EastLink tells CRTC it has right to deny Aliant’s ads on its community TV channels

Cableco EastLink points to the advertising policies of the Canadian Broadcasting Corp. to justify its position that it has the right to refuse competitor Aliant Telecom Inc. from advertising on its cable community TV channels in Nova Scotia and Prince Edward Island. EastLink notes that the CBC has refused advertisements and promotions for certain programming services and channels where such channels are in direct competition with the public broadcaster’s programming. EastLink quotes from the CBC’s advertising policy, which states it’s "unacceptable" to have commercials for services considered competitive with CBC’s on CBC facilities. EastLink also notes that Aliant has in place similar policies that prohibit its rivals from using its advertising vehicles. For example, the Atlantic cableco notes that Aliant refused to let it advertise on Aliant’s Internet-based advertising vehicles, including on SympaticoMSN.ca and in NetLife Magazine - areas that Aliant responds the CRTC has no jurisdiction over. EastLink also points out that Aliant has arrangements with trade shows held throughout the two provinces, some of which have denied access to EastLink due to exclusivity clauses with Aliant. "This is also true of various public forums where Aliant requires exclusivity for the display of banners and billboard posters and the promotion of its services, such as the Halifax Metro Centre," writes Aliant in its February 25 response to CRTC interrogatories. "It is common for EastLink to be refused the right to display its logos, banners or other advertisements at various sites on the basis that Aliant has already developed a relationship with the venue owner." EastLink was responding to Aliant’s Part VII complaint against Bragg Communications Inc. and its EastLink subsidiary late last year (CCR, Jan. 14/05). Aliant contends that the refusal contravenes section 27(2) of the Telecommunications Act and section the "undue preference" section of the Broadcasting Act. However, EastLink argues that it is the one that would be harmed if Aliant’s advertising were permitted. "The risk of harm is clearly to EastLink if Aliant advertises and if there is any risk of impairment to a competitive market it will be if the commission grants Aliant’s application. Providing Aliant with direct access to EastLink’s cable subscribers will give Aliant an opportunity to market all of Aliant’s bundled services to EastLink customers," writes EastLink to the CRTC. "Aliant’s bundles include Internet service and customers taking Aliant’s Internet service must also take Aliant’s local telephone service. Any Aliant service advertised on EastLink’s listings service will be used by Aliant to win back customers from EastLink, with the effect of winning back local telephony customers to whom EastLink offers service," EastLink notes in its response to CRTC. Aliant counters that it only plans to advertise its wireless services, and that it wants to advertise on the TV listing channel to promote the type of cellular service it deems to be attractive to cable-television viewers. The Bell Canada-owned telco also tells the CRTC, "At issue is the leveraging of cable market power derived from being the incumbent (and only operating) BDU (broadcast distribution undertaking) through the use of the TV listing channel to unfairly compete with other telecom service providers." But Eastlink notes that Aliant has many other avenues for advertising, including local newspapers, magazines, local radio stations, billboards, Internet sites, and numerous television networks, including local stations, one of which is owned by Bell. "Additionally, Aliant has access to many other advertising vehicles which are not likely available to EastLink or which have specifically refused EastLink advertising such as Bell ExpressVu’s satellite services and Star Choice’s satellite service, numerous companies affiliated with Aliant who have direct contact with the public and venues for the promotion of services, including DownEast Mobility retail outlets and kiosks, Wacky Wheatley’s retail stores and BellExpress Vu outlets." Moreover, EastLink notes that it is in a worse situation with Aliant than CBC is with its competitors. The CBC’s advertising is an open medium that can be viewed by the public at large, while the community channels that Aliant wishes to use are received only by the cableco’s customers, EastLink points out. "…A company should not be required to promote the services of its direct competitor, especially where the promotion of those services is received solely by the company’s customer base," argues EastLink. The cableco states that the sole issue that the CRTC should consider is whether a denial of advertising space to Aliant would have a material adverse impact on Aliant or another person. "Moreover, it is EastLink’s position that it is not just Aliant’s access to alternative advertising vehicles that illustrates that no undue preference can exist," the cableco tells the CRTC. "Aliant’s sheer size, as compared to that of EastLink, means that Aliant’s advertising budget is likely tenfold that of EastLink. As such, Aliant not only has the capacity to access numerous advertising vehicles that are generally or specifically available to it, but its budget allows it to advertise at volumes with which EastLink could never compete." The CRTC has announced that it will rule on the complaint on an expedited basis, beginning with a public hearing on March 21 before a panel of three commissioners.

EastLink tells CRTC it has right to deny Aliant’s ads on its community TV channels

Broadcast | March 11, 2005

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