ARCHIVED - Transcript, Hearing 17 November 2010
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Volume 2, 17 November 2010
TRANSCRIPT OF PROCEEDINGS BEFORE
THE CANADIAN RADIO-TELEVISION AND
TELECOMMUNICATIONS COMMISSION
SUBJECT:
Review of the direct-to-home satellite distribution policy as described in Broadcasting Notice of Consultation CRTC 2010-488
HELD AT:
Outaouais Room
Conference Centre
Portage IV
140 Promenade du Portage
Gatineau, Quebec
Transcripts
In order to meet the requirements of the Official Languages
Act, transcripts of proceedings before the Commission will be
bilingual as to their covers, the listing of the CRTC members
and staff attending the public hearings, and the Table of
Contents.
However, the aforementioned publication is the recorded
verbatim transcript and, as such, is taped and transcribed in
either of the official languages, depending on the language
spoken by the participant at the public hearing.
Canadian Radio-television and
Telecommunications Commission
Transcript
Review of the direct-to-home satellite distribution policy as described in Broadcasting Notice of Consultation CRTC 2010-488
BEFORE:
Konrad von Finckenstein Chairperson
Rita Cugini Commissioner
Timothy Denton Commissioner
Candice Molnar Commissioner
Louise Poirier Commissioner
ALSO PRESENT:
Jade Roy Secretary
Jean-Sébastien Gagnon Legal Counsel
Nanao Kachi Hearing coordinator
HELD AT:
Outaouais Room
Conference Centre
Portage IV
140 Promenade du Portage
Gatineau, Quebec
November 17, 2010
- iv -
TABLE OF CONTENTS
PAGE / PARA
PRESENTATION BY:
Porte-parole du Bloc Québécois en matière de Patrimoine 203 / 1236
Canadian Broadcasting Corporation 230 / 1376
Syndicat des communications de Radio-Canada 287 / 1845
Rogers Communications Inc. 315 / 2006
Gatineau, Quebec
--- Upon commencing on Wednesday, November 17, 2010 at 0835
1232 LE PRÉSIDENT: Bonjour tout le monde. Commençons, madame.
1233 THE SECRETARY: Thank you. Before we start, I would just like to mention that we were advised that there is a high possibility that there will be a fire drill today at 11:00 a.m. If it is the case, you will be asked to evacuate the building and we will reconvene the hearing at 12:30.
1234 Maintenant, nous entendrons la présentation de la porte-parole du Bloc Québécois en matière de patrimoine, madame Carole Lavallée.
1235 Madame Lavallée, veuillez, s'il vous plaît, nous présenter votre collègue et vous avez dix minutes pour votre présentation. Merci. Excusez. S'il vous plaît, ouvrez votre micro.
PRESENTATION
1236 HON. CAROLE LAVALLÉE: Parfait. Nous, à la Chambre, il ouvre tout seul.
--- Laughter
1237 Alors, bonjour, monsieur Von Finckenstein, bonjour messieurs, mesdames les commissaires.
1238 Effectivement, je n'aurais jamais commencé sans vous présenter mon collègue qui est Robert Bouchard, le Député de Chicoutimi - Le Fjord et sa présence est extrêmement importante ici parce que je viens vous porter un problème de région. Et c'est tellement important que d'autres collègues aussi m'ont fait d'autres observations sur ce qu'ils vivent dans leur région et au fur et à mesure de ma présentation, je vous les citerai.
1239 Ils m'ont donné des petits textes à vous lire, des choses qu'ils voulaient souligner, mais ils ne peuvent pas tous être ici ce matin parce que, bon, vous savez, tous les mercredis matins à 9 h 00 le Bloc Québécois a un caucus, comme tous les autres partis à la Chambre, alors ils n'ont pas voulu laisser partir une grande délégation si je peux dire.
1240 Alors, pour le Bloc Québécois, c'est une question de principe. C'est à partir d'un principe simple que le Bloc Québécois tient à intervenir dans la présente audience sur la politique sur la distribution par satellite de radiodiffusion directe: les fréquences utilisées étant du domaine public, celles-ci doivent être au service de la population avant tout.
1241 En matière de télévision, la priorité doit donc systématiquement être le téléspectateur.
1242 Le Bloc Québécois est d'avis que les entreprises de distribution en radiodiffusion, que ce soit par câble ou par satellite doivent offrir à leur clientèle un service de proximité. Les stations régionales doivent être offertes systématiquement à leur région respective.
1243 Si, à nos yeux, les distributeurs par SRD devaient offrir des stations régionales dans les régions qu'ils desservent, cela devrait être imposé inconditionnellement dans le cas de la Société Radio-Canada.
1244 Qu'il soit impossible, par exemple, pour certains téléspectateurs du Saguenay-Lac-Saint-Jean dont va vous parler Robert Bouchard qui est à mes côtés ou de la Mauricie d'avoir accès à leur programmation régionale nous apparaît absolument inacceptable. D'autant plus que la programmation régionale de Radio-Canada lui est imposée par la Loi.
1245 Alors, mon collègue, Robert Bouchard, va vous faire valoir son opinion.
1246 HON. ROBERT BOUCHARD: Alors, bonjour. Alors, pour donner suite au propos de ma collègue, Carole Lavallée, je tiens à vous présenter un commentaire de ma région, le Saguenay-Lac-Saint-Jean.
1247 Alors, représentant le comté Chicoutimi - Le Fjord, Saguenay-Lac-Saint-Jean, je trouve inadmissible que plusieurs de mes concitoyennes et concitoyens n'aient pas accès à la programmation régionale de Radio-Canada.
1248 Cette problématique de la distribution par satellite, qui est particulièrement accentuée au Québec, affecte d'une mesure importante ma région. Entre 2003 et 2009, on estime que le marché de la distribution par coupole est passé de 25 à 34 pour cent. On peut donc présumer qu'il y a environ 40 000 ménages qui n'auraient pas accès au réseau local de Radio-Canada. C'est une situation que nous ne pouvons tolérer.
1249 La population du Saguenay-Lac-Saint-Jean représente 275 000 habitants s'étendant sur un territoire de 95 893 km carrés. Comme on peut le constater, c'est une région immense, équivalente à trois fois le territoire de la Belgique. On y retrouve notamment un foisonnement culturel très important et bien distinct des autres régions que l'on retrouve dans le même fuseau horaire.
1250 Depuis plusieurs années et malgré cette situation, la Société Radio-Canada déploie de nombreux efforts pour augmenter sa présence dans les régions et cette réalité est bien perceptible sur le terrain. Notamment, avec le Fonds d'amélioration de la programmation locale, Radio-Canada a augmenté sa production régionale et accentué sa collaboration avec les producteurs locaux.
1251 De façon concrète, la Société d'État a été en mesure de couvrir plusieurs événements majeurs qui se sont déroulés dernièrement dans ma région. Par exemple, ce fut le cas pour les championnats de nage en eau libre de la FINA qui, pour la première fois, tenait ses compétitions à l'extérieur de l'Europe.
1252 Même chose pour le Téléjournal Saguenay-Lac-Saint-Jean qui propose aux téléspectateurs de ma région une plus grande offre en information en diffusant les fins de semaine.
1253 Voilà qui reflète concrètement les propos du Bloc Québécois. D'un côté, le CRTC incite les chaînes de télévision à augmenter la production locale et régionale et, de l'autre, les distributeurs ne sont pas obligés de diffuser. Une situation qui, selon nous, est inacceptable pour les abonnés de la distribution par satellite.
1254 Il faut absolument que ces personnes aient accès à la même information que les abonnés par câble. C'est une question de droit à la diversité de l'information régionale, mais aussi une question de respect pour les gens qui habitent les régions. Alors, je vous remercie.
1255 HON. CAROLE LAVALLÉE: Alors, si je peux poursuivre, force est de constater que le problème ne vient pas strictement des distributeurs par SRD, mais bien du cadre réglementaire trop laxiste.
1256 D'une part, l'article 37 du Règlement sur la distribution de radiodiffusion indique que, à l'article 37: « Le titulaire doit distribuer dans le cadre du service de base les services suivants: le service de programmation d'au moins une station qui est affiliée ou membre de chacun des réseaux de langues française et anglaise de la Société. »
1257 D'autre part, comme nous le rappelle le présent Avis de consultation: « Le Conseil exige présentement de toute titulaire de SRD qu'elle distribue au moins les stations de télévision traditionnelle « cinq stations de langue anglaise et cinq de langue française du réseau de la SRC, dont une de chaque fuseau horaire. »
1258 Une station par fuseau horaire. Voilà comment le CRTC définit la « diversité régionale » imposée par la Loi.
1259 Pourquoi cela? La réponse se trouve dans l'Avis public de radiodiffusion CRTC 2008-100 du 30 octobre 2008 intitulé « Cadres réglementaires des entreprises de distribution de radiodiffusion et des services de programmation facultatifs. »
1260 Parce que: « Le Conseil estime qu'il est déraisonnable d'exiger des entreprises par SRD qu'elles distribuent les 148 stations de télévision locales canadiennes... »
1261 Le Bloc Québécois est d'avis que le système de radiodiffusion doit refléter la diversité régionale et que celle-ci doit être disponible dans toutes les régions.
1262 Et j'ai un texte de Paule Brunelle que j'aimerais vous lire, qu'elle m'a demandé de vous rendre. Alors, je commence:
1263 « Alors que la télévision par satellite permet de visionner une très grande variété de canaux, elle empêche certaines régions dont Trois-Rivières de recevoir les signaux des stations de télévision locales.
1264 Il ne faut pas créer un déficit d'information à Trois-Rivières. Il est vital pour une saine démocratie de promouvoir le débat; qu'il soit politique, social ou économique. L'accès à une information locale diversifiée est la clé qui permet aux citoyens de se forger une opinion suffisamment éclairée, leur permettant de prendre part au débat et de soulever les questions qui leur tiennent à coeur en mesure de leurs valeurs, de leurs besoins et de leur milieu.
1265 Il est essentiel que les Trifluviennes et les Trifluviens aient accès aux ondes télévisées de la Mauricie. Avec un bassin de population de plus de 250 000 personnes, l'accès à une information locale adéquate est un besoin essentiel pour promouvoir un sentiment d'appartenance fort ».
1266 Fin de la situation de ma collègue Paule Brunelle, députée de Trois-Rivières.
1267 Si dans les centres régionaux, le téléspectateur a le choix entre le câble et le satellite, plus on s'éloigne du centre et moins c'est le cas. Le satellite devient souvent la seule option. Du coup, le téléspectateur n'a simplement plus accès à sa télévision régionale.
1268 Le CRTC met en place un Fonds pour l'amélioration de la programmation locale, programmation à laquelle le téléspectateur en région abonné à un distributeur par satellite de radiodiffusion directe n'aura pas accès.
1269 Et, là, je veux vous citer mon collègue Marc Lemay dans ses observations qu'il vous a envoyées, le paragraphe 12, à la page 4, et il dit:
« Il serait inconséquent de leur accorder du financement pour améliorer leur programmation locale d'un côté et ne pas s'assurer que cette programmation sera accessible aux téléspectateurs à qui elle est destinée. »
1270 Le Bloc Québécois recommande donc que les conditions de licence des SRD incluent obligatoirement dans leurs services de base les stations régionales les plus à proximité disponibles dans les régions où ils opèrent.
1271 Et, finalement, le Bloc Québécois demande, réclame toujours un CRTC québécois. La réalité québécoise, on le voit encore une fois ici, nécessite des solutions québécoises. C'est pourquoi le Bloc Québécois demande d'abord et avant tout le transfert de tous les pouvoirs en arts, culture et télécommunications au gouvernement du Québec.
1272 Encore le 23 mars 2009, la Ministre de la Culture et des Communications du Québec, Christine St-Pierre, au nom du gouvernement du Québec en a fait la demande au Ministre du Patrimoine canadien, James Moore, dans une lettre où elle écrivait:
« La conclusion d'une entente en communication garantirait une meilleure prise en compte de la particularité du contenu québécois en radiodiffusion et en télécommunications. »
1273 C'est pourquoi le Bloc Québécois demande le transfert des pouvoirs en télécommunications et en radiodiffusion au gouvernement du Québec qui les réclame aussi.
1274 Ainsi, les décisions d'un organisme de réglementation de la radiodiffusion et des télécommunications seraient prises strictement en fonction des intérêts du Québec par des Québécoises et des Québécois.
1275 Merci.
1276 LE PRÉSIDENT: Merci pour votre présentation.
1277 Comme vous le savez, nous sommes très préoccupés avec les régions et pour cette raison nous avons créé le Fonds pour l'amélioration de la programmation locale et je suis totalement d'accord avec vous que c'est illogique qu'on ait ce Fonds en subvention de ces stations-là, mais elles ne sont pas disponibles par les satellites.
1278 Monsieur Bouchard, dans votre région, est-ce qu'il y a des stations qui reçoivent les fonds du Fonds pour l'amélioration locale qui ne sont pas sur les satellites?
1279 HON. ROBERT BOUCHARD: Je ne peux pas dire.
1280 LA SECRÉTAIRE: Désolée; s'il vous plaît, ouvrez votre micro.
1281 LE PRÉSIDENT: Micro, s'il vous plaît.
1282 HON. ROBERT BOUCHARD: Alors, je ne suis pas en mesure de répondre à votre question. Je ne peux pas dire s'il y a des stations, des postes de télévision qui reçoivent des fonds. Par contre, je voudrais rappeler une chose.
1283 On peut constater que c'est croissant le marché au niveau des citoyens, les clients qui acquièrent des coupoles. C'est quoi, ça? On l'a vu, de 2003 à 2009, il y a une croissance de 24 à 34 pour cent, et je ne pense pas que ça soit quelque chose qui est appelée à arrêter. Je pense que c'est appelé encore peut-être à croître.
1284 LE PRÉSIDENT: Madame la secrétaire, voulez-vous donner à monsieur Bouchard cette liste, s'il vous plaît?
1285 J'ai ici une liste de toutes les stations qui sont éligibles pour le Fonds d'amélioration. Regardez et, selon moi, il y a Jonquière, là, Trois-Rivières et Québec, évidemment, qui sont éligibles, mais je ne vois pas les stations dans votre région.
1286 CONSEILLÈRE POIRIER: Jonquière.
1287 HON. ROBERT BOUCHARD: Jonquière, oui.
1288 LE PRÉSIDENT: Jonquière. I mentioned it. Oui, je vois Jonquière, Trois-Rivières, Sherbrooke et...
1289 HON. ROBERT BOUCHARD: Chicoutimi.
1290 LE PRÉSIDENT: Chicoutimi, ah! oui.
1291 HON. ROBERT BOUCHARD: Oui.
1292 HON. CAROLE LAVALLÉE: Mais, est-ce que je peux me permettre?
1293 LE PRÉSIDENT: Ça veut dire Chicoutimi et Jonquière sont dans votre région?
1294 HON. ROBERT BOUCHARD: Oui, effectivement.
1295 LE PRÉSIDENT: Et Jonquière, évidemment, n'est pas sur les... qu'est-ce qui arrive avec Chicoutimi, où ça sur la liste?
1296 THE SECRETARY: On the second page.
1297 THE PRESIDENT: Second page, okay.
1298 HON. ROBERT BOUCHARD: Ce que nous avons dans les mains à l'heure actuelle, vous dites que ce sont des stations qui reçoivent des subventions du Fonds? Oui.
1299 LE PRÉSIDENT: Oui. Ça veut dire que les gens dans votre région reçoivent Chicoutimi par satellite, mais pas Radio-Canada, si je comprends bien?
1300 HON. ROBERT BOUCHARD: Oui, effectivement. La problématique se situe au niveau de la Société d'État, Radio-Canada, mais pour ce qui est de TVA, il est actuellement couvert. Un client qui a une coupole, que ce soit par Bell ExpressVu ou par Shaw, il peut syntoniser, il peut être branché, prendre de l'information sur TVA et même l'autre réseau qui est le V.
1301 LE PRÉSIDENT: Oui, oui. Mais ils reçoivent, si je comprends bien ici, ils reçoivent Sherbrooke et Quebec City.
1302 HON. ROBERT BOUCHARD: Il y a seulement Radio-Canada qui, lui, le citoyen qui a une coupole avec une de ces deux entreprises, au niveau de l'information de Radio-Canada, de la Société Radio-Canada au plan du Saguenay-Lac-Saint-Jean, le Téléjournal de Radio-Canada Saguenay-Lac-Saint-Jean, il ne peut pas recevoir, il ne peut pas être branché sur ce réseau.
1303 LE PRÉSIDENT: Okay. Louise, tu as des questions?
1304 CONSEILLÈRE POIRIER: Oui, j'ai quelques questions. Est-ce que ça fonctionne? Est-ce que ça fonctionne maintenant? Merci.
1305 Bonjour tous les deux.
1306 HON. ROBERT BOUCHARD: Bonjour.
1307 CONSEILLÈRE POIRIER: Je vous remercie d'avoir pris le temps de venir nous rencontrer et on sait que vous êtes pressés.
1308 Hier, j'ai posé une question à Shaw TV. Je leur ai demandé pourquoi ils ne distribuaient pas Radio-Canada à certains endroits et j'avais mentionné, entre autres, Trois-Rivières et Jonquière? C'est ce que j'ai donné en exemple.
1309 Et ils m'ont dit: « Bien, les clients savent quand ils deviennent clients chez nous qu'ils n'auront pas Radio-Canada, c'est donc le choix que le client fait. »
1310 Qu'est-ce que vous pensez de cette réponse? Est-ce que c'est un choix éclairé que le client fait quand il prend Shaw de ne pas recevoir Radio-Canada francophone local chez vous?
1311 HON. ROBERT BOUCHARD: Moi, je pense que c'est une très mauvaise réponse. Nous, nous voulons qu'il y ait une diversité de l'information et je pense que cette entreprise qui vend des coupoles devrait se réviser et proposer cette possibilité puisque d'autres réseaux privés l'offrent, alors TVA Saguenay-Lac-Saint-Jean est accessible par le citoyen qui a une coupole.
1312 Moi, je m'inscris en faux et même que je déplore qu'il y ait une telle réponse d'une compagnie aussi responsable que Shaw ou même Bell ExpressVu.
1313 CONSEILLÈRE POIRIER: Passons maintenant à Radio-Canada. Vous voulez qu'on trouve une façon, si j'ai bien compris, d'avoir une réglementation qui « prioriserait » la distribution sur satellite de Radio-Canada. Est-ce bien ce que vous nous demandez de faire?
1314 HON. ROBERT BOUCHARD: Oui, bien sûr, bien sûr. Il faut en arriver à, et je pense que le CRTC c'est l'organisme désigné pour imposer une réglementation puis dire à ces compagnies-là qui sont branchées par satellite, qui proposent des coupoles, leur dire: Nous, on favorise l'information régionale et vous vous devez de mettre à la disposition des citoyens qui achètent votre service, qu'ils puissent se brancher sur une société, la Société Radio-Canada dans une région, Saguenay-Lac-Saint-Jean, Trois-Rivières ou ailleurs au Québec et même au Canada.
1315 CONSEILLÈRE POIRIER: Et vous, madame Lavallée?
1316 HON. CAROLE LAVALLÉE: Bien, ce qui est clair, c'est que certaines personnes en région, dans certaines municipalités, villages, ils n'ont pas accès au câble, O.k., alors ils n'ont pas accès au choix, si je peux dire, sans faire de jeu de mots, et ils ont accès qu'aux distributeurs de télévision par satellite. Alors, ces distributeurs de télévision doivent offrir le choix local.
1317 Qu'il y ait ou non, que ces postes de télé locaux reçoivent ou non de l'argent, du financement via le Fonds d'amélioration locale, je comprends que, pour vous, la logique c'est que nous donnons de l'argent pour améliorer la programmation locale, donc ça devrait être diffusé localement. C'est votre logique à vous.
1318 Mais la logique du citoyen, la logique du téléspectateur, c'est: Je vis dans une municipalité où je n'ai pas le choix que d'avoir du satellite parce que le câble ne se rend pas et j'ai droit à mon TVA local et j'ai droit à mon Radio-Canada local.
1319 C'est ça la logique du citoyen, c'est ça la logique du téléspectateur et puis quand on...
1320 CONSEILLÈRE POIRIER: Mais vous voulez « prioriser » Radio-Canada?
1321 HON. CAROLE LAVALLÉE: Bien, il me semble que c'est la Société d'État pour laquelle tous les contribuables contribuent justement. Alors, le minimum ce serait de les prioriser effectivement, mais de mettre aussi sur le...
1322 Mais c'est d'offrir la télévision locale qui est la priorité des priorités parce que, je l'ai dit d'entrée de jeu, le principe c'est le téléspectateur.
1323 CONSEILLÈRE POIRIER: Je vais prendre un exemple précis, par contre, juste pour poursuivre dans la veine de Radio-Canada que vous voulez prioriser.
1324 Dans la liste qu'on a, et vous n'avez pas besoin de vous y référer, Trois-Rivières -- je vais changer d'exemple -- Trois-Rivières, Radio-Canada local n'est distribué ni par Shaw ni par Bell. Et on regarde aussi le Groupe TVA à Trois-Rivières local qui n'est distribué ni par Shaw ni par Bell, si notre liste est vraiment à jour et c'est ce qu'on pense.
1325 Si on « priorisait » Radio-Canada, ne donnerions-nous pas un avantage concurrentiel à Radio-Canada au niveau de la publicité, ce à quoi TVA pourrait s'opposer?
1326 HON. CAROLE LAVALLÉE: Comme j'ai dit tantôt, il faut prioriser Radio-Canada parce que les contribuables paient déjà pour ça, O.k., de plusieurs façons. Alors, dans ce sens-là c'est inacceptable que les gens ne reçoivent pas le signal de Radio-Canada de leur localité régionalement, dans le sens... j'oserais dire dans le sens québécois du mot « régional » parce que quand on regarde le CRTC on s'aperçoit que « régional », ça veut dire « fuseau horaire » puis je vais faire une aparté pour vous dire que « fuseau horaire » au Québec, ça veut dire l'Ontario, ça veut dire le Québec, ça veut dire le Nouveau-Brunswick ou... il me semble qu'on a une demi-heure de différence, là. Mais, bref, ça va large un peu.
1327 Alors, déjà que le monde du Saguenay-Lac-Saint-Jean se plaignent d'entendre à la journée longue l'état de la circulation sur le Pont-Jacques-Cartier, imaginez si on entendait ce qui se passe à Toronto.
1328 CONSEILLÈRE POIRIER: Hum, hum. Les compagnies de satellite nous disent ne pas avoir la capacité de distribuer toutes les stations qui profitent du Fonds d'amélioration de la programmation locale. Or, je prends un exemple de Bell hier qui nous a dit que pour septembre 2011 ils vont ajouter deux télévisions, deux canaux standards de définition et deux autres... 22 haute définition.
1329 Vous savez que 22 haute définition équivalent à 88 canaux standards, ce qui veut dire qu'ils sont prêts à ajouter en 2011 90 stations standards de leur propre chef.
1330 Nous, on leur demande d'en ajouter peut-être 30, si on ajoutait toutes les stations du Fonds de programmation d'amélioration locale.
1331 Est-ce que vous pensez que l'argument de la capacité est un bon argument, est un argument solide des stations satellitaires ou est-ce que vous pensez que plutôt, ils veulent y aller pour des raisons qui sont plus économiques, ce qui n'est pas non plus un mauvais argument pour eux parce qu'ils doivent faire un « business case »?
1332 Mais ils doivent toujours équilibrer entre l'espace et la demande du public.
1333 Est-ce que les gens chez vous demandent d'avoir de l'information locale? Et est-ce qu'on devrait le prioriser au détriment d'autres postes qu'ils veulent peut-être avoir en HD?
1334 HON. CAROLE LAVALLÉE: Mon collègue répondra sur la demande des citoyens qui veulent, qui réclament leur télévision locale et il vous répondra. Mais concernant tout le « puzzle » que vous avez à faire sur la capacité que les satellitaires ont à transporter des signaux, O.k., leur capacité je dirais technologique et leur capacité financière, je pense... en tout cas, je ne suis pas à même de donner un avis là-dessus.
1335 Mais je suis certaine que le « puzzle » peut se faire en fonction de leur capacité technologique et pour leur capacité financière, on voit trimestre après trimestre qu'ils ne sont pas à la veille de faire faillite.
1336 HON. ROBERT BOUCHARD: Moi, je compléterais. J'ai constaté une chose, moi, que les citoyens souvent qui sont.. qui reçoivent le service par coupole ne réalisent pas qu'ils ne sont pas branchés et qu'ils n'ont pas l'information au niveau régional. Ils s'en... je ne dirais pas qu'ils s'en plaignent beaucoup, sauf quelques exceptions qui sont plus renseignées, des citoyens qui sont plus renseignés que d'autres.
1337 Mais lorsque le service est accessible -- je pense à Radio-Canada, par exemple avec son Téléjournal qui a extensionné en fin de semaine -- je peux vous dire que, moi, j'ai reçu beaucoup de commentaires favorables à cause de cette information, de ce service nouveau au niveau de fin de semaine.
1338 Et de façon globale, je dirais qu'un citoyen... tout citoyen ou citoyenne vit d'abord dans une région et bien sûr qu'il vit au Canada, au Québec, mais d'abord et avant tout, il vit dans une région, il vit dans... Et ce qui l'intéresse par-dessus tout, c'est la proximité, qu'est-ce qui se passe dans sa région, qu'est-ce qui se passe dans son arrondissement, dans son voisinage, dans les villes voisines, alors, c'est primordial en...
1339 Je dirais une majorité de citoyens vont favoriser l'information régionale. Bien sûr, il y a de l'intérêt aussi pour l'information nationale et internationale, mais je dirais que la priorité ou l'intérêt est fortement régionale.
1340 CONSEILLÈRE POIRIER: J'aurai deux autres questions parce que je sais que le temps presse.
1341 Dans un premier temps, on a parlé de la possibilité de regrouper sur un ou des canaux omnibus ou à temps partiel l'ensemble des informations des sections qui sont vraiment originales pour chaque canaux régionaux.
1342 Par exemple, votre bulletin d'information qui vient de Jonquière pourrait être diffusé sur ce canal-là à 2000 heures, celui de telle autre région de Trois-Rivières pourrait l'être à 1900 heures, de sorte qu'on les mettrait tous, on les regrouperait tous sur un même canal, sans savoir exactement à quelle heure, là, à ce moment-ci ça serait rediffusé, mais pas nécessairement au même moment où ils passent en direct, c'est un peu ça.
1343 Alors, qu'est-ce que vous pensez de cette solution-là? Est-ce que vous pensez qu'un citoyen serait content de pouvoir regarder son bulletin d'information locale, mais pas à la même heure que Radio-Canada le présente ou que TVA le présente?
1344 HON. ROBERT BOUCHARD: Bien, ce qui se passe chez nous, il y a, je dirais, un mélange de nouvelles locales, régionales, avec au plan national et même international. Je crois que ça plaît, mais je ne suis pas en mesure de me prononcer.
1345 Ce qui est avant tout, selon moi, important, c'est qu'il y ait cette possibilité d'offrir de l'information régionale, une information de proximité, une information de son milieu.
1346 CONSEILLÈRE POIRIER: Même si elle n'est pas en même temps que le bulletin officiel, vous, madame...
1347 HON. ROBERT BOUCHARD: Je crois que ça plaît que ça soit un mélange de... un mélange des deux, mais ça serait quelque chose, selon moi, qui ne serait pas désagréable d'avoir, comme vous le dites, une séparation parce que dans le fond l'accès à la région est là.
1348 Juste une petite précision. Radio-Canada, vous parlez de Jonquière, mais il a déménagé il y a quelques mois, ils sont rendus à Chicoutimi dans leur bâtiment...
1349 CONSEILLÈRE POIRIER: Oui, je suis allée les visiter, oui, effectivement.
1350 HON. ROBERT BOUCHARD: ... où était la radio de Radio-Canada.
1351 CONSEILLÈRE POIRIER: Et madame Lavallée, sur ça un canal omnibus?
1352 HON. CAROLE LAVALLÉE: Bien, en tout cas, je ne sais pas comment ça pourrait fonctionner puis comment les télédiffuseurs s'entendraient entre eux autres, là, pour faire... Ils ont de la misère à s'entendre sur d'autres choses, là, bien de pas mal plus simple, je me demande comment ils feraient pour s'entendre sur ça.
1353 Mais ce que... nous, je pense que quelqu'un en région... un citoyen en région, il a autant de droits qu'un citoyen à Montréal.
1354 Moi, je vis à proximité de Montréal sur la rive sud dans... bien, les citoyens de Saint-Bruno puis de Saint-Hubert, ils reçoivent le signal de Montréal et ils sont bien contents.
1355 Si on leur offrait le signal de Toronto avec peut-être les nouvelles de Montréal, de TVA, de Radio-Canada toutes mêlées, je ne suis pas sûre qu'on serait bien, bien contents parce que, évidemment, là, nous perdrions quelque chose.
1356 Mais je ne suis pas sûre que les citoyens en région gagneraient quelque chose en ayant une espèce de canal omnibus.
1357 Et, moi, j'ai envie de vous retourner la question. Qu'est-ce qui empêche les satellitaires d'envoyer les signaux de Radio-Canada, de TVA et de TQS ou V, pardon, au Saguenay?
1358 Tantôt, vous parliez de 90 signaux... puis en tout cas, mais vous parliez de votre « puzzle », là, mais qu'est-ce qui empêche tout simplement ça parce que c'est la demande des téléspectateurs des régions?
1359 Il y a des régions qui sont plus sensibles à ça puis il y a des régions aussi qui ont des espèces d'arrangements comme au Saguenay où ils ont à TVA le Bulletin de 1800 heures. Alors ça satisfait un peu les gens.
1360 Mais il y a d'autres régions où tout ça n'existe pas où ceux qui sont abonnés à Bell ou à Shaw ne reçoivent ni le Bulletin de 1800 heures local d'aucune façon. Tout ce qu'ils reçoivent c'est le Bulletin de Montréal ou la chaîne de Montréal.
1361 Alors, qu'est-ce qui empêche les satellitaires tout simplement de dire au Saguenay-Lac-Saint-Jean il y a quelque chose de particulier, on leur envoie les trois grandes stations francophones locales qui sont installées là-bas, en Abitibi même chose, en Mauricie la même chose?
1362 Je ne comprends pas qu'est-ce qui les empêche de faire ça de façon toute simple et que, vous, vous fassiez vos règlements en conséquence?
1363 CONSEILLÈRE POIRIER: Et ma dernière question puis une réponse brève parce qu'il est 9 h 00, les gens en région, bon, ont accès sûrement à d'autres sources d'information? Vous savez, dans La Presse on annonçait récemment, vous avez dû le lire, qu'un déclin des nouvelles de fin de soirée, un déclin des grands moments de rencontre. Donc, les bulletins de nouvelles souvent, là, sont en perte d'écoute.
1364 Et le fait d'ajouter des canaux pour l'information locale, peut-être que c'est en perte d'écoute aussi en région, dans ce sens que les gens vont chercher leur information d'autres façons: par Facebook, par Twitter, par les réseaux sociaux en général, par la TV.
1365 Alors, est-ce que vous pensez que la voie de l'avenir c'est de maintenir des canaux d'information locale ou ce n'est pas plutôt de laisser aller les autres sources d'information possibles et les autres plate-formes?
1366 HON. CAROLE LAVALLÉE: Je vous réfère aux observations de Marc Lemay, Député d'Abitibi-Témiscamingue, page 3, paragraphe 9:
« Nous tenons également à préciser que l'internet ne peut être envisagé comme solution de rechange car si certains milieux ruraux n'ont pas accès aux câblodistributeurs, ils n'ont pas plus accès à l'internet haute vitesse, technologie qui, en milieu urbain, est de plus en plus utilisée pour regarder des émissions sur le web. »
1367 Alors, c'est peut-être les citadins des grandes villes qui ont plus de sources d'information, mais les gens qui sont éloignés des grandes villes, éloignés des villes centres des régions, ces gens-là n'ont pas plus accès à d'autres services d'information.
1368 CONSEILLÈRE POIRIER: Merci beaucoup, monsieur le président, j'ai terminé.
1369 LE PRÉSIDENT: Merci. Comme vous avez un caucus, je ne vais pas vous retarder plus. Merci d'être venus.
1370 HON. CAROLE LAVALLÉE: Merci beaucoup.
1371 HON. ROBERT BOUCHARD: Merci.
1372 LE PRÉSIDENT: Madame, on va prendre cinq minutes de pause avant de continuer.
--- Upon recessing at 0905
--- Upon resuming at 0913
1373 LE PRÉSIDENT : Bon, commençons.
1374 THE SECRETARY: We will now hear the presentation of the Canadian Broadcasting Corporation.
1375 Please introduce yourself and you have 10 minutes for your presentation. Thank you.
PRESENTATION
1376 MR. GUITON: Thank you very much.
1377 Good morning, Mr. Chairman, Commissioners and Staff. My name is Steven Guiton and I am Vice-President and Chief Regulatory Officer at CBC/Radio-Canada.
1378 With me this morning are:
1379 - to my right, Mr. Louis Lalande, Executive Director, Regional French Services;
1380 - to my left, Fred Mattocks, General Manager, Media Operations and Technology, English Services; and
1381 - Anne-Marie Migneault, Director, Regulatory Affairs.
1382 Let's start today please by putting some of the facts on the table.
1383 Bell TV and Shaw Direct are the third and fifth largest BDUs in Canada. They provide service to about 3 million Canadian households and that is about one-quarter of the total TV households in Canada. They are mature companies, and we acknowledge and we applaud them for the significant contribution they are making to the Canadian broadcasting system.
1384 However, there is one disconnect in the system. Parliament has made the distribution of local television stations a priority. The DTH providers have not.
1385 We, like many other parties to this proceeding, strongly agree that local stations are a priority and must all be carried: the local-into-local solution.
1386 This issue has been considered by the Commission in previous hearings, but without resolution.
1387 Let's be clear, no one wants to be back in this room in five years' time, bemoaning about the lack of local TV station carriage by DTH and again debating whether additional capacity does or does not exist.
1388 To this end, we have provided you with what we think is an easy way of breaking this cycle: a forward-looking incentive-based approach for achieving local-into-local.
1389 There is one matter, however, that must be addressed immediately and that is DTH carriage in Quebec.
1390 More than 75 percent of all local French-language TV stations in Canada originate in Quebec. The Commission's proposed "one per province" rule is therefore an incomplete tool for promoting carriage of much of this local programming. Correcting the Quebec situation is an immediate priority.
1391 I would now like to ask my colleagues to add greater detail on our local carriage issues. Louis.
1392 M. LALANDE : Merci, Steve.
1393 Les stations locales de Radio-Canada offrent un service public fondamental aux collectivités et représentent un investissement financier majeur de la part de la Société. Leur programmation locale et régionale aide les citoyens de la région desservie à rester en contact avec leur administration municipale, leurs entreprises, leurs écoles, leurs équipes sportives et leurs organismes culturels et communautaires. Cette programmation aide à bâtir et à soutenir l'identité, la culture et la démocratie locales de ces communautés.
1394 Le fait que plusieurs stations de Radio-Canada ne soient pas distribuées par les SRD représente déjà une faille dans le système. Le problème est aggravé si les SRD distribuent d'autres stations locales, mais pas Radio-Canada. Cela devient alors, en plus, un problème de diversité des voix, et c'est exactement le problème qui se pose au Québec, particulièrement en ce qui concerne l'offre de Shaw Direct.
1395 Au Québec, Radio-Canada compte six stations, mais Shaw n'en distribue qu'une seule : CBFT Montréal. Par contre, Shaw Direct distribue cinq stations de TVA et quatre stations de V. Donc, pour les abonnés de Shaw, Radio-Canada n'existe seulement qu'à Montréal. Cette situation est totalement inacceptable dans une perspective de politique publique.
1396 Le problème de distribution au Québec est donc grave et il doit être réglé immédiatement. Par ailleurs, il ne pourra pas l'être par des canaux partiels ou d'autres moyens artificiels, comme l'expliquera mon collègue Fred Mattocks.
1397 M. MATTOCKS : Merci, Louis.
1398 I would like to make a couple of points about the importance of local stations to local communities and the importance of full DTH distribution.
1399 First, a local station is not local just at the news hour, it is local throughout the broadcast day. There are public service announcements, local weather breaks, local commercials, local political announcements, programming announcements and other interstitial programming that all relate to the local community. These local inserts are interspersed throughout the day and they are key to making a local television station what it is: local.
1400 Secondly, the local news and related programming is the heart of a local television station. People come to their local station to watch the news and related local programming, and then they stay.
1401 Third, a local television station, like every other television service, is not just a channel number or a collection of programs. It is a brand. It is a unique entity with its own distinct personality, characteristics that viewers come to know and love and associate with their lives and their communities.
1402 In order for a local station to acquire that real and distinct personality it must be there, available to viewers, all the time. A partial channel that flickers on and off in the darkness of DTH satellite space can never become that type of entity. It can never acquire a personality. It can never become a brand. It can never become a home for viewers or a forum for a community.
1403 That it is why partial channels are an unacceptable alternative. People simply don't watch TV that way.
1404 I would like to clarify one point from Bell's presentation yesterday. Their description of partial channels is actually incorrect. They are not an all-the-time option. They are called partial channels for a reason. All that appears on the partial channel is the selected local programming.
1405 No one wants to tune to channel 196, as you would have to do in Charlottetown if you wanted to watch the local news on Bell, and be told by a graphic to wait because they are two minutes early for the 5 o'clock news. And no one wants to be thrown back into a black screen at 6:31. That is exactly what happens.
1406 This is not a viewer-friendly experience. People don't like it and we know this because they complain to us.
1407 So, for local stations to be what they are supposed to be they have to be present at a specific location in the program line-up all the time. That enduring presence is critical to their success, and given the market share of the DTH companies, so is DTH distribution.
1408 Anne-Marie.
1409 MME MIGNEAULT : La Loi sur la radiodiffusion prévoit que les stations locales doivent être distribuées en priorité. Par conséquent, nous pensons que les SRD devraient être obligés de distribuer, sur une base " local à local ", toutes les stations qui respectent une exigence minimale de programmation locale.
1410 Selon nos calculs, pour distribuer toutes ces stations, Bell TV aurait à ajouter, à long terme, 23 stations, et Shaw Direct, 30 stations.
1411 Bell TV et Shaw Direct prétendent ne pas avoir la capacité de distribuer toutes les stations de télévision locales. D'autres parties, comme Rogers, réfutent cet argument et soutiennent que la capacité existe déjà ou existera bientôt. Nous proposons une approche qui ne requiert pas que le Conseil décide aujourd'hui lequel de ces deux points de vue contradictoires est exact.
1412 In our view, the regulatory challenge facing the Commission is to set appropriate minimum requirements in terms of the distribution of local television stations and at the same time establish compelling incentives which will lead the DTH operators to eventually carry all local television stations offering a basic threshold level of local programming.
1413 We are therefore proposing two types of mechanisms.
1414 The first mechanism is intended to "fix the basics." It is a set of rules designed to address the carriage situation in Quebec and meet diversity of voices objectives in all provinces for both English- and French-language stations owned by various ownership groups.
1415 The second mechanism is intended to "address DTH growth." It is a set of incentive measures to gradually increase the number of local stations being carried.
1416 Both these mechanisms would be enacted either in the Regulations or as a condition of licence.
1417 MR. GUITON: Clearly, DTH distribution of local stations is an important issue. We wouldn't be here otherwise. In Quebec, with respect to Radio-Canada's local stations, it has become a critical issue. We have provided you with what we think are effective solutions, as Anne-Marie says, both to fix the basics and provide a forward-looking approach that addresses DTH growth.
1418 Thank you for this opportunity to present our position. We would be happy to answer any questions you may have.
1419 I am sorry, Mr. Chairman, there is one thing I forgot to mention when we started.
1420 We have taken the liberty of taking the sheets that you distributed yesterday to the DTH providers and we have updated them with a couple of corrections and we have passed them, I believe, to you or at least the Hearing Secretary.
1421 I am sorry, I should have mentioned that at the start.
1422 THE CHAIRPERSON: If I understand, the only correction really on that list is you have indicated which are French and which are English stations and you added Rimouski. But other than that, it is the same as what we --
1423 MS MIGNEAULT: Yes. Well, there are two corrections.
1424 We added Rimouski, which is a local station that does -- it's minimum requirement and has a licence.
1425 And also, we clarified that Toronto and Ottawa are not a regional system. In the list distributed yesterday, they were all shaded as if it was like one station.
1426 THE CHAIRPERSON: Yes.
1427 MS MIGNEAULT: Well, Ottawa does its local programming and Toronto does it too, and they are each a station with their licence. So they are stations.
1428 And the last correction is Fredericton CBC we have learned is carried on partial. On the CRTC list put on the file it says that it is not carried but it is carried in a partial way.
1429 THE CHAIRPERSON: Okay.
1430 Speaking of partial, I don't understand your submission this morning at all or I don't understand Bell, I don't know which.
1431 Let me tell you how I understood Bell. Bell yesterday came to us and said there is quite a difference between carriage and what shows up on your program guide. On your program guide it will show up -- let's say, who is a partial, Fredericton -- it will show Fredericton and also will show Moncton, et cetera.
1432 If you actually then go on it, you will probably get most of the time the Moncton signal or whatever the next signal is they put on. But when it comes to local news or local program, there's seven hours that they are obliged to put on to be LPIF eligible. Then you actually get the Fredericton signal. You get that signal. The rest of the time you get the other signal. That is how I understood Bell's point.
1433 So for me as a customer it actually looks like I have the Fredericton channel and everything that is locally produced I will watch. Everything that is not locally produced comes from a neighbouring station, be it Saint John, be it whatever.
1434 MR. MATTOCKS: We heard that yesterday as well, but that is not the fact.
1435 We had our people in Charlottetown -- because we want to do this in a market where Bell carries us on a partial -- go through this and in fact what you have to do if you are sitting there and watching a CBC channel in Charlottetown, it will be the Halifax channel. If you are looking for something that is relevant to that area, you will be watching the Halifax channel.
1436 In order to watch the Charlottetown news, you have to go to the program guide, you have to find it on the partial channel in the program guide, which is, I think, 197. You have to switch to channel 197 and at the time that the program is on, you will see the news for that period of time, and then the channel goes black and you have to switch back.
1437 THE CHAIRPERSON: That is not what Bell said. Bell said go on 197 and you get the whole time. You get a program which will look like a P.E.I. channel but it is actually Halifax.
1438 MR. MATTOCKS: I agree that that is what I heard yesterday but that is not what happens and that is not --
1439 THE CHAIRPERSON: Well, there is a rebuttal. I hope you are here and you and Bell can fight it out because I want to know which it is.
1440 MR. GUITON: Mr. Chairman, you started off by talking about partial channels and I wonder if I could just add a bigger point.
1441 THE CHAIRPERSON: Yes.
1442 MR. GUITON: It seems whenever we have these hearings, when you hold these hearings about DTH, we are always in this question of what is true and what is not true, is there capacity, isn't there capacity, does a partial channel work, does the A/B switch work, does -- the other one is an omni -- omnibus channel work.
1443 We have another idea. Why don't you just take Shaw and Bell at their word. They say these things are perfectly fine, they are good substitutes. Why don't you let them put them up for their own stations. They now own CTV and Canwest. If it works for them, let it work for them. They say it is great. We don't think it works. By letting them do it, you know what, we would create enough capacity to put the local-into-local situation by August 2011. Take them at their word.
1444 THE CHAIRPERSON: I am not here -- it is a decision point. I am here just trying to find the facts, et cetera, and I have two opposite presentations as to what a partial is.
1445 Bell said a partial is a solution, this is how it works. Now, CBC comes and says it doesn't work because -- it is not a solution because it works differently and for other reasons too.
1446 I just wanted to understand. We can get to the bottom of that.
1447 MR. GUITON: My only point, sir, if we knew that -- if partial channels really worked, we wouldn't be where we are today.
1448 We have heard this every time we have a licence renewal, that partial channels is an option. We don't see very many of them out there and the reason is they are not very good. That is the fact.
1449 THE CHAIRPERSON: Okay. The other thing, the situation in Quebec, and it is stunning when you say that a Shaw customer only gets one channel from CBC in Quebec.
1450 MR. GUITON: That is correct, and we have five available.
1451 THE CHAIRPERSON: I understand that. I am somewhat puzzled by it because Shaw are businessmen. Presumably they want to -- and every time they are before me they say the customer rules and we try to serve the customer, we try to meet customer demand.
1452 What am I supposed to conclude from this, that there is no customer demand for CBC in Quebec, or for SRC, to be exact?
1453 MR. GUITON: I think, Mr. Chairman, I am going to pass to Louis to explain how really important these services are. I can't speak for Shaw. It is a question you would have to ask them. I don't know what their rationale is.
1454 But clearly, we are offering the service and it is not being picked up, and it is an important offer because we know that these are important local stations in Quebec.
1455 THE CHAIRPERSON: Yes, but follow my thought. Shaw and Bell are competing in Quebec for customers. They have quite a different offering in terms of CBC. Why would you put yourself at such a disadvantage if there is a demand for CBC? I mean I just don't know. I am just puzzled by it, as I say. I am not drawing any conclusion. I am just going on the evidence that comes before me, that they try to offer what the customer wants.
1456 MR. GUITON: We are puzzled as well, particularly since it is a priority for them under the Act to be carrying those services.
1457 THE CHAIRPERSON: Okay.
1458 M. LALANDE : Moi, j'ajouterais, ça démontre à quel point Shaw est déconnecté du marché du Québec. Il y a trois nouvelles stations. Il y en a une quatrième qui s'en vient. C'est des stations qui produisent énormément de programmation.
1459 C'est récent, effectivement, mais je pense qu'il y a un disconnect important dans la réalité de la production et de l'offre télévisuelle au Québec de la part de Shaw.
1460 THE CHAIRPERSON: Would somebody please turn off their BlackBerry?
1461 Est-ce que vous avez une idée combien de clients Shaw a dans la province de Québec?
1462 M. LALANDE : Je n'ai pas le chiffre précis, mais c'est quand même un montant assez important. Bell est plus important que Shaw.
1463 LE PRÉSIDENT : Mais c'est dans tout le pays?
1464 M. LALANDE : Oui.
1465 LE PRÉSIDENT : La proportion est la même au Québec comme en Ontario ou est-ce qu'il y a une grande divergence entre les nombres?
1466 M. LALANDE : Je n'ai pas le chiffre exact, sur le Québec, de Shaw.
1467 LE PRÉSIDENT : O.K. On va poser la question à Shaw. Merci.
1468 Rita, you have some questions?
1469 COMMISSIONER CUGINI: Yes, thank you, and good morning.
1470 We will go through your model that you have presented to us in your written submission, but before we do that, if I am to understand both the combination of your oral presentation today and your written submission -- and correct me if I am wrong -- but your priorities would seem to be move the carriage of partial channels to full-time, resolve the issue of the lack of carriage of stations both based in Quebec and SRD stations throughout the rest of Canada based on this list, and then resolve the issues with the carriage of all other local stations? Do I have your priorities correct?
1471 MR. GUITON: I think you do, with the exception of I hadn't actually thought -- and maybe my colleagues have thought about this -- but the idea of putting partial channels before Quebec was not something that we had contemplated. Really, the situation in Quebec is very critical for us. So I would have to say that the order of those two might change.
1472 COMMISSIONER CUGINI: Okay. And based on what you told us this morning on page 5, where based on your calculations Bell TV would have to add 23 stations and Shaw would have to add 30, is that the total number of stations based on your model?
1473 MS MIGNEAULT: We have calculated all stations that do at least the threshold, the LPIF threshold, but it includes the metropolitan market stations. So it is all local stations, including LPIF and those who do more than that.
1474 COMMISSIONER CUGINI: And of the 23 and 30 respectively, how many are French-language stations?
1475 MS MIGNEAULT: That would have -- when you say under our model, first of all, I would just like to clarify. We are not proposing to prioritize Radio-Canada. We are proposing diversity of voices rule.
1476 COMMISSIONER CUGINI: I understand.
1477 MS MIGNEAULT: So it is -- under the model we are proposing diversity of voices for each province. It is basically a system that is based on the one-per-province rule that the Commission decided in 2008 and what we have done is within each province there should be a diversity of voices among ownership groups. So we build on that.
1478 And the other, the new thing we are proposing is considering that all French-language stations in Canada are concentrated in Quebec, is to have three-quarters of stations owned by each ownership group carried.
1479 What would this mean, the three-quarter rule? It means that Bell would have to add two Radio-Canada and one TVA.
1480 And what would this mean for Shaw? They would have to add four Radio-Canada because they already carry three-quarters of TVA, they carry five of the six TVA stations, and they carry four of the five V stations, but they carry only one Radio-Canada station.
1481 It is in Annex B where you have the picture for all French stations.
1482 COMMISSIONER CUGINI: So this is a reflection of the Appendix that you have included in your written submission?
1483 MS MIGNEAULT: Yes.
1484 COMMISSIONER CUGINI: Okay, thank you.
1485 Now, let's go through the four steps that are on pages 14 and 15 of your written submission.
1486 Are these mutually exclusive or are they really one plus two plus three plus four is what is required in order to meet the distribution model that you have put forward?
1487 MR. GUITON: I am sorry, I am just catching up to -- you mean paragraph 52?
1488 COMMISSIONER CUGINI: Yes.
1489 MR. GUITON: Okay. Sorry.
1490 COMMISSIONER CUGINI: 52, 53, 54 and 55.
1491 MR. GUITON: Yes. That is an excellent question.
1492 The way we have actually set it up is it is a bit of you can pick, because what they do is give you different, shall we say, severity with respect to how quickly the local priority will be met.
1493 The first paragraph, for example, paragraph 52, which I think Bell called the HD penalty box, that is a vehicle for getting the services, all of the local services very quickly up in HD -- sorry, in SD.
1494 You don't have to do that. You could say, well, that is a bit too severe for us and what we think we will take is paragraphs 53 and 54, which is more of a one-for-one relationship. And it doesn't have to be one-for-one. It could be two-for-one, two paid services for one OTA.
1495 What we are trying to do in this is to make sure that the Commission comes away from this proceeding and is able to say we have some choices.
1496 It is not the DTH providers' we can't give you any sense of how quickly we are going to add this. It is not I will call it the Rogers solution, which is they all have to go up immediately.
1497 We are trying to give you some flexibility here to get that priority that local stations have, get it into work as quickly as you think is necessary.
1498 So you can go and be the severe approach at 52. If that is too severe, you can go to the one-for-one, three-for-one.
1499 The point is that our whole proposal, what it does, it just makes sure -- and it is described really -- if you turn to paragraph 27, that is the key.
1500 The whole proposal is whenever there is new capacity, some of it has to be devoted to local and we have done it in a way that we think the Commission can choose how much of that capacity should go to local. There is flexibility for you there.
1501 So we think we have given you something that you can work with to make sure there is an incentive. With new capacity, some of it has to go to local.
1502 To answer your question, you can pick pieces from our proposal.
1503 COMMISSIONER CUGINI: In my reading of these four paragraphs, I was under the impression that what you were saying is that, you know, let the DTH guys manage their capacity, but within that capacity these are four things that they could do to shuffle things around, so to speak.
1504 MR. GUITON: That is actually right. That is absolutely right.
1505 COMMISSIONER CUGINI: Okay. So you are not going to get into the arguments of MPEG-2 versus MPEG-4 --
1506 MR. GUITON: No. No.
1507 COMMISSIONER CUGINI: -- and satellites and so on?
1508 MR. GUITON: Absolutely.
1509 COMMISSIONER CUGINI: You are proposing a framework within whatever capacity the DTH operators claim they have or don't have?
1510 MR. GUITON: Exactly.
1511 COMMISSIONER CUGINI: Okay.
1512 MR. GUITON: So we are not trying to be intrusive. Whatever capacity they can create, we are just trying to get up some rules so they have to devote some of that capacity to local.
1513 COMMISSIONER CUGINI: And when you say in 52, "precluded from adding an HD version of any programming service," there you are talking specialty or pay or anything?
1514 MR. GUITON: Pay, correct.
1515 COMMISSIONER CUGINI: Okay.
1516 You also suggest that the DTH operators, in 53, could drop "a conventional local station that closes" -- I mean that is obvious -- "or that does not meet the local programming requirement."
1517 MR. GUITON: Right.
1518 COMMISSIONER CUGINI: And there you are referring to the LPIF requirement?
1519 MR. GUITON: Correct.
1520 COMMISSIONER CUGINI: So you would foresee that if there is a station -- well, there are stations that don't meet that requirement --
1521 MR. GUITON: Yes.
1522 COMMISSIONER CUGINI: -- DTH should be free to drop those?
1523 MR. GUITON: We have assumed that the LPIF requirement is the eligibility requirement for lifting, that is correct.
1524 COMMISSIONER CUGINI: Okay.
1525 In 54:
"...once all required conventional local television services are distributed by a DHT distributor that distributor should be required to add an HD version of a conventional local television service..."
1526 So it is dependent upon whether or not they add an HD version of another service?
1527 MR. GUITON: What we are saying at that point is that by that point you have the locals up in SD. At that point they are free to add HDs.
1528 COMMISSIONER CUGINI: And they drop the SD?
1529 MR. GUITON: No. They are free to add HDs and pay and specialty provided that they add some proportional HD in local.
1530 COMMISSIONER CUGINI: And at the point at which they add an HD in local, do they drop the SD in local?
1531 MR. GUITON: That is 55.
1532 COMMISSIONER CUGINI: Okay.
1533 MR. GUITON: And that is when we are trying to say that at that point, both to encourage HD as well as a consumer protection vehicle, yes, if all the consumers are able to get HD, let them drop the SD.
1534 COMMISSIONER CUGINI: Well, that does clarify your proposal for me and therefore those are all my questions.
1535 LE PRÉSIDENT : Louise?
1536 CONSEILLÈRE POIRIER : Oui.
1537 J'aimerais revenir sur l'argument que vous apportez à la page 2 quand vous dites que :
« The Commission's proposed "one per province" rule is therefore an incomplete tool for promoting carriage of much of this local programming. Correcting the Quebec situation is an immediate priority. »
1538 Sur quelle base proposez-vous ce changement-là? Et je parle de la Loi de la radiodiffusion. Qu'est-ce qui permettrait au CRTC, d'après vous, de votre point de vue, de corriger une situation que vous jugez inéquitable et qui ne mettrait pas les citoyens des autres provinces dans une situation où ils pourraient dire, on ne nous traite pas de la même façon que le Québec sur le plan de l'importance de l'information locale à diffuser à tous les Canadiens?
1539 M. GUITON : Oui. Merci, Madame Poirier. Si vous me permettez, je vais répondre en anglais.
1540 COMMISSIONER POIRIER: No problem.
1541 M. GUITON : C'est juste parce qu'il faut rentrer dans les statistiques un peu, et je vais me perdre en français.
1542 So Quebec is unusual as a province. There is no other province where 75 percent of all the country's services originate. That is why Quebec needs a unique rule. It is not because we think that other provinces aren't important. It is because of that unique 75 percent of all French-language stations originate in Quebec. So that is the basis for it.
1543 In terms of the basis in the Act, I don't have the language in front of me but there is reference to the fact that French and English services will be given equivalent treatment. It doesn't mean equal treatment, but they will be given equivalent treatment.
1544 So I think there is justification for the Commission saying, of course, Quebec is unusual because of this large number of stations that originate there, and therefore, using the Act, we can see that there is a need to put something special there.
1545 Vas-y.
1546 MS MIGNEAULT: If I may, when we say "Quebec is special," it is just that initially the rules were developed just looking at the English market. For instance, when the one-per-time-zone rule as well as the one-per-province rule was developed, it was clearly by people who were thinking about the English market where English stations are spread all around the country.
1547 So it is not a special treatment, it is just to develop rules that reflect the fact that all of TVA stations are in Quebec, all of V stations are in Quebec, and Radio-Canada has the equivalent amount of stations as TVA in Quebec and the only stations outside are minority-market stations where Radio-Canada is alone.
1548 So this is a reality. The way the French stations are spread in Canada is completely different than the way they are spread for English stations. It is a different reality and rules have to be adjusted to the reality of where the stations are located.
1549 What we are proposing is the parity rule would solve part of that problem because right now, for instance, Shaw distributes five TVA. So if there is a parity rule, they would have to carry five Radio-Canada too.
1550 Also, the reason we propose also the three-quarter rule is that we thought, well, wait a minute, what if Shaw decides to drop all French stations except Montreal. They say, okay, fine, you want to impose new rules on me, then I will drop the five TVA and keep only TVA Montreal and only V Montreal.
1551 That wouldn't fulfil the Broadcasting Act objectives. Like it would be -- that is where the stations are and you would end up with only one station in Montreal for each network. That is why we are proposing a floor just to make sure that this minimum that is currently carried for V and TVA is maintained.
1552 CONSEILLÈRE POIRIER : Considérant qu'un consommateur abonné à Shaw au Québec ne reçoit que Radio SRC Montréal, si je comprends bien, donc c'est la montréalisation de l'information du côté de Radio-Canada, mais il reçoit, par contre, quatre TVA, il a le choix de quatre TVA, comment est-ce qu'on en est arrivé là?
1553 Est-ce que c'est la faute des clients qui ne veulent pas recevoir la SRC? Est-ce que c'est la négociation entre le radiodiffuseur et Shaw qui ne se fait pas? Est-ce que c'est une mauvaise gestion de Shaw, qui ne connaît pas bien le public québécois?
1554 J'aimerais que vous tentiez de m'expliquer comment ça se fait que TVA est arrivée à avoir quatre canaux et la SRC seulement un.
1555 M. LALANDE : Bien, je pense que la première réponse doit venir des entreprises de distribution satellite.
1556 Il y a un fait quand même historique aussi, c'est que pendant un certain nombre d'années Radio-Canada, dans son déploiement régional au Québec, le faisait beaucoup par le mode de contrats d'affiliation avec des entreprises affiliées.
1557 Mais ça ne règle pas le problème; je n'ai pas d'explication à ça. C'est une situation tout à fait étrange et bizarre.
1558 Et j'aimerais ajouter que la télévision de Radio-Canada, elle est populaire au Québec; elle est écoutée. Donc, quand on parle du besoin du consommateur, je pense qu'il y a vraiment là un enjeu qui est important. Elle est appréciée, la télévision de Radio-Canada et le service public est apprécié dans chacune des régions où on produit localement.
1559 CONSEILLÈRE POIRIER : Ma dernière question, Monsieur le Président.
1560 Quand je regarde le nouveau tableau que vous nous avez présenté, Bell devrait ajouter deux SRC et TVA... un TVA. O.K.? C'est ce qui manquerait si on allait dans le sens que vous le proposez. Et Shaw devrait ajouter quatre SRC, c'est bien ça...? C'est les chiffres que vous avez donnés à madame Cugini tantôt?
1561 MME MIGNEAULT : Excusez-moi. Vous dites...?
1562 Est-ce que vous pouvez répéter la question?
1563 CONSEILLÈRE POIRIER : Je dis que selon la nouvelle proportion que vous suggérez, Bell devrait ajouter deux SRC, mais vous en avez trois. Donc, il en manquerait quand même un. Pour la règle du trois-quarts...?
1564 MME MIGNEAULT : Oui.
1565 CONSEILLÈRE POIRIER : Il faudrait rajouter, oui, deux Radio-Canada et un TVA pour Bell.
1566 MME MIGNEAULT : O.K.
1567 CONSEILLÈRE POIRIER : Mais restons avec Bell, là...
1568 MME MIGNEAULT : Oui, je reste avec Bell.
1569 CONSEILLÈRE POIRIER : Dans votre liste vous en avez trois et ils devraient en rajouter que deux de plus.
1570 MME MIGNEAULT : Oui, parce que...
1571 CONSEILLÈRE POIRIER : Il vous en manquerait encore un.
1572 MME MIGNEAULT : Bien oui.
1573 On ne demande pas la distribution totale. On propose des règles... C'est "fix the basics", ça veut pas dire "distribute all Radio-Canada". "Fix the basics", c'est... les problèmes qu'on voit actuellement, au moins d'aller chercher une diversité des voix puis un plancher. Ce n'est pas de distribuer toutes les stations. C'est de distribuer une certaine partie des stations d'une façon équitable entre chacun des réseaux.
1574 Alors la règle de la parité. Si on prenait juste la règle de la parité, il faudrait que Bell rajoute au moins un Radio-Canada, puis si on prend seulement la règle du trois-quarts toute seule, sans la parité, ça voudrait dire deux de plus pour Radio-Canada et une de plus pour TVA.
1575 CONSEILLÈRE POIRIER : Donc, il y aurait une certaine latitude de la part de la SRD pour faire des choix qui sont des choix économiques ou de marché?
1576 MME MIGNEAULT : Tout à fait!
1577 CONSEILLÈRE POIRIER : Une dernière... Quand je regarde la ville de Québec qui est la capitale du Québec, où il y a une information prioritaire et majeure et où on a la deuxième plus grande ville du Québec et je note que la ville de Québec n'est pas distribuée au niveau de la SRC sur Shaw. C'est comme si Toronto n'était pas sur Shaw.
1578 M. LALANDE : Tout à fait. C'est la deuxième salle de nouvelles en importance au Canada français.
1579 CONSEILLÈRE POIRIER : Et elle n'est pas distribuée par Shaw?
1580 M. LALANDE : Elle n'est pas disponible.
1581 Et Québec est la station qui produit le plus de contenu régional en français à part de Montréal. Et ce contenu-là n'est pas disponible sur Shaw.
1582 CONSEILLÈRE POIRIER : Et c'est repris ensuite par toutes les autres stations régionales, actuellement par exemple--
1583 M. LALANDE : Tout à fait.
1584 CONSEILLÈRE POIRIER : ...à Rimouski et ailleurs?
1585 M. LALANDE : Alors, vous parliez de la montréalisation des ondes. Il y a des facteurs qui amplifient ça, certainement.
1586 CONSEILLÈRE POIRIER : Alors, j'ai terminé, Monsieur le Président.
1587 THE CHAIRPERSON: Back to your four rules at the beginning.
1588 Aren't you going for overkill? I asked Bell the same question yesterday, aren't the first two rules all you need?
1589 Basically you are saying before you put HD and you put any new stations on you have to deal with the local stations, but if you want to put a new station on you have to put a local on and match it one for one.
1590 MR. GUITON: Yes.
1591 THE CHAIRPERSON: Wouldn't that do the trick?
1592 MR. GUITON: It would, Mr. Chairman.
1593 The purpose of our proposal was to give you some options about how quickly you wanted to meet the priority of getting local stations carried.
1594 You're right, the first one is severe and it gets local services carried quickly. If that's the --
1595 THE CHAIRPERSON: Their capacity is expanding. Shaw is bringing on a new --
1596 MR. GUITON: Yes.
1597 THE CHAIRPERSON: The other ones are trying to find efficiencies through partial channels or MPEG-4 or whatever. As those sufficiencies take hold and there is more capacity these rules will ensure that everybody is carried.
1598 MR. GUITON: Correct.
1599 THE CHAIRPERSON: Okay.
1600 Now, explain to me your parity rules. I read it twice now and I still don't understand it. I thought I would get some explanation this morning.
1601 I understand the English part, the first part --
1602 MR. GUITON: Okay.
1603 THE CHAIRPERSON: -- but the second part says:
"In addition, the distributor must maintain parity as between ownership by ensuring that the number of stations carried for each ownership group is the same in each province."
1604 MR. GUITON: Right. So this part of our proposal, apart from the part that we have been discussing earlier --
1605 THE CHAIRPERSON: Yes...?
1606 MR. GUITON: -- we have called this the fixing the basics and all we have done, Mr. Chairman, is we have taken your model, the model that you are proposing for August 2011, and we think there are two things missing from it. One is the Québec situation that we have just been talking about trying to get --
1607 THE CHAIRPERSON: I will come to Québec. I'm talking about English Canada.
1608 MR. GUITON: Okay. So the second one is what has been dropped from the model that you are proposing for 2011 which actually exists today is a diversity of voice protection.
1609 We are thinking, our view is, that as you are moving forward with the approval of some very significant deals, diversity of voices in our country in broadcasting is going to become more important. So what we have tried to do -- currently you have a requirement that CBC Radio-Canada services within a province must be at the same level as the major broadcast groups and we are trying to expand that rule going forward. We are trying to keep that rule, that's all. Not with respect to CBC, but with respect to broadcast groups generally.
1610 THE CHAIRPERSON: So your fear is that -- let's take any province, Ontario -- they will carry one CBC station, they carry lots of CTV and lots of Canwest and you are therefore prejudiced?
1611 MR. GUITON: Everyone would be prejudiced. It could be lots of CTV, no Canwest, no CBC, exactly right. So what it does is mae sure that on a provincial basis there is a diversity of voices.
1612 THE CHAIRPERSON: Do we have to do this? Isn't the consumer in charge? Aren't we in a world where the consumer rules and these companies are desperately trying to achieve as much audience as possible, et cetera.
1613 MR. GUITON: Yes.
1614 THE CHAIRPERSON: Doing this sort of thing is going to be self-defeating. You yourself have been before me and telling me that this is a new age, the consumer is in charge, but here you --
1615 MR. GUITON: Mr. Chairman, you 10 minutes ago asked me how is it possible that Shaw is only carrying one of our five stations. I don't know, but they are. It would seem that is illogical, irrational for a business, because if you know Québec you know that it's very, very heavily rich in local services. Why would they do that? I don't know, but they are. So this is a protection.
1616 Mr. Chairman, honestly as we move forward with the major private broadcasters being owned by the BDUs, it's not a very bad protection to have some diversity of voices built into the system.
1617 THE CHAIRPERSON: But it also assumes that you have the equal number of stations in each province and there may only be one CTV stations --
1618 MR. GUITON: No, it doesn't.
1619 THE CHAIRPERSON: -- there may be two CBC stations and two Canwest; what then?
1620 MR. GUITON: No, it doesn't -- we are not saying that.
1621 THE CHAIRPERSON: How do I do parity among those?
1622 MR. GUITON: It doesn't say that. We are not saying that.
1623 THE CHAIRPERSON: How do I do parity among those?
1624 MR. GUITON: It doesn't say that.
1625 If there is only one CTV station in province and there are five Canwests and they want to carry all the Canwests, the only requirement is they carry the one CTV.
1626 As soon as you reach the maximum within that province you don't have to stop.
1627 THE CHAIRPERSON: That one they have to do in any event under our existing rule. They have to carry the one CTV anyway.
1628 MR. GUITON: I know, but that rule -- that rule --
1629 THE CHAIRPERSON: You suggest -- let's make it easier, so there are two CTV and five Canwest, for argument's sake.
1630 MR. GUITON: Okay.
1631 THE CHAIRPERSON: Then what?
1632 MR. GUITON: They carry the two CTV and then they can carry as many as they want of Canwest. They can go up to three, they can go up to four, they can go up to five, it doesn't matter.
1633 THE CHAIRPERSON: That's what you call parity?
1634 MR. GUITON: That's what we call diversity of voices.
1635 THE CHAIRPERSON: You are using the word "parity" here. I'm trying to understand how you --
1636 MR. GUITON: Yes.
1637 MS MIGNEAULT: If I may, if I twist your example around --
1638 THE CHAIRPERSON: Yes...?
1639 MS MIGNEAULT: -- if you were in the situation where a BDU wouldn't want to carry many Canwest, if they decided to carry two CTV they have to carry at least two Canwest.
1640 So it's up to. It's up to.
1641 THE CHAIRPERSON: Yes, I understand that. It's really the --
1642 MS MIGNEAULT: If I may give you an example?
1643 THE CHAIRPERSON: -- the least common denominator is what you want to assure?
1644 MR. GUITON: Yes. That's absolutely right.
1645 THE CHAIRPERSON: Yes. Okay.
1646 What are you doing in Québec, this rule here on paragraph 60(b).
1647 MS MIGNEAULT: The impact of the parity rule in Québec?
1648 THE CHAIRPERSON: Yes.
1649 MS MIGNEAULT: You mean the diversity of voices role in Québec?
1650 THE CHAIRPERSON: Paragraph 60(b). We just went through (a), you explained to me how English works.
1651 MS MIGNEAULT: Okay. So the parity, if you take Annex B, which gives the whole picture for French stations, the example of the parity rule, if we just take the parity rule alone, on the Bell side --
1652 THE CHAIRPERSON: Hang on, I'm trying to find Annex B here.
--- Pause
1653 THE CHAIRPERSON: Okay. I finally have Annex B.
1654 MS MIGNEAULT: So on the left-hand side of the page you have the Bell situation and on the right-hand side it's the Shaw.
1655 THE CHAIRPERSON: Yes.
1656 MS MIGNEAULT: So Bell TV in Québec, if you take, there are six stations, six TVA stations in Québec, there are 6 Radio-Canada stations in Québec, so currently Bell is carrying four of the six TVA and it's carrying three of the six TVA -- of the six Radio-Canada. So the impact of the parity rule for Bell is just to add one station.
1657 And they are already carrying four of the five V stations, so that's already being dealt with for V.
1658 On the Shaw side, though, that's where the parity rule makes a more important difference. Considering that Shaw is currently carrying five of the six TVA stations, but only one of the six Radio-Canada, in order to meet the parity rule they would have to bring up the number of Radio-Canada stations to five. So it would mean adding four Radio-Canada stations.
1659 THE CHAIRPERSON: The proportionality rule is what you're talking about?
1660 MR. GUITON: Yes. Alternatively of course they could drop some of the TVA or that V.
1661 The point is to have some diversity, to just have some diversity, to guarantee some diversity across broadcast groups. It doesn't say that they have to carry all of any one broadcast group, it just says that there has to be some equivalency.
1662 THE CHAIRPERSON: Really proportionality is what you are talking about.
1663 MR. GUITON: That's correct, up to the -- and the fact that one broadcast group is smaller in a province doesn't limit you from adding a lot of other ones, as long as you have all of that smaller one added.
1664 THE CHAIRPERSON: Strictly that means that they could drop one. They could drop the V. They don't have to carry two, they only have to carry one, if you apply this proportionality?
1665 MR. GUITON: If they are going to carry -- no, it's not proportional, sir.
1666 If they are going to carry three TVAs they are going to have to carry three Radio-Canadas, they are going to have to carry three Vs.
1667 If they want to carry all of the TVAs, all up to the five TVA's, they are going to have to carry four Vs, go up to the maximum of V, four, and then in terms of Radio-Canada they are going to have to carry five.
1668 But it doesn't say that they have to carry the max of everybody, it just says there has to be -- if you have three of these guys and three are available from the other guys, you have to carry them, too.
1669 THE CHAIRPERSON: I'm sorry, I'm dense here. I just do not get your...
1670 Let's look at Shaw here, at your Annex B, there are two V stations and there are six TVA stations.
1671 MS MIGNEAULT: The reason for the V station situation, that was complicated by the fact that when we drafted this appendix we learned that basically V has five stations, but we learned that three of them were not LPIF-eligible anymore because they had stopped doing any local programming. That was Sherbrooke, Trois-Rivières, and Saguenay.
1672 Our rule proposes the parity rule as long -- it's for stations that do their minimum amount of local programming.
1673 So if we end up in a situation where V for instance, as it was the case this summer, they had local content only in Québec and Montréal, this would mean that V would have two stations. So in order to meet the parity rule they would just carry two V.
1674 THE CHAIRPERSON: You are complicating it. Follow my thought. Look at this. Forget about the affiliates, let's just go with the top part here.
1675 V has two stations, which ones -- are both carried? Is one carried? What's the story right now?
1676 I see here Montréal and Québec City, V. Are they both being carried by Shaw?
1677 MS MIGNEAULT: Yes.
1678 THE CHAIRPERSON: Okay. TVA, which ones are carried?
1679 MS MIGNEAULT: The stations not carried are in yellow and currently --
1680 THE CHAIRPERSON: No, I'm looking at your Annex B, which you said look at Annex B to understand your parity rule.
1681 MS MIGNEAULT: Yes, I am at Annex B.
1682 Oh, I see, I'm sorry. I see that --
1683 THE CHAIRPERSON: Mine is not coloured.
1684 MS MIGNEAULT: I see that they printed without colour.
1685 THE CHAIRPERSON: Okay. Then tell me which ones are being carried?
1686 MR. GUITON: Mr. Chairman, if you have a colour copy, which is much easier to see, the yellow ones are not available, the black ones are available. You can see right from that list -- unfortunately your copy was not coloured.
1687 THE CHAIRPERSON: Okay. Somebody just give me a colour one. Okay.
1688 Now we can -- I have it. I'm sorry to be so slow.
1689 So I see that --
1690 MR. GUITON: You are not being slow, sir. Our proposal does have some complications to it.
1691 THE CHAIRPERSON: I just want to understand it. So these two stations are being carried; TVA five stations are being carried. Now you rule says therefore they have to carry six CBC stations. Why?
1692 You said it's not proportionality.
1693 MR. GUITON: I'm sorry, what did -- you said that our rule says that they have to carry six Radio-Canada?
1694 THE CHAIRPERSON: Yes.
1695 MR. GUITON: No, that's not true.
1696 THE CHAIRPERSON: Okay. How many would they have to carry?
1697 MR. GUITON: If they were carrying four TVA --
1698 THE CHAIRPERSON: They are carrying five right now as I understand it; right?
1699 MR. GUITON: Okay, I'm sorry. I'm looking at Bell, I apologize.
1700 They have to carry five Radio-Canada.
1701 THE CHAIRPERSON: Well, doesn't this suggest right now they are carrying six? The ones in yellow are the ones that are being carried or not? They are not carried.
1702 The list that I have in front of me, your Schedule B, Shaw Direct shows that there are six Radio-Canada stations that are being carried.
1703 Am I missing something?
1704 MR. GUITON: Right. You are missing something.
1705 That's the total carriage across the country. In the Province of Québec they are only carrying one. Those are national totals.
1706 THE CHAIRPERSON: Okay. Okay, now I understand it.
1707 So the lower part is Québec you are telling me.
1708 MR. GUITON: No.
1709 THE CHAIRPERSON: No.
1710 MR. GUITON: The lower part is the affiliates.
1711 This table shows all of Canada.
1712 THE CHAIRPERSON: Okay.
1713 MR. GUITON: You actually have to go on the left-hand column to see where the station comes from to understand the parity by province.
1714 THE CHAIRPERSON: Okay. Then let's go through it.
1715 Montréal, clearly a Québec station; right?
1716 MR. GUITON: Montréal --
1717 THE CHAIRPERSON: Quebec City, Sherbrooke, Trois-Rivières, Saguenay, Rimouski, those are all Québec stations; correct?
1718 MR. GUITON: Correct.
1719 THE CHAIRPERSON: Of those there is one carried right now by Shaw, which is CBFT, if I understand it.
1720 MR. GUITON: Correct.
1721 THE CHAIRPERSON: There are one, two, three, four, five carried by TVA --
1722 MR. GUITON: Correct.
1723 THE CHAIRPERSON: -- and two by V.
1724 Am I correct so far?
1725 MR. GUITON: Five by TVA in the province. Just let me check that.
1726 THE CHAIRPERSON: in the Province of Québec. I'm only talking about the Province of Québec.
1727 MR. GUITON: Yes, correct. Five for TVA.
1728 THE CHAIRPERSON: Two V stations.
1729 MR. GUITON: Four V stations, because what Anne-Marie Migneault beside me was explaining was that when we did this chart there were two V stations that did not qualify. They are in blue on the chart.
1730 THE CHAIRPERSON: Right. And they now qualify.
1731 MR. GUITON: They now qualify. So those are four.
1732 THE CHAIRPERSON: Okay.
1733 MR. GUITON: So they are carrying all of the available V stations in Québec effectively.
1734 THE CHAIRPERSON: Okay. I'm with you now.
1735 Now, you say this is unjust and they should carry how many of CBC?
1736 MR. GUITON: They should carry up to the maximum that is available relative to the other major broadcaster, which is TVA, so it would be five.
1737 We can't say that they should carry five V because they don't exist.
1738 THE CHAIRPERSON: Excuse me, didn't you just tell me there are five V stations that they carry?
1739 MR. GUITON: I'm only seeing four.
1740 THE CHAIRPERSON: Four. There are four. There are four V stations that they carry.
1741 MR. GUITON: Yes, that's correct.
1742 MS MIGNEAULT: V has five stations.
1743 THE CHAIRPERSON: But they carry only four?
1744 MS MIGNEAULT: They carry four.
1745 THE SECRETARY: Please open your microphone. Thank you.
1746 THE CHAIRPERSON: On my list there are only four V stations. I don't know whether the fifth comes from.
1747 MS MIGNEAULT: Yes. The purpose of this chart was to count how many stations would have the carriage right, it's those who do local content, right. We wanted to signal that some were carried that didn't actually meet the criteria.
1748 But you see at Trois-Rivières there, the line, there is a station, it's not carried and it didn't do local content.
1749 So V has five stations in Québec.
1750 THE CHAIRPERSON: Yes.
1751 MS MIGNEAULT: Currently both Shaw and Bell carry four of them. They carry all except Trois-Rivières.
1752 THE CHAIRPERSON: Okay.
1753 Now your rule of parity says, because of this being the situation how many -- they should carry as many as TVA.
1754 Why wouldn't it be they should carry as many as V? Why wouldn't it be for instance -- I thought it was the lowest common denominator. They are carrying four V stations in Québec according to your chart here which we have now established --
1755 MS MIGNEAULT: If Trois-Rivières becomes eligible again --
1756 THE CHAIRPERSON: You told me that --
1757 MS MIGNEAULT: -- then they would be carried. It means five --
1758 THE CHAIRPERSON: Let's deal with the situation as it is. Don't change the facts on me.
1759 You are telling me there are four stations right now from V in Québec which are carried by Shaw and they all are LPIF-eligible.
1760 Is that not correct? Isn't that what this chart says?
1761 MS MIGNEAULT: When we made the chart they were not all eligible, but now they are, if you are telling me that they are all. And yes, there are four V stations carried by Shaw LPIF-eligible if the status has changed since last summer.
1762 THE CHAIRPERSON: I guess you and I are not connecting here.
1763 MS MIGNEAULT: No.
1764 THE CHAIRPERSON: The two stations in the blue that you edit -- not us, you edited here now in today's version -- are they LPIF eligible or not?
1765 MS MIGNEAULT: They are today LPIF-eligible.
1766 I don't know, they were not this summer, because they had stopped at -- they had stopped doing local programming and there was a letter on the CRTC site saying they are not LPIF-eligible anymore.
1767 They had no local content, but they were still carried by the DTH.
1768 THE CHAIRPERSON: Okay.
1769 Does your proportionality rule kick in on the basis of LPIF or not? Yes, it does, right?
1770 MS MIGNEAULT: Yes, it does.
1771 THE CHAIRPERSON: Let' make the assumption -- just for argument sake so I understand you rule, which is the whole purpose of this exercise -- that the three stations are LPIF-eligible. So we have four LPIF-eligible stations in Québec, those are stated here, Montréal, Québec city, Sherbrooke and Saguenay.
1772 Montréal is obviously not LPIF-eligible, the other three are and they are being carried; right.
1773 And your rule now would say because of these four being carried, of which three are LPIF-eligible, therefore what? Therefore they should carry how many CBC stations?
1774 MS MIGNEAULT: With the parity rule -- I need to make one correction, I'm sorry.
1775 It's not only the LPIF stations that are counted in the parity rule, it's all stations, all stations that do a minimum level of -- so Montréal is not LPIF-eligible for Francophone stations, but they are part of this rule. They are counted in the parity.
1776 THE CHAIRPERSON: Okay. So anybody who produces more than five hours of local programming?
1777 MS MIGNEAULT: Exactly. Exactly.
1778 THE CHAIRPERSON: Okay, fine. We now have the basis straight.
1779 MS MIGNEAULT: Okay.
1780 THE CHAIRPERSON: Okay. More than five hours.
1781 And according to you we simply make the assumption V qualifies. All of these four stations they carry create more than five hours of local programming.
1782 MS MIGNEAULT: Yes.
1783 THE CHAIRPERSON: Now the parity rule of CBC demands what?
1784 MS MIGNEAULT: The parity rule on the Shaw side, if Shaw keeps five TVA stations it would mean that they would add -- they would have to add --
1785 THE CHAIRPERSON: Why do you say five? There are four. There are four. Don't say five.
1786 Oh, you are taking TVA.
1787 MR. GUITON: Yes. So in other words, Mr. Chairman, if they are carrying four Vs they have gone up to the maximum of V, they can't add any more.
1788 THE CHAIRPERSON: Right. Right.
1789 MR. GUITON: Okay. Now they keep going, they are adding more TVA's.
1790 THE CHAIRPERSON: Right.
1791 MR. GUITON: They go up to five.
1792 THE CHAIRPERSON: Right.
1793 MR. GUITON: Well, since we have at least five available they have to carry five Radio-Canada. If we only had three available, they would go up to three; right. But we have five available, since they are carrying five TVAs they are going to have to carry five Radio-Canada.
1794 They can't carry five Vs because it only goes up to four. Forget about the one that's small.
1795 Let's just deal with this chart. So this chart shows there are four Vs, if they want to go higher than four with V they can't; if they want to go higher with TVA, up to five, they have to go up to five with Radio-Canada because we have five.
1796 THE CHAIRPERSON: So your rule basically says the largest number of any group that they carry has to be carried from all of the groups?
1797 MR. GUITON: That's it. If it's available, that's it.
1798 THE CHAIRPERSON: That's what you call parity?
1799 MR. GUITON: That's what we are calling parity.
1800 And it's very similar to the rule you have right now for carriage of CBC Radio-Canada services. If our services are available, if they raise the private broadcasters up to five or so, you know, ours are available, they have to go up to ours. That's the rule that you have.
1801 We are just trying to actually mimic your rule, although it's clear we haven't done a very good job, at least in the clarity side of it.
1802 MS MIGNEAULT: If I may, in the TQS column, Trois-Rivières, you can add a station there. There is a station. V has five stations.
1803 THE CHAIRPERSON: There is one there, yes.
1804 MS MIGNEAULT: It's the same thing.
1805 On the "Shaw Direct" line, Trois-Rivières there is a station.
1806 THE CHAIRPERSON: Yes.
1807 MS MIGNEAULT: So if you take the parity rule, if Shaw carries five TVA, they will have to carry the five TQS and they will have to carry at least five Radio-Canada.
1808 THE CHAIRPERSON: And you have set it out as being separate for English and French Canada, but actually it isn't. That parity rule is the same for both?
1809 I mean if I look at parity in French Canada --
1810 MR. GUITON: It's the same for each province.
1811 THE CHAIRPERSON: -- it's the same rule?
1812 MR. GUITON: It's the same for each province.
1813 THE CHAIRPERSON: The same rule.
1814 MR. GUITON: Exactly.
1815 THE CHAIRPERSON: So there was no reason to set it out separately.
1816 MR. GUITON: No. Mr. Chairman, the only reason we set it out separately was for correcting the Québec situation.
1817 THE CHAIRPERSON: I get it. Where it's particularly egregious is what you said?
1818 MR. GUITON: That's it.
1819 THE CHAIRPERSON: Okay. Thank you.
1820 I'm sorry to have -- I finally understood it. I mean I have read this I don't know how many times and I couldn't figure it out. It didn't help that I had the wrong chart. Sorry.
1821 Louise...?
1822 COMMISSIONER POIRIER: I just want to make sure that also I understand that all the CBCs that are in yellow are LPIF stations, too. They are, plus they are LPIF.
1823 MS MIGNEAULT: They are at least LPIF.
1824 COMMISSIONER POIRIER: Yes, okay.
1825 MS MIGNEAULT: The station -- we are not asking for only LPIF, it's any station that has more than the threshold set by the LPIF.
1826 COMMISSIONER POIRIER: Yes. But I'm making a link between this sheet of paper and yours and I'm adding to that that those that are in yellow gets LPIF, don't they?
1827 THE CHAIRPERSON: No. Montréal is not --
1828 COMMISSIONER POIRIER: Except Montréal, I know, but I'm saying the ones in yellow.
1829 MS MIGNEAULT: Are you talking about the French?
1830 COMMISSIONER POIRIER: Yes, the French. I'm talking about --
1831 MS MIGNEAULT: On the French it's not complicated, they are all LPIF-eligible except Montréal.
1832 COMMISSIONER POIRIER: That's it. So I want to say that the yellow ones for Shaw, Radio-Canada are all LPIF. That's what I'm saying.
1833 MS MIGNEAULT: Yes, that's it.
1834 COMMISSIONER POIRIER: Thank you.
1835 THE CHAIRPERSON: Thank you very much. I now understand your proposal.
1836 I don't think we have any more questions.
1837 I hope you will be here for the rebuttal because some of those things I would like to hear what other of the two carriers have to say to your proposal.
1838 MR. GUITON: Some of us will be, Mr. Chairman. Unfortunately all of our panel can't be, but we will do our best.
1839 Again, I apologize for the confusion on the parity rule.
1840 THE CHAIRPERSON: Okay, thank you.
1841 We will take a 10-minute break.
--- Upon recessing at 1012
--- Upon resuming at 1025
1842 THE CHAIRPERSON: Madam Secretary, at what time is the fire drill scheduled?
1843 THE SECRETARY: At 11:00 the fire drill is scheduled and we will reconvene at 12:30 with the presentation of Rogers.
1844 THE CHAIRPERSON: So let's see if we can get through this by 11:00. We don't want to be interrupted in the middle of your presentation. We have 35 minutes. Go ahead.
PRESENTATION
1845 M. LEVASSEUR : Bonjour, Monsieur le Président, Messieurs, Mesdames les membres du Conseil et les employés du bureau.
1846 Alors, d'abord, je me présente. Je suis Alex Levasseur, le président du Syndicat des communications de Radio-Canada.
1847 Je vous rappelle que notre syndicat, bien que vous nous entendiez assez souvent à ces audiences, représente environ 1 600 membres qui sont répartis partout au Québec et à Moncton, en Acadie. Nous sommes un syndicat affilié à la Fédération nationale des communications de la CSN.
1848 Je suis accompagné aujourd'hui de deux journalistes-présentateurs, c'est-à-dire que ces personnes ont la responsabilité de livrer en ondes tous les soirs le bulletin de télévision local.
1849 Il s'agit, à ma gauche, de Jean Martin, qui est chef d'antenne pour le bulletin diffusé dans l'Est de la province, c'est-à-dire donc pour le Bas-Saint-Laurent, la Gaspésie et la Côte-Nord), et, à ma droite, de Roger Lemay, qui est également chef d'antenne pour le bulletin diffusé au Saguenay et Lac-Saint-Jean.
1850 À Saguenay, la Société Radio-Canada a inauguré en août dernier un centre de production intégré radio-télévision-web. Elle y diffuse 30 minutes par jour d'information, un bulletin qui passera à 60 minutes par jour sous peu, et, en fin de semaine, elle diffuse aussi un bulletin de nouvelles de 30 minutes.
1851 Du côté de l'Est de la province, la Société a annoncé le mois dernier qu'elle construirait et installerait à Rimouski un centre de production intégré. Le bulletin de 60 minutes, qui est actuellement produit à Québec mais diffusé dans l'Est de la province, sera donc déplacé, et la date prévue, c'est le printemps 2013. Là aussi, on y ajoutera, en plus du bulletin de 60 minutes par jour, un bulletin de 30 minutes le week-end.
1852 Des installations similaires ont aussi été faites à Sherbrooke et Trois-Rivières au cours des 18 derniers mois.
1853 Radio-Canada vous l'a expliqué, et nous sommes d'accord, la production en région revient presque aussi vite qu'elle est disparue en 1990 avec la fermeture de stations. Et vous y êtes pour quelque chose, non seulement la fermeture mais le retour également.
1854 La création du Fonds pour l'amélioration de la production locale, le FAPL, et bientôt, je l'espère, le versement d'une redevance pour la valeur du signal, permet aux régions d'avoir accès à des bulletins d'information dignes de ce nom. Ce privilège n'est plus réservé aux seuls résidants de Montréal, de Gatineau ou de Québec. Et c'est fort bien ainsi.
1855 Mais il vous faut être conséquent jusqu'au bout de votre raisonnement. Pourquoi permettre une diversité des voix, une pluralité d'opinions, si c'est pour interdire à un citoyen sur trois d'y avoir accès?
1856 Cette absence de distribution par satellite dans les régions du Québec pose des problèmes quotidiens à ces personnes. Jean et Roger vous en parleront plus en détail dans quelques instants.
1857 Leur frustration de ne pas être écouté par 34 pour cent de leur population est compréhensible. Cette frustration est d'autant plus grande que ses stations compétitrices, elles, sont disponibles, même si certaines, et je pense à V, n'offrent à peu près aucune programmation locale, si ce n'est des pauses publicitaires locales.
1858 C'est profondément injuste pour les dizaines d'artisans qui tous les jours oeuvrent à produire un bulletin d'information professionnel, tout comme ça l'est probablement, d'ailleurs, pour Radio-Canada qui consacre autant d'argent à informer et divertir ses publics régionaux et ainsi respecter son mandat et la Loi sur la radiodiffusion.
1859 D'ailleurs, à ce propos, je me permets de citer cette même Loi dans son volet concernant les entreprises de distribution. Celles-ci devraient -- je cite :
« ...devraient donner la priorité à la fourniture des services de programmation canadienne, et en particulier par les stations locales canadiennes. »
1860 Plusieurs avenues s'offrent pour ce faire. Nous ne sommes pas les spécialistes des équipements ni des techniques de distribution, mais nous abondons dans le même sens que Radio-Canada à cet effet.
1861 Il faut valoriser les stations locales qui répondent aux critères du FAPL ou dont les promesses de réalisation sont avérées, en obligeant leur distribution. Une réglementation plus serrée, voire contraignante, devrait être envisagée.
1862 Je relisais un rapport présenté au ministère de la Culture et des Communications du Québec, il y a 12 ans, et ces gens prédisaient, et je cite :
« La télédiffusion directe par satellite aura certes un avantage concurrentiel sur les technologies STML et de câblodistribution pour la diffusion des signaux dans les régions rurales et les zones qui présentent des difficultés de couverture... »
1863 Ce qui semblait logique pour ces spécialistes ne s'est pas totalement concrétisé, du moins pas pour la Société Radio-Canada.
1864 La concentration et la convergence des contenus et des canaux de distribution entre les mains de quelques grands groupes industriels, de moins en moins nombreux mais de plus en plus intégrés, réduira invariablement la diversité des voix et des contenus au cours des prochaines années.
1865 La présence d'un diffuseur public national avec ce volet local est un rempart incontournable. D'ailleurs, l'audience que vous avez convoquée pour le printemps prochain à cet effet nous permettra de revenir en discuter avec vous.
1866 Notre syndicat a commandé, il y a quelques semaines, une étude qualitative sur les perceptions des diffuseurs publics et privés au Québec, ce qu'on appelle des focus group. Cette enquête à été conduite par la maison CROP. Ce qui ressort de cet exercice, c'est le constat suivant.
1867 Lorsqu'il est question de culture, d'éducation, d'information avec un grand "I", de précision, de nouvelles internationales, d'envergure des moyens, c'est à la Société Radio-Canada que les participants songent.
1868 S'il est question d'information plus terre à terre, de divertissement ou d'émissions populaires, c'est à TVA que les participants se réfèrent.
1869 Et quand on évoque les émissions populaires, les jeunes publics, la provocation, le divertissement, c'est plutôt V qui est identifié.
1870 Or, pour vous parler de l'importance de l'information régionale, je passe la parole à mes deux collègues.
1871 D'abord, monsieur Martin.
1872 M. MARTIN : Bonjour à tous.
1873 Écoutez, moi, j'ai envie de vous parler du coeur. J'ai envie de vous parler de ma réalité de tous les jours.
1874 Quand je vois mon compétiteur qui est dans mon marché, le marché du Bas-Saint-Laurent, de la Gaspésie et de la Côte-Nord, c'est-à-dire c'est un vaste territoire qui compte environ 300 000 personnes, et quand je vois mon compétiteur, lui, avoir des armes pour aller au combat et que moi, mes armes sont limitées, ça me chagrine beaucoup.
1875 Ça me frustre aussi par le fait même que, grâce au Fonds d'aide à la programmation locale qui a été mis sur pied il y a quelque temps, on peut maintenant faire des choses plus poussées.
1876 On peut aller en affaires publiques, par exemple, et j'ai eu l'occasion d'aller à Gaspé pour souligner les 40 ans de la création du Parc national de Forillon. En même temps qu'on a créé ce parc-là, on a exproprié -- imaginez -- 225 familles.
1877 Il y a des blessures qui sont encore très présentes actuellement, et lorsque je rencontrais ces expropriés, lorsque je rencontrais des gens dans la rue et qu'ils me demandaient quand on va pouvoir voir cette émission spéciale, je leur disais telle heure, ils me disaient où, bien, je disais à Radio-Canada. Ah! On n'a pas ça, nous. On n'a pas, nous, « Le téléjournal/Est du Québec. » On a Montréal.
1878 Et Montréal, vous savez que par rapport à Gaspé, c'est assez loin. C'est assez loin. Notre territoire, je vous le disais, il est immense.
1879 Je vous donne un exemple, Montréal et Blanc-Sablon. Blanc-Sablon, c'est à la limite de Terre-Neuve et Labrador. C'est notre territoire. Et entre Montréal et Blanc-Sablon, il y a 1 800 kilomètres, et Blanc-Sablon reçoit aussi le signal de Montréal.
1880 Actuellement, je suis en tournage sur la Côte-Nord et dans le Nord du Québec pour faire état d'un boom économique incroyable.
1881 Une centrale hydroélectrique, c'est-à-dire plusieurs centrales hydroélectriques, quatre, sont en train de se construire sur la rivière Romaine. C'est sur la Côte-Nord. C'est un projet -- écoutez bien -- de 6 500 000 millions de dollars. Plus la ligne de transport, c'est un projet global de 8 milliards.
1882 On est allé plus au nord. On est allé à Fermont, Labrador City, pour parler là aussi du boom économique dans le secteur des mines. Mais encore là, à toutes les fois que les gens nous disent on a hâte de voir votre émission... et savez-vous ce qu'ils nous disent? Ils nous disent : On ne vous voit pas souvent. Il me semble qu'on ne vous voit pas souvent. Mais j'ai dit : Touchez-nous, on est là.
1883 Et là, la même réponse : Vous ne pouvez pas le capter si vous n'avez pas de... si vous avez seulement un câble ou c'est-à-dire si vous n'avez... si vous êtes abonné par satellite, vous ne pouvez pas nous capter.
1884 Alors, c'est notre réalité, comme ça, assez souvent, et depuis le Fonds aussi, on se déplace beaucoup plus, on a la chance de faire des affaires publiques.
1885 Vous savez, notre territoire est immense, je l'ai dit. Il y a quatre vidéastes, quatre journalistes, cinq caméramans pour couvrir ces trois régions-là, parce que nous, contrairement à mes collègues, nos collègues sont concentrés dans une région précise, c'est-à-dire Saguenay, Trois-Rivières, Québec, et caetera. Nous, c'est trois régions que nous desservons, et c'est une région qui est en grande partie rurale. Donc, ça veut dire que les coupoles sont présentes. Vous vous promenez, par exemple, dans l'arrière-pays de Rimouski, et ce que vous voyez, c'est souvent des coupoles, des coupoles, des coupoles. Et je ferai une boutade en disant qu'à chaque fois, je pleure parce que je sais que ces gens-là ne savent même pas qui je suis, ne savent même pas quel produit je fais à tous les jours, à tous les jours, parce qu'ils n'ont pas la capacité de nous capter.
1886 Voilà ce que j'avais à vous dire du fond du coeur. J'aimerais, moi aussi, être diffusé sur les canaux satellites. Je pense que réduire aussi à une simple équation offre et demande, c'est en fait de nier l'existence de certaines stations régionales et non seulement de certaines stations régionales, c'est de nier aussi certaines réalités régionales.
1887 Je pense que même si on disait tout à l'heure que les gens s'informent d'une autre façon, Facebook, Twitter, et caetera, je pense que les gens ont encore besoin d'information locale, régionale, et je pense que Radio-Canada est le diffuseur approprié pour les servir.
1888 Parce que mon compétiteur, lui, ce qu'il fait... nous on fait une heure d'émissions à tous les jours. Mon compétiteur fait une demi-heure, dont 10 minutes en provenance de Montréal et à peu près 10 minutes de nouvelles régionales, alors que nous, on a le choix éditorial, c'est-à-dire qu'on peut puiser dans les banques de reportage et d'adapter ces reportages à notre réalité quotidienne, et je le dis bien, quotidiennne.
1889 Voilà essentiellement ce que j'avais à vous dire. Je répondrai à vos questions, évidemment.
1890 M. LEMAY : Merci, Jean.
1891 LA SECRÉTAIRE : Désolée, mais votre 10 minutes est terminé. Vous pouvez peut-être parler pendant une ou deux minutes.
1892 LE PRÉSIDENT : Allez-y parce que...
1893 M. LEMAY : J'en ai pas pour longtemps.
1894 LE PRÉSIDENT : Comme j'ai dit, on doit arrêter à 11 h 00, mais j'aimerais vous écouter.
1895 M. LEMAY : O.K. Bonjour. Mon nom est Roger Lemay. Je suis présentateur du Téléjournal du Saguenay-Lac-Saint-Jean.
1896 Je ne répéterai pas ce que le député Bouchard a dit ce matin. Il venait de ma région.
1897 Je voudrais simplement vous rappeler qu'on est une région d'environ 300 000 habitants, que TVA a l'opportunité d'être distribuée par V et par Bell... c'est-à-dire TVA et V ont l'opportunité d'être distribuées par les deux chaînes satellitaires, et nous, non.
1898 Et on a un phénomène, nous, de vieillissement de la population, et ça crée un étalement rural. C'est-à-dire que de plus en plus de gens s'en vont en secteur rural. Souvent, ils vendent les maisons en ville, reconstruisent un chalet sur le bord des cours d'eau, et caetera, là où le câble n'est pas disponible.
1899 Il y a un phénomène là qui s'en va en grandissant, et nous, on est... évidemment là, on voit ça d'un mauvais oeil pour le futur.
1900 J'aimerais juste prendre une ou deux minutes pour répondre aux questions de madame Poirier ce matin, parce que vous posiez des questions assez précises à monsieur Bouchard concernant la région du Saguenay-Lac-Saint-Jean, et je vous cite là.
1901 Vous avez demandé : Est-ce qu'on ne donnerait pas un avantage concurrentiel à Radio-Canada chez vous en demandant aux réseaux satellites la diffusion de votre chaîne?
1902 Moi, je dirais, on ne demande pas de traitement de faveur. On demande le même traitement que tout le monde. TVA et V le sont. Pourquoi pas nous?
1903 Une autre question que vous demandiez, c'est : Est-ce que les gens savent quand ils s'abonnent à une antenne qu'ils n'ont pas votre chaîne?
1904 Moi, je vous dirais que non, et nous le savons. La preuve, c'est que les gens nous appellent une fois qu'ils sont abonnés aux chaînes satellites, nous appellent à notre station pour nous demander sur quel numéro ils peuvent nous syntoniser. On leur répond : Non.
1905 Pensez-vous que madame Thérèse Tremblay qui s'en va s'installer sur le bord du Lac-Saint-Jean, et quand elle reçoit la brochure de Shaw ou encore de Bell et qu'elle voit la pizza, le sigle de Radio-Canada, pense que ce sont les chaînes d'Atlantique, de B.C., de Montréal? Elle pense que c'est sa chaîne locale. Elle ne demande pas la liste des 40 chaînes, d'où elles viennent. Elle s'imagine, évidemment, honnêtement, qu'elle va avoir son réseau local.
1906 Et enfin, nous, une chaîne omnibus, il y aurait clairement des gros désavantages à ça. C'est que nous, on a un bulletin à 18 h 00. Si on a une chaîne omnibus, on est distribué à quelle heure, nous? À 21 h 00? À 22 h 00? À 23 h 00?
1907 On laisse toute la glace à notre concurrent TVA à 18 h 00, parce que V, vous le savez, ne fait plus de programmation locale et a aboli... ils ont aboli, ces gens-là, leur service de nouvelles dans les localités.
1908 Autre chose, une chaîne... une station comme la nôtre, ce n'est pas qu'un bulletin de nouvelles. On fait des productions locales et originales, sportives, culturelles, toute la journée. Alors, si c'est seulement notre bulletin de nouvelles qui est distribué dans une chaîne omnibus, où s'en vont les autres programmations? Ça tombe dans le néant?
1909 Et enfin, évidemment, on est subventionné par la Société Radio-Canada. On vit de subventions fédérales, mais il y a aussi un certain nombre de nos revenus qui proviennent de la publicité. Si on a seulement une chaîne omnibus qui distribue le bulletin de nouvelles, toutes les publicités pendant toute la journée sur la chaîne locale ne sont pas vues. Donc, c'est une baisse de revenus parce que les annonceurs ne viendront plus chez nous.
1910 Alors, c'est essentiellement ce que je voulais vous dire.
1911 Je pense qu'une autre interrogation que vous aviez, c'était les autres plateformes, les médias sociaux. On n'est pas à Toronto puis on n'est pas à Montréal dans notre région. Hier là, à la mairie de Laval, il y avait à peu près 10 chaînes de TV puis autant de radio.
1912 Mais au Saguenay-Lac-Saint-Jean, le conseil de ville de Chicoutimi est couvert par nos caméras. Le conseil de ville d'Alma, les faits divers, l'accident où il y a six morts, ce n'est pas Facebook qui délègue des journalistes pour aller couvrir ces événements-là. Ce n'est pas Twitter qui ont des reporters.
1913 Au contraire, ces gens-là sont alimentés par nos images, par nos histoires. Ils les repiquent et les redistribuent sur les médias sociaux, mais ils ne sont pas présents sur le terrain. Il n'y en a pas de gens pour couvrir cette information-là.
1914 Alors, oui, on a nos histoires, nos analyses, nos entrevues, nos exclusivités, et le phénomène qu'on commence à ressentir parce que nous ne sommes pas distribués sur les chaînes satellites, c'est qu'on travaille très fort, on est agressif dans le bon sens du terme, on sort des scoops.
1915 Les scoops sont souvent repris dans le journal, le seul journal qu'il y a au Saguenay-Lac-Saint-Jean, qui s'appelle « Le Quotidien. » C'est repris le lendemain matin, sans nous citer, et les radios, le surlendemain matin, reprennent les nouvelles du « Quotidien » en citant « Le Quotidien, » en ne sachant pas que ça vient de chez nous.
1916 Ce sont des phénomènes qu'on vit. Comme Jean, je pense qu'on ne travaille pas à armes égales. Tout ce qu'on demande, c'est le même traitement que tout le monde. Merci.
1917 LE PRÉSIDENT : Merci.
1918 Franchement, je suis choqué par ce qu'a dit le député ce matin et Radio-Canada. Franchement, cette charte ici que Radio-Canada nous a présentée démontre que seulement une station à Québec est portée par Shaw, et Trois-Rivières, Saguenay et Rimouski ne sont pas ni sur Bell ni sur Shaw.
1919 C'est quelque chose qu'on ne savait pas, au moins consciemment, disons, et c'est toujours le bénéfice des audiences comme ça parce que, soudainement, on réalise quelle est la réalité dans vos régions.
1920 Dites-moi, Monsieur Martin ou Monsieur Lemay, les ondes de vos stations, est-ce que vos auditeurs peuvent... toutes ces stations sont disponibles sur les ondes?
1921 M. MARTIN : Oui.
1922 LE PRÉSIDENT : Est-ce que les gens de votre région profitent de ça, qu'ils ont Shaw, mais, en même temps, ils utilisent les antennes normales pour écouter Radio-Canada?
1923 M. MARTIN : J'ai une anecdote. Ils ne sont pas nombreux, hein! Ils ne sont pas légion à faire ça. Mais je parlais à des gens sur le terrain, puis je leur disais... bon, on parlait de ça, des problèmes de distribution par satellite, puis la personne m'a dit : Moi, j'ai résolu mon problème. J'ai dit : Donnez-moi la solution, je vais propager la bonne nouvelle.
1924 Mais finalement, tout ce que c'était, c'est qu'elle a monté une antenne -- on appelle des oreilles de lapin --
1925 LE PRÉSIDENT : Oui.
1926 M. MARTIN : -- sur sa maison, puis elle switchait, elle se branchait sur une ou sur l'autre pour nous capter pour le bulletin d'information locale.
1927 M. LEMAY : J'ai une anecdote similaire. C'est que mon propre père vivait en ville avant. Il a maintenant 80 ans et il a travaillé fort toute sa vie. C'est un amateur de Radio-Canada, sans dénigrer les autres chaînes, et à sa retraite, il s'est construit une maison sur le bord du Lac Saint-Jean, et son propre fils n'est pas présent sur sa télévision.
1928 Alors, ce qu'il fait, c'est qu'il s'est arrangé avec une espèce de plug extérieure...
1929 LE PRÉSIDENT : Oui.
1930 M. LEMAY : ...puis il met son manteau à 18 h 00, puis il va mettre son oreille de lapin pour pouvoir écouter le bulletin local d'information.
1931 Ce sont des exemples qui viennent à nos oreilles très régulièrement.
1932 M. MARTIN : Oui, on est en 2010.
1933 LE PRÉSIDENT : Est-ce que vous proposez une solution particulière ou est-ce que vous êtes d'accord avec Radio-Canada ou quoi?
1934 M. MARTIN : Bien, nous, ce qu'on propose, écoutez, on n'a pas fait une démarche... Pour moi, venir ici, c'était pour vous parler de mon quotidien. Alors, je n'ai pas fait une démarche technique.
1935 Mais moi, ce que je vous demande du fond du coeur et pour tous les gens pour qui je travaille et pour le public qui nous écoute, je vous demande de pouvoir avoir accès aux satellites et qu'on puisse voir « Le téléjournal/Est du Québec » partout dans nos trois régions. Et je le répète, c'est trois régions. C'est énorme comme territoire. C'est ça que je souhaite.
1936 Le mécanisme, je pense que c'est à vous à le déterminer, mais moi, je veux être vu... enfin, le produit, pas moi là. Je ne suis pas narcissique à ce point-là. Mais le produit que je fais, je veux qu'il soit vu.
1937 M. LEMAY : Moi, je trouve que la conjoncture actuelle pose une problème d'équité parce que oui, nos compétiteurs sont présents. Nous, dans la région, on ne l'est pas. Il y a un problème d'équité envers nos compétiteurs immédiats, mais il y a aussi un problème d'équité envers les autres auditeurs de Radio-Canada dans les autres régions du Canada.
1938 Pourquoi le monsieur de Saskatoon, pourquoi la madame de Winnipeg, pourquoi l'étudiant de la Colombie-Britannique, peuvent avoir comme Radio-Canadiens, comme auditeurs de Radio-Canada, une chaîne locale d'information, un bulletin local dans leur province, dans toutes les régions du Canada, mais pas dans nos régions respectives à nous au Québec?
1939 M. LEVASSEUR : Je dirais peut-être, Monsieur Finckenstein, si vous me permettez une remarque.
1940 Parce que le Syndicat, dans le mémoire qu'on vous a déposé, va jusqu'à un certain point dans le même sens que Radio-Canada, ce qui vous a été expliqué tout à l'heure, mais pas totalement, parce que, pour nous, la règle des trois-quarts ou la règle de la parité avec la compétition veut faire en sorte, par exemple, que si on ajoutait quelques stations de Radio-Canada actuellement qui ne sont pas distribuées par Shaw ou par Bell, il en resterait au moins une sur celles qui existent qui ne sera pas distribuée.
1941 Alors, on dit sur quelle base... parce que si on n'en distribue que cinq au lieu de six, la sixième, pourquoi elle, on ne la distribue pas? Quelle est la logique derrière ça?
1942 Nous, ce qu'on vous dit, ce qu'on pense, c'est dès qu'il y a une programmation suffisante qu'on rencontre les exigences du Fonds d'amélioration de la production locale ou qu'on rencontre, à tout le moins, les exigences des permis qui nous sont donnés, je pense qu'on devrait avoir une priorité.
1943 Et moi, je me questionne beaucoup quand je vois des stations de télévision qui n'offrent plus rien, si ce n'est que des capsules de 30 secondes qui sont payées par les gens... par ceux de qui ils parlent, d'ailleurs, et ces gens-là ont droit, eux, à une visibilité. Ils ont droit de vendre de la publicité.
1944 Et nous, comme station régionale, on n'a pas accès, avec le produit développé, le produit haut de gamme, le produit immensément important qu'on fait, et on le fait... on est à peu près les seuls à avoir un produit aussi important pour la démocratie et la vie publique dans nos régions.
1945 Donc, c'est la distinction qu'on fait avec Radio-Canada. Nous, on dit, les gens qui font une programmation, qui dépensent, qui investissent dans une programmation locale, ça vaut la peine qu'on les diffuse en priorité, puis les autres après qui ne font pas de programmation locale, s'il reste de la place, tant mieux.
1946 CONSEILLER DENTON : Monsieur Levasseur, vous avez répondu à la question que j'allais poser. Alors, je n'ai plus de question. Merci.
1947 CONSEILLÈRE POIRIER : Oui. Je vous remercie d'avoir répondu pour monsieur Bouchard à toutes les questions que je posais, parce que, effectivement, je n'avais pas obtenu les réponses claires, mais là, c'est beaucoup plus clair.
1948 J'ai une question d'abord pour Rimouski. Radio-Canada va faire la transition au numérique, mais va maintenir des antennes dans plusieurs marchés au Québec, mais pas à Rimouski. Est-ce que je me trompe?
1949 M. MARTIN : Écoutez, moi, je ne suis pas dans l'ingénierie de Radio-Canada puis dans la distribution de ce qu'ils feront en 2013. Moi, je suis vraiment quelqu'un de terrain. Je ne peux pas vous dire qu'est-ce qu'ils vont faire, si on aura une antenne répétitrice numérique.
1950 CONSEILLÈRE POIRIER : Bon. J'ai un signe dans la salle comme quoi ça va être fait.
1951 M. MARTIN : Oui.
1952 CONSEILLÈRE POIRIER : Donc, je voulais m'assurer parce qu'au moins ça laisse pour l'instant encore la latitude aux gens de sortir... Il faut sortir dehors pour faire le changement à l'antenne?
1953 M. MARTIN : Non. C'est un peu folklorique peut-être dans le cas du père de Roger, mais pas nécessairement. Vous avez une boîte, puis vous avez un bouton, vous le tournez et ça fonctionne.
1954 CONSEILLÈRE POIRIER : O.K. Parfait.
1955 Au niveau de la diversité de l'information, j'aimerais ça... et c'est la seule question que je veux poser, parce que le reste, vous l'avez dit.
1956 J'essaie d'imaginer une personne qui vit à Gaspé.
1957 M. MARTIN : Oui.
1958 CONSEILLÈRE POIRIER : Cette personne-là qui vit à Gaspé reçoit quoi comme diversité d'information?
1959 M. MARTIN : Reçoit par Radio-Canada, parce qu'on n'est pas sur les coupoles, reçoit Montréal, évidemment.
1960 CONSEILLÈRE POIRIER : O.K.
1961 M. MARTIN : Reçoit aussi... et j'ai vu dans la liste des stations admissibles au programme, il y a CHAU-TV qui est située dans la Baie-des-Chaleurs, si vous voulez. C'est au sud de la Gaspésie. Par rapport à Gaspé, c'est à peu près à, je dirais, quatre heures de route là. Ça, c'est TVA.
1962 Et en plus, ils ont aussi la chance d'avoir de Rimouski, la station de Pointe-au-Père, donc, une autre TVA.
1963 Dans le fond, moi, j'ai deux TVA sur mon territoire, puis j'ai Radio-Canada Montréal. C'est ça la réalité. Alors, c'est ça qu'ils ont comme choix.
1964 CONSEILLÈRE POIRIER : Donc, ils ne vous reçoivent pas de Québec?
1965 M. MARTIN : S'ils sont abonnés au câble.
1966 CONSEILLÈRE POIRIER : Oui.
1967 M. MARTIN : C'est une personne sur trois à peu près chez nous. S'ils sont abonnés... c'est-à-dire au satellite. S'ils sont abonnés au câble, là, ils peuvent recevoir « Le téléjournal/Est du Québec. »
1968 CONSEILLÈRE POIRIER : O.K. Et prenons un exemple au Saguenay. Prenons une personne qui vit à Saint-Fulgence ou dans ce coin-là.
1969 M. LEMAY : Oui. Ils ont le choix entre seulement un bulletin de nouvelles, qui est celui de TVA, sur satellite.
1970 CONSEILLÈRE POIRIER : S'ils sont sur satellite?
1971 M. LEMAY : Oui. Parce que V n'offre plus de nouvelles locales. Et TVA, l'offre est d'environ 20 minutes le midi et 20 minutes le soir.
1972 Nous, on passe à une heure bientôt le soir et les fins de semaine une demi-heure, en plus des productions spéciales, en plus des émissions spéciales.
1973 CONSEILLÈRE POIRIER : O.K. Alors, tant que V offrait des nouvelles, il y avait au moins deux joueurs?
1974 M. LEMAY : Exact.
1975 CONSEILLÈRE POIRIER : Mais depuis que V n'offre plus de nouvelles...
1976 M. LEMAY : TVA exclusivement.
1977 CONSEILLÈRE POIRIER : ...les gens se retrouvent avec un seul joueur?
1978 M. LEMAY : Exactement.
1979 CONSEILLÈRE POIRIER : O.K.
1980 M. LEVASSEUR : Si vous me permettez, peut-être pour compléter, dans le mémoire, vous allez voir j'ai mis un petit tableau pour voir la pénétration de la réception satellite dans les régions.
1981 Dans l'Est du Québec, par exemple, dans la région de Jean, en 2003, il y avait 28 pour cent de coupoles; on est rendu en 2009 à 33 pour cent. À Saguenay, chez Roger, il y avait 25 pour cent de coupoles en 2003; on est rendu à 34 pour cent. À Sherbrooke, c'était 27; on est rendu à 33. Et à Trois-Rivières, on était aussi à 27; c'est rendu à 30.
1982 Donc, il y a une progression, je pense, avec la disponibilité de la technologie, vers la distribution par satellite, c'est clair. Les chiffres ne sont pas de moi. Ces chiffres-là sont de BBM Canada, Nielsen Media Research. Donc, ce n'est pas moi qui les ai inventés.
1983 Alors, vous voyez la progression, et c'est pour ça que l'absence de notre contenu sur les distributions satellites, bien, va nous poser de plus en plus un problème.
1984 Et vous le voyez, vous le savez, avec la concentration, avec la convergence des grands médias, avec Bell maintenant qui détient aussi tout un... ou qui va détenir toute une production, et les autres producteurs aussi, Radio-Canada va se retrouver un joueur marginalisé s'il n'a pas sa place dans les grands réseaux de diffusion.
1985 CONSEILLÈRE POIRIER : Et un dernier avis, c'est celui de la règle du one per province -- Radio-Canada nous a dit -- un par province là, qui sera la nouvelle règle de distribution en deux mille...
1986 LE PRÉSIDENT : 2011.
1987 CONSEILLÈRE POIRIER : ...en août 2011. Alors, je me demandais, eux disent, on devrait modifier cette règle-là, et elle n'est pas une bonne règle à appliquer au Québec.
1988 Quels sont vos commentaires sur ça?
1989 M. LEVASSEUR : C'est ce que je disais tout à l'heure, Madame Poirier. C'est sûr que, au Québec, il doit y avoir une considération différente à cause de l'évolution différente des médias francophones dans l'espace du Québec.
1990 Moi, je ne ferai pas de commentaire sur les autres provinces canadiennes parce que je ne représente personne là, je n'ai pas d'expertise, je n'ai pas d'expérience ailleurs. Peut-être que cette formule-là est bonne à ces endroits.
1991 Au Québec, l'application de cette formule-là ne nous donnera pas un bon résultat. Nous pensons qu'il faut que... et c'est la suggestion que nous faisons dans le mémoire, c'est de vous dire dès qu'il y a de la programmation locale, dès qu'on a un investissement sérieux qui rencontre minimalement les règles de financement du FAPL, bien, ça veut dire qu'il y a un effort qui est fait, il y a de l'argent qui est consenti, il y a des employés qui sont embauchés, et on devrait respecter ces choix-là et faire en sorte que les distributeurs ne viennent pas, de façon pas active mais de façon passive, jouer sur la glace des stations de télévision qui sont en compétition.
1992 On a beau pas aimer ça, mais Radio-Canada, TVA, V, on est un peu en compétition sur le territoire, et vous avez un joueur de distribution qui, sans être actif, par ses choix vient inférer dans cette joute entre les stations de télévision, et c'est majeur.
1993 CONSEILLÈRE POIRIER : Merci beaucoup, Messieurs.
1994 LE PRÉSIDENT : Vous avez cité la pénétration des satellites dans vos deux territoires. Est-ce que vous avez les chiffres pour les EDR aussi, les compagnies de câble?
1995 M. LEVASSEUR : Je ne les ai pas placés dans le mémoire. Non, je n'ai pas vérifié.
1996 LE PRÉSIDENT : Le micro.
1997 M. LEVASSEUR : Je disais, je ne les ai pas vérifiés. Je ne les ai pas mis dans le mémoire pour la pénétration des câbles.
1998 LE PRÉSIDENT : O.K.
1999 M. LEVASSEUR : Je suis désolé.
2000 LE PRÉSIDENT : Merci. Ce sont toutes nos questions pour vous.
2001 Madame la Secrétaire, on va prendre une pause maintenant, et quand est-ce qu'on recommence?
2002 THE SECRETARY: We will reconvene at 12:30 with Rogers. Thank you.
--- Upon recessing at 1055
--- Upon resuming at 1235
2003 THE SECRETARY: We will now hear the presentation of Rogers Communications Inc.
2004 Please introduce yourselves, and you have 10 minutes to make your presentation.
2005 Thank you.
PRESENTATION
2006 MS DINSMORE: Thank you.
2007 Good afternoon, Mr. Chairman and Commissioners. For the record, my name is Pam Dinsmore.
2008 Joining me today, starting from my far left, are David Watt, Johanne Lemay of Lemay-Yates Associates, Ken Engelhart, and to my right are Alain Strati and Susan Wheeler.
2009 Alain...
2010 MR. STRATI: Serving close to 3 million households between them, Bell TV and Shaw Direct are mature and profitable businesses that provide their DTH services to a large segment of the Canadian television audience.
2011 Local broadcasters need access to these viewers to maximize the advertising revenues that fund their programming investments.
2012 Under the existing DTH regulatory framework, many of our local Citytv and OMNI stations are not being carried by DTH. Others are carried, but only in standard definition. This will only improve marginally when the rules change next September.
2013 For example, Shaw Direct carries all the Citytv stations except Winnipeg, but does not carry any of them in HD. Bell carries all Citytv stations in SD, but only Citytv Toronto in HD.
2014 Of our OMNI stations, Shaw Direct only carries OMNI.1 and OMNI.2 from Toronto. OMNI BC is not carried by Shaw Direct, and is available to only half of Bell TV subscribers.
2015 Neither OMNI Calgary nor OMNI Edmonton is offered by either service.
2016 These stations are struggling financially and even incremental distribution can make a big difference.
2017 Our stations are further disadvantaged by the fact that other competing local stations -- stations now or soon to be affiliated with DTH operators -- are available on DTH in their markets in both SD and HD. This gives them a competitive advantage over our stations, in some of Canada's largest television markets.
2018 Given Shaw's acquisition of CanWest Global and Bell Canada's application to acquire full control of CTV, it seems fairly certain that Canada's largest English-language television networks will be in the hands of the corporations that currently own Canada's DTH operations.
2019 Last month, Bell TV added four new local stations, two of which are owned by CTV. As is clear from the chart attached to our submission as Appendix 1, Citytv and OMNI stations are at a competitive disadvantage in their local markets.
2020 We are deeply concerned about what consolidation might mean for the future carriage of our stations as compared to those of our competitors. We believe that there is a real risk that, without regulatory intervention, DTH providers will carry their affiliated broadcaster stations, in SD and HD, while ours are either left out completely or carried only in SD.
2021 In September 2011, the Commission's new framework will take effect, and DTH providers will be required to carry at least one station per ownership group in each province. However, the new requirements do not cover two important areas. First, the new framework does not apply to local ethnic broadcasters. This leaves our OMNI stations in a very vulnerable position.
2022 Second, it makes no provision for the carriage of HD signals.
2023 As the Commission is well aware, OMNI plays a unique role in the Canadian broadcasting system. These stations provide free, over-the-air, ethnic and third language programming to immigrants in their language of comfort and uphold key tenets of the CRTC's Ethnic Broadcasting Policy. Yet OMNI is the only station group that has been left with no DTH access rights in the Commission's new framework.
2024 We believe it is fundamentally unfair that the OMNI stations are considered priority signals for all terrestrial BDUs, but are forced to negotiate carriage on satellite. All other local station groups are guaranteed a certain degree of distribution.
2025 Another worrisome aspect of the Commission's new DTH framework is that there is no obligation to carry local Canadian HD signals. HD penetration has reached significant levels in a number of markets. Without HD carriage, local stations lose significant audiences and substitution opportunities to U.S. 4»1 signals, which are offered from multiple time zones in both SD and HD. This impact is even more significant to local stations when their local competitors are carried in HD.
2026 Pam...
2027 MS DINSMORE: Mr. Chairman, it is time for a timeline. After 13 years of operation, with the addition of hundreds of channels, and with the 25 percent share of the television distribution market in Canada, Bell TV and Shaw Direct are now mature businesses. They no longer require special regulatory treatment. Many Canadian over-the-air stations, however, do. They are suffering from a lack of access to much of their core markets.
2028 The time has come to require Bell TV and Shaw Direct to shoulder an equal load when it comes to supporting the needs of Canadian broadcasters and the demands of Canadian viewers. That said, we recognize that DTH operators cannot add all local stations immediately, but can over time. As we heard yesterday, both DTH providers are on the path to creating new capacity and migrating their set-top boxes to MPEG-4.
2029 We therefore urge that, at a minimum, the Commission establish a firm timetable, with firm dates, by which DTH providers must meet certain requirements. This is what the Commission did so effectively in the case of the digital TV transition.
2030 Without deadlines and a clear statement of intent, there is every reason to believe that Bell TV and Shaw Direct will continue to plead for special status, and that certain broadcasters and Canadians who cherish local television stations will continue to be penalized.
2031 To this end, we are tabling today a suggested transition plan.
2032 We are not proposing that the Commission tell DTH operators what technology to use or how to satisfy the Commission's requirements. But, we have based a suggested timetable on the Lemay-Yates Associates' report. In the report, Lemay-Yates examines various ways that Bell TV and Shaw Direct could increase satellite capacity and carry all local television stations. Both carriers will, in the near term, utilize MPEG-4 technology, effectively doubling the capacity of their transponders.
2033 Twenty-five percent of Bell's set-top boxes are already MPEG-4 ready, and Shaw has plans to acquire 16 transponders with MPEG-4 encoding.
2034 By accelerating their conversion timeline, Bell and Shaw could easily gain the capacity necessary to carry all local TV stations.
2035 Based on the findings of the Lemay-Yates Report, and the disclosures made by Bell and Shaw yesterday, Rogers urges the Commission to announce a staged implementation that will lead to the carriage of all local stations in HD.
2036 As a first step, the Commission should add to the DTH framework the required carriage of one OMNI station per province by September 1, 2011. Under the framework, all eligible stations should be carried in HD by the same date.
2037 Second, by September 1, 2013, Bell TV and Shaw Direct would convert sufficient capacity to carry all local TV stations in HD.
2038 We believe this suggested timetable is a fair, affordable and doable plan, crafted in the spirit of the Broadcasting Act.
2039 Over the years, the Commission has attempted to evolve its DTH carriage policy to address negative impacts on local broadcasters. We believe it is now time to consider how local multilingual stations like OMNI and local HD signals are ensured fairer access to DTH.
2040 We are now ready, Mr. Chair, to answer your questions.
2041 THE CHAIRPERSON: Thank you.
2042 The fear that you express, that because of the consolidation either Bell or Shaw will carry their own stations and not your stations in HD, wouldn't that run counter to the rules that we have, in terms of non-discrimination and no self serving?
2043 You carry your own station in HD, but not Rogers' station?
2044 MR. ENGELHART: Well, I mean, it's already happening, and they haven't indicated to us that they have any --
2045 THE CHAIRPERSON: It hasn't happened, because they don't own CTV yet.
2046 MR. ENGELHART: Shaw owns Global, and they do have a number of those stations on HD, and the Americans are all on HD. Both of them carry 10 U.S. HD signals into markets where we have bought the rights. We can't get substitution, we can't get the audience, and it's a real problem.
2047 THE CHAIRPERSON: You are carefully avoiding my question. We have rules against non-discrimination. In Shaw's case -- and I don't know whether the situation is there or not -- couldn't you invoke that rule?
2048 MR. ENGELHART: If I were Shaw or Bell, I would say that there is no undue discrimination once we have complied with the Commission's DTH policy. So I think you would have to make it clear in this decision that your DTH policy does not supplant undue preference, and that those undue preference rules would continue to exist.
2049 THE CHAIRPERSON: I am sure that you are going to raise this point when we have the vertical integration hearing next year.
2050 MR. ENGELHART: We can, but it's a current problem.
2051 THE CHAIRPERSON: You are telling me that it already exists, right now? You are, right now, being discriminated by Shaw, in that, in a given market, they carry their CanWest HD and they do not carry the Citytv HD, notwithstanding that both are available?
2052 MR. STRATI: That's correct, Mr. Chair.
2053 Just to be very specific, for Shaw Direct, they are carrying the CTV HD signal and the Global HD signal from Toronto. There is no Citytv HD signal from Toronto, so we are not getting a substitution.
2054 There is nothing in western Canada. There are no western HD signals. But even when you talk about Toronto, Citytv Toronto is not carried on Shaw Direct, and in the case of Bell ExpressVu, all three -- when I say all three, CTV, Global and City -- HD are carried from Toronto, but from Vancouver there is CTV HD, Global HD, but Citytv HD is not carried.
2055 So we have a western HD in Vancouver issue with Bell TV, and we have a Toronto eastern issue with Shaw Direct.
2056 THE CHAIRPERSON: I obviously don't know whether or not it's a violation, but I would have thought that you would have brought it to our attention if you felt it was.
2057 In your written submission -- not what you just presented, but what you tabled with us -- you made the argument about inconsistency when it comes to symmetry, saying that Bell strongly advocated for symmetry when we had the high-speed access hearing, and now they are against symmetry.
2058 Couldn't I turn that argument around and say that you did the same?
2059 You strongly advocated against symmetry then, and for symmetry now and --
2060 Sorry, you were against it, and then for it.
2061 Because, remember, we wanted to impose upon you the necessity to open up multiple points of connection, work with a private network on broadband, and all of those things, and you kept saying: No, no, no, this is cable, it's quite different from a telco.
2062 Each side basically argues on the basis of the technology that they have.
2063 MR. ENGELHART: Two points, I guess. We lost that argument.
2064 THE CHAIRPERSON: Yes.
2065 MR. ENGELHART: And I think there are some inherent differences in the networks that can justify unequal treatment, or limited symmetry, and I think this is what Cabinet meant when they said in their direction that it has to be substantially similar, instead of using a word like "identical".
2066 When I look at something like simultaneous substitution, I would say that, no matter how hard the satellite people try, they are never going to achieve the same level of substitution as cable because of the inherent technological differences. I can understand that. Maybe they could get a little closer, but there are some aspects of the technology that make symmetry difficult.
2067 What I am saying on capacity is that there really is no inherent difference. Both satellite and cable can get more capacity by spending more money. It's a matter of dollars, and we have spent the dollars, and they don't have to.
2068 So, on the matter of capacity, there really is not an inherent problem with satellite. There is an inherent problem with the regulatory regime, which has cut them some slack, and they have been taking advantage of that.
2069 THE CHAIRPERSON: We should have cut the slack earlier.
2070 MR. ENGELHART: Pardon?
2071 THE CHAIRPERSON: We should have cut the slack earlier is what you are saying.
2072 MR. ENGELHART: I interpret the DTH carriage rules as a kind of new entrant favour, and there is always the question when you are a regulator: When do they stop being a new entrant and when do they start being mature?
2073 There is no bright line when that happens, but I think it's fair to say that it has happened now.
2074 THE CHAIRPERSON: You also make the point that if we have VFS regime -- and that obviously depends on the Court ruling -- that would put you at a bigger disadvantage than anybody else.
2075 I am not quite sure that I understand the logic, because you are also a BDU, and where you are as a BDU, you have a much bigger -- you are much more important to the local broadcaster than the DTH.
2076 So don't you have bargaining leverage galore -- you, Rogers?
2077 MR. ENGELHART: I guess the point we are trying to make is, for satellite, they could say to a local station, "Look, we just won't carry you if you are going to ask for all this money."
2078 Put another way, their payment, if you will, is carriage. They can say, "Look, here is how we will resolve this negotiation. We will carry this station, this station and this station."
2079 Cable doesn't have that advantage because we are carrying them all anyway.
2080 THE CHAIRPERSON: Yes, that's true, but whether I am on DTH or not, it doesn't affect my survival whether I am getting carried by the local BDU, so it can't make it, effectively, a death sentence.
2081 MR. ENGELHART: I will grant you that that's a factor in our favour. On the other side of the ledger is the fact that, for cable, the default rule is that you have to negotiate for those distant signals. For satellite, the default rule is that the "distants" are all up there, so they can get their programs carried even if their individual stations aren't carried. That is something that cable can't really do.
2082 THE CHAIRPERSON: You made the point very strongly in your submission this morning that all local stations should be carried, not only the LPIF stations.
2083 As you know, we have concentrated on LPIFs because local content is key, and LPIF is the best indicator to show that you have local content. You have, at least, seven hours, et cetera.
2084 Why would we force them to carry stations that don't have local content? I don't quite see what is the inherent benefit to the citizens who live in that market. If that local station doesn't carry local content, whether it's on the bird or not, you are really not losing anything, because the content can be obtained by other stations, surely.
2085 MR. ENGELHART: No, we agree with you. We may have been unclear.
2086 Some people in this proceeding have talked about LPIF-eligible and some have talked about LPIF stations. The LPIF stations are the ones that actually get the LPIF money. The LPIF-eligible are the ones that have at least five hours of local.
2087 THE CHAIRPERSON: Right.
2088 MR. ENGELHART: When we say carry all local, we agree that there has to be a definition of what local is, and five hours is a good definition, so we are not disagreeing there.
2089 THE CHAIRPERSON: It's actually seven and five, depending on which --
2090 MR. ENGELHART: Yes.
2091 THE CHAIRPERSON: Okay, so LPIF-eligible who carry local --
2092 Okay, we agree on that one.
2093 You rely very strongly on the Lemay-Yates Report, which I read very carefully, and I thank you for commissioning it, because it is very helpful to have an outside party's view of it.
2094 I asked all sorts of questions to both Bell and Shaw based on it, and you heard the answers.
2095 If we go to your key findings -- and I am going to page 7 of the Lemay-Yates Report -- it says: "The margins achieved by Bell TV are in the same range as those achieved by DISH Network and DIRECTV in the U.S., while Shaw Direct generates substantially better EBITDA margins."
2096 I asked that question yesterday to Bell, and they purported to not being able to deal with it because they don't know what the DISH Network margins are, and so on.
2097 You did the story, Ms Lemay, maybe you could help me here.
2098 MS LEMAY: Yes. All of the information is taken from the public reporting of the companies, and we use the EBITDA margin because that is a margin that is widely reported by every carrier.
2099 I don't know if you want to turn to -- there is a table in the report that highlights the evolution of margins over the years.
2100 THE CHAIRPERSON: Point me to that table, will you, please?
2101 MS LEMAY: It is Table 21. On my copy it's at page 60.
2102 I know that maybe it's small print, but we go from 2001 to 2010.
2103 THE CHAIRPERSON: Yes.
2104 MS LEMAY: And at the top we have Bell TV, Shaw Direct, DISH Network and DIRECTV, and you can see the evolution of margins.
2105 In 2001, Bell and Shaw were both negative. Actually, Bell had a negative margin until 2005, and Shaw Direct was negative until 2003.
2106 And they have increased and kind of stabilized at the levels they are at now, Bell with 19 to 24 percent, and Shaw Direct with 30, 32, 33 and 38 percent, based on the results that we had at the time, which were nine months into 2010.
2107 I would note that we don't have a number for Bell in 2010 because Bell stopped reporting -- in its public reporting, it stopped reporting EBITDA margins for Bell TV as of this year.
2108 If we compare that with the U.S. operators, which I have just two lines below, you have DISH Network, which has margins in the range of 24, 20 and 23, and DIRECTV with 24, 25, 25 and 24, and 27 this year. So it varies.
2109 That's why we say -- you know, it's in the same range. We don't have, like, 10 percent margins versus 30 or 40 percent.
2110 And below we have put the margins for the cablecos, but in the case of the cablecos, the margins we have put there are for their entire operations, so it reflects the added margins from telephony and internet services.
2111 THE CHAIRPERSON: And you don't have a breakout for the cable companies of only their BDU margins.
2112 MS LEMAY: There are numbers reported by the CRTC for cable only, and basic cable and non-basic cable margins, and they were in the 24 to 26 percent -- or 26 to 28 percent range in 2009 and 2008.
2113 If you just look at cable for the cable operations, not the revenues -- the margins from internet and telephony, then cable is also somewhat similar to DTH. It's the same ballpark.
2114 THE CHAIRPERSON: So Bell's answer yesterday that (a) "We can't deal with it," this table clearly shows the margins, and we will ask them tomorrow about that.
2115 But they also made the point that they were only profitable one year, which was, I think, 2008.
2116 MS LEMAY: That's an accounting profit. Once you have taken all the costs --
2117 This is the EBITDA margin. Below that you have capital investment, interest expenses and other things.
2118 For Bell TV, the profit is not information that is publicly released. So you may have that in your files, but we don't have access to that.
2119 On the other hand, I would highlight that Shaw does report -- does a good reporting on the satellite side. In 2010 they paid taxes on the satellite services to the tune of $44 million. So that's a fair amount -- usually when you pay taxes, it's because you make money.
2120 THE CHAIRPERSON: That's a good rule of thumb, yes.
--- Laughter
2121 MS LEMAY: Unfortunately.
2122 THE CHAIRPERSON: And you really feel, in the short term, that the MPEG-4 conversion is a logical way for them to get more capacity.
2123 Now, yesterday I heard from Bell that they have no transition planned. They are doing what they call a bit of soft transitioning, and any new purchaser, or new customer, automatically gets any replacement, but other than that they have no plan.
2124 Shaw said that they have one, but it takes longer, and they quoted quite large figures for what it would cost to change their customer base over to MPEG-4.
2125 On the other hand, reading your report, it sounds as though this is something eminently doable, and that they have to do it anyway.
2126 MS LEMAY: In terms of the large figures, we didn't put the cost to convert all of their subscribers because we actually don't have the information as to how many set-top boxes they have out there.
2127 That is also information that is confidential.
2128 But we looked at the issue of satellite capacity, which I think was brought up many times, that there is not enough satellite capacity. So we looked at that.
2129 And, obviously, if you go to MPEG-4, for people to get those signals, if they don't have the box, they need a new set-top box to obtain access to the signals, which is what the U.S. DTH operators rolled out a few years ago.
2130 THE CHAIRPERSON: But you don't have the exact subscribers -- or set-top boxes, but you know the number of subscribers. If you just assumed that it was one set-top box per subscriber, et cetera.
2131 MS LEMAY: Yes, it is a lot.
2132 THE CHAIRPERSON: I mean the figures that were thrown around were astronomical that we got yesterday.
2133 MS LEMAY: They are high numbers because you have -- it's $300 per set-top box. I think that's the figure quoted by Bell.
2134 THE CHAIRPERSON: Yes, but that leaves me with the problem if I then say, okay, I accept your argument, and they have to come -- take the timetable, et cetera, and you are telling me I'm actually forcing them to make that kind of outlay in the next two years?
2135 MS LEMAY: No. I don't see it quite like that. I don't see that they would have to do that. I think it's -- you can offer the service.
2136 People who want to subscribe would need to get a new MPEG-4 box, for example. So it may not be the entire base that would, you know, subscribe initially but I think over time the customers will migrate to MPEG-4 because they want the new services, the HD.
2137 So we are not saying that they would have to -- say it's hundreds and hundreds and millions in set-top box next year and the year after. I don't think that's how it would rollout.
2138 If I may, you know, look at what they did in the States, for example, with DISH Network, they really rolled it out market by market over a period of time. They started having the boxes and then they started, you know, rolling out MPEG-4 market by market.
2139 I think that's not necessarily a bad way of doing it. Yesterday I heard Ms Tulk say that they weren't sure how to do it, would it be per geography, per channel. You can do either. They are different approaches.
2140 So we are not minimizing the task but we do think that, given the fact that they need more capacity from the services, that's the way to go.
2141 THE CHAIRPERSON: But did I misunderstand it? Don't they have to reconfigure their ground stations first of all in order to send a signal up into MPEG-4 --
2142 MS LEMAY: Yes
2143 THE CHAIRPERSON: -- so it can come down?
2144 MS LEMAY: Yes. They need to be converted to MPEG-4 and then they uplink that to --
2145 THE CHAIRPERSON: For argument's sake, I took Yorkton yesterday so let's stay with Yorkton.
2146 Yorkton is right now not carried. If they decided to carry Yorkton and, if I understand it, they would have to convert the ground station. They would have to send it up, the signal then for all of Yorkton and it will come down in MPEG-4.
2147 So therefore, every customer in Yorkton you will say if you want to receive the Yorkton station you now have to buy a new set-top box.
2148 MS LEMAY: Yes, you have to buy -- get a new set-top box, yes.
2149 THE CHAIRPERSON: That is the sort of thing they would have to do, correct?
2150 MS LEMAY: Yeah, yeah.
2151 THE CHAIRPERSON: And you think this can be done within the timeframe that Rogers just now announced, in effect?
2152 Well, I mean I assume since you are a consultant to them that --
2153 MS LEMAY: Yeah.
2154 THE CHAIRPERSON: -- you agree with those dates that they announced.
2155 MS LEMAY: Well, I didn't put the timeframe, but what Rogers is saying is they want the stations to be carried.
2156 Now, that doesn't mean that all the customers' set-top boxes will be changed out in a flick of a switch, I don't think. People who would like to get access to those stations would get the set-top box with MPEG-4.
2157 MR. ENGELHART: If I could add, Mr. Chair, just to repeat what Johanne is saying, they don't have to convert all the boxes in one flash cut, and that's not what the Americans did. As Ms Tulk said, you can do it by channel; you can do it by geography.
2158 So for example, Bell has a lot of -- about 25 percent of their boxes are MPEG-4 today and, as we understand it, those are the HD boxes. So you could just put the HD channels in MPEG-4 and that way -- the MPEG-4 boxes are backwards compatible. They can still receive the MPEG-2 and you don't have to convert all the boxes, but you have just magically doubled your capacity for those HD channels. Now, you have got some spare capacity and now you can use that for whatever.
2159 In the case of Shaw, they said when their new satellite launches --
2160 THE CHAIRPERSON: Whoa, Whoa. If you do that and I happen to have an MPEG-2 set-top box and I certainly don't get my HD channels anymore, right?
2161 MR. ENGELHART: Right. But they have been pushing the HD boxes out in MPEG-4 for some time. I'm not saying there won't be some swaps. There will be. But it will be a relatively modest number.
2162 And in the case of Shaw they are putting up 16 transponders of MPEG-4. So they are going to have to push some MPEG-4 boxes out or that's going to be a bit of a problem. I imagine they will be doing that.
2163 THE CHAIRPERSON: Now, you used the expression both of MPEG-4 boxes or MPEG-4 capable boxes, et cetera. When something is an MPEG-4 capable box what does that mean? Does that require anything more than pulling on a switch? Does that -- do you have to roll a tractor to connect something or something?
2164 MS LEMAY: Okay. You may be referring to -- we said there are some boxes, for example for Bell, the two HD PVRs are MPEG-2 and MPEG-4.
2165 In the case of Shaw they had one and now two set-top boxes that they just recently started selling that are MPEG-4. They also have one which, based on the information that was on their websites was MPEG-4 upgradeable. So I think they did talk about it yesterday.
2166 THE CHAIRPERSON: Yes.
2167 MS LEMAY: You could come in and use a slot. You could add a card.
2168 They said they tried it and it doesn't work. That's information that unfortunately we did not have. But that's what we were referring to, some boxes that could be made MPEG-4 capable.
2169 But obviously it doesn't seem to be that it's -- you know, we didn't take that into account anyway. It doesn't seem to be realistic.
2170 THE CHAIRPERSON: I'm looking at page 9. You say:
"The MPEG-4 solution effectively provides Bell and Shaw with an overlay option providing for increased capacity on existing satellite facilities. MPEG-4 channels can be mixed with MPEG-2 channels..."
2171 I guess that's what you were just talking about, Mr. Engelhart.
"...on the same satellite and the same transponder. DTH customers -- already customers are using conditional access technologies. So any subset, combination of SD, HD and MPEG-2 and 4 can be specifically provided to any individual customer wanting particular channels." (As read)
2172 You make it sound as if it's cost-free. I heard yesterday it's anything but cost-free.
2173 MR. ENGELHART: I mean if we made it sound cost-free, we were wrong. There are tradeoffs. There are costs. You don't get capacity for free. If you got capacity for free life would be grand.
2174 But it's not free for cable either. Cable operators in Canada and the United States are now looking at doing digital migration. We have looked at switch videos so we have had to spend oodles of money to get the capacity that we have got. Satellite will have to spend money.
2175 But, quite frankly, in another few years you won't be able to buy an MPEG-2 box. They are all going to be MPEG-4 boxes. They double your capacity. All DTH providers all over the world are moving to MPEG-4.
2176 Yes, there are costs involved. What we are saying is you can take advantage of that and set some targets so that some of the capacity which is thereby freed up is used for local stations.
2177 THE CHAIRPERSON: Okay. And those target dates that you come of the September 2011 and September 2013, the 2011, that change if I understand it, the only difference it would make it would mean it gets one of your Alberta stations on a bird, right?
2178 MR. ENGELHART: We have asked for the OMNIs and for the HDs, yes.
2179 THE CHAIRPERSON: Oh, in HD as well. So right now they are not being carried in HD, the OMNIs?
2180 MR. ENGELHART: And as Alain said, the only city that we have got carried in HD is by Bell in Toronto.
2181 MR. STRATI: That's correct --
2182 THE CHAIRPERSON: Let me put it differently. If I accept your recommendation how many extra channels, SD or HD, does Shaw have to free up and how many does Bell have to free up?
2183 MR. STRATI: Mr. Chair, I could refer you to the appendix chart which highlighted some of the current carriage requirements in both SD and HD for five different channels, for City, OMNI, CTV, the A-Channels and Global.
2184 THE CHAIRPERSON: Yes.
2185 MR. STRATI: What we have done is we have broken it up between Bell TV and Shaw Direct.
2186 So to your question about Shaw Direct currently, to add if you will, on the Citytv side, to answer your question, if you go across from the top you will see that Citytv is carried in SD in Toronto. It's available in HD but it's not carried -- if HD Toronto is not carried, neither is the Calgary HD, the Edmonton HD or the Vancouver HD. So it would be for those four HD signals.
2187 THE CHAIRPERSON: I see five.
2188 MR. STRATI: Pardon me? Oh, sorry, Winnipeg -- I see it. I apologize.
2189 THE CHAIRPERSON: Actually -- so there are five -- City channel would have to be carried by City -- by Shaw if I understand this chart correctly.
2190 MR. STRATI: Yes.
2191 THE CHAIRPERSON: And on OMNI it would be one, two, three, four, five -- also five for OMNI.
2192 MR. STRATI: Yes.
2193 MR. ENGELHART: Just to correct Mr. Chairman, sorry, but the rule is one per province so they wouldn't have to carry Calgary and Edmonton. It would be either one.
--- Pause
2194 THE CHAIRPERSON: But you are putting a wrinkle on the rule; that you put in including HD. The rule right now is silent as to whether it's HD or SD.
2195 MR. ENGELHART: The problem is that in Vancouver -- it's not as big a problem in Calgary because the substituted signals are in Vancouver. But in Vancouver where Spokane is in the same time zone, we are losing a huge number of customers and the simultaneous substitution, which is revenue.
2196 So it's a very big problem where the American signals are in HD and they are in the same time zone as the Canadian signals.
2197 THE CHAIRPERSON: Yes. At this point in time I am just trying to understand what the implication of it would be.
2198 Let's say with Shaw you said it would be four stations, right, that would have to be carried additionally, of which three would be HD. That's how I read that chart.
2199 MR. STRATI: You would have one in Toronto for Ontario.
2200 THE CHAIRPERSON: I am looking at Shaw and Rogers, City.
2201 MR. STRATI: Yes.
2202 THE CHAIRPERSON: Just there, the first --
2203 MR. STRATI: Yes.
2204 THE CHAIRPERSON: By my count that means four extra channels for which three are HD.
2205 MR. STRATI: That is correct.
2206 THE CHAIRPERSON: And for OMNI it would be four extra channels of which one is HD -- oh, no, three extra channels of which one is HD. Correct?
2207 MR. STRATI: Yes.
2208 THE CHAIRPERSON: And for Bell?
2209 MR. STRATI: For Bell you would have --
2210 THE CHAIRPERSON: Two HD as far as City is concerned, if I read this chart correctly.
2211 MR. STRATI: That's correct, because Toronto HD is already being carried.
2212 THE CHAIRPERSON: Yeah, and OMNI it would be four channels of which one is an HD.
2213 MR. STRATI: Yeah, you would have the one HD --
2214 THE CHAIRPERSON: There is two -- two. Sorry, two.
2215 MR. STRATI: Well, it's one per province.
2216 THE CHAIRPERSON: Yeah, right.
2217 MR. STRATI: You have two signals but it could be the two in Toronto.
2218 The only caveat here, Mr. Chair, and that's why we are talking about it, is that by 2011 the OMNI signals will be available in HD. They currently are not available in HD but by 2011 they will be available in HD.
2219 THE CHAIRPERSON: I am just looking at the chart that you gave me as of today. What you are talking about is one HD channel and two SD channels, if I understand it correctly, for the OMNI and for Bell.
2220 MR. STRATI: Yes.
2221 THE CHAIRPERSON: And this will have to be done this year basically. They have to find that space. That's five HD channels and six regular ones. That's a fairly tall order that you are --
2222 MR. STRATI: Well, some of the HD -- and what the chart also shows, Mr. Chair, is some of the HD channels for the competitors are already being carried.
2223 So if we take Vancouver, CTV and Global are already available on Bell TV and on Shaw Direct in Toronto CTV and Global are already being carried.
2224 So if you will I recognize that there is additional channels, but a good chunk of that HD carriage are channels that are catching up to our competitors.
2225 THE CHAIRPERSON: Yeah. Also, you have amended our rule. Let's say our rule is that you have to be carried either in SD or HD. You take your pick. You have made it, no, this rule has to be in both.
2226 MR. ENGELHART: It may be that we are amending that rule. It's a little bit unclear to me what the Commission meant when they said that you have to carry them in September of '11 because in September of '11 of course, we are only broadcasting in HD. We are not broadcasting analog anymore.
2227 THE CHAIRPERSON: Well, if you are only broadcasting in HD then you get carried in the HD. But in some cities you are in both.
2228 MR. ENGELHART: I pray you are right, sir. I have a fear that my friends from Shaw and Bell are going to come to you and say they want to downconvert us to SD and only carry us in that fashion so that we would lose our substitution.
2229 So if you are right that makes life a lot simpler. It is, in my mind at least, a question mark.
2230 MS DINSMORE: Mr. Chair, if you could make that clarification that would be very, very helpful. But that's not clear under the current regime.
2231 THE CHAIRPERSON: I don't make clarifications during hearings, as you well know. But if you want to request that you are free to do so.
2232 MS DINSMORE: Yeah, in the decision.
2233 THE CHAIRPERSON: Now, that is what you will want to do by 2011.
2234 And by 2013 do you have any idea what that will -- what the impact of that would mean by you saying by September 2013 Bell TV and Shaw Direct will convert sufficient that they could carry all local TV stations in HD; presumably to the extent that they are in HD. If they are only in SD they will be carried in SD.
2235 MR. ENGELHART: I mean broadcasters broadcast either in analog or in HD. Traditionally, the satellite people have encoded the analog into SD and they could of course downconvert. But by 2013 everybody will only be broadcasting in HD because the conversion will have been two years old.
2236 THE CHAIRPERSON: Okay. Well, if that's the case, yeah, but I mean if they broadcast in SD then presumably you carry them in SD.
2237 MR. ENGELHART: Yes. If that happened you would, yes.
2238 THE CHAIRPERSON: Right.
2239 MR. ENGELHART: Yes, yes.
2240 THE CHAIRPERSON: Do you have a number for what you are talking about for both Shaw and Bell with your September 2013 date, because Lemay-Yates used totally different numbers than I heard from Shaw.
2241 MS LEMAY: I am sorry. I am sorry. I didn't hear the question. I am sorry.
2242 THE CHAIRPERSON: How many channels, extra channels would have to be carried to meet the deadline of 2013 by both -- either by Bell or Shaw Direct to carry all local stations in HD?
2243 MS LEMAY: Yeah.
2244 THE CHAIRPERSON: Because the written material from you suggests that Bell has to --
2245 MS LEMAY: You said --
2246 THE CHAIRPERSON: -- carry 48 channels or so. Bell yesterday mentioned 23. That's why I am somewhat confused.
2247 MS LEMAY: I know. There is a lot of numbers out there. Actually, I think it's a question of definition.
2248 We tended to use the largest number of channels just to be, in our assessment, to be on the safe side. So based on the Bell FreeSat proposal there were actually 42 channels that at the time they said they were not carrying, but now they carry more. So the number of additional local channels would be less than 42.
2249 And if we took the Shaw number then, based on their assessment, they needed to add 37 channels.
2250 But the total in both cases was different. So Bell had a total of 121 and Shaw it added up to like 106. And I believe your number is more like 116.
2251 THE CHAIRPERSON: Right. And that's why I asked everybody to update the charts. I guess we will find out tomorrow what --
2252 MS LEMAY: So there is some confusion but I guess 116 is probably the good number. So we will have to go with that.
2253 So it would be less than the number that we have there that we put in.
2254 THE CHAIRPERSON: But Mr. Engelhart, you just said something now which -- that you think by 2013 all stations over-the-air will be in HD.
2255 MR. ENGELHART: Yes, I do. Now, certainly ours will be in September of '11. I have heard some proposals by some people that some broadcasters would multiplex their signals and broadcast in SD, but I think it will be HD broadcasting by 2013.
2256 Alain, I don't know if you want to add?
2257 MR. STRATI: I think, you know, certainly for our markets, our transition plans look at DTV in terms of a digital antenna construction as well as HD master control and other facilities to become an HD -- full HD stations.
2258 So we talk about our stations, you are going in that HD. For some other stations in non-mandatory markets, they may or may not do the DTV. They may do the DTV antenna but they may not become full high definition in terms of the ability to go high definition.
2259 THE CHAIRPERSON: Just to make sure I understand what your concern is here, you think you will be transmitting in HD; the DTH providers will carry you but downconvert you to SD and then say because you are downconverted to SD there is no simsub because an American one comes in HD?
2260 MR. ENGELHART: Exactly.
2261 THE CHAIRPERSON: First time I have heard of that. Have you had any discussions with the DTH providers to give foundation to this here?
2262 MR. ENGELHART: I have not.
2263 THE CHAIRPERSON: Okay.
2264 And then talking about simsub, you didn't mention that at all today but in your presentation you very clearly said that you prefer VCO which you consider technologically or the closest thing to the simsub that is done by a cable company, while the Bell is in the same time zone, SSTZ, or you know what I mean -- the Bell version of simsub is a poor second choice and is really of very little benefit.
2265 What is the upshot of that? Are you expecting Bell to convert to VCO? Are you expecting us to tell them they have to employ VCO or whatever?
2266 You went to quite some lengths in your presentation to suggest that this is of very cold comfort to a local station that its signal is substituted with either Toronto or Vancouver. But you didn't follow the next step.
2267 MR. ENGELHART: You are correct. I am going to jump in and then let Alain continue.
2268 We thought we would put our eggs into the capacity basket because we think that is the most urgent thing for the Commission to devote its attention to.
2269 We believe that you should give the DTH instructions at some point to do better substitution. Channel over-ride is better, spot beams are better, and I think they should be directed by a period of time to get there with one of those two technologies or maybe they have got some other ideas that accomplish the same thing. It still won't be as good as cable substitution.
2270 But just like with the capacity, if you never tell them where you expect them to end up they will never get there. So you have to set some sort of a date to get them there.
2271 THE CHAIRPERSON: Sorry, you were interrupted. So basically it's setting a target and have them find a way how to get there?
2272 MR. STRATI: Yes.
2273 THE CHAIRPERSON: And you also mention, make reference to the available Ka capacity on Nimiq 4. If I understand it, that capacity that is there is unused right now but using it would actually require reconfiguring both dishes and set-top boxes, would it not?
2274 MS LEMAY: The capacity that you are referring to, are the spot beams on Nimiq 4?
2275 THE CHAIRPERSON: Yes.
2276 MS LEMAY: Yes. Yes, it would. They would need to reconfigure, yes.
2277 THE CHAIRPERSON: So a moment ago we talked about reconfiguring them for MPEG-4, et cetera. Now, you would have to do -- does that mean they are two different types of reconfigurations of dishes and set-top boxes or could there be involving -- could you do two at the same time?
2278 MS LEMAY: Well, you could do, I think, the spot beams at MPEG-2 or, you know, I think when they had the FreeSat proposal that would have used that if Bell was proposing to do it with MPEG-4, they envisaged new customers with MPEG-4 boxes.
2279 But I believe you could do either option. You could have the MPEG-2 but you can certainly use that as a trigger to deploy MPEG-4 using --
2280 THE CHAIRPERSON: Yes, but that's precisely the explanation that I heard from Bell yesterday. That was fine for FreeSat because these were all net new customers --
2281 MS LEMAY: M'hmm.
2282 THE CHAIRPERSON: -- and they will be cut off. So you know we have to go in there the first time, et cetera.
2283 But if you wanted to use it, not for FreeSat but here for increased capacities, then in effect all of those customers would have to be equipped with new dishes and new set-top boxes.
2284 MS LEMAY: Well, I think the thing is you can do it on a -- for example, on a per-channel basis. So you say -- and I'm not the DBS or DTH operator here so maybe they won't agree with the suggestion. But, for example, some people have done this conversion on a market basis. Others do it on a per-channel basis.
2285 So if I'm a DTH operator I say, you know, we are talking local services. I develop a local service package. If you want to have access to that package you need to have an MPEG-4 box. It doesn't change anything to the other channels. If you don't want to have access to them you maintain what you have with the MPEG-2 boxes.
2286 So that's one way. I'm sure it's not the only way and they probably would, you know, have better ways than I can think of to do this, but that's an example.
2287 DIRECTV has -- is converting on a channel basis as opposed to a city basis. DISH has done it on a city basis. So you can do it different ways.
2288 There are different ways to skin the cat.
2289 THE CHAIRPERSON: Okay.
--- Pause
2290 THE CHAIRPERSON: I think those are all my questions.
2291 Rita...?
2292 COMMISSIONER CUGINI: Thank you, and good afternoon. Just a couple of questions of clarification:
2293 In including the OMNI stations in the one-per-province rule this has the potential therefore, if I am reading your proposal correctly, that only three of the five OMNI stations would be carried. Is that correct?
2294 MR. STRATI: That's correct.
2295 COMMISSIONER CUGINI: And that's acceptable to you?
2296 MR. STRATI: Well, I think if you look at the signals that are being carried on DTH currently, I think the framework of one station per province was established to -- I mean just to provide -- I think the word was "a reasonable diversity or a reasonable number of services" so that you have access to a number of services.
2297 Although the one station per province rule applies for CTV, Global and the "A"s, let's call them and -- well, not Citytv, but certainly CTV and the "A"s, if you look at a province like Ontario you do see three A-Channels that are carried. I believe three or four CTV channels that are carried.
2298 So I think the one station per province is a principle and we recognize that, you know, that we would abide by that principle but --
2299 COMMISSIONER CUGINI: So essentially you are asking us to put OMNI on equal footing with all other conventional --
2300 MR. STRATI: That's all we would ask for, correct.
2301 COMMISSIONER CUGINI: Thank you very much.
2302 THE CHAIRPERSON: All?
2303 They are not right now. You are asking us, in effect, to change the rule to put them in.
2304 MR. STRATI: That's correct.
2305 THE CHAIRPERSON: Candice...?
2306 COMMISSIONER MOLNAR: I want to ask a little more about the substitution issue.
2307 Did you say -- I think I heard you say that today already you broadcast in HD and they are only picking up the SD signal and so you are not getting substitution for your City channels. Is that correct?
2308 MR. STRATI: That's correct. So I will take an example and you will see that every -- next day when you get research and rating results and you see some differentials. So I will give you an example.
2309 Citytv Vancouver is not carried in HD, either with Shaw Direct, nor with Bell TV. So we will get -- we had a show Monday night called The Event. It's on NBC. I'm using NBC because the NBC Seattle affiliate we do get ratings results for that part of the market.
2310 It's a station called King. And it will say that King got a 0.2 or 0.3 rating in that market. So as a result, people were watching King in HD in Vancouver and we were not getting substitution.
2311 So you see that issue where we have purchased -- because we don't get carriage we get in HD -- we get the substitution in SD. So if I'm watching the NBC Seattle signal or if I'm watching Citytv Vancouver in standard definition, you will see Citytv. You will see the show. You will see our promotions. You will see our advertising. You will see our next ons, et cetera.
2312 If you are watching in high definition only -- you don't get the Citytv HD so you are not going to see me. And on King you will see in high definition. You will see it but you won't be seeing the Citytv signal. You will be watching the King signal.
2313 COMMISSIONER MOLNAR: Okay, thank you.
2314 For the non-mandatory markets I believe our rule is that you can do substitution. You don't have to have an HD signal to be awarded substitution, and if we were to put that rule in place for DTH that would require them to substitute the SD over an HD.
2315 Do you believe that would solve your issue? I mean, ultimately they have a desire to provide HD programming to their customers and so economics might require them to carry your HD instead of your SD, but it would protect your market, protect your signals and then leave it with the DTH provider to do the economics as to when to carry it in HD.
2316 MR. STRATI: I think the option that you are mentioning is so you are bringing in the issue of non-mandatory markets.
2317 The key issue for us is if we talk about a market like Vancouver, first and foremost, it is available in high definition. So you have --
2318 COMMISSIONER MOLNAR: Sorry. I only brought up non-mandatory markets because we already have that rule for non-mandatory markets.
2319 Mr. STRATI: Right, but I guess the difference with the non-mandatory is that when you talk about the substitution we, at Citytv, have made the investments to go high definition. We have purchased the rights in high definition, yet the show, the program, is available in that market in high definition.
2320 So if I understand it, you are talking about putting that on doing a standard definition over so it's available only in standard definition?
2321 COMMISSIONER MOLNAR: I'm just saying if they carry it in standard definition instead of HD they still need to do the substitution.
2322 MR. STRATI: Right.
2323 COMMISSIONER MOLNAR: In which case they would have ultimately -- you know, their consumers would drive them to potentially carry it in HD so they could do HD substitution.
2324 MS WHEELER: It would definitely be more accept -- sorry.
2325 MR. ENGELHART: Mr. Strati and Ms Wheeler will never be satisfied without perfection, but I agree with you that would be a big help. It wouldn't be perfection, but it would be a big help. And because of the mechanism of consumer demand that you talked about it would drive them to the desired point, yes.
2326 COMMISSIONER MOLNAR: So just before I leave this, there are two different manners of substitution that you well know of, you know, between the Bell and VCO model. In a very quick little time to think about it, do you believe it would work under both models?
2327 MR. ENGELHART: Yes.
2328 COMMISSIONER MOLNAR: Okay. Thank you.
2329 Those are my questions.
2330 THE CHAIRPERSON: Louise...?
2331 COMMISSIONER POIRIER: Yes, it's a clarification question.
2332 I just want to make sure that all the stations you are asking the carriage of don't receive the -- are not eligible to the LPIF, all of them.
2333 MR. STRATI: There is one station that is. It's Winnipeg.
2334 COMMISSIONER POIRIER: It's the only one that is included in the LPIF?
2335 MR. STRATI: That's correct.
2336 COMMISSIONER POIRIER: Okay.
2337 MS WHEELER: That is in the LPIF, but they are all LPIF-eligible in the sense that they provide more than five hours of local programming, if that is the new definition that we are using.
2338 COMMISSIONER POIRIER: Okay. Thank you very much.
2339 THE CHAIRPERSON: Let's not call it LPIF-eligible because they are not. LPIF-conforming, if you want something which is what you have been talking about.
2340 Tim...?
2341 COMMISSIONER DENTON: I just want to make sure I understand at least, I think your proposal is -- as you have said, you have placed your eggs in the capacity basket; right?
2342 So then you are asking us to impose a -- set up a transition. You are asking that your OMNI stations be carried one per province. There is a point of ambiguity in a sentence that I need to understand.
"Under the framework, all eligible stations should be carried in HD by the same date."
2343 Is "eligible" referred to somewhere that I can understand your sense of it?
2344 MS DINSMORE: That "eligible" means the one-per-province rule. So any stations that fall under your framework that get carriage as at September 1, 2011 would be carried in HD, to the extent they are transmitting in HD.
2345 COMMISSIONER DENTON: Thank you.
2346 And that the Bell TV and Shaw Direct by September 1, 2013 would convert sufficient capacity to carry all local TV stations in HD and basically with that problem solved as far as your are concerned.
2347 Do I understand this correctly?
2348 MS DINSMORE: Yes. Because those are the additional stations that don't fall under your framework; right.
2349 COMMISSIONER DENTON: Okay. And that's it?
2350 MS DINSMORE: That's it.
2351 COMMISSIONER DENTON: Good. Thank you.
2352 THE CHAIRPERSON: I think I understood, but let me just clarify.
2353 You basically want us to consider OMNI as another group, right, and therefore the rule that we have right now would apply to OMNI as well?
2354 MS DINSMORE: Correct.
2355 THE CHAIRPERSON: That's number one.
2356 Number two, you want to make sure that our rule says not only one station per province but one station per province in the format in which it is offered. So if it's offered in two formats and it becomes in fact two -- you have to offer it both in SD and HD?
2357 MS DINSMORE: We are less concerned about SD if the broadcaster is transmitting in digital or in HDTV, then there is no need to carry the SD. That would be a decision the DTH operator would make.
2358 THE CHAIRPERSON: In the better of whichever format is available is what you say?
2359 MR. ENGELHART: I mean, I think ours will all be in HD come September. They will, if they have to, send them in HD, they will also down-convert them to SD whether you tell them to or not because they have --
2360 THE CHAIRPERSON: That's their choice, yes.
2361 MR. ENGELHART: Yes.
2362 MS DINSMORE: But the whole SD/HD discussion revolves around the fact that the Commission itself has put this digital TV transition in place, so by this same date you have many, many stations across this country who have spent the money to transmit digitally, so it makes sense to us that in time those stations are not down-converted to standard definition for carriage by the satellite operators, they are actually carried in the format that they have spent money to become as per your framework.
2363 THE CHAIRPERSON: So they have to be carried in the form in which they are being send over-the-air. That's the --
2364 MS DINSMORE: That would make sense, yes.
2365 THE CHAIRPERSON: Yes.
2366 Back to Lemay-Yates, I asked them yesterday about the cost which you quote in your paragraph 3.3 where you suggest, on page 39, on the very top where you suggest:
"Using 5 transponders for the old TA stations, plus replacing or upgrading backhaul and equipment to support MPEG-4 transmission of the missing OTA station in their present form is estimated to cost in the range of $75 million in present value terms for each Bell and Shaw." (As read)
2367 MS LEMAY: Yes.
2368 THE CHAIRPERSON: I quoted that figure for them and they said they did not think all of that was relative of their cost.
2369 MS LEMAY: I think that's because what they -- if I recall their answer, that number is for the transponders, it excludes the cost for example of set-top boxes. That's the cost of the transponders. A transponder is about, if you look at numbers, $150-$160,000 a month for the transponder. So if you need five transponders it's going to be five times that amount of money per month to dedicate to those channels.
2370 Then of course you have the cost of the set-top box which, you know, we have a table in the report where we summarize all the different elements of the cost, Table 17, but that's what it is.
2371 I think they argued that the fact is that a lot of the cost is indeed in the set-top box.
2372 THE CHAIRPERSON: So that's really what -- they don't question your number, they just question that's only one part of the cost?
2373 MS LEMAY: Yes. We have that in the report and we highlight that in the table.
2374 THE CHAIRPERSON: Yes.
2375 MS LEMAY: Yes.
2376 THE CHAIRPERSON: Okay. I think, unless my colleagues -- no, nobody has any more questions.
2377 Well, thank you very much. I hope you are here tomorrow.
2378 Obviously I expect to, first of all, get a revised list from Shaw and Bell regarding the stations that we are actually talking about so we have a definite number and then we will use the normal format of first of all asking them to present a rebuttal, to question them, and then we will also take suggestions from the audience and from other people. We may say, "Bell just said that, what do you think about this, Rogers", et cetera.
2379 MS DINSMORE: We look forward to being here, Mr. Chairman.
2380 THE CHAIRPERSON: Okay. Thank you.
2381 Madame la Secrétaire, I think that's it for today; right?
2382 THE SECRETARY: That's it. We will start tomorrow at 9:00.
2383 Thank you.
2384 THE CHAIRPERSON: Thank you.
--- Whereupon the hearing adjourned at 1338, to resume on Wednesday, November 18, 2010 at 0900
REPORTERS
____________________ ____________________
Johanne Morin Jean Desaulniers
____________________ ____________________
Monique Mahoney Sue Villeneuve
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