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Broadcasting Public Notice CRTC 2003-9
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Ottawa, 6 March 2003
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Amendments to the Broadcasting Distribution Regulations - Implementation of the licensing framework for specialty audio programming services
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The Commission has made amendments to the Broadcasting Distribution Regulations as set out in the appendix to this notice. These amendments come into effect on 1 July 2003 and were published in Part II of the Canada Gazette on 29 January 2003.
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1.
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In New licensing framework for specialty audio programming services, Broadcasting Public Notice CRTC 2002-53, 12 September 2002 (Public Notice 2002-53), the Commission set out a licensing framework for specialty audio programming services that will generally be distributed on the digital tiers of broadcasting distribution undertakings (BDUs).
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2.
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In Call for Comments - Proposed Amendments to the Broadcasting Distribution Regulations, Broadcasting Public Notice CRTC 2002-65, 30 October 2002 (Public Notice 2002-65), the Commission invited public comment as to whether the proposed amendments accurately reflected the Commission policy set out in Public Notice 2002-53.
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3.
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As noted in Public Notice 2002-65, the Commission proposed amendments to the Broadcasting Distribution Regulations (the Regulations) to implement its policy. Specifically, the purpose of the amendments is to:
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a) specify that the audio Canadian programming services that a licensed BDU is authorized to distribute must licensed audio Canadian programming services;
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b) add the programming service of an exempt programming undertaking to the list of audio programming services that a BDU licensee is authorized to distribute, in order to ensure that BDUs may continue to carry exempt services without prior authorization;
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c) permit the digital distribution by Class 1 and Class 2 BDUs of an ethnic audio programming service that carries commercial messages, in a market where there is already an existing ethnic radio station, without prior Commission authorization; and
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d) provide licensed specialty audio programming services with a greater opportunity to be distributed by BDUs by instituting a 5:1 rule as contemplated in Public Notice 2002-53. This rule would require a BDU to distribute five unaffiliated specialty audio programming services for every affiliated specialty audio programming service that it distributes.
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4.
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The Commission received one comment in response to Public Notice 2002-65 from the Canadian Cable Television Association (CCTA).
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The CCTA submission
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5.
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The CCTA submitted that the amendments, as drafted, did not accurately reflect the Commission's policy as set out in Public Notice 2002-53. The CCTA, therefore, proposed two changes.
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6.
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First, the CCTA submitted that a definition of a "specialty audio service" should be included in the Regulations. The CCTA submitted that, without such a definition, the Regulations would apply to all licensed audio programming undertakings rather than only to specialty audio services, as the policy intended.
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7.
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The CCTA pointed out that under the policy set out in Public Notice 2002-53, a BDU would be required to distribute five unaffiliated specialty audio services for every affiliated specialty audio service that it distributes. The CCTA submitted that, if a definition of a "specialty audio service" were not included in the Regulations, the amendments, as drafted, would expand the 5:1 rule beyond what the Commission intended. The CCTA, therefore, proposed that the amendments be revised to provide a definition of a "specialty audio service," and that this definition be incorporated in those sections of the Regulations that require amendment to implement the new licensing framework.
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8.
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The second change suggested by the CCTA was that the Regulations be drafted to reflect the fact that the Commission licenses "undertakings" not "services."
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The Commission's determination
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9.
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With respect to the CCTA's first suggestion, the Commission notes that, without a definition of a "specialty audio service," it might not be clear that the 5:1 rule is to be satisfied by distributing unaffiliated specialty audio services rather than by distributing other types of audio programming services such as radio stations. In light of the above, the Commission considers that the lack of clarity should be addressed by adding the definition of a "specialty audio service," as suggested by the CCTA.
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10.
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With respect to the second point raised by the CCTA, the Commission agrees that the Regulations should be drafted to reflect the fact that the Commission licenses "undertakings."
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Implementation of the amendments
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11.
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The Commission has adopted the amendments attached as an appendix to this notice, which reflect the suggestions made by the CCTA. These amendments, which were published in Part II of the Canada Gazette on 29 January 2003, will come into effect on 1 July 2003.
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12.
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As contemplated in Public Notice 2002-53, the implementation date of 1 July 2003 will allow interested parties sufficient time to submit, and for the Commission to deal with, applications for BDU licence amendments. For example, under the terms of the Regulations, in cases where there is a local ethnic radio station within the licensed area of a Class 1 or Class 2 BDU, the BDU must still apply for a condition of licence to allow it to distribute, on an analog basis, the programming service of a licensed specialty audio programming undertaking when that undertaking is an ethnic service which broadcasts commercial messages.
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13.
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BDU licensees should submit applications, where necessary, to ensure that they will remain in compliance with the Regulations. The Commission has already received applications for new specialty audio programming services, and it is processing these at the present time.
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Secretary General
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This document is available in alternate format upon request and may also be examined at the following Internet site: http://www.crtc.gc.ca
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