Telus 2008 Annual Report Download - page 30

analyzed and licenced individually), TELUS and Industry Canada have been able to
minimize the number of Public Safety interference issues to a few across Canada
(compared to more than 1500 in the U.S.).
However, TELUS has an existing Special Co-Ordination Procedure (SCP), endorsed by
both Industry Canada and the FCC, wherein TELUS and Sprint-Nextel utilize each
other’s channels within their respective ESMR networks at specific border areas across
the country. These channels serve to increase the number of available channels
available to both networks to better serve the area. The re-alignment threatens the
continued use of the channels specified in the SCP.
While discussions with both the Canadian and U.S. regulators indicate that TELUS
should be able to continue to have access to a certain number of SCP channels in the
border areas, until such time as the U.S. announces their final decision, there is no
assurance that TELUS will be able to continue to use these channels.
Broadcasting services
The Broadcasting Act governs all types of broadcasting activities including commercial
off-air radio and television broadcasting, the operation of other programming services
such as specialty and pay television, as well as the distribution of television services
through cable or satellite undertakings.
The Broadcasting Act and its regulations give the CRTC the authority to issue licences
for specific categories of broadcasting undertakings and to regulate the content provided
and rates charged by each category of broadcasting undertaking. In August 1996, the
federal government issued its policy under which “telecommunications common carriers”
(as defined in the Telecommunications Act) would be allowed to apply for broadcasting
distribution undertaking (BDU) licences to provide cable television service. In 1997, the
CRTC confirmed that new entrant BDUs, including telecommunications common
carriers, would not be rate regulated and would not have an obligation to serve.
However, the CRTC confirmed that new entrants would have to meet all the same
content and carriage obligations as incumbent BDUs.
TELUS has been licenced by the CRTC to operate Class 1 Regional BDUs in each of
B.C., Alberta and Québec utilizing its IP facilities. TELUS also holds a national licence
to operate a video-on-demand programming service. All of TELUS’ services are fully
digital and thus benefit from the more flexible regulatory regime regarding BDU
packaging established by the CRTC in its Digital Migration Framework.
Licence renewals: The TELUS broadcasting licences are set to expire in 2009 and the
renewal process for these licences commenced in 2008. TELUS does not expect any
difficulties in obtaining these renewals for further seven year terms.
Policy framework review for broadcasting distribution and specialty and pay television
services: The CRTC issued a revised policy for broadcasting distribution undertakings in
Broadcasting Public Notice 2008-100. In this policy, the CRTC increased contribution
requirements of distribution undertakings by one per cent of gross revenues. This policy
also altered the framework regarding the offering of distant over-the-air television signals,
which will likely make the offering of time-shifting packages more expensive. The new policy
framework also provides for new flexibility for broadcasting distribution undertakings in
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