ARCHIVED - Broadcasting Commission Letter Addressed to David Watt (Rogers Communications Partnership)
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Ottawa, 30 July 2014
BY EMAIL: david.watt@rci.rogers.com
Mr. David Watt
Vice-President
Regulatory Telecommunications
Rogers Communications Partnership
333 Bloor Street East, 9th Floor
Toronto, Ontario M4W 1G9
Subject: Shortfalls relating to Canadian programming contributions
Dear Mr. Watt:
As you are aware, the Commission recently conducted an audit of Rogers Communications Partnership’s (Rogers) annual returns for the broadcast years 2009-2010 to 2012-2013. During that audit, Commission staff identified an area of apparent non-compliance with the contribution requirements under sections 34 and 35 of the Broadcasting Distribution Regulations (the Regulations) due to issues with your calculation of your broadcasting revenues. You were notified of this apparent non-compliance by letter dated 4 April 2014 and responded by letter dated 24 April 2014.
This letter is to inform you that following a Commission determination, the Commission finds Rogers in non-compliance with the contribution requirements under sections 34 and 35 of the Regulations.
The non-compliance stems from the fact that Rogers did not include the ‘LPIF fee’ charged to customers in the gross revenues derived from broadcasting activities used to calculate its contribution requirements under the Regulationsfor the 2009-2010, 2010-2011, 2011-2012 and 2012-2013 broadcast years. The related shortfalls are $4,244,961 for Canadian programming and $1,194,747 for the Local Programming Improvement Fund (LPIF).
The Commission directs Rogers to pay the shortfalls as follows:
- The total Canadian programming shortfall ($4,244,961) must be paid within 90 days of the date of this letter.
- A minimum of 80% of the total shortfall must be paid to the Canada Media Fund (CMF);
- 20% of the shortfall ($848,992) may be paid to an independent production fund.
- The shortfall relating to the LPIF ($1,194,747) must be paid to the LPIF Fund administrator by 31 August 2014.
Proof of payment for the LPIF amount due by 31 August 2014, must be filed with the Commission within 60 days of the date of this letter. Proof of payment for the Canadian programming amount due within 90 days of the date of this letter must be filed with the Commission within 120 days of the date of this letter.
The Commission further notes that contributions to Canadian programming and the LPIF for the 2013-2014 broadcast year ending 31 August 2014, must reflect the inclusion of the ‘LPIF fee’ collected from subscribers in the gross revenues derived from broadcasting activities used to calculate the contribution requirements.
Sincerely,
(Original signed by Helen McIntosh for)
John Traversy
Secretary General
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