Telus proposes vertical integration ‘safeguards’

Telus Corp. proposed safeguards to the CRTC Wednesday to prevent what it calls “anti-competitive practices” in the broadcasting sector. In a submission for the CRTC’s proceeding on vertical integration, Telus has proposed rules to prohibit: distributors from withholding content from competitors; preferential or exclusive programming rights, which could force consumers to switch suppliers in order to access programs; and vertically integrated broadcasters from getting a head start in launching new programming. “The unprecedented concentration of market power in the broadcasting sector created by the common ownership of programming services and distribution platforms requires regulatory safeguards to protect consumers,” Michael Hennessy, Telus’ senior vice-president of regulatory and government affairs, said in a release Wednesday. “The potential for abuse of market power is real and the risk to consumers is significant. Without proper regulatory safeguards consumers could soon be facing increased costs and reduced choice in their TV viewing options.” Wednesday marked the deadline to submit comments related to a public hearing starting June 20 to look at a potential regulatory framework for vertical integration. The CRTC is holding the proceeding with the objective of setting norms for commercial interaction in the broadcasting sector, particularly for programming and carriage rights. Telus says its concerns arise from the broadcasting industry’s trend toward vertical integration and consolidation over the past decade, with Quebecor Media Inc. acquiring the TVA television network in 2001 and Rogers Media Inc. purchasing five Citytv stations in 2007. In the last year, Shaw Communications Inc. has bought the former Canwest Global Communications Corp.’s television properties and BCE Inc. acquired CTVglobemedia Inc. Unlike the top vertically integrated players in Canada, Telus does not have broadcasting assets. To support its submission to the CRTC, Telus released a public opinion survey conducted by Harris/Decima showing support for the CRTC's current rules and opposition against allowing distributors to limit access to their own content as a means of promoting their cable, telephone or Internet services. The CRTC proceeding comes as disputes have arisen between broadcasters and distributors over content sharing. In February, Quebecor complained to the CRTC about BCE’s dominance of sports broadcasting rights. The same month, Quebecor filed a motion with the Federal Court of Appeal to contest a CRTC decision that forced it to share its exclusive video-on-demand content with Bell and Telus. The filing followed a CRTC ruling that said Quebecor had acted with undue preference when it held back competitors from using exclusive TVA content for video-on-demand services. news@thewirereport.ca

Telus proposes vertical integration ‘safeguards’

Broadcast | April 27, 2011

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