Rogers Files Submission for upcoming CRTC Hearing
TORONTO, Sept. 14 /CNW/ - Rogers today filed its submission with the CRTC
in advance of November's hearing on the structural reform of the Canadian
television industry. While many issues will be discussed at this proceeding,
of critical importance to Rogers and its 2 million customers, is the issue of
fee-for-carriage.
The CRTC has already twice rejected a fee-for-carriage scheme, once in
2007 and again in 2008. This year, Parliament's Standing Committee on Canadian
Heritage studied the issue and decided not to support the concept. Yet,
broadcasters, seeking to increase their profits at consumers' expense, have
once again forced fee-for-carriage back onto the CRTC's agenda. "The CRTC has
done a 180 on this issue," charges Phil Lind, Vice Chairman, Rogers
Communications. "The Commission got it right the first two times out; there is
simply no need for a third hearing."
Rogers continues to oppose fee-for-carriage as an unnecessary bailout for
over-the-air (OTA) broadcasters and an unfair tax on cable and satellite
television subscribers. "Claims by CTV and Canwest/Global that the
advertising-supported business model for over-the-air conventional television
broadcasting is broken, are simply wrong," Lind says, "advertising revenues
will rebound at the end of the recession." In its submission, Rogers argues
that while OTA television services have always been distributed by cable and
satellite companies without payment, OTA television broadcasters profit
enormously from the quality and extended audience reach this carriage gives
them, and are well-positioned to get through the current economic downturn.
Rogers also charges that on the basis of speeches delivered by the Chair
and another member of the CRTC in June publicly supporting fee for carriage,
as well as in the Commission's decision on July 6 to impose such a regime, the
Commission appears to have prejudged the outcome of the hearing. Says Lind:
"The CRTC has broken the rules of procedural fairness. In order to ensure an
impartial hearing, any Commissioners who were a party to the July 6th decision
to impose fee-for-carriage should not take part in this proceeding."
The Rogers submission also argues that fee-for-carriage would create an
irritant on the trade front between Canada and the United States. Lind added,
"U.S. border broadcasters would also demand carriage fees if fee-for-carriage
were to be implemented. And if successful, consumers would face even higher
monthly bills."
A research report filed with the Rogers submission, and prepared by
Strategic Counsel, confirms that Canadian consumers overwhelmingly oppose the
fee. 85% of customers surveyed rejected the notion of fee-for-carriage. 61% of
Rogers subscribers said the proposed fee would result in them downgrading
their service and 16% said they'd drop their cable service outright. Analysis
of similar surveys reveals a consistent pattern of consumer unhappiness with
subsidies for broadcasters. Eight-in-ten respondents register opposition to
fee-for-carriage and at least 6-in-ten register "strong" opposition. "The
public view of this fee remains clear," Lind says, "Canadians do not want to
pay additional charges for services that have always been available over the
air for free."
Rogers is a diversified Canadian communications and media company. We are
engaged in wireless voice and data communications services through Wireless,
Canada's largest wireless provider and the operator of the country's only
national GSM/HSPA based network. Through Cable, we are one of Canada's largest
providers of cable television services as well as high-speed Internet access
and telephony services. Through Media, we are engaged in radio and television
broadcasting, televised shopping, magazines and trade publications, and sports
entertainment. We are publicly traded on the Toronto Stock Exchange (TSX:
RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI). For further
information about the Rogers group of companies, please visit www.rogers.com.
