ARCHIVED - Broadcasting Decision CRTC 2012-384

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Route reference: Part 1 application posted on 18 May 2012

Ottawa, 17 July 2012

Canadian Broadcasting Corporation
Across Canada

Application 2012-0509-7

Revocation of licences for the rebroadcasting stations CBIT Sydney and CBKST Saskatoon and licence amendment to remove analog transmitters for 23 English- and French-language television stations

Effective 1 August 2012, the Commission revokes the broadcasting licences for CBIT Sydney and CBKST Saskatoon and their transmitters. The Commission also approves the request to amend the licences for 23 English- and French-language television stations operated by the Canadian Broadcasting Corporation in order that reference to all analog transmitters be deleted. These amendments are effective 1 August 2012. The CBC plans to cease operation of all these transmitters on 31 July 2012.

The application

1.  The Canadian Broadcasting Corporation (CBC) filed an application to revoke the broadcasting licences for its television programming undertakings CBIT Sydney, Nova Scotia¹ and cbkst saskatoon, saskatchewan² and their transmitters (listed in Appendix 1 as per the CBC’s submission on 4 April 2012). The CBC also requested that reference to all analog transmitters for its 23 English- and French-language television stations (listed in Appendix 2 as per its submission on 5 May 2012) be removed from its licences. The CBC plans to cease operation of all these transmitters on 31 July 2012.

Interventions

2.  The Commission received numerous interventions from individuals located across Canada that either opposed or commented on the CBC’s plans to cease transmitting its television signals in analog.

3.  Some interveners considered that the CBC’s plans discriminated against rural and low-income Canadians and that the CBC, as the national public broadcaster, should serve all Canadians equitably irrespective of location or income. These interveners submitted that not every Canadian could afford to pay for cable, satellite or Internet service in order to receive the CBC television service and that it was not, in any case, reasonable to expect Canadians to pay for the reception of CBC when, as taxpaying citizens, they already contribute to the CBC’s funding.

4.  Numerous interveners called upon the CBC to hold public consultations within their communities to discuss alternatives to its plans. Many interveners proposed alternative solutions to avert either the shutdown of the analog transmitters or the loss of the CBC’s television signal in affected communities, including official language minority communities (OLMCs). Several interveners also expressed the view that the CBC had not given such communities sufficient notice of its plans and were critical of its public outreach efforts.

5.  In addition to the comments submitted by individual Canadians, the Commission received interventions from elected representatives and government officials, including the Commissioner of Official Languages, expressing their concerns regarding service to their constituents. In particular, the Commission notes the concerns expressed regarding the impact on services to OLMCs resulting from the CBC’s plans.

Applicant’s reply

6.  In its reply, the CBC outlined its financial and technological rationale for ceasing its analog television transmission, as well as its plans for informing the public about the coming changes.

7.  Specifically, the CBC noted its financial situation, the relatively low number of households relying on over-the-air transmission for reception of its service and the availability of viable alternatives for receiving its television signal. The CBC further noted that it had an obligation under the Broadcasting Act (the Act) to manage its resources as efficiently and effectively as possible to further its mandate. It described the difficulties of acquiring equipment and parts that were obsolescent and increasingly unavailable. The CBC also indicated that shutting down the analog television network would save a minimum of $10 million a year in operating costs and would allow it to generate revenues through the sale of assets.

8.  Given all of the preceding, the CBC argued that the public interest was better served by using the cost-savings associated with eliminating its obsolete analog network and any proceeds from the disposition of the associated land, equipment, towers and buildings to invest in programming services whose budgets were also threatened by the cuts to its funding.

Commission’s analysis and decision

9.  The Commission has considered the comments submitted in response to this proceeding and notes the concerns expressed by numerous parties regarding the availability of the CBC’s services.

10.  The Commission also notes that licences, such as those held by the CBC, are authorizations to broadcast, not an obligation to do so. In other words, while the Commission has the discretion to refuse to revoke broadcasting licences, even on application from a licensee, it cannot direct the CBC or any other broadcaster to continue to operate its stations and transmitters.

11.  The Commission notes the availability of alternatives, including a free basic service offering certain CBC television services that is provided by Shaw Direct TV as part the Local Television Satellite Solution (LTSS). Specifically, as part of the decision authorizing Shaw to purchase the television assets of Canwest Global,³ the Commission permitted Shaw to allocate some of its tangible benefits to the provision of free local or regional services and the necessary satellite receiving equipment and installation services for households that no longer have access to over-the-air stations as a result of the digital transition. The LTSS has been extended to 30 November 2012 with monies earmarked to implement a marketing campaign in local media in affected markets.

12.  The Commission has also considered the impact of this change on OLMCs. Although numerous parties, such as the Fédération des communautés francophones et acadienne  and the City of Windsor, accepted the CBC’s reasons for shutting down its analog transmitters, they noted that the shutdown will eliminate OLMC television service to those households that currently access such programming via the CBC’s over-the-air signals. Other interveners, such as the English Language Arts Network and the Commissioner of Official Languages, also expressed concern that in preparing for the shutdown, the CBC did not adequately communicate the shutdown’s impact to OLMCs, nor did the CBC adequately explore alternative solutions for maintaining service to OLMCs.

13.  The Commission takes note of the above-mentioned concerns and will discuss the delivery of the CBC’s services to OLMCs at its upcoming licence renewal.

14.  In light of all of the above and pursuant to sections 9(1)(e) and 24(2) of the Act, the Commission revokes, effective 1 August 2012, the CBC’s broadcasting licences for CBIT Sydney and CBKST Saskatoon and their transmitters listed in Appendix 1. The Commission also approves the requested amendments to the CBC’s licences for the stations listed in Appendix 2 in order that reference to all analog transmitters for the 23 English- and French-language television stations set out therein be deleted. These amendments are effective 1 August 2012.

Secretary General

Date modified:

2012-07-17