ARCHIVED - Public Notice CRTC 2001-115

Public Notice CRTC 2001-115

Ottawa, 6 November 2001

The distribution of the proceedings of the House of Commons on CPAC

The Commission recognizes the importance of ensuring access by all Canadians to the proceedings of the House of Commons and its various committees and has therefore decided that the proceedings must now be made available in both official languages to most cable and satellite subscribers across the country, to maximize the benefit to the public. The Commission acknowledges the cable distribution industry's and other broadcasting distribution undertakings (BDU) voluntary support of CPAC's carriage of this programming vital to the public interest.

Background

1.

The Cable Public Affairs Channel (CPAC) is a satellite-to-cable programming undertaking owned by members of the Canadian cable distribution industry. Its programming consists of two main elements: programming provided by the House of Commons Broadcasting Service, and public affairs programming produced by CPAC. The House of Commons programming includes gavel-to-gavel coverage of the proceedings of the House of Commons, and coverage of its various parliamentary committees. The proceedings are provided unedited with no editorial comment. They are available in three audio modes: English, French and "floor" sound (language of originating speaker). Under the terms of its agreement with the House of Commons, when the House is in session, CPAC must carry the proceedings live, and cannot pre-empt the coverage.

2.

In addition to carriage of the proceedings noted above, CPAC also offers 30 hours per week of original programming and 46 hours each week of long-format coverage of committees, conferences, hearings and special events. Past coverage has included provincial inquiries such as the Walkerton water inquiry, landmark Supreme Court of Canada cases, coverage of the APEC, Somalia and Krever inquiries, the forum organized by the Federation of Francophone and Acadian communities, and coverage of the World Trade Organization meetings in Seattle.

3.

CPAC operates on a not-for-profit basis and is funded by its affiliates, which currently include 84 licensed cable distributors and two national DTH satellite distributors. The service does not have a basic rate, therefore subscribers are not charged directly for it as part of their subscription rate. According to CPAC, revenues received from its affiliates are reinvested in production, acquisition of programming and the expenses of distributing the service by satellite.

4.

Under the current regulationts governing BDUs, neither CPAC nor the House of Commons proceedings are mandatory, or "must carry" signals. If Class 1 or Class 2 BDUs elect to distribute CPAC, they must carry it as part of the basic service, and Class 3 BDUs are not subject to any requirement to carry CPAC. While the carriage of CPAC is not mandated, it is carried widely across Canada by a variety of BDUs, including cable distributors, direct-to-home (DTH) operators and multi-point distribution systems (MDS) distributors.

Support for CPAC in the distribution industry

5.

The Commission recognizes the efforts of the BDU industry, in achieving voluntarily the wide distribution of CPAC throughout Canada. According to CPAC, its service is provided to 95% of all cable television subscribers (approximately 7.5 million homes) and to over one million DTH subscribers across Canada. According to information provided by MediaStats, CPAC is currently received by 99.6% of all Class 1 system subscribers, and by 89% of all Class 2 system subscribers.

6.

In its Report on French-language broadcasting services in a minority environment (Public Notice CRTC 2001-25) (the Report), the Commission noted that when CPAC is distributed, it is very often available only in the English-language version. In the consultations leading to the Report, it was noted that many communities with sizeable official language minorities (most particularly French-language communities) do not have access to CPAC in their official language. While CPAC is often available in the other official language on a secondary audio program (SAP) channel, or as part of an audio programming service, audiences are often unaware of these options.

7.

The term SAP channel refers to the second, or secondary, audio programming signal. SAP signals are receivable in the home using televisions or VCRs that are equipped with internal SAP decoders. Stand-alone SAP decoders are also available. A subscriber with the appropriate equipment can access a SAP channel by routing it to the television speaker. Although television manufacturers are not obliged to equip sets with decoders, they have been added to many televisions since the early 1990's. (For additional information on SAP technology, refer to Public Notice CRTC 2001-46).

8.

According to CPAC, 8% of Canadian BDU subscribers receive two separate video channels of CPAC. A further 37% of subscribers who receive the video signal in one official language also have access to an audio feed in the other official language, offered either on a SAP channel, or on the radio services offered by the distributor. DTH distributors currently provide CPAC to all of their subscribers, in both official languages.

9.

In the Report, the Commission stated with respect to CPAC that it "expects distributors to provide this service in the language of the majority in any given market, and also to offer the SAP signal in the language of the minority where the technology being used makes this possible." At the same time, the Commission noted that it would "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." That process was initiated by Public Notice CRTC 2001-46.

10.

Public Notice 2001-46 called for public comment on what changes to the current rules would be both reasonable and effective in ensuring the broadest possible distribution of CPAC to BDU subscribers across Canada, in both official languages. In particular, the Commission called for comments on the following questions:

Positions of parties

11.

The Commission received six interventions addressing the issues noted above, including submissions from the Canadian Cable Television Association (CCTA), the Commissioner of Official Languages, Global TV and the Canadian Association of Broadcasters (CAB).

Distribution of CPAC in the official language of the majority and of the minority

12.

The CCTA, the CAB and CPAC all observed that CPAC is currently distributed to more than 7.5 million households, representing over 95% of all cable television subscribers. The interveners argued that because significant subscriber penetration of CPAC has been achieved on a voluntary basis, mandatory carriage of the service in the official language of the majority is unnecessary.

13.

The intervention submitted by the Commissioner of Official Languages stated that access to the Debates of the House of Commons is essential to the healthy exercise of democracy, and therefore all Canadians should enjoy equal access to these debates in Canada's two official languages. In the Commissioner's opinion, when the House of Commons chooses to disseminate parliamentary debates by one method or another, it must respect the principle of equal access to the proceedings of Parliament, and the requirement for bilingualism which flows from that. The Commissioner further noted that both an English-language and a French-language version of the proceedings of the House of Commons and its committees should be distributed in an equivalent manner, on two separate television channels.

14.

The CAB added in its intervention that it supports "the Commission's goal of ensuring that Canadians have access to CPAC, particularly the proceedings of the House of Commons, in the language of their choice."

15.

The CCTA also stated that "it supports the principle that the debates and proceedings of Parliament should be available to the Canadian public in both official languages." The CCTA does not, however, advocate mandatory carriage of CPAC at this time, in either official language.

16.

In addition, both the CCTA and the CAB opposed the idea of a separate television signal in the official language of the minority. They believe that such a practice would be an approach that would be difficult to justify in light of simpler, less expensive alternatives. According to the CAB, a separate television signal for the other official language "would likely result in the need to displace an existing analog service, which would be disruptive to subscribers and potentially Canadian programming services, if channel realignment were necessary." The CAB further argued that such a model could also result in BDUs having to deny carriage to a number of newly licensed digital specialty services. The CCTA argued that this would create unnecessary redundancy at a time when new services are becoming available to subscribers.

17.

CPAC noted that only one video signal is produced by the House of Commons Broadcasting Service, and made available to CPAC. The video component of the television signal is identical for all three language versions of the service (English, French and floor).

18.

The CCTA and CPAC both support an approach in which the Commission would expect that Class 1 and Class 2 cable systems that carry CPAC in one language should also carry the audio feed in the other official language, on a SAP channel. The CCTA and CPAC are of the opinion that the SAP channel would provide a simple, cost effective and efficient method to make the audio in the other official language available.

19.

According to the CCTA, by Fall 2002, SAP technology will be available on Class 1 cable systems serving more than 80% of Canadian cable subscribers. The CCTA adds that, although it will be difficult and costly to invest in this equipment, Class 2 cable systems will also be making every effort to implement it as quickly as possible. CPAC further submits that increasing subscriber awareness of the utility of SAP technology and the strong degree of competition that now exists between different types of BDUs will ensure the continued deployment of this technology.

20.

The CAB and Global TV stated that all BDUs using analog technology should be required to provide a second CPAC audio feed using the SAP signal, in the official language of the minority, and that all BDUs using digital technology should be required to offer a separate video channel of CPAC in the official language of the minority. In the CAB's view, the dual analog SAP/digital approach is the "most reasonable and effective solution" to ensure that Canadians have access to the proceedings of the House of Commons and its various committees, in the official language of their choice.

21.

Both the CCTA and CPAC opposed the CAB's suggestion. The use of a separate video channel on digital to carry the service is opposed by the CCTA for similar reasons as those voiced over the two-video channel distribution method proposed in Public Notice 2001-46.

Distribution status and method for Class 3 BDUs

22.

In PN 2001-46, the Commission offered the following question as a matter for consideration:

23.

Two opposing positions were expressed on this issue. The CAB and the Commissioner of Official Languages were both of the opinion that all BDUs, regardless of size, should be required to distribute the service of CPAC. The CAB suggested that all BDUs should distribute a second-language audio feed on an analog basis, using the SAP signal, while the Commissioner of Official Languages stated that all BDUs should be distributing the proceedings of the House of Commons on two separate video channels in both official languages.

24.

In response to whether all BDUs should be subject to the same regulatory requirements with respect to the distribution of CPAC, the comments of the Commissioner of Official Languages were limited to access to the proceedings of the House of Commons and its committees in the following statement:

.all Canadians should have access to these debates .equal access derives from the Charter of Rights and Freedoms and the Official Languages Act and should not be subject to subscribers' place of residence. Undertakings with less than 2,000 subscribers should accordingly also offer CPAC in both official languages.

25.

In contrast, the CCTA expressed the view that Class 1 and Class 2 systems be expected to carry the audio feed of CPAC in the official language of the minority, using SAP technology. Class 3 systems should be expected to do so only where resources permit. The CCTA is of the view that many Class 3 cable systems, particularly those serving only a few hundred subscribers, would find it difficult to justify the expense of installing SAP equipment when only a handful of subscribers might wish to use it.

The Commission's determination

The commitment of the BDU industry to CPAC

26.

The Commission acknowledges the valuable contribution of the cable industry and CPAC's affiliates, in funding and supporting CPAC. The CCTA reports that the cable industry has invested nearly $40 million in CPAC since its 1993 launch. This investment has taken the form of fees paid by distributors, without subscribers being charged directly.

27.

CPAC's public affairs programming is regarded by the Commission as a significant and valuable component which complements the proceedings of the House of Commons and its committees. At the same time, the Commission is of the view that coverage of the proceedings themselves is primarily what makes CPAC a unique and vital service. It is this component that is essential to "safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada." [The Broadcasting Act, S. 3 (1)(d)(i)].

28.

Therefore, consistent with its recommendation in the Report, the Commission has determined that its main objective in this matter should be ensuring that a majority of Canadians have access to the proceedings of the House of Commons and its committees, in the official language of their choice.

29.

In addition to the proposed changes to the regulations, the Commission therefore strongly encourages the cable industry and CPAC affiliates to continue to provide funding for the production and distribution of all of CPAC's programming. It also encourages CPAC to continue its valuable role as the distributor across Canada of both the proceedings of the House of Commons and its committees, under the agreement with the House of Commons Broadcasting Service.

30.

The Commission notes that CPAC's current licence term will expire on 31 August 2002. At that time, CPAC will be able to address its continued role in providing both its service and the proceedings of the House of Commons to the Canadian public.

Ensuring distribution of the proceedings of the House of Commons - Distribution in the official language of the majority

31.

The separate proceeding initiated by Public Notice 2001-46 was intended not only to address the issue of distribution in the official language of the minority, but to also examine the status of the service in the official language of the majority. There is currently no regulatory requirement that the proceedings be distributed, in either official language. For this reason, the Commission is of the view that any measure to ensure distribution in the official language of the minority should first address distribution to audiences in the language of the majority.

32.

The cable and DTH industry has demonstrated its strong and ongoing commitment to the support of CPAC and the proceedings of the House of Commons by voluntarily making the service widely available. Notwithstanding this support, the Commission believes that, in order to achieve the vital goal of making CPAC available in both official languages, further measures are necessary.

33.

The Commission has concluded that the most appropriate method to achieve this vital goal is through an amendment to the Broadcasting Distribution Regulations (the regulations), which will codify existing practices in the industry. These regulatory changes will result in the enhancement of the level of distribution that has been achieved voluntarily.

34.

The Commission hereby announces that it intends to amend the regulations. The amendment willrequire that all Class 1 and 2 BDUs, including all DTH BDUs, distribute the proceedings of the House of Commons and its various committees, as part of the basic service. DTH BDUs must distribute the service in both official languages. The amended regulations will come into effect on 1 September 2002.

Distribution in the official language of the minority

35.

Once distribution in the language of the majority is ensured for most cable and satellite subscribers, measures to ensure distribution of the proceedings of the House of Commons in the official language of the minority can then be contemplated. A number of approaches were suggested and considered during this process. The Commission is of the opinion that the approach it has adopted will effectively balance the need for access to the proceedings in both official languages, with concerns related to capacity and the potential for disruption to subscribers.

36.

Some parties advocated that service to audiences in the official language of the minority be provided by a separate video channel. The Commission, however, continues to be of the view set out in the Report, that the use of SAP technology is appropriate in situations where the video feed is identical for both official languages.

37.

The Commission has considered several factors in this matter, including:

38.

Taking these factors into account, the vast majority of Canadians should have access to both audio feeds through this technology. The Commission notes CPAC's suggestion for a campaign to make viewers aware of the easy availability of the second audio feed, and expects both CPAC and distributors to implement such a campaign.

Distribution of the proceedings of the House of Commons and its various committees, on Class 1 and 2 BDUs

39.

The Commission has therefore concluded that, for Class 1 and Class 2 systems, where the proceedings of the House of Commons and its committees are distributed in the official language of the majority, the most appropriate method to serve the linguistic minority will be through the use of a separate audio feed on the SAP channel. This method will ensure that, using the current analog technology, audiences will be able to receive the proceedings in either official language.

40.

The Commission is of the view that the method chosen at this time to distribute the proceedings in the official language of the minority should be one that will remain viable and accessible to subscribers, as digital technology proliferates and more consumers embrace it.

41.

The Commission also considered the position of small operators. Most distributors with a digital capacity of less than 750 MHz have a capacity of only between 30 and 50 channels on digital, although they are subject to significant distribution requirements. These include the distribution of 16 new Category 1 services, as well as the distribution of between six and eight French-language services in English-language markets. Given the issue of capacity constraints, the Commission is of the view that a requirement for systems with a digital capacity of less than 750 MHz to provide the proceedings in the language of the minority on a second video channel would be onerous.

42.

In the Report, the Commission acknowledged that all levels of digital technology were not identical. In recognition of the differences, it imposed varying distribution requirements, based on the technology employed. For example, high capacity systems (those with over 750 MHz capacity) are required to distribute all French- and English-language Canadian specialty services. In the Commission's view, these systems have the resources to provide all Canadian services. Consistent with this approach, the Commission has concluded that all Class 1 and Class 2 distributors with high capacity digital systems (750 MHz or more) should be required to provide a separate video version of CPAC, in the official language of the minority.

43.

For all the reasons set out above, the Commission has determined that the proceedings of the House of Commons and its various committees, where distributed in the language of the minority, should be distributed in the following manner:

44.

The requirements set out above will take effect 1 September 2002, and will be implemented through amendments to the regulations.

Distribution of the proceedings of the House of Commons and its various committees, on Class 3 BDUs

45.

As noted above, the technical capacity of distributors was considered by the Commission in determining how services should be distributed. Consistent with the conclusions of the Report, and given the importance of the proceedings of the House of Commons to Canadians, the Commission is of the view that Class 3 BDUs with capacity more than 550 MHz and employing digital technology should be subject to the same requirements as Class 1 and Class 2 BDUs.

46.

At the same time, the Commission has determined that Class 3 BDUs with less than 550 MHz capacity, whether or not they employ digital technology, should not be required to carry CPAC in either official language. Such a requirement could be onerous at a time when the Commission prefers to reduce the regulatory burden for small systems. In addition, the issue of channel capacity is a serious one for systems that offer only 24 or 30 channels.

47.

At the same time, the Commission reiterates the existing widespread distribution of the proceedings of the House of Commons and its committees, on smaller distribution undertakings.

48.

Recognizing the importance of the proceedings of the House of Commons to Canadians, and, at the same time responding to the unique circumstances of small distributors, the Commission has developed the following model for the distribution of the proceedings of the House of Commons and its committees on Class 3 BDUs:

a) Class 3 BDUs employing digital distribution (with 550 MHz or more capacity), will be required to provide the proceedings of the House of Commons and its committees, in both official languages.

Fully interconnected Class 3 systems must distribute the proceedings of the House of Commons and its committees with the same distribution status in both official languages as the system to which it is interconnected, unless the Class 3 system does not have the channel capacity to do so.

b) Class 3 BDUs employing analog distribution are strongly encouraged to distribute the proceedings of the House of Commons and its committees on an analog channel.

All Class 3 systems presently distributing the House of Commons proceedings, and that are not fully interconnected, but owned by one of the four largest multiple system operators (affiliated Class 3 systems), will be required to continue the distribution of the proceedings, and to make available a second audio feed of the proceedings, in the official language of the minority, using SAP technology. All affiliated Class 3 systems that are not currently distributing the proceedings will be strongly expected to distribute the proceedings, including the use of SAP technology.

49.

The digital distribution requirements set out above are proposed to take effect 1 September 2002, and will be implemented through amendments to the regulations and to the proposed exemption order for Class 3 systems (Public Notice 2001-59).

50.

The Commission will issue proposed amendments to the regulations, in the near future, to give effect to the conclusions set out above.

Secretary General

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