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Privacy and Security
Transparency

2.0 The CRTC, policies, and regulation

2.3 Diversity and social issues

Part 1 - Broadcasting

For the purposes of this report, the Commission's key social policy objectives can be described under four general headings: (i) diversity, (ii) official languages, (iii) accessibility and (iv) programming standards.

(i) Diversity

The Commission's objective with regard to diversity is to ensure that all broadcasters contribute to a system that accurately reflects the presence in Canada of ethnocultural minorities, Aboriginal peoples, and persons with disabilities. Consistent with subparagraph 3(1)(d)(iii) of the Broadcasting Act, the Canadian broadcasting system should

through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of Aboriginal peoples within that society.

The Commission's diversity objectives, as they pertain to the Canadian broadcasting system, require

• that the broadcasting system should be a mirror in which all Canadians can see themselves; and
• that the broadcasting system should be one in which producers, writers, technicians, and artists from different cultural and social perspectives have the opportunity to create a variety of programming and to develop their skills.¹⁷

The Commission's objectives are to ensure

• the accurate reflection of the presence (i.e. "who we see" and "who we hear") of ethnocultural minorities, Aboriginal peoples, and persons with disabilities; and
• the accurate, fair, and non-stereotypical portrayal (i.e. "how we see" and "how we hear") of such groups.

The Commission is achieving its objectives by licensing services that target specific communities and through expectations with regard to private broadcasters and the national broadcaster, the Canadian Broadcasting Corporation (CBC).

Broadcasting services and community needs

The Commission continues to license services dedicated to serving specific communities such as

• conventional ethnic radio and television services;
• ethnic specialty and pay services;
• Native radio and television undertakings; and
• The Aboriginal Peoples Television Network.

The Commission authorizes non-Canadian, third-language services for distribution in Canada, subject to certain criteria. In December 2004, the Commission issued Broadcasting Public Notice 2004-96,¹⁸ which announced a revised approach to the assessment of requests to add non-Canadian third-language television services to the lists of eligible satellite services for distribution on a digital basis. The revised policy, which established a more open-entry approach to the authorization of non-Canadian third-language general interest services, puts a greater emphasis on expanding the diversity and choice in television services available to underserved third-language ethnic communities in Canada.

Subsequently, in Broadcasting Public Notice 2005-104,¹⁹ the Commission established an open-entry approach for general interest third-language ethnic Category 2 pay and specialty services. To expand the diversity and range of services available to underserved communities, the Commission issued Broadcasting Public Notice 2007-33,²⁰ an exemption order that exempts from regulation certain third-language television undertakings, provided they meet the terms of the exemption order.

Persons with disabilities

In Broadcasting Public Notice 2004-2,²¹ the Commission called upon CAB to examine issues surrounding the presence, portrayal, and participation of persons with disabilities in television programming. The CAB submitted its final report in September 2005. Entitled, The Presence, Portrayal and Participation of Persons with Disabilities in Television Programming, the report included the results of a three-part qualitative research project on the state of the presence, portrayal, and participation of persons with disabilities on Canada's privately-owned television services, as well as proposed initiatives, tools, and recommendations for both the CAB, its members, and its industry partners. On 19 June 2006, the Commission issued Broadcasting Public Notice 2006-77, in response to the CAB's final report.²² The Commission concluded that it expects progress to be made by both the CAB and broadcasters in addressing the key gaps identified in the research. It expects to see progress in licensees' annual reports on cultural diversity in the following areas:

• increasing knowledge of the needs and abilities of persons with disabilities at all corporate levels;
• implementing measures to increase the presence and participation of persons with disabilities, both on-air and behind the camera, in terms of access and accommodation; and
• participating in community outreach initiatives involving persons with disabilities and disability organizations.²³

Cultural diversity corporate plans and annual reports

The Commission requires broadcasters to describe their plans and activities with respect to the equitable employment and on-air representation of the four designated groups: visible minorities, Aboriginal persons, women, and persons with disabilities.

In July 2004, the Task Force for Cultural Diversity on Television (the Task Force), which was formed by the CAB in 2001, published an extensive report.²⁴ The report includes the results of a landmark quantitative and qualitative study of the state of representation on private Canadian television as well as a recommended set of best practices and industry initiatives.

The Commission issued its response to the report in Broadcasting Public Notice 2005-24.²⁵ The Commission stated that, in addition to overall improvements in the representation and reflection of ethnocultural diversity on television, it expected progress to be made by broadcasters in addressing the key gaps identified by the research, namely

• the virtual absence of Aboriginal peoples in all genres of programming;
• the significant under-representation of Asian Canadians in all genres of programming; and
• the lack of visible minorities and Aboriginal peoples in French-language news, in lead roles in English-language news programming, and in primary roles in English-language drama.

The Commission stated that it expected the CAB to report annually on its progress in implementing the industry initiatives recommended by the Task Force. The CAB filed its fourth annual report on diversity on 30 January 2009.

Television broadcasters

Since August 2001, the Commission has required television licensees to develop and file detailed corporate plans that include specific commitments to corporate accountability, the reflection of diversity in programming, and the solicitation of effective feedback from viewers.²⁶ As a key tool for monitoring progress in this respect, the Commission also requires television licensees to file annual reports outlining progress made to achieve the stated goals and any new initiatives undertaken.

Radio broadcasters

In November 2007, the Commission followed up on the Commercial Radio Policy 2006 by establishing reporting requirements on cultural diversity for commercial radio operators²⁷ and approving the CAB's best practices for diversity in radio. Like television licensees, large radio operators (with revenues above $50 million) are required to report annually to the Commission, starting 31 January 2009. Medium-sized radio operators (with revenues between $20 million and $50 million) are required to report every five years starting 2 November 2012. Small radio operators (with revenues below $20 million) are exempt from reporting but should be prepared to describe their efforts in implementing the CAB's best practices at the time of their licence renewal.

Diversity of voices

As stated in Broadcasting Public Notice 2008-4 (Diversity of voices), the Commission considers that the concept of "diversity" in the Canadian broadcasting system should be approached at three distinct levels: diversity of elements, plurality of editorial voices within the private element, and diversity of programming.²⁸ In Diversity of voices, the Commission established an approach that will preserve the plurality of editorial voices and the diversity of programming available to Canadians, both locally and nationally, while allowing for a strong and competitive industry. The Commission introduced new policies with regard to cross-media ownership; the common ownership of television services, including pay and specialty services; and the common ownership of BDUs. The Commission's existing policies with respect to the common ownership of conventional television and radio undertakings remain in effect.

In addition, in Broadcasting Public Notice 2008-5,²⁹ the Commission conditionally approved the Journalistic Independence Code proposed by the Canadian Broadcast Standards Council (CBSC). The Commission directed the CBSC to include a minimum number of journalists on the panels that study complaints and to formalize the process used to select panel members. The CBSC did so, resulting in the Commission's final approval of the Journalistic Independence Code in Broadcasting Public Notice 2008-95, to which the final version of the Code is appended.³⁰ The principles set out in the Code will ensure a diversity of professional editorial voices and will eventually apply to all broadcasters who own a newspaper in the same market.

The national broadcaster

As the national broadcaster, the CBC, pursuant to paragraph 3(1)(l) of the Broadcasting Act, is required to provide radio and television services incorporating a wide range of programming that informs, enlightens, and entertains. Paragraph 3(1)(m) of the Broadcasting Act states that the CBC's programming should

i. be predominantly and distinctively Canadian,
ii. reflect Canada and its regions to national and regional audiences, while serving the special needs of those regions,
iii. actively contribute to the flow and exchange of cultural expression,
iv. be in English and in French, reflecting the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities,
v. strive to be of equivalent quality in English and French,
vi. contribute to shared national consciousness and identity,
vii. be made available throughout Canada by the most appropriate and efficient means and as resources become available for the purpose, and
viii. reflect the multicultural and multiracial nature of Canada.

The Commission requires that the CBC include in its annual reports a description of how it is fulfilling its commitment to more adequately reflect the multicultural and multiracial nature of Canada and the special place of Aboriginal peoples, and to balance on-air representation of racial and cultural minority groups and Aboriginal peoples in a manner that realistically reflects their participation in Canadian society and that help to counteract negative stereotypes.³¹

(ii) Official languages

The Broadcasting Act recognizes that "English and French language broadcasting, while sharing common aspects, operate under different conditions and may have different requirements." The Broadcasting Act requires that "a range of broadcasting services in English and in French shall be extended to all Canadians as resources become available" and also requires that CBC programming "reflect the different needs and circumstances of each official language community, including the particular needs and circumstances of English and French linguistic minorities" so as "to be of equivalent quality in English and in French."

Pursuant to section 41 of the Official Languages Act (OLA), the Commission has the responsibility to take positive measures to enhance the vitality of the Anglophone and Francophone linguistic minority communities in Canada and support and assist their development as well as foster the full recognition and use of both English and French in Canadian society. In addition, because the Commission is a designated agency under section 41 of the OLA, it files a three-year plan to implement section 41 of the OLA and an annual achievement report. The Commission intends to continue its efforts, within the limits of its mandate, in promoting linguistic duality and in strengthening the vitality and fostering the development of the English- and French-language minority communities in Canada.

To this end, the Commission has created a discussion group with representatives of official language minority communities (OLMCs) associations and organizations. The group's mandate is to provide a forum in which the CRTC and OLMCs can identify ways to maximize OLMCs' participation in CRTC public proceedings and ensure that their realities are taken into account in the Commission's decisions. More specifically, these meetings provide opportunities to discuss trends in the areas of broadcasting and telecommunications, inform communities about the Commission's public proceedings that are of interest to them, and discuss tools and methods for improving their interventions at public hearings.³²

The CRTC Action Plan 2008-2011 also anticipates awareness and training activities, as well as communication, liaison and coordination, and reporting activities.

On 30 March 2009, the Commission released a report to the Governor in Council on English- and French-language broadcasting services in Anglophone and Francophone linguistic minority communities in Canada. In this report,³³ the Commission examined the television, radio, and new media services available within the Canadian broadcasting system to

• determine whether official-language minority communities have access to an appropriate and equitable number of quality services;
• establish whether those communities are adequately represented in the programming of these services;
• identify deficiencies and challenges related to access to these services and the representation of the communities in their programming; and
• discuss proposed measures for addressing these deficiencies and meeting these challenges.

The Commission concluded that official-language minority communities have appropriate access to television services. The Commission determined that the CBC and community radio stations play a most important role in official-language minority communities. The Commission found that community reflection in the programming of the services available in the Canadian broadcasting system can be improved.

Among other things, the Commission determines that, in the medium and long term, the new media represent the best solution for ensuring access to a maximum number of services and for allowing a better reflection of official-language minority communities within the Canadian broadcasting system. The Commission is of the view that in order to bring together all Canadians from their local communities, it is important that broadcasting content that represents them be available via new media.

(iii) Accessibility

Paragraph 3(1)(p) of the Broadcasting Act states that "programming accessible by disabled persons should be provided within the Canadian broadcasting system as resources become available for the purpose." The Commission considers that improved accessibility to television service is clearly a key tool for social integration. Television is an essential source of information for Canadians, enabling them to involve themselves knowledgeably and effectively in Canadian society. As a vehicle for entertainment, television also allows Canadians to participate in a shared culture and shared social values.

a) Access for persons who are deaf or hard of hearing

Access for persons who are deaf or hard of hearing is provided through closed captioning.³⁴ In Broadcasting Public Notice 2007-54,³⁵ the Commission established a new policy with respect to closed captioning, which requires television broadcasters to caption 100% of their programs over the broadcast day. Recognizing that 100% error-free captioning requirement is impossible, largely due to technical and/or human error, the 100% requirement is subject to exceptions that take into account instances of equipment/technical malfunctions and human errors that are beyond the broadcaster's control, or exceptional circumstances beyond the broadcaster's control where captioning may not be available but not patterns of such malfunctions and errors.

As noted in Broadcasting Public Notice 2007-54, the underlying rationale of the new policy applies to all broadcasters, including educational broadcasters and specialty, pay, pay-per-view (PPV) and video-on-demand (VOD) services. Accordingly, the Commission will discuss the application of this policy to such undertakings at the time of their license renewals.

Recognizing that the quality of captioning is a growing concern, in Broadcasting Public Notice 2007-54, the Commission also stated its expectation that broadcasters focus on improving the quality, reliability, and accuracy of closed captioning, and work with representatives of the deaf and hard of hearing communities to develop and implement measures to improve the quality of closed captioning, including the development of universal standards in English and French. The Commission also called upon the industry to establish working groups in each of the English- and French-language markets to develop and implement universal standards and to propose and implement concrete solutions with respect to other aspects of captioning quality, including mechanisms aimed at reducing errors and technical malfunctions.

On 7 December 2007, the CAB submitted its Action Plan for Closed Captioning, which included the proposed membership of the English- and French-language working groups. The Commission approved the plan on 28 February 2008. Initial results of the working groups were filed with the Commission in December 2008, forming part of the record of the Accessibility Proceeding (described below). The Commission will comment on the working groups' activities as part of its decision arising from the Accessibility proceeding, expected in the summer of 2009.

b) Access for persons who are blind or whose vision is impaired

Access for blind or visually impaired persons is provided through audio description³⁶ and video description³⁷ (described video programming). The Commission expects licensees to provide audio description wherever appropriate.

Broadcasters

Broadcasters are generally expected to broadcast described versions of their programming wherever available. In addition, the Commission imposes conditions of licence on individual broadcasters at the time of licence renewal or upon initial licensing.

Distributors

In Broadcasting Public Notice 2005-18,³⁸ the Commission reminded Class 1 cable operators and direct-to-home (DTH) providers of their obligation to pass through all described video programming being provided to them by programming services. In Broadcasting Public Notice 2006-6,³⁹ the Commission stated that, while Class 2, Class 3 and exempt BDUs are required to pass through video description of all programming services on a digital basis, it would be prepared to relieve exempt BDUs and certain Class 2 and Class 3 BDUs of the requirement to pass through video description on an analogue basis. The Commission also stated that it finds it appropriate to relieve multi-point distribution sservice (MDS) BDUs of the pass through requirements due to difficulties experienced in the existing competitive environment. The Commission is monitoring the activities of Class 1 and DTH BDUs to assess the extent to which these BDUs are passing description through to their subscribers.

National reading services

VoicePrint and La Magnétothèque are national reading services that were licensed in 1990 to provide programming of benefit to persons who are blind, whose vision is impaired, or who are print-restricted. These services provide full-text reading of stories, information, news and features published by a variety of newspapers, magazines, and periodicals. VoicePrint has mandatory carriage in English-language markets pursuant to an order issued under paragraph 9(1)(h) of the Broadcasting Act.⁴⁰ Cable companies distributing VoicePrint on an analogue basis distribute it on CBC Newsworld's SAP channel. MDS licensees, DTH satellite distributors, and cable companies distributing VoicePrint on a digital basis distribute it on an audio channel located near a CBC channel.

La Magnétothèque is provided by cable undertakings as background audio on alphanumeric channels or as audio services on audio channels of their undertakings. It is also offered to FM radio station licensees for broadcast on Subsidiary Communications Multiplex Operation (SCMO) channels.

In Broadcasting Decision 2007-246,⁴¹ the Commission approved the licensing and mandatory distribution of The Accessible Channel, a national, English-language, digital specialty described video television service that will provide 100% of its programming in open format described video.

c) The Accessibility Proceeding

On 10 June 2008, the Commission issued Broadcasting Notice of Public Hearing 2008-8/ Telecom Public Notice 2008-8, initiating a proceeding to address unresolved issues relating to the accessibility of telecommunications and broadcasting services to persons with disabilities. The oral phase of this proceeding took place in November 2008. The Commission expects to issue its decision on the Accessibility Proceeding in the summer of 2009.

(iv) Programming standards

The Commission is required, pursuant to subsection 5(1) of the Broadcasting Act, to regulate and supervise the Canadian broadcasting system with a view to implementing the broadcasting policy set out in subsection 3(1) of the Broadcasting Act. Subsection 3(1) sets out an extensive declaration of the broadcasting policy for Canada and lists a number of policy objectives that address programming standards. Subparagraph 3(1)(d)(i) states that the Canadian broadcasting system should "serve to safeguard, enrich and strengthen the cultural, political, social and economic fabric of Canada." Subparagraph 3(1)(d)(ii) states that the Canadian broadcasting system should "encourage the development of Canadian expression by providing a wide range of programming that reflects Canadian attitudes, opinions, ideas, values and artistic creativity." Subparagraph 3(1)(d)(iii) states that the Canadian broadcasting system should, through its programming and employment opportunities arising out of its operations, "serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights." Paragraph 3(1)(g) states that "the programming originated by broadcasting undertakings should be of high standard."

a) Policy achievement

The Commission balances the achievement of the broadcasting policy against the requirement to apply the Broadcasting Act in a manner consistent with freedom of expression and the journalistic, creative, and programming independence enjoyed by broadcasting undertakings, as set out in subsection 2(3). Paragraph 3(1)(h) of the Broadcasting Act states that the broadcasters themselves "have a responsibility for the programs they broadcast."

b) Standards

A key mechanism for achieving these objectives is through self-regulation. The industry must abide by the following industry codes,⁴² some of which apply as a result of the Commission's regulations, some by condition of licence, and some as a result of membership in the CBSC or the Advertising Standards Canada (ASC):⁴³

• ASC Canadian Code of Advertising Standards
• Broadcast Code for Advertising to Children
• Cable Television Community Channel Standards
• Cable Television Customer Service Standards
• CAB Code of Ethics
• CAB Equitable Portrayal Code ⁴⁴
• CAB Violence Code ⁴⁵
• CBC Guidelines on Sex-Role Portrayal
• Code for Broadcast Advertising of Alcoholic Beverages
• Industry Code of Programming Standards and Practices Governing Pay, PPV, and VOD Services
• Pay Television and PPV Programming Code Regarding Violence
• Radio-Television News Directors Association of Canada (RTNDA Canada) Code of (Journalistic) Ethics
• Journalistic Independence Code

The Commission has indicated its expectation that any discretionary service broadcasting adult programming adhere to the adult programming provisions contained in Industry code of programming standards and practices governing pay, pay-per-view and video-on-demand services.⁴⁶ The code includes a comprehensive section specifically addressing adult programming. This section provides clear guidance for broadcasters regarding the classification and scheduling of adult films. Furthermore, the Commission expects all licensees that distribute adult programming to develop internal policies for the broadcast of adult programming to be submitted at the time of licensing, licence renewal, or in the event of a complaint.

In Broadcasting Public Notice 2005-24, the Commission directed the CAB to review its broadcasting industry codes to determine whether they address concerns identified in the research findings regarding reflection and portrayal. The CAB did so in 2005 and concluded that a new code would be developed to establish industry standards for the portrayal of ethnocultural groups, Aboriginal peoples and persons with disabilities. The CAB submitted its revised Equitable Portrayal Code on 12 March 2007. This code expands and effectively replaces the CAB Sex-Role Portrayal Code for Radio and Television Programming. The Commission approved the CAB's Equitable Portrayal Code in Broadcasting Public Notice 2008-23.⁴⁷ It is a condition of licence for all broadcasters.

c) Complaints and inquiries

Between 1 April 2008 and 31 March 2009, the Commission received 2,013 broadcasting complaints. Most (35%) of the complaints were related to conventional television, followed by those related to radio (24%). Pay television and PPVservices received 404 complaints compared to only 4 complaints in the previous year, almost all of which were related to adult content.

The CBSC⁴⁸ administers specific codes of broadcast conduct and provides a means of recourse for members of the public regarding the application of the standards set out in the following codes:

• CAB Code of Ethics
• CAB Violence Code
• CAB Equitable Portrayal Code
• RTNDA of Canada Code of (Journalistic) Ethics
• Journalistic Independence Code
• Industry Code of Programming Standards and Practices Governing Pay, PPV and VOD Services
• Pay Television and PPV Programming Code Regarding Violence

The Commission deals primarily with complaints that are related to broadcasters who are not CBSC members and with issues that do not fall within the parameters of the codes administered by the CBSC.

The ASC responds to complaints by consumers and special interest groups regarding advertising with respect to all media subject to the Canadian Code of Advertising Standards, the principal instrument of advertising self-regulation. In addition, the ASC undertakes pre-clearance functions in five industry categories based on applicable legislation, regulations, and/or industry codes and guidelines.

Viewers and listeners may request that the Commission consider their complaints at first instance, or where they are not satisfied with the results of the self-regulatory process.

Statistical information - Diversity and social issues (Broadcasting)

Table 2.3.1 Broadcasting complaints by sector, by issue

Topic	1 April to 31 March
	2005-06		2006-07		2007-08		2008-09
	Complaints received	Referrals to CBSC	Complaints received	Referrals to CBSC	Complaints received	Referrals to CBSC	Complaints received	Referrals to CBSC
Radio Abusive commenta	108	57	141	64	11	-	26	10
Adult content	28	23	13	5	8	3	19	11
Alcohol advertising	2	2	3	2	-	-	6	-
Gender portrayal	2	2	3	-	-	-	1	1
Offensive commentb	250	114	204	127	89	30	397	308
Offensive languagec	54	22	52	20	24	8	40	23
Conventional television Abusive comment	378	105	124	87	5	1	39	5
Adult content	245	123	132	66	84	34	111	47
Alcohol advertising	6	2	9	2	4	-	17	1
Gender portrayal	3	1	10	3	-	-	5	2
Offensive comment	563	317	154	61	107	6	455	61
Offensive language	66	28	47	19	34	14	51	20
Television violence	86	31	110	59	40	9	85	24
Specialty channels Abusive comment	15	10	10	8	2	-	10	-
Adult content	109	68	90	55	32	14	82	39
Alcohol advertising	-	-	1	1	1	-	1	-
Gender portrayal	3	2	2	-	-	-	-	-
Offensive comment	44	31	38	25	12	2	212	202
Offensive language	29	20	14	7	7	2	32	23
Television violence	19	10	16	11	14	5	20	14
Pay television and pay-per-view services Abusive comment	-	-	-	-	-	-	-	-
Adult content	5	-	14	-	4	-	402	1
Alcohol advertising	-	-	-	-	-	-	-	-
Gender portrayal	-	-	-	-	-	-	-	-
Offensive comment	-	-	-	-	-	-	2	-
Offensive language	1	-	-	-	-	-	-	-
Television violence	1	-	1	-	-	-	-	-
Subscription radio (Satellite) Abusive comment	3	3	-	-	-	-	-	-

Notes:

a) Where a complaint alleges that hatred or contempt was incited on-air against one of the groups identified in the television, radio, or specialty regulations
b) Where a complaint alleges offensive humour or other comments that do not fall under the "abusive comment" provision
c) Where a complaint alleges offensive language in song lyrics or in spoken word

Source:
CRTC Correspondence Tracking System. (The Rapids tracking system counts multiple contacts from the same client on the same complaint as separate units. The actual number of complaints received should be therefore slightly lower.)

Table 2.3.2 Number of contacts by public

	1 April to 31 March
	2005-06	2006-07	2007-08	2008-09
Broadcasting related enquiries	17,418	13,947	14,594	7,131
Broadcasting complaints	9,469	7,951	5,581	11,851

Source:
CRTC Correspondence Tracking System (The Rapids tracking system counts multiple contacts from the same client on the same complaint as separate units, therefore the actual number of complaints received should be slightly lower.)

Table 2.3.3 Complaints handled by the CBSC

	2005-06	2006-07	2007-08
Files handled by the CBSC	1,917	1,426	1,498
Referred by the CRTC	1,150	795	979

Source: CBSC annual reports

Table 2.3.4 Complaints handled by the ASC

	2004	2005	2006	2007	2008
Complaints received by the ASC	1,540	1,271	1,040	1,445	1,119
Complaints about television ads	939	579	527	857	528
	(61%)	(46%)	(51%)	(59%)	(47%)
Complaints about radio ads	90	57	73	52	56
	(6%)	(4%)	(7%)	(4%)	(5%)

Source: Ad complaints reports

Part 2 - Telecommunications

The Telecommunications Act affirms that telecommunications perform an essential role in the maintenance of Canada's identity and sovereignty. With respect to social issues, Canadian telecommunications policy has the following objectives:

• to facilitate the orderly development throughout Canada of a telecommunications system that serves to safeguard, enrich and strengthen the social and economic fabric of Canada and its regions (paragraph 7(a) of the Telecommunications Act);
• to render reliable and affordable telecommunications services of high quality accessible to Canadians in both urban and rural areas in all regions of Canada (paragraph 7(b) of the Telecommunications Act);
• to respond to the economic and social requirements of users of telecommunications services (paragraph 7(h) of the Telecommunications Act); and
• to contribute to the protection of the privacy of persons (paragraph 7(i) of the Telecommunications Act).

(i) Connections

The telecommunications network has evolved from a landline twisted-pair based communications network to an interconnected multi-platform network that provides Canadians with both voice and data communications when and where they want it. These connections consist of the traditional wired local exchange service, wireless or mobile service, Internet Protocol (IP) based connections using the underlying Internet, and Internet subscriptions. In 2008, there were approximately 19.3 million residential and business local exchange lines (including voice over IP (VoIP)), 22.1 million residential and business wireless subscribers, and 9.8 million residential Internet subscribers for a total of 51.2 million connections, an increase of approximately 5% over the previous year.

Internet connections allow Canadians to essentially merge their voice and data communications activities. For example, there is the rapid growth of social networking sites and similar services, such as instant messaging, which allows users to communicate with one another in new ways. These media combine elements of both audiovisual content as well as telecommunications (online conversations) in order to allow Canadians to share common experiences and to connect with others who share common interests, languages, and/or cultural values. Over the past year, the changes have been seen through a rise in the use of social networking sites, combined with a decline in instant messaging application usage. Of particular interest is the growth of social networking sites such as Facebook, not just in Canada, but globally as well.

Although how Canadians communicate is changing, penetration rates still provide a useful indicator of consumer access to the public switched telephone network (PSTN). Penetration rates are measured by identifying the percentage of households that subscribe to various local services that use or access the PSTN, such as wireline local telephone service and wireless telephone service.

The penetration rate of wireline and/or wireless services, including VoIP-based local service, remained relatively constant⁴⁹ over the 2001 to 2008 period, at approximately 99% of households. Wireline penetration gradually declined over this period from 97.4 to 91.1% of households. In contrast, over the same period, wireless penetration increased from 47.6 to 74.3% of households, and wireless-only households increased more than sixfold from 1.2% in 2001 to 8.0% in 2008.

In Telecom Decision 2008-1,⁵⁰ the Commission approved the use of deferral account funds⁵¹ by incumbent local exchange carriers (ILECs) for certain initiatives including improvements to access to telecommunications services for persons with disabilities. The Commission also directed⁵² that any balance remaining in the deferral accounts be rebated to residential subscribers in non-high-cost serving areas.⁵³

(ii) Price indices and the consumer price index

Price indices provide a useful means to assess the movement of the price for a basket of goods or services. For the Canadian communications industry, Statistics Canada provides three indices: the telephone price index (TPI),⁵⁴ the cablevision and satellite services (including pay television) index, and the Internet access services index.⁵⁵

Throughout the 2002 to 2008 period, the TPI and the Internet access services index remained below the consumer price index (CPI). Over the 2002 to 2007 period, telephone prices, on average, increased 1.6%, whereas the price of Internet access services declined 2.6%. In 2008, the TPI increased 4.3%, whereas the price of Internet access services decreased an additional 1.7%. Video distribution services, as captured by the cablevision and satellite services (including pay television) index, increased 22.7% over the 2002 to 2007 period; in 2008, it increased an additional 6%. The CPI increased 11.4% over the 2002 to 2007 period, and an additional 2.7% in 2008.

(iii) The consumer

Statement of consumer rights

The statement of consumer rights provides a guide to help consumers understand their rights with respect to local home phone services.⁵⁶ The Commission determined in Telecom Decision 2006-52 that the statement of consumer rights should be limited to telecommunications services as defined under the Telecommunications Act and the rights that apply to regulated retail tariff services.

In its earlier decisions on local forbearance, the Commission had established a list of obligations common to all local exchange carriers (LECs).⁵⁷ The obligations on the list include issues of customer confidentiality, emergency service obligations, and customer notification and the disconnection of local service for non-payment of long distance service.

Accessibility

Subsection 27(2) of the Telecommunications Act prohibits a Canadian carrier from unjustly discriminate or give an undue or unreasonable preference toward any person, including itself, or subject any person to an undue or unreasonable disadvantage in relation to providing a telecommunications service.

Some services for people with disabilities are mandated by the CRTC. These include Message Relay Service, which allows callers unable to use a regular phone to place telephone calls to people who use a regular phone and vice versa; a 50% discount off basic toll rates for telecommunications device for the deaf (TDD) users; alternative billing formats (e.g. braille, large print); free directory assistance; automatic directory assistance call completion; and a teletypewriter upgrade program for pay telephones.

In January 2008, the Commission approved the use of deferral account funds by ILECs for certain initiatives to improve access to telecommunications services for persons with disabilities. These initiatives included the following: establishing a single point of contact for persons with disabilities to receive customer service tailored to the specific needs of the customer; conducting research into the needs of persons with disabilities during the development process of new products and services; establishing accessibility committees; incorporating inclusive design considerations in service development; developing specific inclusiveness guidelines; and working with wireless device manufacturers to procure accessible wireless handsets.

Commissioner for Complaints for Telecommunications Services

Following a public proceeding,⁵⁸ the CRTC approved the structure and mandate of the Commissioner for Complaints for Telecommunications Services Inc. (CCTS or Agency) subject to certain conditions being met. The CCTS, which began operating on 23 July 2007, provides residential and small business customers with an effective, accessible, and consumer-friendly recourse when they are unable to resolve a disagreement with their TSP. It aims to resolve complaints from residential and small-business subscribers about deregulated services.

TSPs with annual service revenues exceeding $10 million are required to be members of the Agency. Some TSPs, however, have yet to join the CCTS and some TSPs that did join made an application to review and vary Telecom Decision 2007-130, questioning the CRTC's authority to determine the CCTS' membership requirements. The Commission released its decision⁵⁹ on the application on 30 May 2008.

The Commission requested that the CCTS report back to it on issues related to the CCTS' operating procedures and public awareness campaign. In March 2008, the CCTS provided some preliminary comments on the progress that it had accomplished to date. The CCTS received 3,731 contacts from consumers and small businesses between 23 July 2007 and 29 February 2008. These contacts included 1,351 complaints that fell within the CCTS' mandate and related to one of its members.

National Do Not Call List (National DNCL)

In June 2006, Bill C-37 came into force. It amended the Telecommunications Act to grant the CRTC the powers required to establish a National DNCL.⁶⁰ In July 2007, the Commission established the rules of the National DNCL. The rules are part of the unsolicited Telemarketing Rules that cover all aspects of telemarketing calls. These rules are meant to balance the privacy of individuals with the legitimate uses of telemarketing.

There are exemptions set out in the Telecommunications Act that will permit certain types of unsolicited calls even though the phone number is on the National DNCL. For example, calls from registered charities and political parties will be exempted, as well as calls from organizations with which the consumer already has a business relationship.

Organizations that are exempt from the National DNCL are nonetheless required to establish their own internal DNCL, and add to it the phone number of any consumer who does not want to be called by that organization.

The Commission does not manage the National DNCL. After issuing a Request for Proposal, the Commission awarded a five-year contract to Bell Canada for the development, implementation, and operation of the National DNCL in 2008. The National DNCL was launched on 30 September 2008. The National DNCL is funded by fees paid by the telemarketers who subscribe to the National DNCL. As of 19 May 2009,

• over 6.8 million numbers have been registered on the list;
• 6,226 companies have registered as telemarketers; and
• 2,900 subscriptions have been purchased.

The Commission has established a framework for investigating possible violations of the telemarketing rules, including those of the National DNCL. As of 19 May 2009, over 145,000 complaints have been received and over 700 investigations have been investigated. Companies who are found in violation will be subject to administrative monetary penalties.

(iv) Privacy

The Commission has established a number of privacy safeguards and obligations to protect consumers of telecommunications services. These include, for example, confidentiality of consumer information which says that all information regarding the customer, other than the customer's name, address, and listed telephone number is confidential and may not be disclosed to anyone except under certain circumstances. With respect to the distribution of listing information by telephone companies, certain safeguards exist for protecting the privacy of consumers. Consumers with non-published telephone numbers are not included in listings that are provided by ILECs to third parties. Consumers with published telephone numbers can request that their names and numbers be removed from listings sold or rented to third parties. Consumers can also access other services to help them control and protect privacy, such as call blocking.

(v) Emergency services

In Telecom Decision 2005-21,⁶¹ the Commission mandated that all service providers offering local VoIP service must notify their customers, and potential customers, of any service limitations with respect to their 9-1-1 or enhanced 9-1-1 (E9-1-1) service. The Commission requested the CRTC Interconnection Steering Committee (CISC) to develop standard notifications for the implementation of that requirement.

On 12 August 2005, CISC submitted its report⁶² for Commission approval. The Report recommended the minimum requirements for customer notification regarding the availability, characteristics, and limitations of the local VoIP service provider's 9-1-1/E9-1-1 service, as compared to wireline E9-1-1 service.

In Telecom Decision 2005-61,⁶³ the Commission approved the Report and directed all Canadian carriers offering local VoIP service to abide by the customer notification requirements set out in the Report.

With respect to emergency 9-1-1 services, the Commission notes that it is inappropriate for VoIP service providers to deliver 9-1-1 calls from their fixed/non-native and nomadic VoIP customers to public safety answering points (PSAPs) using low-priority telephone lines or restricted numbers. The Commission considers that zero-dialed emergency call routing service (0-ECRS) is the only available 9-1-1 call routing method on the record that is functionally comparable to basic 9-1-1 service.⁶⁴

The Commission requires all Canadian carriers offering local VoIP service to use 0-ECRS as the interim solution to route fixed/non-native or nomadic VoIP 9-1-1 calls to the PSAPs, pending the development and implementation of a long-term fixed/non-native and nomadic VoIP E9-1-1 solution.

The Commission also has a framework for an emergency community notification service for use by local authorities which allows ILECs to provide E9-1-1 information for a telephone-based community notification service, subject to limitations to its circumstances of use, with appropriate safeguards, notification requirements, and other constraints.⁶⁵

In Telecom Regulatory Policy 2009-40,⁶⁶ the Commission established the framework for the technical and operational requirements for the implementation of wireless Phase II E9-1-1 service, which will provide substantial public safety improvements. The Commission mandated all wireless service providers to complete their respective implementation of wireless Phase II E9-1-1 service by 1 February 2010, wherever wireline E9-1-1 service is available across Canada.

Statistical information - Diversity and social issues (Telecommunications)

Table 2.3.5 Canadian penetration rates -
Wireline and wireless subscribers (per 100 households)

Year	Wireline	Wireless	Wireline and/or wireless	Wireless (only)
2001	97.4	47.6	98.6	1.2
2002	97.0	51.6	98.7	1.7
2003	96.3	53.9	98.8	2.5
2004	96.2	58.9	98.9	2.7
2005	94.0	n/a	98.8	4.8
2006	93.6	66.8	98.6	5.0
2007	92.5	71.9	98.8	6.3
2008	91.1	74.3	99.1	8.0

Source:
Statistics Canada: (2001 to 2007) Affordability Study, 2008 (Residential Telephone Survey Study (RTSS))

n/a: not available

Figure 2.3.1 Price indices (TPI, BDU (Cable and Satellite (including pay television)), Internet access services, and CPI)