Keep dispute resolution rule in place for FibeTV, CRTC hears

A group representing independent broadcasters is telling the CRTC it should maintain the rules forcing BCE Inc. into a dispute resolution process over affiliation agreements for its FibeTV. The CRTC is currently in the process of renewing the licence for the IPTV service, during which Bell has asked the regulator to suspend some licence conditions because the CRTC’s Wholesale Code is already embedded in its licence. But the Independent Broadcasters Group said in a filing with the CRTC that the licence conditions Bell is asking to be lifted are stronger than the conditions in the Wholesale Code and should be kept in place. It said that that while it agrees with the concept of getting rid of duplicate provisions, “the requirement that Bell submit certain matters to dispute resolution is an additional and important protection for independent services that should be maintained as a current, and enforceable, licence condition for Fibe TV.” The Wholesale Code requires both parties to agree in writing that they want to renew the affiliation agreement, which applies to the carriage of the broadcasters’ channel by the TV service provider, in order to trigger dispute resolution. But Fibe TV has a condition of licence that forces it go to dispute resolution even if only the other party has said it intends to renew the agreement. IBG noted that provision was added when the CRTC’s approved Bell’s purchase of Astral, which led the CRTC apply additional regulatory checks on Bell’s market power. “Dispute resolution was one of the important safeguards imposed by the Commission on Fibe TV. In fact, providing access to dispute resolution was accepted by Bell in connection with the Astral transaction as a means of assuring the Commission that the inherent competitive conflicts that must arise from extensive consolidation and vertical integration could be appropriately managed,” IBG said. The group argued that this is an important provision for independent broadcasters, given the imbalance of negotiating power between FibeTV and smaller companies. “It is now a common feature of negotiations between independent programming services and BDUs that BDUs employ the threat of non-renewal and non-carriage to secure contractual concessions. Few independent programming services have sufficient clout in negotiations to withstand pressure of threats of non-carriage,” the group said. It added that Bell, through its media and broadcasting division, is a direct competitor to independent broadcasters. “Effective and immediate access to the Commission's dispute resolution mechanism is a critical safeguard for independent services,” IBG said, noting that Bell holds more than a quarter of Canada’s broadcast distribution undertaking (BDU) market. “Given Fibe TV's size – together with Bell Satellite, Bell now represents more than 25% of the Canadian BDU market – carriage or non-carriage by Bell is a question of life or death for most independent programming services. The negotiation playing field is now so one-sided in Bell's favour that continuing the existing licence condition is a necessity for independent services.” That was also one of the licence conditions Quebecor Inc. -- which is currently embroiled in several disputes with Bell, including over the carriage of its TVA Sport channel -- has pointed to in its own French-language filing. The company said, among other requests, that if Bell wants to eliminate some licence conditions, its licence should more explicitly state that it’s subject to the Wholesale Code. — With reporting by Anja Karadeglija at akarad@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

Keep dispute resolution rule in place for FibeTV, CRTC hears

Broadcast | November 19, 2019

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Keep dispute resolution rule in place for FibeTV, CRTC hears

Broadcast | November 19, 2019

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