Experts to ‘find solutions’ in broadcast, telecom review: Joly

OTTAWA — The expert panel appointed by the federal government to spearhead its review of the Telecommunications Act and Broadcasting Act will have to figure out how to ensure all companies “pay their fair share” without increasing any costs for Canadians, Heritage Minister Mélanie Joly said Tuesday. The government announced the start of the review Tuesday, more than a year after it first said it would modernize the two pieces of legislation, and a week after CRTC issued its government-ordered report on Canadian content distribution models, which recommended internet service providers (ISPs) pay levies for CanCon and over-the-top (OTT) services make “equitable” contributions. Asked about whether that means the government will support ISP contributions as recommended, Joly told The Wire Report Tuesday afternoon that “all players in the system must contribute. So if you’re part of the system, you have to contribute, and there’s no free ride. But that can’t be at the expense of Canadians.” The government shut down a recommendation to impose ISP contributions last year. As for how those two ideas can be reconciled, with companies contributing without raising prices, Joly indicated that will be the job of the experts. “The panel will find solutions,” she said. That panel is made up of seven experts, mostly lawyers and many of them industry veterans. Handed a deadline of Jan. 31, 2020 for the final report, the group will partake in consultations with “industry, creators and Canadians, including those from Indigenous and official-language minority communities.” Former Telus Corp. executive and Canadian Cable Television Association president Janet Yale, who was also previously director general at the CRTC, will lead the review. Other experts include McCarthy Tetrault lawyers Peter Grant and Hank Intven, who have each decades of telecom and broadcasting law experience. Université de Montréal law professor Pierre Trudel also has long experience in the sector, having been part of a working group “commissioned by the federal government to look at broadcasting policies” 30 years ago, the release noted. Monica Song, head of Dentons' communications law group, also has nearly 20 years of experience in the sector, it said, while Monique Simard’s background is in the cultural sector, including the Société de développement des entreprises culturelles (SODEC), the National Film Board (NFB), and the Quebecor Fund. University of Ottawa law professor Marina Pavlovic, whose work includes a focus on consumer issues, is also on the expert panel. According to the release, the experts will also be guided by the principles of net neutrality — as per a motion passed by the House of Commons last month — as they “explore opportunities to further enshrine in legislation the principles of net neutrality in the provision and carriage of all telecommunications services.” The composition of the panel received a mixed response from industry-watchers. “I do not see a single person here associated with any industry that has been invented since 1980,” former CRTC commissioner and current chairman of the Internet Society of Canada, Timothy Denton, told The Wire Report in a phone interview. According to Denton, the makeup of the panel means it's likely to focus on preserving the broadcasting system as-is, and that the government should have appointed a panel more likely to include a greater diversity of opinion. “I see people who have been around this particular water hole of Canadian broadcasting policy longer than I have… it’s the old defenders of the old religion,” he added. Denton said that he doesn’t believe we’re likely to see “any possibility of anything creative or interesting from this crew. But I could be wrong.” However, broadcasting consultant and lawyer Peter Miller said that the expertise of the panel was a benefit. “You want experts, not advocates,” he said in a phone call. With Intven and Grant, “you’ve arguably got one of the best telecom lawyers and one of the best broadcast lawyers in Canada, so that’s good.” Miller also said that with the panel, “you are going have different perspectives around that table, and the challenge for them is going to be to come up with a unified and uniform set of recommendations.” Katy Anderson, digital rights advocate with internet advocacy group OpenMedia, said in an email she was pleased with the choice of members for the telecom panel, especially the inclusion of Pavlovic, "who has long been a great advocate for Canadians.” She added that when it comes to the broadcasting side, “there doesn't seem to be any panel members who will advocate towards the interests of the future of broadcasting, which will certainly be in OTT and new technologies. Both Denton and and Miller pointed to the long timeline of the review as a potential issue. Miller noted that the review comes on the heels of other extensive reviews of the broadcast sectors, and that this review will “delay any real action by a minimum of two years, and potentially more likely three or four.” Even if the government wants to implement the recommendations, doing so is likely to take a year, he said. The CRTC held the extensive “Talk TV” consultation on television in Canada in 2014, which was followed by the launch of a year-and-a-half long consultation by Joly in 2016. That report, released in September 2017, asked the CRTC for another consultation, on future Canadian content distribution models, which resulted in the report released last week. Former CRTC vice-chair of telecom Peter Menzies told The Wire Report in a message, referencing the years of consultations, that there “is a chance that without certainty within the regulatory and legislative arenas, investment and the innovation that comes with it will sputter and stall. It will be important to keep that in mind." Denton also said that the longer it goes, “the more technological and business reality moves beyond any ability to save or shape the broadcasting system.” Joly was asked about those delays in a French-language exchange with reporters earlier in the day on Tuesday, in which she said, according to a transcript, that tasking the expert panel with drafting with a legislative solution in 18 months was an ambitious effort. The journalist retorted that coming up with legislative solutions was Joly’s job as a minister. Given that she has been in her role since 2015 and already identified the issue that has to be solved, it was not clear why another another consultation is necessary, the reporter pressed. In reply, Joly pointed out the lengthy history of the two pieces of legislation. After being asked why not simply put in place legislation to ensure “web giants don’t profit from the system without contributing to it,” Joly responded the two acts haven’t been updated in 30 years, and it’s not a process that can be done quickly. She added broadcasting legislation also includes the mandates of CBC/Radio-Canada and the CRTC, both of which the government would like to strengthen as part of the legislative reviews. Those two organizations were included in the terms of reference the government released to guide the review, revealing the scope of the expert panel’s assignment. The terms asked the panel to consider how CBC can be made more independent, as well as its role as a local news provider and cultural leader, among other questions. On top of that, the panel was asked to determine how the CRTC could be made more efficient, as well as the larger question of whether the systems of governance over the communications sector need to change. Right now, it noted, cabinet has ability to overturn CRTC decisions, issue broad policy and request reports from the communications regulator. The review will look at whether the current processes fit in the modern context, while “maintaining regulatory independence in an efficient and effective way.” Other questions include the role regulation could play when it comes to the deployment of 5G, and legislative tools necessary to guarantee access to affordable internet service. Also under the microscope is whether policy is needed to uphold consumer rights and if further improvements to increase those rights are necessary. As well, the panel will examine if new laws are needed to ensure people’s privacy and foster competition in the communications industry. The document noted that much of the industry is vertically integrated so “barriers to dynamic competition need to be considered in the context of convergence. Additionally, the document indicated that “the Government is not interested in a proposal that reduces Canadian ownership of broadcasting.” Because the Radiocommunication Act also falls under the mantle of this review, the panel has been tasked with balancing the need for “flexibility to rapidly introduce new wireless technologies with the need to ensure devices can be used safely, securely, and free of interference.” It also asked to what extent legislative frameworks should include “the concepts of safety and security.” The government also posed more fundamental questions, including whether the concept of broadcasting still makes sense in today’s communications sector. The panel will also consider what policy tools could be used to continue promoting Canadian culture and identity in the modern settings. As promised, a significant chunk of the review will be to determine recommendations which modernize the process to support the creation of Canadian content. Specifically mentioned are ways to legislate the roles domestic and international players will have in “the creation, production, and distribution of Canadian content,” as well as making sure Canadian culture is protected and discoverable on online platforms. University of Ottawa professor Michael Geist took to his blog Tuesday to point out that due to the timing of the report, changes are very unlikely to happen under this government’s mandate. He postulated that “internet access taxes, Netflix regulation, and the imposition of cultural policies on telecommunications” will become a 2019 election issue. Meanwhile, positive responses came from Canadian media advocates. Praising the choice of Janet Yale and the other members participating in the panel, the Canadian Media Producers Association (CMPA) welcomed the government on moving forward with the review. The group also said hoped that the review ensured “all companies that benefit from the system also contribute to it.” Similarly, the Alliance of Canadian Cinema, Television and Radio Artists (ACTRA) said in a release it was excited to start working with the panel, to “ensure that global tech giants contribute to Canadian storytelling.” The Canadian Network Operator's Consortium (CNOC) posted on Twitter Inc.’s social media network to say it will be paying close attention to the proceedings. The Canadian Communication Systems Alliance (CCSA) congratulated the government for initiating the review, with Jay Thomson, CEO of the CCSA, saying in in a press release he is “pleased that the government has selected panelists with such depth of knowledge and experience in both industries.” — With reporting by Anja Karadeglija at akarad@thewirereport.ca and reporting and editing by Bryson Masse at bmasse@thewirereport.ca

Experts to ‘find solutions’ in broadcast, telecom review: Joly

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Experts to ‘find solutions’ in broadcast, telecom review: Joly

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