Departmental Performance Report 2013-2014

The Honourable Shelly Glover, P.C., M.P.
Minister of Canadian Heritage and Official Languages

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ISSN 2368-1101

Table of Contents

Foreword

Departmental Performance Reports are part of the Estimates family of documents. Estimates documents support appropriation acts, which specify the amounts and broad purposes for which funds can be spent by the government. The Estimates document family has three parts.

Part I (Government Expenditure Plan) provides an overview of federal spending.

Part II (Main Estimates) lists the financial resources required by individual departments, agencies and Crown corporations for the upcoming fiscal year.

Part III (Departmental Expenditure Plans) consists of two documents. Reports on Plans and Priorities (RPPs) are expenditure plans for each appropriated department and agency (excluding Crown corporations). They describe departmental priorities, strategic outcomes, programs, expected results and associated resource requirements, covering a three-year period beginning with the year indicated in the title of the report. Departmental Performance Reports (DPRs) are individual department and agency accounts of actual performance, for the most recently completed fiscal year, against the plans, priorities and expected results set out in their respective RPPs. DPRs inform parliamentarians and Canadians of the results achieved by government organizations for Canadians.

Additionally, Supplementary Estimates documents present information on spending requirements that were either not sufficiently developed in time for inclusion in the Main Estimates or were subsequently refined to account for developments in particular programs and services.

The financial information in DPRs is drawn directly from authorities presented in the Main Estimates and the planned spending information in RPPs. The financial information in DPRs is also consistent with information in the Public Accounts of Canada. The Public Accounts of Canada include the Government of Canada Consolidated Statement of Financial Position, the Consolidated Statement of Operations and Accumulated Deficit, the Consolidated Statement of Change in Net Debt, and the Consolidated Statement of Cash Flow, as well as details of financial operations segregated by ministerial portfolio for a given fiscal year. For the DPR, two types of financial information are drawn from the Public Accounts of Canada: authorities available for use by an appropriated organization for the fiscal year, and authorities used for that same fiscal year. The latter corresponds to actual spending as presented in the DPR.

The Treasury Board Policy on Management, Resources and Results Structures further strengthens the alignment of the performance information presented in DPRs, other Estimates documents and the Public Accounts of Canada. The policy establishes the Program Alignment Architecture of appropriated organizations as the structure against which financial and non-financial performance information is provided for Estimates and parliamentary reporting. The same reporting structure applies irrespective of whether the organization is reporting in the Main Estimates, the RPP, the DPR or the Public Accounts of Canada.

A number of changes have been made to DPRs for 2013−14 to better support decisions on appropriations. Where applicable, DPRs now provide financial, human resources and performance information in Section II at the lowest level of the organization's Program Alignment Architecture.

In addition, the DPR's format and terminology have been revised to provide greater clarity, consistency and a strengthened emphasis on Estimates and Public Accounts information. As well, departmental reporting on the Federal Sustainable Development Strategy has been consolidated into a new supplementary information table posted on departmental websites. This new table brings together all of the components of the Departmental Sustainable Development Strategy formerly presented in DPRs and on departmental websites, including reporting on the Greening of Government Operations and Strategic Environmental Assessments. Section III of the report provides a link to the new table on the organization's website. Finally, definitions of terminology are now provided in an appendix.


Minister's Message

The Honourable Shelly Glover

The Department of Canadian Heritage and its portfolio organizations, including the Canadian Radio-television and Telecommunications Commission (CRTC), contribute in many ways to Canadians' quality of life. Together, they support our country's creators, showcase their talent and encourage their sense of innovation, including in the digital world. They also help foster the creation of an environment in which all Canadians can enjoy diverse cultural experiences, while also preserving and celebrating our linguistic duality and rich heritage. As we prepare to celebrate the 150th anniversary of Confederation in 2017, we can be proud of the institutions that are at the heart of the cultural, social and economic lives of our communities. They help make Canada a creative country that is both proud of its past and focused on the future.

Last fall, the CRTC launched Let's Talk TV: A Conversation with Canadians about the future of their television system. Thousands of Canadians have participated in the conversation and shared their ideas on how the system should evolve to meet their needs. Furthermore, in November 2013, the Government asked the CRTC to prepare a report that explores options for pick-and-pay specialty television services.

To ensure Canadians benefit from a dynamic and competitive wireless market, the CRTC also introduced a code of conduct for wireless companies. The Wireless Code makes it easier for Canadians to understand their contracts and sets out their basic rights.

As Minister of Canadian Heritage and Official Languages, I am pleased to present the Departmental Performance Report 2013–14, for the Canadian Radio-television and Telecommunications Commission. This document provides a detailed description of the CRTC's accomplishments over the past year. I invite you to review this report's contents to learn more about the initiatives it has undertaken to fulfill its mandate, support our Government's priorities and serve Canadians from coast to coast to coast effectively and diligently.

The Honourable Shelly Glover, P.C., M.P.


Chairman and Chief Executive Officer's Message

Jean-Pierre Blais, Chairman and CEO

I am pleased to present the Canadian Radio-television and Telecommunications Commission's (CRTC) Departmental Performance Report 2013–14. This document reflects the CRTC's continued progress in ensuring that Canadians have access to a world-class communication system.

The CRTC delivered on all priorities associated with this goal, as set out in its Report on Plans and Priorities for 2013–14. For example, we initiated Let's Talk TV: A Conversation with Canadians to discuss the future of the television system in Canada. Our aim is to develop a forward-looking regulatory framework that is adaptable to change. We also set the foundation to modernize Northwestel's phone, broadband and wireless capabilities for Canadians in northern communities.

In addition, the CRTC investigated complaints regarding possible violations of the National Do Not Call List and its associated rules. As a result, we reached settlements with several telemarketers that included significant monetary penalties. We also continued our preparations for the coming into force of Canada's anti-spam legislation on 1 July 2014, which included establishing the Spam Reporting Centre.

Further, the CRTC implemented a code of conduct for mobile wireless service providers, which gives Canadians the ability to cancel their wireless contracts without penalty after two years. We also paved the way for the introduction of a video relay service for American Sign Language and Langue des signes québécoise users. And we imposed a number of conditions on BCE Inc. to ensure that its acquisition of Astral Media's television and radio services benefits Canadians and their broadcasting system. 

I am proud of the CRTC's achievements in 2013–14. Our actions and decisions continue to demonstrate our focus on Canadian citizens, creators and consumers, and to provide a solid foundation for public trust in the CRTC.

Jean-Pierre Blais
Chairman and CEO of the CRTC


Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Shelly Glover, P.C., M.P. Minister of Canadian Heritage and Official Languages
Institutional Head: Jean-Pierre Blais, Chairman and Chief Executive Officer
Ministerial Portfolio: Canadian Heritage
Enabling Instruments:

Year of Incorporation / Commencement: 1968

Commissioners of the CRTC are appointed by the Governor in Council. One of the members is designated as Chairperson and two of the members as Vice-Chairpersons of the Commission. The Chairperson is the Chief Executive Officer of the Commission and has supervision over and direction of the work and staff of the Commission.

Organizational Context

Raison d'être

The Canadian Radio-television and Telecommunications Commission (CRTC) is an administrative tribunal. It implements its mandate as set out in the Broadcasting Act, the Telecommunications Act and Canada's anti-spam legislation (CASL) in order to provide Canadians with a world-class communication system.

The CRTC reports to Parliament through the Minister of Canadian Heritage and Official Languages.

Responsibilities

The CRTC is responsible for regulating and supervising Canada's broadcasting and telecommunications systems in the public interest, based on policy objectives set out in the Broadcasting Act and the Telecommunications Act. The CRTC also has new responsibilities under CASL.

The CRTC fulfills its responsibilities through a number of interrelated activities, including:

The CRTC strives to conduct its activities in a manner that is fair and transparent. It works to keep its regulatory policies responsive by taking into account evolving consumer and business needs, emerging technologies and market developments.

The CRTC is listed in Schedule 1.1 of the Financial Administration Act and its operations are subject to Government of Canada policies and guidelines, which ensure management excellence and accountability to Canadians.

Strategic Outcome and Program Alignment Architecture

In 2012, the CRTC established pillars and priorities to assist it in achieving its mandate. To align the CRTC's Management Resources and Results Structure with this new approach, the organization has amended its Strategic Outcome and Program Alignment Architecture (PAA). The two former program activities: Canadian Broadcasting and Canadian Telecommunicationswere replaced by two new programs: Canadian Content Creation and Connection to the Communication System. Six new sub-programs were also added to the PAA.

In 2013–14, the CRTC further amended its PAA for 2014–15 to enhance its approach to fulfilling its responsibilities. A third program, Protection within the Communications System, has been developed and the sub-programs: Safety-enhancing Communication Services and Unsolicited Commercial Communications have been relocated under it.

Organizational Priorities

To strengthen its programs and activities, mitigate strategic risks and effectively deliver its core programs, the CRTC set out six priorities toward which it directed resources in 2013–14. These priorities are:

Organizational Priorities
Priority Type Programs
Sharpening the focus on consumers NewFootnote 1 All Programs
Summary of Progress

The CRTC achieved important milestones in ensuring that the voices of Canadians are heard and considered in its processes. The CRTC used innovative approaches to engage Canadians. These efforts were integral to enhancing the regulation of the communications system in support of achieving the CRTC's strategic outcome. Specific achievements include the following:

  • The CRTC published a mandatory code of conduct for Canada's wireless industry (the Wireless Code), following extensive public consultations consisting of two phases that were conducted using innovative approaches, including online discussion. The first phase asked Canadians for help in creating a national code for wireless services, and the second phase invited them to comment on a draft code. The Wireless Code, which came into force in December 2013, enables consumers to better understand their rights and their service provider's responsibilities with respect to mobile wireless services, so they can participate in the competitive market in an informed and effective manner. The CRTC promoted a better understanding of the Wireless Code by making available online a checklist of the Code's main benefits and a tool to calculate cancellation fees.
  • The launch of Let's Talk TV: A Conversation with Canadians, in October 2013, began a process involving innovative ways to engage with Canadians about the future of the television system in Canada, evolving technologies and viewing habits, and how the broadcasting system can meet the interests and expectations of citizens.
    • During Phase 1 of Let's Talk TV, Canadians were invited to share their views on television programming, how they received that programming, and whether they had enough information to make informed choices about television programming. Over 1,300 Canadians participated through e-mail, an online discussion forum, fax, mail, an online form and telephone. In addition, 26 "Flash!" conferences were held by consumer groups, industry associations, schools and universities. The reports from the meetings are available on the CRTC website, and some of the meetings are still accessible online via YouTube. The CRTC also commissioned public interest research in order to explore specific issues in greater depth.
    • For Phase 2 of Let's Talk TV, launched in March 2014, the information received in Phase 1 was used to create an interactive questionnaire with realistic consumer choices. Over 7,000 Canadians participated in an in-depth discussion of the issues and the possible consequences of certain changes to the television system.
    • Twitter was actively used to reach out to Canadians and to continue the conversation using the hashtags #Parlonstele and #TalkTV.
  • The CRTC prepared a response to a request by the Governor in Council, pursuant to section 15 of the Broadcasting Act, to make a report on how the ability of Canadian consumers to subscribe to pay and specialty television services on a service-by-service basis can be maximized in a manner that most appropriately furthers the broadcasting policy for Canada. In its response, the CRTC proposed an approach designed to respond to consumer demand for more flexibility by requiring that all discretionary servicesFootnote 2 be offered on a pick-and-pay basis. Under this approach, subscribers would not have to pay for discretionary services they do not wish to receive and could allocate their financial resources mainly to the services they or their families wish to receive. The Governor in Council requested that the report be completed in 2014–15.
  • A fact-finding exercise was initiated in July 2013 to collect information on the current role of payphones in the Canadian communications system. The CRTC examined the extent to which Canadians rely on payphones and the effects, if any, that further payphone removals and possible rate increases may have. At the same time, the CRTC prohibited incumbent local exchange carriers from removing the last payphone in a community and denied a payphone rate increase, pending the outcome of the fact-finding process. Follow-up will occur in 2014–15 if required.
  • The CRTC enhanced its digital presence by completing the initial phase of redesigning its website. It began organizing and presenting information on its website in a more dynamic and user-friendly manner, in order to better meet the needs of Canadians and to facilitate their engagement with the CRTC. The CRTC increased its social media presence by creating a YouTube channel, developing mobile-friendly landing pages and continuing to increase dialogue and engagement with Canadians through Twitter. Finally, the CRTC implemented a new public hearing feed and introduced a new Rich Site Summary (RSS) feed for daily releases.
Priority Type Programs
Ensuring that the Canadian broadcasting industry contributes to the creation and broadcast of diverse Canadian programming New 1.1 Canadian Content Creation
1.1.1 Diverse Canadian Content
1.1.2 Compelling Canadian Content
Summary of Progress

The CRTC supported the creation of diverse and compelling Canadian content that was made available to all Canadians and reflected their attitudes, opinions, ideas, values and artistic creativity. Through strong engagement and consultation with Canadians regarding the licensing of broadcasters and broadcasting regulatory policy, the CRTC was able to ensure that Canadians were better equipped to participate in democratic and cultural life. Progress over the period of 2013–14 includes the following:

  • The CRTC conducted a public consultation process to renew the broadcasting licences of independent broadcasters not owned by satellite or cable distribution companies. Through this process, 84 renewal applications were approved. The CRTC's intent was to ensure that licensing and regulation, particularly in relation to smaller independent services, are as flexible, responsive and targeted as possible to allow television services to adapt to the changing communications environment. Moreover, the renewal of these independent services will ensure that Canadians have access to diverse programming from a wide range of television undertakings and that the programming offered by the licensees will meet the needs and interests of Canadians.
  • When reviewing applications for mandatory distribution as part of the digital basic service of broadcasting distribution undertakings, the CRTC ensured that the services being granted mandatory distribution included services for persons with disabilities, a service that provides programming for official language minority communities, and programming for Aboriginal Canadians.
  • The CRTC conducted a public consultation process to review its policies on the licensing of Canadian national news television services and the distribution conditions of these services and foreign news services, in order to ensure a healthy and diverse range of Canadian news programming within the Canadian broadcasting system.
  • The CRTC undertook a targeted review of the Commercial Radio Policy for French-language and English-language markets in October 2013 to address regulatory policy issues related to small markets, low-power stations, High Definition (HD) radio, new compliance mechanisms, and logs and records.
  • The CRTC undertook a public consultation to review the process for the transfer of ownership of commercial undertakings. The goal was to simplify the process and make it consistent and predictable for the industry, while developing measures to ensure that benefit monies paid as part of these ownership transfer transactions yield measurable improvements to the communities served by broadcasting undertakings and to the Canadian broadcasting system as a whole. These measures included considering whether minimum payments should be allocated to third-party funds, including the Canada Media Fund. In addition, the CRTC considered the appropriateness of its current method of calculating the value of the transaction and how to clarify and codify its practices in this regard. It also considered alternative methods to allocate the value of the transaction among the various assets to be acquired. Subject to certain modifications, the CRTC approved an application by Astral Media inc. (Astral) and its licensed broadcasting subsidiaries for authority to transfer the effective control of Astral's broadcasting undertakings to BCE Inc. In approving that application, the CRTC imposed specific measures to ensure that the transaction benefits Canadians and the Canadian broadcasting system.
  • A review of the CRTC's Ethnic and Genre Protection policies was planned for 2013-14. However, the CRTC chose to take a more comprehensive approach to considering these issues in the context of the Let's Talk TV consultation.
Priority Type Programs
Improving access to communications services for northern Canadians and Canadians with disabilities Ongoing 1.2 Connection to the Communication System
1.2.1 Quality Communication Services
Summary of Progress

In 2013-14, the CRTC undertook key activities to support improved access to communications services for northern Canadians and Canadians with disabilities. Concrete actions were taken to ensure these groups had access to the communications system and received quality services. For example:

  • The CRTC conducted a public consultation process on services for northern Canadians and issued a Telecom Regulatory Policy in December 2013 which included a comprehensive review of Northwestel Inc.'s (Northwestel) regulatory framework and determinations that the current price cap regulations remain appropriate for Northwestel's services. In addition, the implementation of Northwestel's Modernization Plan will be monitored, as the rates for the company's Wholesale Connect service were modified, and the CRTC will regulate Northwestel's retail Internet and Ethernet Wide Area Network services in terrestrially served areas, as Northwestel was found to have significant market power in these areas. Hearings were held in both Inuvik and Whitehorse.
  • The CRTC launched an inquiry in February 2014 regarding satellite services used to provide telecommunications services to northern and remote communities in Canada. This inquiry was the result of the CRTC's decision on Northwestel in which the CRTC identified a digital divide between communities that receive telecommunications services over terrestrial facilities and those that are served solely by satellite.
  • In October 2013, the CRTC launched a proceeding to address issues related to the feasibility of establishing a video relay service in Canada for Canadians with hearing or speech disabilities. Interpretation in American Sign Language (ASL) and Langue des signes québécoise (LSQ) was provided simultaneously throughout the entire hearing, which was streamed online for the first time. The CRTC accepted video interventions in ASL and LSQ, and accommodations were made for participants who required communications support to participate in the public hearing.
  • Also in October 2013, the CRTC published an Inquiry Officer report on matters related to emergency 911 services. The CRTC also invited public comments to ensure that emergency 911 services make the best use of new technologies.
Priority Type Programs
Fostering competition for telecommunications services New 1.2 Connection to the Communication System
1.2.2 Affordable communication services
Summary of Progress

In 2013–14, the CRTC made considerable progress in fostering competition for telecommunications services, which supported Canadians' access to affordable and quality communication services. Key achievements for 2013–14 included:

  • The launch of a process in October 2013 to review the regulatory status of wholesale telecommunications services and their associated policies. Wholesale services facilitate competition in retail markets and provide Canadians with increased choice.  Issues being examined include the wholesale services framework, how wholesale service rates are set and the appropriateness of mandating new wholesale services, including fibre-to-the-premises facilities. This process was launched to ensure that wholesale telecommunications services and policies remain appropriate to meet consumer needs over the coming years as technologies and networks change. A first round of interventions and requests for information was completed in spring 2014, with a second phase scheduled for summer 2014, leading to a public hearing in fall 2014.
  • A fact-finding exercise to assess the impact of wholesale roaming arrangements on the competitiveness of the Canadian wireless industry and the choices available to Canadians. Based on the information obtained through this exercise, the CRTC noted that some Canadian wireless carriers were charging significantly higher rates in their wholesale roaming arrangements with certain other Canadian carriers than in their arrangements with U.S.-based carriers.
  • A public consultation, launched in December 2013 following the fact-finding exercise mentioned above (Wholesale Mobile Wireless Roaming in Canada), to consider whether wireless service providers were engaging in practices of unjust discrimination or undue preference with respect to wholesale roaming arrangements in Canada.
  • The initiation of a proceeding in February 2014 to examine the state of the mobile wireless wholesale market and what regulatory measures may be required if the CRTC were to find that the market is not sufficiently competitive. This proceeding is ongoing, and a hearing is scheduled for fall 2014.
Priority Type Programs
Strengthening the effectiveness and sustainability of Canada's regime for unsolicited communications Previously committed to 1.2 Connection to the Communication System
1.2.4 Unsolicited commercial communications
Summary of Progress

In 2013–14, the CRTC achieved important milestones with respect to its commitment of protecting Canadians from unsolicited commercial communications while maintaining their access to the communications system. Key milestones included: 

  • In response to complaints from Canadians, the CRTC investigated over 11 million calls to Canadians that were in violation of the Unsolicited Telecommunications Rules (UTRs). As a result, the CRTC took enforcement action by issuing 50 warning letters, 8 citations and 30 notices of violation, and imposing administrative monetary penalties.
  • The CRTC conducted a review of the UTRs through a public consultation process that resulted in the CRTC maintaining its Automatic Dialing-Announcing Device (ADAD) Rules in order to protect the privacy of Canadians. In its decision, the CRTC made modifications to the ADAD Rules to make sure that telemarketers respect Canadians' wishes not to be disturbed in their homes.
  • The Unsolicited Telecommunications Fee Regulations were implemented in April 2013 to establish a cost-recovery regime for the National Do Not Call List (DNCL). Under this regime, the CRTC recovers its investigation and enforcement costs from telemarketers.
  • The CRTC continued its role as co-chair of the International Do Not Call Network to promote international cooperation in the enforcement of rules relating to unsolicited telecommunications. An emphasis has been placed on growing the Network's membership, leveraging and sharing enforcement strategies from other members, and continuing to foster relationships that promote cross-border cooperation in the area of unsolicited telecommunications.
  • The CRTC made contributions to international partnerships on caller ID spoofing, including taking a lead role in the creation of the Special Interest Group on Voice and Telephony Abuse within the Messaging, Malware and Mobile Anti-Abuse Working Group. Both partnerships were initiated to identify potential solutions to caller ID spoofing.
  • The CRTC continued to foster new relationships and leverage existing ones to support enforcement activities. Discussions and work on cooperation and/or information-sharing agreements was initiated with a number of Canadian and international enforcement agencies to improve target identification and case selection, and to coordinate operational responses.
  • An outreach plan with supporting information products was developed and implemented to foster and promote industry and consumer stakeholders' compliance with Canada's anti-spam legislation. The CRTC met with over 1,700 organizations across Canada and held over 40 sessions and webinars to reach Canadians who could not participate in the in-person sessions. 
  • The CRTC carried out continual monitoring of online threats and spam, as well as research on trends and identification of metrics that will assist with measuring performance.
  • In 2013–14, the CRTC built capacity in preparation for delivering its compliance and enforcement activities with respect to Canada's anti-spam legislation, which did not come into force until 1 July 2014.
  • The CRTC continued to finalize implementation processes of the Spam Reporting Centre, establishing connectivity with its authorized users, refining its intake of data feeds and protocols, and integrating top-class triaging and analytical tools. Digital forensic tools were continually refined and tested in order to acquire, preserve and analyze electronic evidence collected as part of investigations. Staff continued to receive specialized training to ensure that they keep pace with evolving technologies, threats and strategies in the cyber landscape.
Priority Type Programs
Focusing on management excellence through an integrated planning and reporting framework New All programs
Summary of Progress

The CRTC is committed to management excellence and has made substantial progress in strengthening its integrated business planning framework as well as its financial, human resources, and information management and technology practices. Specific achievements for 2013–14 include:

  • The targeted reduction in expenditures in 2013–14 was achieved, resulting in the CRTC spending at least 5% less than the authorized spending levels approved by Parliament in the 2013–14 Main Estimates and Supplementary Estimates. The CRTC continued to identify and implement measures that contributed to reducing its annual operating costs, such as opportunities and efficiency gains realized through streamlining back-office functions. For example:
    • spending on workplace telecommunications was reduced through such initiatives as moving from landlines to mobile phones;
    • the Broadcasting and Telecommunications Decisions groups converged, resulting in administrative efficiencies, more consistent processes and increased synergies; and
    • overall expenditures on travel, hospitality and conferences decreased by approximately 20% in 2013–14 compared to 2012–13 due to active and ongoing management and monitoring of expenditures, and implementation of streamlined and economical practices.
  • With respect to information management/information technology (IM/IT) management, an executive oversight committee was created. In addition, the CRTC's document management system was upgraded, and preliminary work on the implementation of the Treasury Board Secretariat's Recordkeeping Directive continued.
  • The CRTC also continued its efforts to enhance security by:
    • updating its Business Continuity and Disaster Recovery Plans;
    • identifying security risks and increasing physical security for the Spam Reporting Centre; and
    • completing security assessments of its regional offices.
  • With regard to human resource management, the CRTC:
    • updated and delivered Leadership Development and Strategic Thinking training programs for employees, and developed an Innovation and Creativity training program in partnership with the Canada School of Public Service;
    • ensured that employees received training on the subjects of Respect in the Workplace and Values and Ethics;
    • developed and implemented an Inuit Internship program;
    • continued the internal job rotation program; and
    • undertook talent management exercises and developed succession plans for key positions.
  • An integrated business planning framework was implemented, which allowed the organization to better monitor risk and corporate needs across all sectors. As a result, the CRTC strengthened its strategic corporate plans and transparent reporting to the public.

Risk Analysis

The CRTC's success in achieving its intended results may be affected by developments that are partially or entirely beyond its control. High level features of the CRTC's internal and external environments affect its exposure to risk.

Key RisksFootnote 3
Risk Risk Response Strategy Link to Program
Alignment Architecture

Fragmented distribution of broadcasting content and communication services

Given that constant technological evolution allows for rapid development of new global communications services, there is a risk that the CRTC's capacity to fulfill its legislated objectives will be affected.

  • The CRTC continually monitored and strategically analyzed market conditions and technological developments in order to advance regulatory policy.
  • The CRTC engaged in continual dialogue with consumers, creators and service providers to identify and analyze trends.
  • The CRTC collaborated with external stakeholders on the promotion of Canadian programming.
All programs

Increased reliance on communication services

Given that Canadians' reliance on communications services is rapidly increasing, there is a risk that the CRTC's policies and regulations will not be developed quickly enough to address emerging issues.

  • The CRTC conducted ongoing research and analysis to identify gaps, challenges, trends and issues to ensure that policies and regulations can be developed to respond to issues on a timely basis.
  • The CRTC developed strategies for consulting with key external stakeholders to monitor and discuss evolving trends affecting policy and regulation.
All programs

Human resources

Given the rapidly changing CRTC workforce, including new employees and employees eligible for retirement, there is a risk that the CRTC will not have a well-chosen, well-trained, well-led workforce to successfully contribute to the achievement of CRTC objectives.

  • The CRTC continued to conduct strategic human resources planning, including talent management, training and learning, and succession planning.
  • The CRTC continually reviewed and monitored the efficacy of its human resource plans.
All programs

To ensure its full understanding of the communications system, the CRTC collaborated with partners, including researchers and third-party experts, and engaged the public through social media to help identify consumer issues and concerns. The CRTC continued to collect data on communications services through annual surveys published in its Communications Monitoring Report, introduced innovative online engagement to better understand the interests and needs of a broad range of Canadians, and carried out public opinion research. In addition, the Consumer Lens, an internal analytical tool used to build a strong evidence base to ensure that consumer perspectives are considered, was taken into account in the CRTC's decision making.

To minimize the risk of electronic attacks and/or natural or man-made disasters that could cause partial or catastrophic failure of corporate information management and/or information technology infrastructure, the CRTC updated and managed its Business Continuity Plan and its Disaster Recovery Plan, increased physical security for the Spam Reporting Centre, completed an identification of its security risks and completed security assessments of regional offices and hearings.

In 2013–14, the CRTC strengthened its research, monitoring and data-sharing partnerships by establishing agreements with external stakeholders to enhance information sharing. It also conducted an environmental scan to identify the strengths, weaknesses, opportunities and threats of its environment.

Actual Expenditures

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending
(authorities used) (Note 1)
Difference
(actual minus planned)
57,695,111 57,695,111 60,734,267 57,571,538 -123,573

Note 1: Actual spending reflects gross expenditures which include respendable revenues.

Human Resources (Full-Time Equivalents [FTEs])
2013–14
Planned
2013–14
Actual
2013–14
Difference
(actual minus planned)
438 434 -4

Funding authorities include all amounts approved in the 2013-2014 Main Estimates and Supplementary Estimates. For explanation of spending variances please refer to section entitled ‘Departmental Spending Trends'.

Budgetary Performance Summary for Strategic Outcomes and Programs (dollars)Footnote 4

Strategic Outcome : Canadians have access to a world-class communications system
Strategic Outcome, Programs and Internal Services 2013–14
Main Estimates
2013–14
Planned Spending
2014–15
Planned Spending
2015–16
Planned Spending
2013–14 Total Authorities Available for Use 2013–14
Actual Spending (authorities used) (Note 1)
2012–13
Actual Spending (authorities used) (Note 1)
2011–12
Actual Spending (authorities used) (Note 1)
Canadian Content CreationFootnote 5 20,876,027 20,876,027 16,179,911 16,179,297 21,901,298 19,411,193 19,821,180 21,357,039
Connection to the Communication SystemFootnote 6 23,429,925 23,429,925 18,746,077 18,745,357 24,603,517 23,620,843 21,286,180 21,913,909
Protection within the Communication System 9,594,595 9,594,257
Subtotal 44,305,952 44,305,952 44,520,583 44,518,911 46,504,815 43,032,036 41,107,360 43,270,948
Internal Services Subtotal 13,389,159 13,389,159 13,510,105 13,509,624 14,229,452 14,539,502 15,349,760 15,366,838
Total 57,695,111 57,695,111 58,030,688 58,028,535 60,734,267 57,571,538 56,457,120 58,637,786
Note 1: Actual spending reflects gross expenditures which include respendable revenues.

The CRTC's PAA for 2011–12 and 2012–13 included the following programs: Canadian Broadcasting; Canadian Telecommunications; and Internal Services. For fiscal year 2013–14, the CRTC received Treasury Board approval to revise its PAA to include the following programs: Canadian Content Creation; Connection to the Communication System; and Internal Services. Another change was approved by Treasury Board for 2014–15 that added the program Protection within the Communications System. This new program was funded through a reallocation of resources from the three programs that existed in 2013–14.

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2013-14 Actual Spending With the Whole-of-Government Framework (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2013-14 Actual Spending
Canadians have access to a world-class communications system 1.1 Canadian Content Creation Social Affairs A vibrant Canadian culture and heritage 19,411,193
1.2 Connection to the Communication System Economic Affairs A fair and secure marketplace 23,620,843
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Economic Affairs 23,429,925 23,620,843
Social Affairs 20,876,027 19,411,193
International Affairs 0 0
Government Affairs 0 0

Departmental Spending Trend

The graph presented below shows total spending of the CRTC. There are no sunset programs.

The table presented below provides the total spending and total spending trends for fiscal years 2011-12 to 2016-17 and are as follows: $58.6M for 2011-12; $56.5M for 2012-13; $57.6M for 2013-14 and $58M for 2014-15 to 2016-17

Total Spending

The CRTC's spending since 2011–12 has remained relatively constant, with only minor fluctuations year to year due to the factors highlighted below.

In 2011–12, total spending was temporarily higher due to the cash out of accumulated severance pay benefits. This option was offered to various classifications of employees following the signing of new collective agreements.

In 2012–13, total spending decreased and is mainly explained by the effort to reduce the CRTC's operating expenditures. As noted in CRTC's Three Year Plan 2012–15, an initiative has been launched to review its organizational structure and priorities with a target of reducing operating costs by at least 5% over the next three years. For 2012–13 several efficiency improvements were put in place that contributed to reduced spending levels.

Starting in 2013–14, the CRTC achieved Budget 2012 savings of $0.4 million through program reductions for its statutory investigation and enforcement activities under Canada's anti-spam legislation. The increase of approximately $0.6 million dollars is mainly explained by an increase in statutory expenditures related to employee benefits plans and the creation of a national spam reporting center.

Projected spending for the period from 2014–15 to 2016–17 corresponds to the planned spending levels approved in the Main Estimates. At this time of writing, there are no incremental amounts approved above the Main Estimates levels. Supplementary funding for items such as carry-forward adjustments are unknown at this time, and therefore are not reflected.

Estimates by Vote

For information on the CRTC's organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014.

Section II: Analysis of Program by Strategic Outcome

Strategic Outcome: Canadians have access to a world-class communications system

Program 1.1: Canadian Content Creation

Description

This program focuses on ensuring that a wealth of Canadian content is created and made available to all Canadians on a variety of platforms. Through its orders, decision, licensing frameworks and other regulatory activities, the Canadian Radio-television and Telecommunications Commission encourages the creation of diverse programming that reflects the attitudes, opinions, ideas, values and artistic creativity of Canadians. By requiring the inclusion of Canadian content in entertainment programming, and the provision of information and analysis concerning Canada, the CRTC is enabling Canadians to better participate in their country's democratic and cultural life.

Budgetary Financial Resources (dollars)Footnote 7
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending (authorities used)
2013–14
Difference
(actual minus planned)
20,876,027 20,876,027 21,901,298 19,411,193 -1,464,834
Human Resources (Full-Time Equivalents [FTEs])
2013–14
Planned
2013–14
Actual
2013–14
Difference
(actual minus planned)
154 145 -9
Performance Results
Expected Results Performance Indicators Targets Actual Results
Canadians have access to compelling, creative Canadian content, from diverse sources, on a variety of platforms. Percentage increase of total sums invested in both Canadian programming expenditures (CPE) and Canadian Content Development (CCD). Increase the sums invested in Canadian content by 2% per year. Total sums invested in both CPE and CCD decreased by:
CPE:  -5.5%
CCD: - 4.9%
Performance Analysis and Lessons Learned

In its licensing of private television services, the CRTC provided private broadcasters with greater flexibility in the allocation and pooling of resources among their various television platforms, ensuring support for the creation of high-quality and attractive Canadian programming. Further, the Let's TalkTV process aims to continue to move the regulatory focus from protecting to promoting, thereby creating an environment for compelling Canadian programming to be made by Canadians.

The CRTC observed a $74 million decrease in sports programmingFootnote 8, explained in-part by the fact that, unlike 2012, 2013 was not an Olympic year. The NHL lockout also contributed to the decrease, as the 2012–13 season only got under way in January 2013. As for the radio sector, there are several reasons for the decline in CCD funding from the 2011–12 to 2012–13 broadcast years.  Some tangible benefit and over and above CCD funding packages were completed during the 2011–12 broadcast year; thus, no funding was allocated by the licensees for these packages during the completed 2012–13 year.

Sub-Program 1.1.1: Diverse Canadian Content

Description

As outlined in the Broadcasting Act and through its broadcasting licensing processes and regulatory frameworks, the CRTC will support the creation of diverse Canadian programming that provides a balance of information and entertainment for all Canadians. The CRTC will ensure that Canadian programming is available in both official and minority languages. By providing access to a number of local, regional and national information sources, Canadians will be better informed and therefore more able to actively participate in our democratic society.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Canadians can access diverse Canadian content on a variety of platforms. Percentage of television audience share, including discretionary and over-the-air services, controlled by one entity. Limit growth of audience share controlled by one entity beyond 35%, without exceeding 45%. 30.8%
Number of sources of local and regional news and information to which Canadians have access to in their community. Minimum of 2 sources from separate owners, including television, radio, weekly newspapers, online publications and blogs. The CRTC measures the diversity of ownership or control in a given market by applying its Diversity of Voices policy. Among other things, this policy states that the CRTC will not approve applications for a change in the effective control of broadcasting undertakings that would result in the ownership or control, by one person, of a local radio station, a local television station and a local newspaper serving the same market. As no exceptions to this policy were granted during the 2013–14 fiscal year, there has been 100% compliance.
Percentage increase in number of Canadian radio stations, television stations and specialty services providing content to Canadians in official and minority languages. Increase the number of Canadian stations and services offering content to Canadians by 1% per year. Over the air radio services: 1.6% Television services: 12%
Performance Analysis and Lessons Learned

The entity that controls the largest percentage of television audience share is Bell Media at 30.8%, which remains considerably below the 45% target that the CRTC had set as a maximum (by 14.2%). Regarding the decrease in Canadian television services, the result set out here represents the number of licensed Canadian television services. Consistent with its mandate under the Broadcasting Act, the CRTC considers the public interest in the context of applications for any change of ownership. It established the regulatory frameworks for Diversity of Voices and Vertical Integration, allowing it to determine that the public interest is being served. Likewise, the CRTC considers the public interest in reviewing applications for new services and in ensuring that the objectives under the Broadcasting Act are met and that Canadians are well-served by their broadcasting system. The number of licensed Canadian television services dropped slightly following the exemption of certain Category B services serving fewer than 200,000 subscribers. Because of this exemption, it is possible that, in the future, there will be fewer licensed television services. Nonetheless, the exempt services continue to provide access to a diverse array of Canadian content.

Sub-Program 1.1.2: Compelling Canadian Content

Description

Through the conditions it places on broadcasters and distribution undertakings, the CRTC will ensure that Canadians have access to high quality Canadian programming that is supported by strong production values. Canadian drama and comedy programs that reflect our values and attitudes will be compelling to Canadians.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Canadians can access Canadian programming that is compelling and reflective of Canadian values and attitudes. Percentage of Canadian (English and French) musical selections presented on English and French radio; Maintain a minimum of 35% Canadian (English and French) music selections on English and French radio; English radio: 36.8% French radio: 53%
Percentage of French (Canadian or otherwise) vocal music selections presented on French radio. Maintain a minimum of 65% French vocal music selections on French radio. 67.1%
Number of Canadian television programs that are viewed by more than 1 million Canadians in a given year. Increase the number of Canadian television programs that are viewed by more than 1 million Canadians by a percentage to be determined after 1 full year of monitoring to determine base level of measurement. Between September 2012 and September 2013, 20.5% of all Canadian programs were viewed by at least 1 million Canadians at least once.
Performance Analysis and Lessons Learned

The CRTC's group-based licensing approach to private television has increased the flexibility of private broadcasters to attract viewers across platforms and to respond to the reality of increased consumer choice in a digital world.

The data above reflect the actual broadcast of Canadian selections and French-language vocal music, compiled from analyses of the music aired by a sample of music-based stations in all regions of the country. They demonstrate that most broadcasters respect the CRTC's regulated minimums, although each year the CRTC's monitoring program documents a few non-compliant licensees. The high Canadian music levels programmed by French-language stations reflect the public's strong preference to hear Canadian French vocal music rather than music involving non-Canadian authors and performers. The CRTC continues to monitor the performance of licensees through the licence renewal process and by following up on consumer and industry complaints. The Let's Talk TV process will review the existing approaches to ensure that the needs and interests of Canadians are met.

With respect to Canadian programs viewed by more than 1 million Canadians in a given year, the noted percentage (20.5%) represents the cumulative reach of the program based on Numeris (formerly Bureau of Broadcast Measurement Canada) data for all Canadians two or more years of age, for the period of September 2012 to September 2013. Cumulative reach is a measure of the total number of unique viewers who watched five or more consecutive minutes of a given program at least once over the period measured.

Report on Planning Highlights

Review of Broadcasting Exemption Orders

To simplify and streamline the CRTC's radio licensing practices and its exemption orders, a new exemption order for low-power stations that provide tourist information was published in November 2013.  The new order combined four existing orders and made it possible for 40 existing tourist stations to become exempt from future licensing, and for new tourist-oriented stations to begin operations without filing applications with the CRTC.

At the same time a second exemption order was issued concerning low-power radio stations that provide programming from houses of worship. It had the effect of exempting 25 existing licensed stations from future licensing, as well as new undertakings providing programming from houses of worship.

In October 2013, the CRTC issued a call for public comments concerning a targeted policy review for the commercial radio sector.  The Notice of Consultation included a solicitation of comments on the possibility of exempting all types of commercial low power stations from licensing. The CRTC is considering the submissions and will publish its findings in 2014–15.

Resolution of Industry Disputes

The CRTC continually examined practices and procedures for industry dispute resolution mechanisms, to assess whether they remain well-designed and contribute to resolving disputes in a timely manner. In November 2013, the CRTC published an Information Bulletin setting out revised procedures that apply to staff-assisted mediation, final offer arbitration and expedited hearings.

Accessibility

The CRTC commissioned research and a report on the availability of wireless handsets that are accessible to consumers with disabilities. Included in the research was an assessment of the gaps and shortcomings of mobile wireless handsets that generally meet the needs of those consumers.

Monitoring, Data Collection and Reporting

In 2013–14, the CRTC continued to gather information in a streamlined manner, to minimize the burden on the industry of providing that information. The Communications Monitoring Report for 2013–14 was drafted with greater use of plain language to provide clarity on the data displayed and to provide information in an organized manner that would be more useful from the consumer's perspective. It also included new and expanded data, such as telephone penetration by income quintile, local telephone prices in major centers, telecommunications complaints by Canadians and greater details on telecommunications wholesale service revenues. In addition, it tracked consumer and industry digital trends related to the evolving communications market.

Program 1.2: Connection to the Communication System

Description

The CRTC facilitates the orderly development of a communication system for all Canadians in order to strengthen the social and economic fabric of Canada and enhance the safety and interests of Canadians. This program focuses on ensuring that Canadians can connect to a choice of accessible, innovative and quality communication services at affordable prices, and can have access to compelling and creative Canadian content. Through this program, the CRTC promotes compliance with enforcement of its various laws and regulations, including unsolicited communications. It helps to ensure that Canadians have access to emergency communication services such as 911 and alerting systems. As a result, Canadians have increased protection and benefit from a more secure communication system.

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending (authorities used)
2013–14
Difference
(actual minus planned)
23,429,925 23,429,925 24,603,517 23,620,843 190,918
Human Resources (FTEs)
2013–14
Planned
2013–14
Actual
2013–14
Difference
(actual minus planned)
168 164 -4
Performance Results
Expected Results Performance Indicators Targets Actual Results
Canadians have access to quality and innovative communication services at affordable prices. Percentage of households that have access to: A) three or more service providers for broadband Internet service; A) 50% 48%
Percentage of households that have access to: B) four or more broadcasting distribution undertakings. B) 50% 56%
Performance Analysis and Lessons Learned

Broadband Internet service is delivered through a variety of technologies (e.g. wired, fixed wireless, mobile, satellite). The rollout of broadband Internet access has been done through a combination of market forces, targeted funding and public-private partnerships at all levels of government.

In December 2013, 48% of Canadians had access to three or more broadband platforms offering broadband Internet service at 1.5 megabits per second (Mbps), and 40% of Canadians had access to three or more broadband platforms offering broadband Internet service at 5 Mbps. In 2011, the CRTC established a new regulatory framework for wholesale high-speed access (HSA) services that was based on the cost of providing the service, and sought new proposals for billing models for wholesale HSA services. These models were assessed to ensure that they gave independent service providers the flexibility to address the needs of consumers and yet did not interfere with the incumbents' incentives to continue to invest in their networks. 

In 2013–14, the CRTC issued a series of decisions that simplified the implementation of the new wholesale HSA service billing models, made adjustments to the wholesale HSA service rates and created a uniform pricing approach. Also, the CRTC commenced a review of wireline wholesale services (including whether new services such as fibre-to-the-premises facilities should be mandated) and their associated policies. The main goal of this review is to ensure that the wholesale service framework, in the areas where it is required, balances facilitating the development of a competitive Canadian telecommunications market with incentives to invest in innovative networks.

Sub-Program 1.2.1: Quality Communication Services

Description

Through its regulatory frameworks, the CRTC will ensure that Canadians have a choice of quality communication service providers for telephone, internet access, wireless and broadcasting distribution services. The CRTC will monitor the broadband speeds and network practices of internet service providers to ensure that they meet the expectations of Canadians and are capable of providing Canadians with access to new and innovative services. The CRTC will review and update its regulatory decisions and provide alternative dispute resolution services to ensure all impediments to a competitive marketplace for the delivery of communication services are addressed. As well, the CRTC will continue to develop regulatory frameworks and coordinate the activities of industry groups to provide Canadians with disabilities access to communication services.

Performance Results
Expected Results Performance Indicators Targets Actual Results
All Canadians have access to innovative and quality communication services. Percentage of households that have access to broadband speeds of at least 5 megabits per second (Mbps) downstream and 1 Mbps upstream. More than 90% (March 31, 2013) 91%  
A) Percentage of English and French television programs that are closed-captioned; A) 100% of English and French television programs are closed-captioned; 100%
B) Percentage of television services in compliance with their conditions of licence regarding video-described programming. B) 100% of television services with conditions of licence regarding video-described programming are in compliance with those conditions. 100%
Number of complaints received regarding the loudness of television commercials. 10% reduction 40% reduction from 2012-13
Performance Analysis and Lessons Learned

The CRTC considers that the deployment of broadband Internet access services, including deployment in rural and remote areas, should continue to rely on market forces and targeted government funding, an approach which encourages private and public partnerships.

At the end of 2013, 91% of Canadian households had access to 5 Mbps downstream and 1 Mbps upstream broadband service. The CRTC continues to monitor investments in broadband networks and will continue to conduct public processes as required to enable achievement of the established broadband target. In particular, in an effort to determine the quality of broadband services delivered to Canadians, the CRTC has been exploring options to undertake broadband performance measurement. In 2012, the CRTC, in partnership with a major Internet service provider (ISP) and a vendor, undertook a trial to test the actual broadband speeds in rural Alberta. The CRTC is now seeking to expand this trial to include testing of all major ISPs, across Canada.

In 2013–14, the CRTC approved Northwestel's Modernization Plan, which includes improvements to broadband Internet services in northern Canada. The rollout of Northwestel's Modernization Plan will be monitored to ensure that the implementation targets are being met and that consumers in Northwestel's operating territory benefit. Also, Northwestel submitted its 2013 Network Modernization progress report and its updated Network Modernization Plan for 2014–17. The progress report indicates that Northwestel is on track to meet its targets, including access to a minimum of 5 Mbps downstream and 1 Mbps upstream in all terrestrial (non-satellite-served) communities by the end of the plan in 2017.

In February 2014, the CRTC announced an inquiry to investigate satellite services that telecommunications service providers use to provide telecommunications services, including broadband services, to Canadians in northern, rural and remote areas.

With respect to television, the CRTC continued to monitor the industry's progress toward achieving its targets regarding accessibility. The CRTC examined the mandatory industry reports and all complaints it received from the public.‎ Based on the level of compliance, the CRTC is satisfied that the industry appreciates the importance of accessibility and that the current framework is ensuring that accessible programming is available to all Canadians.

The reduction in the number of complaints regarding the loudness of television commercials was reduced by four times the amount originally targeted. The CRTC supported this effort by informing service providers in advance of their obligations that were coming into effect in September 2012 and requiring that they produce a compliance report in October 2012. This information was also made available to the public through the CRTC website and YouTube. Effective public communications on television commercial loudness rules, as well as efficient public complaint mechanisms, contributed to the success of television programming and commercials being broadcast at a similar volume. In addition, the CRTC continued to monitor the loudness of television commercials for compliance with broadcasting regulatory policies based on consumer complaints in regard to enforcement.

Sub-Program 1.2.2: Affordable communication services

Description

The CRTC seeks to ensure that Canadians are able to connect to telephone, internet access, wireless and broadcasting distribution services at rates that are affordable and provide value. The CRTC will assess tariffs provided by service providers, monitor developments in the Communications industry, monitor consumer complaints and provide information to consumers to ensure that Canadians can make informed choices between service providers who offer innovative and affordable packages of services.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Canadians are able to connect to communication services that are affordable and provide value. Percentage of households that have access to telephone service at a monthly rate of $30 or less. More than 95% 98%  
Performance Analysis and Lessons Learned

The local residential telephone market is characterized by competition among phone companies, cable operators, wireless carriers and voice over Internet Protocol (VoIP) providers and resellers, all of which provide choice to consumers. At the end of 2013, the CRTC did not regulate local phone rates for approximately 85% of residential telephone lines.

In 2011, the CRTC developed a framework that would allow incumbent telephone companies to increase local phone rates up to $30 in most regions by June 2013. It was up to each incumbent phone company whether or not to increase local phone rates up to this amount. As of December 2012, approximately 98% of households had access to a telephone service at $30 per month or less. Effective 1 June 2014, incumbent phone companies are permitted to increase monthly local phone rates in most regions by the annual rate of inflation.

Sub-Sub-Program 1.2.3: Safety-enhancing communication services

Description

The CRTC will ensure that the Canadian Communication system provides services that enhance the safety of Canadians. All Canadians will have access to emergency communication services, such as 911 services and public alerting systems. The CRTC will monitor the development of, and broadcaster participation in, the public alert system. In order to ensure that the 911 system remains up to date, the CRTC will review the regulatory framework for next generation 911 systems.

Performance Results
Expected Results Performance Indicators Targets Actual Results
The Canadian communication system enhances the safety of Canadians. Number of broadcasters participating in public alerting system. Commitment by one or more licensee to distribute alerts on a national basis. 1 commitment made by a licensee.
Percentage of Canadian households that have access to 911 service. More than 96% 96%
Performance Analysis and Lessons Learned

The Canadian Broadcasting Corporation (CBC)/Radio-Canada has committed to implementing a public alerting system on all its radio stations by no later than 31 December 2014. This system will immediately broadcast any emergency alert received from the National Alert Aggregation and Dissemination System on all the licensee's originating stations and associated repeaters that serve the area targeted by the alert. The CRTC intends to build upon CBC/Radio-Canada's commitment in order to secure participation by a greater number of broadcasters such that Canadians are alerted of threats to life and property through as many means and broadcasters as possible.

In 2012, the CRTC appointed an Inquiry Officer to conduct a review of matters related to emergency 911 services and invited public comment on the current 911 system and next-generation 911 services. In 2013 the Inquiry Officer filed his report and the CRTC invited public comment on its findings. The report's recommendations and the submissions made during these proceedings are being used to develop a CRTC 911 Action Plan, which will be published in 2014.

Sub-Sub-Program 1.2.4: Unsolicited commercial communications

Description

The CRTC will enhance the privacy and protection of Canadians by promoting compliance with and enforcement of its rules and regulations relating to unsolicited communications, including those related to the National Do Not Call List (DNCL) and Canada's anti-spam legislation (CASL).In order to make Canadians more aware of the measures available to protect themselves from unsolicited communications, the CRTC will design public education and outreach activities for the DNCL and CASL. The CRTC will also develop domestic and international partnerships in order to facilitate enforcement activities related to the DNCL and CASL. The CRTC will investigate complaints and take appropriate enforcement actions for both the DNCL and CASL.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Canadians will be protected from unsolicited commercial communications. Volume of spam prevented. To be determined once legislation has been in force for one full year. Results will be determined once legislation has been in force for one full year
Percentage of Canadians who report receiving a year-over-year reduction in telemarketing calls. More than 80%3 Not available for 2013-14
Performance Analysis and Lessons Learned

In December 2013, the Minister of Industry announced that CASL would come into force on 1 July 2014. As such, no data on volume of spam prevented can be provided for the reporting period. Going forward this performance indicator will be measured once CASL has been in force for one full year. CRTC efforts in 2013–14 focused on promoting compliance. Over 1,500 Canadian organizations were reached through speaking engagements, webinars and other meetings, and various communications products were posted on the CRTC's website to further assist businesses in understanding their obligations and to guide their compliance efforts.

The CRTC receives certain data on telemarketing trends collected independently by an external source. The CRTC was informed that the survey that collects information on reductions in telemarketing calls was not conducted in 2013–14. The CRTC continues to educate Canadian consumers about the National DNCL, and consumers continue to register their phone numbers on the List. The number of consumer registrations has increased over the last year by 9% to over 12 million, which suggests that consumers value the National DNCL and believe that it is effective and working. Also, 10,877 telemarketers, including 489 from countries outside of Canada, were registered with the National DNCL, an annual increase of over 6%. During the reporting period the CRTC investigated over 11 million calls to Canadians that were in violation of the Unsolicited Telecommunications Rules, resulting in over $1 million in administrative monetary penalties.

Report on Planning Highlights

Number Resources Management

In 2013–14, new area codes were introduced where telephone numbers were becoming exhausted for area codes 250/604/778 (British Columbia), 819 (Quebec) and 306 (Saskatchewan). New area code 639 was introduced in Saskatchewan in May 2013, and in June 2013, new area code 236 was introduced in British Columbia and new area code 873 was introduced in Quebec.

Model Municipal Access Agreement

Through the CRTC Interconnection Steering Committee (CISC), the CRTC brought together experts and industry parties to assist in developing terms and conditions of access to public properties to support its regulation activities. In 2013–14, CISC developed a model Municipal Access Agreement (MAA). Canadian carriers and municipalities can use the model MAA, as a non-binding resource, to facilitate negotiations regarding the installation of telecommunications infrastructure.

Retail and Competitor Tariff Notices and Intercarrier Agreements

The CRTC regulates rates, terms and conditions for competitor and wholesale services, non-forborne retail residential and business local services, and social services such as 911 and message relay services. Telecommunications service providers must receive CRTC approval before making any changes to existing regulated services or introducing new regulated services. Their proposals to the CRTC in this regard are filed in the form of tariff notices. They must also receive CRTC approval for certain types of intercarrier agreements. The CRTC processed a total of 527 tariff and agreement applications in 2013–14.

In addition, the CRTC receives other types of applications regarding communications services. These may cover, among other things, requests to change existing CRTC approaches or policies; to resolve disputes about rates, service provision or access to support structures or facilities; or to exclude adverse events under the competitor quality of service rate rebate plan.

Internet Traffic Management Practices

The CRTC continued to monitor industry practices, both domestically and internationally. It processed 54 complaints regarding the Internet traffic management practices (ITMPs) of telecommunications service providers. Complaints from Canadians largely focused on Internet speed issues, with those regarding companies' improper ITMP disclosure practices on the wane. 

911 Enhancements

The CRTC mandated wireless carriers to upgrade their networks to support the Text with 911 feature. This feature is intended to enable Canadians who have hearing or speech impairments to communicate with 911 call centres via text message in areas where municipal and provincial governments have made the necessary changes to their 911 call centres. Additionally, the In-Call Location Update feature was implemented by all wireless carriers. This feature allows 911 operators to request updated location information associated with a wireless 911 caller who is in motion or has changed locations. This feature will help responders more accurately estimate a caller's location so that emergency services can be provided more quickly.

Spam Reporting Centre

In 2013–14 the CRTC continued to establish Canada's Spam Reporting Centre. Once Canada's anti-spam legislation comes into force, Canadian consumers, businesses and other organizations will be able to report instances of spam, malware and other alleged violations of CASL to the Centre.

Emergency Alerting

In February 2014, the CRTC invited comments on proposed amendments to its regulations which would require the broadcast industry to participate in the National Public Alerting System. If these amendments are adopted, broadcasters and broadcasting distribution undertakings would be required, by December 2014, to distribute emergency alert messages to the public, thereby ensuring that Canadians receive timely warnings of imminent perils. While seeking comments on the proposed regulations, the CRTC also sought comments on a public awareness campaign for emergency alerting. In addition, the CRTC has been collaborating with government partners with respect to the development of standards for providing alerts via wireless devices.

International Activities

The CRTC participated in research activities, such as studies run by the International Telecommunication Union and the Organisation for Economic Co-operation and Development (OECD), to better inform international stakeholders about the Canadian communications system. The CRTC continued to collaborate with international regulators through the exchange of information and best practices. The CRTC was equally active with the Canadian chapter of the International Institute of Communications as a member of the Board of Directors overseeing the activities of the chapter. In addition, the CRTC participated in the OECD Committee on Consumer Policy and in meetings of the OECD Working Party on Communication Infrastructures and Services Policy, and participated in the Canadian working group preparing for the World Telecommunication Development Conference held in April 2014 in Dubai.

The CRTC also participated in the creation of the new Voice and Telephony Abuse Special Interest Group (VTA SIG) within the Messaging, Malware and Mobile Anti-Abuse Working Group (M3AAWG), which brings together academia, law enforcement and industry to focus on short-, medium- and long-term solutions to eliminate, caller ID spoofing and other forms of voice and telephony abuse. The CRTC participated in the first meeting of the VTA SIG in San Francisco in February 2014. The CRTC also led and participated in a number of international networks to address spam and do not call violations and foster greater cooperation on cross-border issues. The CRTC is one of the co-founders of the International Do Not Call Network and an active member of the London Action Plan.

Internal Services

Description

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services; Communications Services; Legal Services; Human Resources Management Services; Financial Management Services; Information Management Services; Information Technology Services; Real Property Services; Material Services; Acquisition Services; and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

Budgetary Financial Resources (dollars)
2013–14
Main Estimates
2013–14
Planned Spending
2013–14
Total Authorities
Available for Use
2013–14
Actual Spending (authorities used)
2013–14
Difference
(actual minus planned)
13,389,159 13,389,159 14,229,452 14,539,502 1,150,343
Human Resources (FTEs)
2013–14
Planned
2013–14
Actual
2013–14
Difference
(actual minus planned)
116 125 9
Report on Planning Highlights

In 2013–14, the CRTC strategically remodeled and implemented its integrated business planning framework to enhance public accountability and transparency. The new framework enables multi-faceted planning that considers core business, human resources, finances and IM/IT. As a result of the new framework, the CRTC developed a Corporate Risk Profile through extensive risk management exercises to determine the top risks to the core business; updated the comprehensive CRTC Three-Year Plan 2014–2017; and brought further precision to its performance measurement framework, which will be reported on in 2014–15.

The CRTC also maintained, monitored and reviewed its effective risk-based system of internal control, with timely corrective measures taken when issues were identified, as demonstrated by the Statement of Management Responsibility Including Internal Control Over Financial Reporting.

In addition, the IM/IT Strategic Plan was completed and approved. As a result of the Strategic Plan, a new oversight committee (IM/IT Executive Review Committee) was created to address CRTC-wide IM/IT issues, especially those related to changes in priorities. The CRTC also initiated and completed several important projects, such as the replacement of the storage area network supporting CRTC systems, the migration of all desktop computers to Windows 7, and the implementation of a multi-platform support for the audio streaming of public hearings. Furthermore, the CRTC made numerous improvements to its digital presence, including the implementation of the Government of Canada's Web Accessibility Standards and a new information architecture for the CRTC website.

The CRTC's Investment Plan 2013–14 to 2017–18 was developed. It provides a five-year, strategic-level outlook related to the planning and management of CRTC assets, acquired services and projects supporting the organization's outcomes, priorities and objectives. The CRTC updated its Departmental Security Plan for 2013–14, increased physical security for the Spam Reporting Centre, completed an identification of its security risks and completed security assessments of its regional offices and hearings.

The CRTC continued to implement its Human Resources Strategic Plan 2013–16. In 2013–14, a Leadership Development program and Strategic Thinking training were offered, an Innovation and Creativity training program was developed in partnership with the Canada School of Public Service, CRTC employees received training on the subjects of Respect in the Workplace and Values and Ethics, and an Inuit Internship program was developed and implemented.

Finally, the CRTC completed the relocation of its Montreal office in December 2013, and its Regina office was relocated in April 2014.

Section III: Supplementary Information

Financial Statements Highlights

Canadian Radio-television and Telecommunications Commission
Condensed Statement of Operations and Departmental Net Financial Position (unaudited)
For the Year Ended 31 March 2014
(dollars)
2013–14
Planned
Results
2013–14
Actual
2012–13
Actual
Difference (2013–14 actual minus 2013–14 planned) Difference (2013–14 actual minus 2012–13 actual)
Total expenses 63,503,000 60,662,000 63,574,000 -2,841,000 -2,912,000
Total revenues 46,488,000 47,192,000 41,723,000 704,000 5,469,000
Net cost of operations before government funding and transfers 17,015,000 13,470,000 21,851,000 -3,545,000 -8,381,000
Departmental net financial position 1,256,000 -216,000 -3,486,000 1,472,000 -3,270,000

Note: These figures are net departmental revenues and do not include the revenues earned on behalf of the Government which totalled $115.7 million for 2013–14.

Financial Highlights Charts

Revenues

The table presented below provides the percentage by type of Revenue: 71% is Revenue earned on behalf of Government and 29% is Vote-netted revenue.

Total revenues collected were $162.9 million at the end of 2013–14 a net decrease of $1.4 million versus last year's total revenue collected. There was a decrease in CRTC regulatory fees ($3.7 million) related to deferred revenues, an increase in Part II fees ($1.6 million) and an increase in the Do Not Call List administrative monetary penalties and other miscellaneous revenue ($0.7 million).

Expenses

The table presented below provides the percentage by type of Expenses: 78% is Salaries and employee benefits, 17% is Other operating expenses and 5% is Services provided without charge (i.e. accommodation).

Total expenses were $60.7 million at the end of 2013–14, a decrease of $2.9 million versus last year's total expenses.  The decrease is mainly attributable to salaries and employee benefits ($2 million) and to other operating expenses ($0.9 million).

Canadian Radio-television and Telecommunications Commission
Condensed Statement of Financial Position (unaudited)
As at 31 March 2014
(dollars)
2013–14 2012–13 Difference
(2013–14 minus
2012–13)
Total net liabilities 6,538,000 11,065,000 -4,527,000
Total net financial assets 2,766,000 3,859,000 -1,093,000
Departmental net debt 3,772,000 7,206,000 -3,434,000
Total non-financial assets 3,556,000 3,720,000 -164,000
Departmental net financial position -216,000 -3,486,000 -3,270,000

Financial Highlights Charts

Assets

The table presented below provides the percentage by type of Assets: 37% is Due from the Consolidated Revenue Fund (CRF), 7% is Accounts receivable and advances, 3% is Prepaid expenses and 54% is Tangible capital assets.

Total assets were $6.3 million at the end of 2013–14, a net decrease of $1.3 million versus last year's total assets. The decrease is attributable to the amount due from the Consolidated Revenue Fund ($1.4 million), a decrease in Prepaid expenses ($0.1 million), a decrease in the Tangible capital assets ($0.1million) and an increase in Accounts receivable and advances ($0.3 million).

Liabilities

The table presented below provides the percentage by type of Liabilities: 40% is Accounts payable and accrued liabilities, 28% is Vacation pay and compensation leave and 32% is Employee future benefits.

Total liabilities were $6.5 million at the end of 2013–14 a decrease of $4.5 million versus last year's total liabilities. The decrease is attributable to Employee future benefits ($3.3 million),  Account payable and accrued liabilities ($1.1 million) and Vacation pay and compensation leave ($0.1 million).

Financial Statements

Full, unaudited financial statements of the CRTC for 2013–14, including the Statement of Management Responsibility, are available on the CRTC's website.

Supplementary Information Tables

All electronic supplementary information tables listed in the 2013-14 Departmental Performance Report can be found on the CRTC website.

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication. The tax measures presented in the Tax Expenditures and Evaluations publication are the sole responsibility of the Minister of Finance.

Section IV: Organizational Contact Information

CRTC Central Office

Les Terrasses de la Chaudière
Central Building
1 Promenade du Portage
Gatineau, Quebec J8X 4B1

CRTC Telephone

In Canada:
Toll-free: 1-877-249-CRTC (2782)
Toll-free TTY line: 1-877-909-CRTC (2782)

Outside Canada:
819-997-0313
(TTY line): 819-994-0423

Fax
819-994-0218

Appendix: Definitions

appropriation: Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures: Include operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Departmental Performance Report: Reports on an appropriated organization's actual accomplishments against the plans, priorities and expected results set out in the corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in the fall.

full-time equivalent: Is a measure of the extent to which an employee represents a full person-year charge against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

Government of Canada outcomes: A set of 16 high-level objectives defined for the government as a whole, grouped in four spending areas: economic affairs, social affairs, international affairs and government affairs.

Management, Resources and Results Structure: A comprehensive framework that consists of an organization's inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.

non-budgetary expenditures: Include net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance: What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve and how well lessons learned have been identified.

performance indicator: A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting: The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.

planned spending: For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.

plans: The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.

priorities: Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s).

program: A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.

results: An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization's influence.

Program Alignment Architecture: A structured inventory of an organization's programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.

Report on Plans and Priorities: Provides information on the plans and expected performance of appropriated organizations over a three-year period. These reports are tabled in Parliament each spring.

Strategic Outcome: A long-term and enduring benefit to Canadians that is linked to the organization's mandate, vision and core functions.

sunset program: A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.

target: A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

whole-of-government framework: Maps the financial contributions of federal organizations receiving appropriations by aligning their Programs to a set of 16 government-wide, high-level outcome areas, grouped under four spending areas.

Footnotes

Footnote 1

Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the RPP or DPR.

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Footnote 2

Discretionary programming services include all Canadian licensed and exempt services that need not be part of the basic television service, as well as non-Canadian services. Under the pick-and-pay approach, the following services would be required to be part of the basic service and would accordingly not be considered discretionary services: local Canadian conventional television stations, services referenced under paragraph 9(1)(h) of the Broadcasting Act, provincial educational services, community channels and provincial legislature programming services.

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Footnote 3

In 2013–14 the CRTC conducted a thorough Risk Management Exercise and created a TBS compliant Corporate Risk Profile. This content reflects both the new Corporate Risk profile, as well as what was set out in the 2013–14 Report on Plans and Priorities.

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Footnote 4

The strategic outcome in 2011–12 and 2012–13 was: Canadians have access to a wide variety of high-quality, Canadian-produced programming and to reliable, affordable and high-quality telecommunications.

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Footnote 5

Formerly "Canadian Broadcasting" in 2011–12 and 2012–13.

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Footnote 6

Formerly "Canadian Telecommunications" in 2011–12 and 2012–13.

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Footnote 7

Given that the CRTC recently adopted a new PAA, finances at the sub-program level will only be available in 2014–15.

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Footnote 8

The financial information for licensees is collected based on the “broadcast year”: Beginning on September 1 in a calendar year and ending on August 31 of the following calendar year. This financial data is received by the CRTC in November of the given calendar year. Therefore, the 1 September 2013 to 31 August 2014 broadcast year data will only be submitted by licensees in November 2014.

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