Shaw 2013 Annual Report Download - page 21

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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
w
i
th cable and satell
i
te com
p
an
i
es.
O
n December
19
,
2012
the
S
u
p
reme
C
ourt o
fC
anad
a
concluded that the CRTC lacks authority under the Broadcasting Act to implement a VF
S
regime. Accordingly, there remains no requirement for cable and satellite undertakings t
o
n
e
g
ot
i
ate consent
f
or the d
i
str
i
but
i
on o
f
local telev
i
s
i
on stat
i
ons
.
Co
n
su
l
tat
i
o
n
o
nT
e
l
e
vi
s
i
on
On October 24, 2013, the Commission initiated a “conversation with Canadians”, which will
lead to a major review, over the course of calendar 2014, of the regulatory and polic
y
f
ramework
f
or telev
i
s
i
on. Wh
i
le the outcomes o
f
the hear
i
n
g
are uncerta
i
n, th
i
s rev
i
ew coul
d
lead to changes in the regulatory requirements applicable to television programming and
broadcasting distribution undertakings, in particular those pertaining to the manner in whic
h
p
acka
gi
n
g
and standalone
p
ro
g
ramm
i
n
g
serv
i
ce o
p
t
i
ons are o
ff
ered to customers
.
Throne
S
peech and
G
overnment Directio
n
The
S
peech
f
rom the Throne, del
i
vered on
O
ctober
16
,
2013 i
ncluded a statement
i
nd
i
cat
i
ng
t
hat the Government believes Canadians should have more ability to choose unbundled
t
elev
i
s
i
on channels, wh
i
le
p
rotect
i
n
gC
anad
i
an
j
obs.
O
n November
1
4, the M
i
n
i
ster o
fC
anad
i
a
n
H
er
i
tage released an
O
rder-
i
n-
C
ounc
i
l
(“O
I
C
”
)
requ
i
r
i
ng the
C
RT
C
to report to the
G
overnmen
t
by April 30, 2014 on how the ability of Canadian consumers to subscribe to pay and specialty
t
elev
i
s
i
on serv
i
ces on a serv
i
ce-b
y
-serv
i
ce bas
i
s can be max
i
m
i
zed, hav
i
n
g
re
g
ard to the
broadcast
i
ng and regulatory ob
j
ect
i
ves o
f
the Broadcast
i
ng Act as well as spec
ifi
c
i
ssues
including the effect of any proposed measures on: consumers with respect to affordability,
di
str
i
butors,
p
a
y
and s
p
ec
i
alt
y
serv
i
ces, costs o
f
r
ig
hts ac
q
u
i
s
i
t
i
ons, d
i
str
i
but
i
on undertak
i
n
g
s,
and
i
ndependent producers. In add
i
t
i
on, the
O
I
C
makes
i
t clear that any proposed measures t
o
m
aximize consumers’ ability to subscribe service-by-service ensure that a consumer receives a
p
redom
i
nance o
fC
anad
i
an serv
i
ces and that
C
anad
i
an
p
ro
g
ramm
i
n
g
serv
i
ces cont
i
nue to be
gi
ven pr
i
or
i
ty. These developments could ult
i
mately lead to changes
i
n the regulatory
requirements applicable to television programming and broadcasting distribution undertaking
s
and,
i
n
p
art
i
cular, those
p
erta
i
n
i
n
g
to the manner
i
nwh
i
ch
p
acka
gi
n
g
and standalone
programm
i
ng serv
i
ce opt
i
ons are o
ff
ered to customers.
G
enre exclusivit
y
The CRTC has indicated its intention to review the Genre Protection Policy in 2014. This polic
y
a
pp
l
i
es s
p
ec
ifi
call
y
to
C
ate
g
or
y
As
p
ec
i
alt
y
serv
i
ces, wh
i
ch are l
i
censed on a one-
p
er-
g
enr
e
basis and enjoy broad protection from direct competition within their respective programmin
g
g
enres. As a result of this proceeding, or pursuant to Commission-proposed measures i
n
res
p
onse to the
O
I
C
or
f
ollow
i
n
g
the
C
omm
i
ss
i
on’s consultat
i
on on telev
i
s
i
on, the
p
ol
i
c
y
coul
d
be removed entirely or for specific programming genres.
Access ri
g
ht
s
Shaw’s cable systems require access to support structures, such as poles, strand and conduits
of
telecommun
i
cat
i
on carr
i
ers and electr
i
cut
i
l
i
t
i
es,
i
n order to de
p
lo
y
cable
f
ac
i
l
i
t
i
es. Under th
e
Telecommunications Act the CRTC has jurisdiction over support structures o
f
t
elecommunication carriers, including rates for third party use. The CRTC’s jurisdiction does no
t
extend to electr
i
cal ut
i
l
i
t
y
su
pp
ort structures, wh
i
ch are re
g
ulated b
yp
rov
i
nc
i
al ut
i
l
i
t
y
authorities. Following a 2010 decision by the CRTC to significantly increase certain suppor
t
structure rental rates, the CRTC approved in July 2011 a new charge for the Corporation’
s
attachments to the serv
i
ce
p
oles o
f
telecommun
i
cat
i
ons carr
i
ers e
q
ual to the normal
p
ol
e
charge. Charges for service poles are retroactive to the July 2011 CRTC decision.
17