Communications Monitoring Report 2014: Appendices

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Appendix 1 Data collection and analysis

Data collection

Statistics Canada collects data under the authority of the Statistics Act, and the CRTC collects data under the authority of the Broadcasting Act and the Telecommunications Act. Statistics Canada uses the data to develop national accounts. The CRTC uses them to monitor the broadcasting and telecommunications industries’ performance and adherence to regulations, as well as the overall effectiveness of the CRTC’s regulatory frameworks. The data are used in the development of policy and regulation by a variety of players. Data collected are used to measure the financial performance of broadcasting and telecommunications service providers and their contributions to the Canadian economy, and to maintain and update the CRTC’s data on the administration of broadcasting and telecommunications fees. Data are collected, to varying degrees, from all broadcasting and telecommunications service providers under the regulation and supervision of the CRTC. These service providers operate private, public, and non-commercial radio, television, and broadcasting distribution services; pay, pay-per-view, video-on-demand, and specialty services; and wireline and wireless telecommunications services.

Broadcasting service providers (also known as broadcasting licensees) and telecommunications service providers (also known as TSPs) complete annual surveys outlining financial and statistical information for each broadcast and calendar year, respectively. The data collected are published in annual financial and statistical summaries of revenues and, in the case of broadcasting licensees, expenditures, such as expenditures on Canadian and international programming. Summaries of broadcasting licensees’ data are prepared and published on the CRTC’s website at http://www.crtc.gc.ca/eng/stats.htm. The data collected are also used to produce the CRTC’s Communications Monitoring Report.

Broadcasting regulations require broadcasting service providers to complete an annual survey. The Telecommunications Act requires providers of telecommunications services to provide data upon request by the CRTC. Both types of service providers access and submit the survey forms electronically using the CRTC’s secure web-based Data Collection System (DCS).

The broadcasting survey covers the 12-month period ending 31 August of each year. All broadcasting service providers have until 30 November to complete and submit their annual survey forms. The telecommunications survey covers the 12-month period ending 31 December of each year. Telecommunications survey forms that request data about facilities and the price of services are launched in January, and the respondents have until 28 February to complete and submit them. The remaining telecommunications survey forms are launched in February, and the respondents have until 30 March to complete and submit them.

As part of the broadcasting survey, commercial radio broadcasters must report on their contributions to Canadian content development (CCD). Broadcasting distribution undertakings (BDUs) must submit information regarding their contributions to the creation and production of Canadian programming. This information enables the CRTC to ensure that broadcasters are complying with their conditions of licence or regulatory requirements in this regard.

As part of the telecommunications survey, the CRTC requires providers of telecommunications services to maintain and update their data on registration lists, and to provide data for the operation of the revenue-based contribution regime and the assessment of telecommunications fees. The total annual revenues from the provision of telecommunications services in Canada are also used to assess the eligibility of carriers to operate as telecommunications common carriers under section 16 of the Telecommunications Act.

Where can I get more details on the CRTC’s data collection process?

More information can be found on the CRTC website at http://www.crtc.gc.ca/eng/dcs/current/dcs2.htm.

Data analysis

The CRTC analyzes the survey data to ensure that the information provided is accurate and complete. Year-over-year comparisons are made to identify any significant or unexplained changes, and the CRTC follows up with respondents as required to resolve or obtain explanations of any anomalies. The CRTC also subjects the data to computerized edits designed to ensure accuracy and internal consistency. When necessary, the CRTC compares reported data with audited financial information. The data or their derivatives (such as average revenues per line or per minute) are also compared with established benchmarks.

The objectives of this analysis are as follows:

Revisions may be made to the data submitted, and to this report, after they are published. These revisions are generally the result of late receipt of data, modifications made by the respondents to previously filed data, or errors detected following data publication. Finally, certain figures published in the Communications Monitoring Report from previous years may be restated for consistency purposes. By way of example, such restatements can result from reclassifications undertaken with a view to better reflect market segments or industry developments. Historically, revisions have generally not had a major impact on the results of the data collection process. All such changes are either indicated by the # symbol appearing beside the revised number or noted in the text below the relevant table or figure.

Most of the tables and figures included in this report are derived from the data submitted via the DCS, while others are derived using data from Statistics Canada and Industry Canada or from other third-party reports. Inconsistencies may arise between data sources, given that the companies surveyed, the definitions used, and the level of detail requested may differ for each source. The data source is therefore identified beneath each table and figure in the report.

Appendix 2 Classification of Canadian TSPs

For the purposes of monitoring and reporting on the state of competition in the telecommunications market sectors, providers of telecommunications services operating in Canada are classified into two broad categories: incumbent providers and alternative providers. The category into which a given provider falls may change from one year to the next as a result of mergers or acquisitions in the industry. For example, if a provider acquires or establishes a company that provides mobile (wireless) service, the wireless company takes the same classification as the parent provider. Companies providing telecommunications services are classified according to the structure set out below.

  1. Incumbent providers are the companies that provided local telecommunications services on a monopoly basis prior to the introduction of competition. For the purposes of this report, these companies’ operations outside their traditional operating territories are included in the “alternative providers” category. Incumbent providers are subdivided into large and small providers.
    1. Large incumbent providers serve relatively large geographical areas, usually including both rural and urban populations, and provide wireline voice, Internet, data and private line, wireless, and other services. The large incumbent providers are Bell Aliant Regional Communications, Limited Partnership; Bell Canada; MTS Inc.; Northwestel Inc., Saskatchewan Telecommunications; Télébec, Limited Partnership; and TELUS Communications Company.
    2. Small incumbent providers serve relatively small geographical areas (mostly municipal areas generally located in less densely populated regions) in Ontario, Quebec, and, in one instance, British Columbia. Due to the limited size of their serving areas, these companies do not typically provide facilities-based long distance services. However, they provide a range of wireline voice, Internet, data and private line, and wireless services. Examples of small incumbent providers are Lansdowne Rural Telephone Co. Ltd. in Ontario and Sogetel inc. in Quebec.
  2. Alternative providers are either: i) providers of telecommunications services that are not incumbent providers as described in 1) above; or ii) incumbent providers conducting out-of-territory operations, such as Bell Canada conducting operations in Alberta and British Columbia or Allstream Inc., an affiliate of MTS Inc., conducting operations across Canada. Alternative providers are subdivided into facilities-based and non-facilities-based providers.
    1. Facilities-based alternative providers own and operate telecommunications networks. This group is further subdivided into facilities-based incumbent providers (out-of-territory) and facilities-based non-incumbent providers.

      Facilities-based non-incumbent providers are further subdivided into cable-based carriers, utility telcos, and other carriers.
      • Cable-based carriers are the former cable monopolies that also provide telecommunications services (e.g. wireline voice, Internet, data and private line, and wireless services). These providers include such companies as Bragg Communications Inc., Cogeco Cable Inc., Rogers Communications Partnership, Shaw Cablesystems Limited, and Videotron G.P.
      • Utility telcos are providers of telecommunications services whose market entry, or whose corporate group’s market entry, into telecommunications services was preceded by a group-member company’s operations in the electricity, gas, or other utility business.
      • Other carriers own physical transmission facilities (e.g. intercity, intra-city, or local transmission facilities). These service providers include such companies as Xplornet Communications Inc.
    2. Non-facilities-based alternative providers do not own or operate a telecommunications network. These companies are referred to as resellers, since they generally acquire telecommunications services from other providers and either resell those services or create their own network from which to provide services to their customers. Examples of non-facilities-based alternative providers are Distributel Communications Limited, Primus Telecommunications Canada Inc., Yak Communications (Canada) Corp., and independent Internet service providers.

Appendix 3 Status of local forbearance – Residential and business exchanges
(as of 31 December 2013)

Major centre Number of local exchanges Number of forborne exchanges Percentage of exchanges forborne
Residential Business Residential Business
British Columbia
Vancouver 19 18 18 95 95
Victoria 4 3 3 75 75
Remaining exchanges 259 81 67 31 26
Provincial total 282 102 88 36 31
Alberta
Calgary 8 5 3 63 38
Edmonton 27 15 11 56 41
Remaining exchanges 303 53 40 17 13
Provincial total 338 73 54 22 16
Saskatchewan
Saskatoon 10 1 1 10 10
Regina 5 1 0 20 0
Remaining exchanges 214 8 3 4 1
Provincial total 229 10 4 4 2
Manitoba
Winnipeg 14 1 1 7 7
Remaining exchanges 230 9 2 4 1
Provincial total 244 10 3 4 1
Ontario
Toronto 50 47 20 94 40
Ottawa/Gatineau 28 19 3 68 11
Hamilton 12 10 5 83 42
London 16 12 1 75 6
Kitchener 8 8 2 100 25
St. Catharines/Niagara 13 7 2 54 15
Windsor 11 4 2 36 18
Oshawa 8 7 2 88 25
Remaining exchanges 531 115 31 22 6
Provincial total 677 229 68 34 10
Quebec
Montréal 40 40 11 100 28
Québec 17 12 4 71 24
Remaining exchanges 518 135 52 26 10
Provincial total 575 187 67 33 11
New Brunswick
Fredericton 2 2 2 100 100
Remaining exchanges 86 27 55 31 64
Provincial total 88 29 57 33 65
Nova Scotia
Halifax 16 7 8 44 50
Remaining exchanges 131 46 54 35 41
Provincial total 147 53 62 36 42
Prince Edward Island
Charlottetown 4 1 1 25 25
Remaining exchanges 22 10 13 45 59
Provincial total 26 11 14 42 54
Newfoundland & Labrador
St. John’s 6 3 5 50 83
Remaining exchanges 206 13 53 6 26
Provincial total 212 16 58 8 27
All provinces 2,818 720 475 26 17

Source: CRTC data collection

No exchanges have been forborne from regulation in Yukon, the Northwest Territories, or Nunavut.

Appendix 4 Rural communities included in service price assessment

In 2013, approximately 19% of Canadians lived in rural communities. To assess the price of communications services for this segment of the population, 54 rural communities were selected. These communities represented 3% of Canadians living in rural communities and were selected based on the following criteria:

Table A.4.1
List of rural communities

Province Community
British Columbia Barriere
Bowser
Cobble Hill
Hazelton
Kaslo
Keremeos
Thrums
Alberta Cremona
Evansburg
Glendon
Hythe
Wabasca
Saskatchewan Broadview
Gull Lake
Naicam
Redvers
Spiritwood
Manitoba Ashern
La Broquerie
Norway House
Pine Falls
Southport
Ontario Bayfield
Ripley
Bancroft
Echo Bay
Emsdale
Ingleside
Lion's Head
Quebec L'Islet
La Guadeloupe
Lac-Des-Écorces
New Carlisle
Laterrière
Rock Island
Saint-Honoré (Témiscouata)
New Brunswick Cap-Pelé
Florenceville
Lamèque
Prince Edward Island Crapaud
Hunter River
Morell-St. Peters
Nova Scotia Bear River
Mahone Bay
Wedgeport
Newfoundland and Labrador Burin
Harbour Main
New Harbour
Territory Community
Yukon Dawson City
Mayo
Northwest Territories Fort Simpson
Fort Smith
Nunavut Cape Dorset
Igloolik

Table A.4.2
List of urban centres

Province Urban centre
British Columbia Vancouver
Victoria
Alberta Calgary
Edmonton
Saskatchewan Saskatoon
Regina
Manitoba Winnipeg
Ontario Toronto
Ottawa – Gatineau
Hamilton
London
Kitchener – Waterloo
St. Catharines – Niagara
Windsor
Oshawa
Quebec Montréal
Québec
New Brunswick Fredericton
Prince Edward Island Charlottetown
Nova Scotia Halifax
Newfoundland and Labrador St. John's
Territory Community
Yukon Whitehorse
Northwest Territories Yellowknife
Nunavut Iqaluit

Major centre boundaries are defined using Statistics Canada’s census metropolitan area and census agglomeration definitions.

Appendix 5 Telecommunications market sector description

A) Wireline voice

Wireline voice-related telecommunications services can be divided into two broad market segments: (i) local and access services, and (ii) long distance services.

i) Local and access services

The local and access segment is composed of wireline services relating to access and connectivity to the public switched telephone network (PSTN), and includes services used by both retail and wholesale customers.

Local wireline telephone service enables customers to place unlimited calls within a defined local calling area for a basic monthly fee. This service is either access-dependent or access-independent. Access-dependent service includes managed wireline access from the telecommunications service provider to the customer, a connection to the PSTN, and a telephone number. Access-independent service does not include the managed wireline access component. Customers of access-independent service must subscribe to broadband Internet service, which serves as the access component.

Local wireline telephone service includes automated call answering, business Centrex, and Integrated Services Digital Network (ISDN) services, as well as other ancillary services such as inside wiring, installation and repair, teleconferencing, and miscellaneous local services.

Local and access services include (a) local services provided to other providers of telecommunications services on a wholesale basis, and (b) access services for interconnection between carriers and other service providers, including switching and aggregation.

ii) Long distance services

Retail long distance services encompass wireline voice traffic to locations outside the local calling area. These services are sold in a variety of ways, such as through a standard per-minute charge, a monthly subscription plan, calling cards, or a bundle with other services.

Wholesale long distance services are provided (a) under connection arrangements between a facilities-based telecommunications service provider and a long distance service provider to transit long distance minutes, or (b) on a wholesale, bulk, long-distance-minute basis by facilities-based telecommunications service providers to resellers of long distance services.

B) Internet

Internet-related telecommunications services can be divided into two broad market segments: (i) Internet access and transport, and (ii) Internet applications and other Internet-related services.

i) Internet access and transport

Internet access service involves the provision of an Internet Protocol connection to an end-user, which enables the end-user to exchange application traffic with Internet hosts and other end-users. Internet access service consists of the following three major components:

  1. a data connection between a modem at the end-user’s location (such as a residential dwelling) and the Internet service provider (ISP);
  2. ISP facilities, which include
    • routers, to switch traffic between ISP end-users and the Internet at large;
    • servers, to provide in-house ISP services, such as email; and
    • network management elements; and
  3. a connection from the ISP to the Internet.

Internet access services are available at a variety of speeds. Low-speed, or narrowband, access services operate at speeds of up to 64 kilobits per second and are typically provided using dial-up access lines. High-speed access services, including wideband [up to 1.5 megabits per second (Mbps)] and broadband (faster than 1.5 Mbps), generally operate using digital subscriber line (DSL) technologies, coaxial cables, terrestrial wireless technologies, satellites, or fibre-optic cables.

Internet transport service is a type of Internet connectivity service typically sold to ISPs and some larger business customers. Internet transport capacity is provided over Internet backbone facilities that carry aggregated traffic across domestic and international links between Internet traffic switches or routers. Internet transport service provides partial control over the movement of customers’ Internet traffic. In some cases, peering arrangements between Internet backbone service providers substitute for the outright purchase of Internet transport by one ISP from another.

ii) Internet applications and other Internet-related services

A growing number of Internet application services, including email and Web hosting, piggyback on Internet connectivity services. Internet application services are typically bundled together with Internet access services. However, telecommunications service providers also participate in emerging stand-alone business Internet application service markets, which include services such as premium Web hosting services, Internet data centre and off-site data storage services, and security and firewall services.

C) Data and private line

Data services include managed local area network (LAN) and wide area network (WAN) services for data, video, and voice networks within a metropolitan area or on a national or international scale. Data services include legacy protocols such as X.25 (packet switched WAN communication), Asynchronous Transfer Mode (ATM), and frame relay; newer protocols such as Ethernet and Internet Protocol-Virtual Private Network (IP-VPN); and the provisioning and management of networks and related equipment.

Private line services provide the capability to link two or more locations over dedicated facilities for the purpose of transporting data, video, or voice traffic. These services include high-capacity digital transmission services (at speeds ranging up to gigabit speeds over fibre), as well as voice-grade and other analogue services. Transmission facilities for private line services include copper wire, fibre-optic cable, and satellite facilities.

D) Wireless

Wireless services are composed of telecommunications services provided via mobile wireless access facilities. These services include mobile telephony, mobile data (such as text and multimedia messaging), roaming, wireless Internet access, and paging services. Data and private line services by satellite are included in the “Data and private line” section of this report, while mobile telephone services are included in the “Wireless” section of this report.

In addition to enabling voice communications over wireless networks, new wireless technologies are enabling users to send text messages and multimedia messages, including photos, graphics, videos, and audio clips, from one device to another and from one carrier to another. Data usage is expected to continue to grow as existing and new carriers forge network agreements and expand and upgrade their networks, and as terminal equipment makers introduce new devices.

Appendix 6 List of acronyms used in the report

ARPU
average revenue per user
ASC
Advertising Standards Canada
ATM
asynchronous transfer mode
AWS
advanced wireless service
BBM
Bureau of Broadcasting Measurement
BDU
broadcasting distribution undertaking
BRS
Broadband Radio Service
CAB
Canadian Association of Broadcasters
CAGR
compound annual growth rate
capex
capital expenditure
CBC/SRC
Canadian Broadcasting Corporation/Société Radio-Canada
CBSC
Canadian Broadcast Standards Council
CCD
Canadian Content Development
CCTS
Commissioner for Complaints for Telecommunications Services Inc.
CMF
Canadian Media Fund
CPE
Canadian programming expenditures
CPI
Consumer Price Index
CRTC, the Commission
Canadian Radio-television and Telecommunications Commission
CTD
Canadian Talent Development
CTF
Canadian Television Fund
DCS
Data collection system
DNCL
Do Not Call List
DSL
digital subscriber line
DTH
direct-to-home
EBITDA
earnings before interest, taxes, depreciation and amortization
FTTH
fibre-to-the-home
FTTN
fibre-to-the-node
GB
gigabyte
HD
high definition
HSDS
high-speed digital service
HSPA
high-speed packet access
HSPA+
evolved high-speed packet access
ICT
Information and communications technology
ID
identification
IP
Internet Protocol
IPTV
Internet Protocol television
IP-VPN
Internet Protocol – virtual private network
ISDN
integrated services digital network
ISP
Internet service provider
Kbps
kilobits per second
LAN
local area network
LPIF
Local programming improvement fund
LTE
long-term evolution
Mbps
megabits per second
MDS
multipoint distribution service
MMS
multimedia messaging service
MTM
Media Technology Monitor
MVNO
mobile virtual network operator
n/a
not available
NAS
Network access service
OECD
Organisation for Economic Co‑operation and Development
PBIT
profit before interest and taxes
PBX
private branch exchange
PNI
programs of national interest
PPM
portable people meter
PPV
pay-per-view
PSTN
public switched telephone network
RDU
radiocommunication distribution undertaking
SD
standard definition
SMS
short message service
SRDU
satellite relay distribution undertaking
TPI
telephone price index
TPIA
third-party Internet access
TSP
telecommunications service provider
TTY
teletypewriter
VOD
video-on-demand
VoIP
voice over Internet Protocol
WAN
wide area network
WSP
wireless service provider
3G
third-generation
4G
fourth-generation

Appendix 7 Circulars, decisions, public notices, orders, notice of consultation, and regulatory policies referenced in the report

Circular No. 404
Requirements for the Filing of Financial Statements with the Broadcasting Annual Return, Circular  No. 404, 23 August 1994
Broadcasting Decision 2010-782
Change in the effective control of Canwest Global Communications Corp.’s licensed broadcasting subsidiaries, Broadcasting Decision CRTC 2010-782, 22 October 2010
Broadcasting Decision CRTC 2010-942
Transfer of effective control of various commercial radio programming undertakings from Corus Entertainment Inc. to Cogeco inc., Broadcasting Decision CRTC 2010-942, 17 December 2010
Broadcasting Decision CRTC 2011-163
Change in effective control of CTVglobemedia Inc.’s licensed broadcasting subsidiaries, Broadcasting Decision CRTC 2011-163, 7 March 2011
Broadcasting Decision CRTC 2012-394
Global News Plus BC – Specialty Category B service, Broadcasting Decision CRTC 2012-394, 20 July 2012
Broadcasting Decision 2013-207
The Score – Change in effective control and licence renewal and amendment, Broadcasting Decision CRTC 2013-207, 30 April 2013
Broadcasting Decision 2013-283
TVtropolis – Acquisition of assets, Broadcasting Decision RTC 2013-283, 11 June 2013
Broadcasting Decision 2013-310
Astral broadcasting undertakings – Change of effective control, Broadcasting Decision CRTC 2013-310, 27 June 2013
Broadcasting Decision 2013-530
CityNews Channel (formerly known as CITY News (Toronto)) – Revocation of licence, Broadcasting Decision CRTC 2013-310, 1 October 2013
Broadcasting Decision 2013-737
TELETOON/TÉLÉTOON, TELETOON Retro, TÉLÉTOON Rétro and Cartoon Network – Change of effective control; TELETOON/TÉLÉTOON, TELETOON Retro and TÉLÉTOON Rétro – Licence renewal and amendment, Broadcasting Decision CRTC 2013-373, 20 December 2013
Broadcasting Decision 2013-738
Historia and Séries+ – Acquisition of assets and change in effective control Broadcasting Decision CRTC 2013-738, 20 December 2013
Broadcasting Order 2011-60
Exemption order for small video-on-demand undertakings, Broadcasting Order CRTC 2011-60, 31 January 2011
Broadcasting Public Notice 2006-143
Exemption order respecting certain network operations, Broadcasting Public Notice CRTC 2006-143, 10 November 2006

Appendix 8 List of Canadian companies referenced in the report

Access Communications
Access Communications Co-operative Limited
Allstream
Allstream Inc.
Astral
Astral Media Inc.
Atria
Atria Networks L.P.
BCE
Bell Canada Enterprises
Bell Aliant
Bell Aliant Regional Communications, Limited Partnership
Bell Canada
Bell Canada
Bell Group
Bell Canada; Bell Mobility Inc.; Latitude Wireless Inc.; NorthernTel, Limited Partnership; Northwestel Mobility Inc.; SkyTerra (Canada) Inc.; SkyTerra Corp.; Télébec, Limited Partnership; and Virgin Mobile Canada
Bell Mobility
Bell Mobility Inc.
Bragg
Bragg Communications Inc.
Canwest
Canwest Media Inc.
CBC
Canadian Broadcasting Corporation
Cogeco
Cogeco Canada L.P., Cogeco Câble Québec s.e.n.c. and Cogeco Inc.
Corus
Corus Entertainment Inc.
Crossroads
Crossroads Television System
CTV
CTV Inc. (CTVglobemedia Inc., CTV Inc., CTV Limited, and CTV Corp. amalgamated on 15 March 2011 as CTV Inc.)
Distributel
Distributel Communications Limited
EastLink
EastLink
Hydro One
Hydro One Telecom Inc.
Latitude Wireless
Latitude Wireless Inc.
MTS
MTS Inc.
NorthernTel
NorthernTel, Limited Partnership
Northwestel
Northwestel Inc.
Northwestel Mobility
Northwestel Mobility Inc.
Quebecor
Quebecor Media Inc.
Primus
Primus Telecommunications Canada Inc.
Remstar
Remstar (V)
Rogers
Rogers Broadcasting Limited, Rogers Cable Communications Inc., Rogers Communications Inc. and Rogers Wireless Inc.
SaskTel
Saskatchewan Telecommunications
Shaw
Shaw Communications Inc.
SkyTerra
SkyTerra (Canada) Inc. and SkyTerra Corp.
SRC
Société Radio-Canada
Star Choice
Star Choice Television Network Incorporated
TBayTel
TBayTel
TCC
TELUS Communications Company
Télébec
Télébec, Limited Partnership
Télé-Québec
Télé-Québec
Videotron
Videotron Ltd.
Virgin Mobile
Virgin Mobile Canada
WIND
WIND Mobile
Xplornet
Xplornet Communications Inc.
Yak
YAK Communications (Canada) Corp.

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