groups.

Promotion of citizen access and training

61.

Licensees are expected to actively promote citizen access to the community channel and to provide and promote the availability of related training programs. The Commission will review the efforts of licensees in this regard as part of the licence renewal process.

Financial support

62.

One of the objectives of the funding formula set out in the Distribution Regulations was to strike a balance between providing sufficient financial support for both the development and creation of Canadian programming and for local expression. By permitting different levels of contribution to local reflection based on the size of the cable system, the Commission also acknowledged the need for flexibility within the formula to take into account the financial circumstances of smaller distribution undertakings.

63.

In the past four years, funding of the community channel has increased slightly with cable licensees contributing $79.7 million to local expression in the year 2000 compared to $78 million in 1997. In that same period, there has been significant growth in distributor contributions to independently-administered production funds, both by cable and DTH licensees.

64.

Production fund contributions in 1997, all of which came from cable operators, were $46 million; last year, cable companies contributed over $79 million, and DTH contributions were $17.5 million, for a total of almost $97 million in contributions to production funding.

65.

Given the significant growth in contributions to production funds and the relatively modest increase in community programming expenditures, the Commission is of the view that there is merit in permitting the allocation of more funds to the community channel.

66.

Therefore, the Commission intends to amend the Distribution Regulations to permit Class 1 systems with fewer than 20,000 subscribers to allocate all of their Canadian programming funding contributions to local expression.

67.

While this has the potential to re-direct approximately $5 million from production funds to community programming, it is noted that distributor contributions to those funds increased by almost $19 million between 1999 and 2000 alone.

68.

Licensees must report their levels of community programming expenses, and are expected to dedicate the large majority of their expenditures to the direct expense category, in accordance with Circular No. 426 - Guidelines respecting financial contributions by the licensees of broadcasting distribution undertakings to the creation and presentation of Canadian programming.

Advertising

69.

In the 1991 Community channel policy, the Commission affirmed its intention to maintain restrictions limiting the commercial orientation of the community channel, particularly the prohibition against commercial spot advertising.

70.

The Commission cited two major concerns regarding the commercialization of the community channel:

• the inevitable change in orientation brought about by a reliance on advertising revenue.

• cable licensees, who already have a reliable revenue base from subscription fees, would siphon advertising revenue from conventional broadcasters, who rely on this revenue as their major source of income.

71.

The Commission continues to believe that the public service orientation of the community channel can best be achieved through stable funding provided by cable licensees, with limited reliance on advertising revenues. Therefore, community channels will continue to be limited to sponsorship and contra advertising.

72.

However, the Commission proposes toamend the Distribution Regulations to permit sponsorship messages accompanying community programs to include moving visual presentations and a limited description of their products or services, as follows:

an oral or written acknowledgement, including a moving visual presentation of no more than 15 seconds, contained in community programming that mentions no more than the name of a person, their address and telephone number and a description of the goods, services or activities that are being sold or promoted by the person, where the person provided direct financial assistance for the community programming in which the acknowledgement is contained. [Changes noted in bold.]

73.

In accordance with Circular No. 348, Sponsorship Messages on the Community Channel, which clarifies the parameters of the Distribution Regulations, the Commission reiterates that words promoting goods or services are not acceptable, and descriptions that promote a favourable image of the sponsor will be examined on a case-by-case basis to determine if they depart from what is permitted in the regulations.

74.

Licensees must not deny, restrict or reduce access opportunities if a community citizen group or individual is unable or unwilling to attract a sponsor.

75.

Under no circumstances should a licensee charge a fee for providing access programming, or insist that programs have sponsorship.

76.

All revenues generated by sponsorship advertising must be reinvested in the operation of the community channel. Since these revenues are incremental to the financial contribution required by the Commission, licensees must identify these revenues and associated expenditures separately when reporting their community programming expenses to the Commission.

77.

The Commission is aware that a number of licensees rent their production facilities for external commercial and industrial productions. The Commission considers that the revenue associated with this activity should also be reinvested in the community channel, thus avoiding the requirement for cost separation procedures.

Small cable systems

78.

Class 3 systems that provide service to unserved communities are permitted to air up to 12 minutes per hour of local advertising on their community channels. The regulations define an unserved community as the licensed area of a distribution undertaking where there is no local radio station and no local television station.

79.

The ability of small cable systems to engage in advertising is an incentive to actively program the community channel. However, the freedom to advertise should not result in a change in orientation of the programming provided.

Sharing the community channel with complementary programming

80.

Pursuant to the Distribution Regulations, Class 2 cable licensees are allowed to distribute complementary programming on the community channel. Complementary programming, as described in Public Notice CRTC 1985-151, consists of:

community programs produced by other cable television licensees, government or public service information material, NFB productions, children's programs,  educational programs not provided by the Provincial Education Authority, alphanumeric services such as Broadcast News, the Question Period portions of the House of Commons or provincial legislatures and multicultural programs.

81.

Local programs must retain scheduling priority, and foreign or commercial programs are not permitted.

82.

The regulations also authorize Class l licensees to distribute government and public service information material, as well as the provincial Question Period proceedings. Licensees are expected to adhere to the principle that local programs be given scheduling priority.

83.

In keeping with the Commission's policy of free and open access, licensees are not permitted to receive financial payment in exchange for the distribution of government or public service information material.

Self-promotion

84.

In PN 1997-25, which announced that the provision of a community channel would no longer be required, the Commission stated that:

This policy reflects the Commission's belief that opportunities for local expression would continue to be provided in the absence of a regulatory requirement.

Apart from its benefits to the public through local reflection, the community channel provides cable operators with a highly effective medium to establish a local presence and to promote a positive corporate image for themselves.

85.

The Distribution Regulations allow cable licensees to promote, on the community channel, the broadcasting services they are authorized to provide:

27. (1) a licensee shall not distribute on the community channel any programming service other than.(b) an announcement promoting broadcasting services that the licensee is authorized to provide.

86.

Furthermore, in PN 1999-93 (27 May 1999), the Commission stated that:

. a BDU [broadcasting distribution undertaking] is not permitted under section 27 of the regulations to distribute video demonstrations or promotions of its retail Internet Services on the community channel.

87.

A review of community channel videotapes indicates that some licensees appear to be broadcasting commercial messages that promote their retail Internet services and other non-broadcasting services, such as retail outlets. The Commission emphasizes that these types of activities constitute breaches of the Distribution Regulations, and that those licensees engaged in this practice should cease this activity immediately.

Limits on self-promotion

88.

While the Distribution Regulations permit cable licensees to distribute announcements promoting broadcasting services that they are authorized to provide, a review of the logs and videotapes also suggests that the amount of self- and cross-promotion employed by some licensees is not in keeping with the spirit of the Community channel policy.

89.

The Commission is concerned that excessive amounts of corporate promotion could lead to a perception that these are more corporate channels than community channels, and that the licensees are more concerned with promoting their business interests than providing the community with an outlet for local reflection, expression, and alternative programming.

90.

The community channel should be primarily a public service, not simply a promotional vehicle for the cable company.

91.

In order to ensure that the orientation of the community channel remains that of public service, the Commission is considering the imposition of limits on the amount of promotional messages that may be distributed on the community channel, and seeks public input with respect to the following options:

• Impose the following restriction on the nature of cable licensee promotional messages in line with those proposed for sponsorship and contra messages:

an oral or written message, including a moving visual presentation of no more than 15 seconds, that mentions no more than the name, address, telephone number, and description of the service being promoted.

• Restrict the number of minutes per hour that may be used for promotional purposes. In considering this option, the Commission also seeks input as to what would be considered an appropriate limit in this regard.

Licensing and ownership

92.

Community channels may be distributed by cable operators as part of a distribution undertaking licence. They are not licensed separately as programming undertakings, and there is no mechanism for someone other than the cable company to be licensed to operate a cable community channel. Therefore, the possibility exists that, if the cable operator chooses not to provide a community channel, the community would have no such service, even though a local community group was willing and able to provide it.

93.

The licensing of community organizations is a long-standing tradition in community radio. This practice has increased the diversity of broadcast voices in many markets, providing alternative, innovative programming that is reflective of a variety of community interests.

94.

The Commission will retain the current approach of giving cable operators the option of distributing a community channel as part of their distribution licences, but will also create the opportunity for community groups to apply for a community programming licence in locations where cable companies choose not to provide a community channel in accordance with the provisions of the revised policy.

95.

Therefore, the Commission proposes to establish a new class of broadcasting licence for the provision of community programming. Such a class will be referred to as a community programming undertaking.

96.

In order to obtain a community programming licence, applicants will have to demonstrate that the proposed service would be operated in accordance with the revised Community channel policy, and the relevant provisions of the Distribution Regulations and Cable Television Community Channel Standards.

97.

Licensees of community programming undertakings will be not-for-profit organizations, the structure of which will provide for membership, management, operation and programming primarily by members of the community at large.

98.

The Commission also intends to revise the Distribution Regulations in order that Community programming services would be accorded mandatory analog carriage as part of the basic service where cable licensees do not provide a community channel, and would be entitled to receive the applicable percentage of the cable undertaking's gross revenues, had the cable licensee elected to operate a community channel in accordance with the revised policy.

Standards

99.

The Commission reaffirms the existing Cable television community channel standards and the role played by the Cable Television Standards Council in administering them.

Monitoring

100.

In addition to responding to any complaints, the Commission will conduct random audits of community channel logs and videotapes to monitor adherence to the quantitative provisions of this policy.

Special programming services

101.

Since 1975, the Commission has permitted cable operators to apply for authority to distribute special programming services designed to extend and complement local Canadian programming services. At the present time, existing special programming services primarily address the needs of multicultural communities through the provision of ethnic programming.

102.

Existing special programming services may continue to be distributed. The Commission does not intend, however, to authorize any additional special programming services. In the future, the Commission may license either Category 2 digital services or community-based television undertakings for the provision of this type of programming.

DTH satellite community channels

103.

The Commission does not consider the concept of DTH community channels to be in keeping with its proposed objectives - to ensure more locally-produced, locally-reflective community programming. Therefore, it does not propose any change to the current policy in this regard.

Community-based television

Proposed policy and licensing framework

104.

The Commission considers that, in addition to the cable community channel, other community-based television programming undertakings have the potential to make a significant contribution to the goals set out in the Broadcasting Act.

105.

Therefore, the Commission proposes to create a new class of licence - "Community-based television programming undertaking", and to establish a regulatory framework for the licensing of these community-based programming services.

Two types of community-based television

106.

In the course of this process, the Commission has concluded that opportunities for the use of low-power television channels to provide community television services is limited in most metropolitan centres. In addition to the shortage of available over-the-air spectrum, the analog band on most cable undertakings has little or no vacant capacity.

107.

The Commission has determined that an alternative means of delivering community-based television programming may be effective in certain circumstances. Such services could be provided directly to local distribution undertakings for carriage on a digital channel.

108.

Accordingly, the proposed licensing framework for community-based television programming undertakings includes two sub-categories:

• Community-based low-power television undertakings

• Community-based digital services

109.

These two sub-categories share all major criteria with respect to ownership, programming, financing and licensing. They differ only in the means utilized to distribute the service.

110.

The following policy and licensing framework sets out the key characteristics of community-based television undertakings and the Commission's licensing approach.

General policies

Objectives

111.

Community-based television services will provide a high level of locally-produced, locally-reflective programming that complements the programming provided by conventional television stations and the cable community channel.

112.

Such services should enrich the variety of local and community-based television programming available to the public, as well as provide opportunities for new voices to participate in the Canadian broadcasting system.

113.

Community-based television undertakings should not replicate the programming offered by existing television services. In its assessment of applications for community-based television undertakings, the Commission will take into consideration the number of community-based services already licensed in the proposed service area, the availability of over-the-air channels and/or available capacity of the affected cable distribution undertakings.

Ownership

114.

The Commission will consider applications by both for-profit and not-for-profit applicants to operate community-based television programming undertakings. This will provide opportunities for the largest range of potential new players.

115.

However, the Commission does not intend this new class of licence to provide opportunities for established licensees to extend their reach or to provide additional types of service. In assessing applications for community-based television services the Commission will give preference to locally-based new entrants. This is to ensure that these services fulfil the two objectives established by the Commission for community-based media (see paragraph 42 above).

Canadian content

116.

To ensure that community-based television undertakings provide programming that is complementary to that of conventional television stations, licensees of community-based television services should devote not less than 80% of the broadcast year to the broadcasting of Canadian programs.

Local programming

117.

In order to ensure that community-based television undertakings are truly local and reflective of the community they are licensed to serve, licensees of community-based television services should devote not less than 60% of the programming aired in the broadcast year to the broadcasting of local programming.

118.

For the purposes of this policy, local programming is defined as programming that is reflective of, and produced in, the area that the community-based television programming undertaking is licensed to serve.

Citizen participation

119.

Consistent with the lighter regulatory approach envisaged for these undertakings, to encourage new entrants into local broadcasting, the Commission does not propose to establish any citizen access requirements for community-based television undertakings. However, licensees of community-based television services will be encouraged to:

• facilitate citizen access to the production of programming; and

• provide training to those within the community wishing to participate in the production of programming.

120.

The Commission expects that licensees of community-based television services will benefit from the participation of community volunteers and local producers in meeting their local programming obligations.

Advertising and financing

121.

Licensees of community-based television services will be permitted to broadcast the standard 12 minutes per hour of advertising, as per the Television Regulations but will not have access to any funding that cable licensees allocate for local reflection.

122.

The Commission notes that in addition to the revenues derived from advertising, community-based television services may have access to special funding programs provided by the different levels of government to support community-based media.

123.

Given the proposed programming requirements, the Commission does not expect community-based television undertakings to have a significant financial impact on existing broadcasting services.

Regulations and codes

124.

Community-based television programming undertakings will be subject to the Television Regulations and adherence to relevant industry codes.

Application Forms

125.

The Commission intends to develop a form to facilitate the application for a licence to operate either a community-based low-power television undertaking or a community-based digital service in accordance with the provisions set out in this policy.

Policies specific to community-based low-power television undertakings

Definition of low-power television

126.

Industry Canada defines low-power television stations in Part IV of its Broadcasting Procedures and Rules as those stations operating with a transmitter power of 50 watts or less on the VHF band, or 500 watts or less on the UHF band. Due to their limited effective radiated power, their Grade B service contour does not exceed 12 kilometres in any direction from the antenna site. The coverage that they provide is therefore much more limited than that of regular class television stations.

127.

As well, low-power television stations are secondary assignments in relation to regular class stations, and are established on an unprotected basis with respect to the frequency band that they occupy. This means that they have no protection from interference by regular class stations. However, in the event that a low-power station causes interference to a regular station, the low-power station could be required to change its assigned channel or to cease operation if no replacement channel can be found. Low-power television stations are, however, entitled to protection from other low-power stations that are established at a later date.

Carriage by broadcast distribution undertakings

128.

Under the Distribution Regulations, local television stations must be distributed on an analog channel as part of the basic service. However, in circumstances where capacity is limited, the Commission considers that the obligatory analog distribution of community-based low-power television stations by cable undertakings may not be appropriate. Accordingly, in such circumstances, the Commission will be prepared to allow relief from these carriage requirements, upon application by cable licensees.

129.

However, cable undertakings that are granted relief from this requirement and distribute digital services will be required to distribute community-based television stations on a digital basis within the area served by the over-the-air signals of those stations.

Calls for competing applications

130.

The Commission may issue calls for competing low-power applications in certain circumstances. In making a decision to issue a call, the Commission will take into consideration the availability of low-power television channels in the market to be served.

Developmental community-based television

131.

In its Community radio policy and Campus radio policy, the Commission adopted a streamlined regulatory framework for the licensing of developmental radio stations in order to allow new stations to start operating quickly, primarily for training purposes.

132.

Applicants for developmental radio licences are not required to show evidence of the availability of financing. Developmental community stations are subject to basic requirements such as Canadian ownership, technical certification, and adherence to industry codes.

133.

Developmental stations are generally licensed for three years, at which time licensees are expected to file an application for a regular community radio licence or cease operations.

134.

The Commission seeks public comment as to whether there would be any benefit to adopting a similar framework for the licensing of developmental community-based television stations.

Replacement of existing policy for remote stations

135.

The provisions of the policy set out in this notice will apply to both urban and remote community-based low-power television stations, thereby replacing the existing policy for remote stations, as set out in PN 1987-8.

136.

However, the Commission will be prepared to allow relief from the logging requirements set out in the Television Regulations, upon application from licensees of community-based television undertakings serving remote areas.

Carriage by broadcast distribution undertakings

137.

Community-based digital services will not be accorded priority distribution on analog cable channels.

138.

A cable undertaking that distributes services on a digital basis will be required to distribute community-based digital services on the digital band throughout the service area authorized by the Commission.

Nature of service and proposed service area

139.

In order to clearly define the proposed community or communities to be served, applications for a community-based digital service licence must include a detailed description of the nature of the proposed service and the geographic area to be served.

Calls for competing applications

140.

The Commission may issue calls for competing community-based digital applications in certain circumstances. In making a decision to issue a call, the Commission will take into consideration the number of community-based services already licensed in the proposed service area, and the available capacity of the affected cable distribution undertakings.

Low-power radio

141.

The Commission's policies for community-based radio services are set out primarily in the Campus radio policy - Public Notice CRTC 2000-12; the Community radio policy - Public Notice CRTC 2000-13; and, the Native broadcasting policy - Public Notice CRTC 1990-89. These policies encourage the development of not-for-profit, community-based radio services and allow for both low and high-power applications.

142.

The 1993 licensing policy for low-power radio was designed to clarify how low-power frequencies would be used for purposes that best fulfill the objectives of the Broadcasting Act. A system of priorities was established that has guided the Commission in dealing with applications, particularly in areas where frequencies are scarce.

143.

The draft policy set out below includes general objectives for low-power radio, changes to the definition of markets where low-power frequencies are scarce, as well as minor revisions that take into consideration changes in CRTC policies and practices since 1993.

Licensing policy for low-power radio broadcasting

144.

This policy will replace that set out in Public Notice CRTC 1993-95 dated 28 June 1993.

Objectives

145.

The Commission considers that low-power radio undertakings make a contribution to the goals set out in the Broadcasting Act and may attract new entrants into the Canadian broadcasting system. Such services are particularly well-suited to provide local community-based programming. Low-power radio undertakings should not replicate the programming offered by existing services.

146.

The Commission expects applicants for low-power radio services to show how their programming proposals will fulfill the following objectives:

• The contribution of an additional, diverse voice to the markets served.

• The presentation of programming that complements that of existing licensees in the market.

• The fulfilment of demonstrated community needs.

Classes of low power radio undertakings

147.

There are four types of low-power radio undertakings defined by Industry Canada in Parts III and IV of its Broadcasting Procedures and Rules:

• Low-Power AM (LPAM): An undertaking with transmitter power of less than 100 watts. Each LPAM is licensed on a specific frequency in the 525-1705 kHz band, and for a specific transmitting site. LPAM undertakings are not protected against interference from regular, protected AM undertakings. This means that, in case of a frequency conflict between an LPAM and an existing or newly approved regular, protected AM undertaking, the LPAM would have to either change frequency or cease operation.

• Low-Power FM (LPFM): An undertaking with maximum Effective Radiated Power (ERP) of 50 watts and a maximum transmitting antenna height of 60 metres. Each LPFM is licensed on a specific frequency in the 88-108 MHz band, and for a specific transmitting site. LPFM undertakings are not protected against interference from regular, protected FM undertakings. LPFM undertakings are protected, however, against interference from each other, VLPFM, and LPAS (defined below) on a priority basis (Public Notice 1993-95).

• Very Low-Power FM (VLPFM): An undertaking operating with maximum ERP of 10 watts and transmitting antenna height of 30 metres. Each VLPFM is licensed on a specific frequency in the 88-108 MHz band, and for a specific transmitting site typically situated in a small remote community. VLPFM undertakings are not protected against interference from regular, protected FM undertakings, but are however, protected against interference from each other.

• Low-Power Announcement Service (LPAS): An AM or FM undertaking with a very limited coverage area. In the case of AM (535-1605 kHz), a transmitter power must be such that it does not produce a field strength level of more than 0.25 millivolt/metre (mV/m) at a distance of 30 metres. In the case of FM (88-107.5 MHz), transmitter power must be such that it does not produce a field strength level of more than 0.1mV/m at a distance of 30 metres. LPAS undertakings can be referred to as "30-metre coverage" undertakings. Operators of LPAS undertakings are not licensed to make use of specific frequencies or transmitting sites.

Calls for competing applications

148.

The Commission may issue calls for competing low-power applications in certain cirumstances. In making a decision to issue a call, the Commission will take particular note of the following criteria:

• whether or not potential low-power frequencies are scarce in the market to be served.

• the original application is for a rebroadcaster of a distant station.

• an existing low-power station files an application to change its operating class to one that has protected status under Industry Canada's rules.

Defining markets where low-power frequencies are scarce

149.

The Commission will generally consider low-power radio frequencies to be scarce in the following areas:

• Vancouver/Victoria and lower mainland of B.C.

• Southern Ontario

• Greater Montréal and surrounding area

• other markets where no more than 3 low-power AM or FM frequencies are available for assignment.

Priority system for assessing competing applications

150.

When considering competing applications for the use of low-power frequencies in areas where such frequencies are scarce, the Commission will generally give priority to conventional broadcasting services (Priority A) over one-dimensional services (Priority B). Moreover, the Commission will generally attach to the various types of services falling within the two priority groupings a priority that corresponds to their relative ranking within each, as set out below.

• Priority A services

1. Originating conventional not-for-profit radio services (e.g. community, campus and Native);

2. Originating conventional for-profit radio services (private commercial broadcasters, including ethnic);

3. Rebroadcasting transmitters of local stations rebroadcasting within the station's contour;

4. Rebroadcasting transmitters of distant signals (the CBC will have priority within this sub-group of Priority A services).

• Priority B Services

1. Not-for-profit public information services (e.g. traffic or weather information services);

2. Commercial announcement services.

151.

The following three factors may also be considered by the Commission in its evaluation of competing applications of the same type for the same low-power frequency. The Commission realizes, however, that the relative importance of each of these factors may vary depending on the type of service proposed. Such importance will be assessed on a case-by-case basis.

• The correlation between coverage and potential audience: generally speaking the Commission will consider that the larger the audience served by the undertaking, the higher the priority it should be accorded.

• The duration of service: the longer a proposed service is to be on the air (whether on a daily, weekly, monthly or yearly basis), the more valuable it generally will be deemed to be.

• The availability of alternate means of delivery: non-conventional services that can be delivered effectively only through use of a broadcasting frequency will generally be considered to have a higher priority than those that can be provided by alternate means, such as through the use of roadside signs or newspapers.

Application of the Radio Regulations

152.

The Commission will generally require licensees of conventional low-power radio stations to adhere to the regulations, unless otherwise specified by condition of licence.

153.

The question of whether to require adherence to the regulations by the licensees of non-conventional services will be considered on a case-by-case basis. In addition, licensees of non-conventional low-power undertakings will be subject to a condition of licence that defines their programming in such a way as to ensure that they do not change their programming and begin to offer the same services as conventional licensees without Commission approval.

Implementation

154.

In this notice, the Commission has set out its proposed policy framework with respect to community-based media. The Commission is also considering possible revisions to the Distribution Regulations to give effect to a number of the provisions set out herein, particularly with respect to local programming and community access, to ensure that the objectives for community-based media are met.

155.

After consideration of the comments received in response to this notice, the Commission intends to issue its determinations regarding the establishment of the policy framework in the spring of 2002.

Call for comments

The Commission invites comments that address the issues and questions set out in this notice. The Commission will accept comments that it receives on or before Friday, 22 February 2002.

The Commission will not formally acknowledge 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

Interested parties can file their comments on paper or electronically. Submissions longer than five pages should include a summary.

Parties wishing to file their comments on paper should send them to the Secretary General, CRTC, Ottawa, K1A 0N2.

Parties wishing to file electronic versions of their comments can do so by email or on diskette. The Commission email address is procedure@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 your submission. 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.

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.

The Commission also encourages interested parties to monitor the public examination file (and/or the Commission's web site) for additional information that they may find useful when preparing their comments.

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 0N2
Tel: (819) 997-2429 - TDD: 994-0423
Fax: (819) 994-0218

Bank of Commerce Building
1809 Barrington Street
Suite 1007
Halifax, Nova Scotia B3J 3K8
Tel: (902) 426-7997 - TDD: 426-6997
Fax: (902) 426-2721

405 de Maisonneuve Blvd. East
2^nd Floor, Suite B2300
Montréal, Quebec H2L 4J5
Tel: (514) 283-6607 - TDD: 283-8316
Fax: (514) 283-3689

55 St. Clair Avenue East
Suite 624
Toronto, Ontario M4T 1M2
Tel: (416) 952-9096
Fax: (416) 954-6343

Kensington Building
275 Portage Avenue
Suite 1810
Winnipeg, Manitoba R3B 2B3
Tel: (204) 983-6306 - TDD: 983-8274
Fax: (204) 983-6317

Cornwall Professional Building
2125 - 11^th Avenue
Room 103
Regina, Saskatchewan S4P 3X3
Tel: (306) 780-3422
Fax: (306) 780-3319

10405 Jasper Avenue
Suite 520
Edmonton, Alberta T5J 3N4
Tel: (780) 495-3224
Fax: (780) 495-3214

530-580 Hornby Street
Vancouver, British Columbia V6C 3B6
Tel: (604) 666-2111 - TDD: 666-0778
Fax: (604) 666-8322

Secretary General

This decision is to be appended to the licence. It is available in alternative format upon request, and may also be examined at the following Internet site: http://www.crtc.gc.ca

Appendix to Public Notice CRTC 2000-129

Comparison table of proposed classes of community-based media

Criteria

Cable community channel

Community programming undertaking

Community- based low-power TV undertaking

Community- based digital service

Ownership

Licensed cable BDU

Not-for-profit; membership, management and operation by members of the community

For profit and not-for-profit; preference given to locally-based new entrants

For profit and not-for-profit; preference given to locally-based new entrants

Licensing

Authorized as part of BDU licence

New class of licence; available only when BDU does not offer a community channel in accordance with policy and regulations

New class of licence; the Commission will consider:
· the number of community-based services available;
· availability of LP frequencies; and
· capacity of BDUs

New class of licence; the Commission will consider:
· the number of community-based services available;
· capacity of BDUs

Financing

· Access to portion of BDU's 5% contribution to Canadian programming;
· Sponsorship revenue;
· No commercial advertising

· Access to a portion of BDU's 5% contribution to Canadian programming ;
· Sponsorship revenue;
· No commercial advertising

· Self-financed;
· Advertising - a maximum of 12 minutes per hour.

· Self-financed;
· Advertising - a maximum of 12 minutes per hour.

Canadian content

100%

100%

80% of broadcast year

80% of broadcast year

Local programs

60% of broadcast week

60% of broadcast week

60% of broadcast year

60% of broadcast year

Access programs

50% of broadcast week

50% of broadcast week

No quantitative requirement

No quantitative requirement

Carriage

Mandatory on analog basic service

Mandatory on analog basic service

Mandatory on digital tiers of terrestrial BDUs within over-the-air service area

Mandatory on digital tiers of terrestrial BDUs within licensed service area

Key references

Revised Community channel policy and Distribution Regulations

Revised Community channel policy and Distribution Regulations

New Community- based TV policy; and Television Regulations

New Community- based TV policy; and Television Regulations