CRTC Rescinds required structural separation of Shaw and Shaw Direct - Canadian TV, Computing and Home Theatre Forums
 

Go Back   Canadian TV, Computing and Home Theatre Forums > Canadian Digital Industry Forums > Television Industry / Channels and Providers

Digital Home Helpful Information

Reply
 
Thread Tools Search this Thread Display Modes

Old 2011-09-21, 04:34 PM   #1
hugh
Member #1
 
Join Date: Dec 2001
Location: Toronto
Posts: 47,716
Default CRTC Rescinds required structural separation of Shaw and Shaw Direct

Broadcast decision today.

The Commission approves the application by Shaw Communications Inc., on behalf of Star Choice Television Network Incorporated, to delete the conditions of licence relating to structural separation for the national direct-to-home satellite distribution undertaking Shaw Direct.

The application

1. The Commission received an application by Shaw Communications Inc. (Shaw), on behalf of Star Choice Television Network Incorporated, to delete the conditions of licence relating to structural separation for the national direct-to-home (DTH) satellite distribution undertaking Shaw Direct. These conditions of licence are set out in the appendix to Broadcasting Decision 2004-130, and read as follows:
10. The licensee shall maintain sales, marketing, customer service and affiliate relations functions and personnel that are separate and independent from those of Shaw Communications Inc. and Canadian Satellite Communications Inc.
11. The licensee shall require all sales, marketing and customer service staff, as well as all staff involved with the negotiation and/or administration of affiliation agreements with programming services, to comply with the written procedures set out in Appendix II to this decision, as amended from time to time. These procedures are designed to ensure that any confidential information obtained from a customer or potential customer of the licensee’s DTH undertaking, or pertaining either to product or service offerings of the DTH undertaking or to its affiliation agreements with programmers, will remain confidential.

2. Shaw argued that these conditions of licence are no longer necessary because:
There is now a very competitive and sustainable broadcasting distribution undertaking (BDU)/DTH market.
Section 9 of the Broadcasting Distribution Regulations addresses undue preferences or disadvantages.
They discriminate against Shaw Direct, since there are no similar structural separation conditions of licence that apply to any of its competitors.
They prevent Shaw Direct from taking advantage of available efficiencies, such as bundling opportunities, and innovating to respond to customer demands in response to the increased threat of regulated and unregulated competitors.
3. The Commission received interventions in opposition to the application from Canadian Independent Communications, Free HD Canada, Saskatchewan Telecommunications and TELUS Communications Company (TELUS). The Commission also received an intervention in support from Allarco Entertainment (Allarco). The interventions and the licensee’s collective reply to the interventions can be found on the Commission’s website at www.crtc.gc.ca under “Public Proceedings.”
4. Certain interveners opposing the application were of the view that no determination should be made before the Commission issues its decision in regard to the proceeding initiated by Broadcasting Notice of Consultation 2010-783 (the vertical integration proceeding). They submitted that it would be premature to delete these conditions of licence since one of the possible outcomes of the vertical integration proceeding is the application of similar conditions of licence on all vertically integrated Canadian broadcasting entities in order to circumvent abuses of market power.
5. Allarco was of the view that removal of the conditions of licence would translate into better services for customers and improved carriage conditions for Canadian programming services. While TELUS stated that it had no issues with Shaw’s arguments pertaining to the removal of these conditions of licence, it was of the view that, given its complaint to the Commission pertaining to anti-competitive behaviour by Shaw, the present application should be denied. Furthermore, TELUS opposed the removal of these conditions of licence as they relate to Shaw’s satellite relay distribution undertaking (SRDU).

Commission analysis and decisions

6. The Commission notes that the conditions of licence in question were imposed at a time when DTH BDUs were new players in the distribution market and Shaw was the only owner of terrestrial BDU, DTH and SRDU holdings. The Commission notes that the distribution market has since become significantly more competitive. Various telephone companies currently hold terrestrial BDU licences, and the DTH BDUs are well established players that compete aggressively with terrestrial BDUs for subscribers.
7. Further, the Commission notes that these conditions of licence only apply to Shaw and not to its competitors. The Commission considers that, in today’s competitive distribution market, maintaining these conditions of licence for Shaw when they do not apply to other BDUs, including the other DTH undertakings, may place Shaw at a disadvantage. The conditions of licence prevent Shaw, for example, from bundling DTH services with telephone, Internet and wireless services, a benefit enjoyed by some of its competitors.
8. Moreover, the Commission considers that the existing provisions included in regulatory frameworks, such as the reverse onus provision on all undue preference complaints under the Broadcasting Distribution Regulations, and the additional measures relating to vertical integration proposed in Broadcasting Regulatory Policy 2011-601, also issued today, such as the code of conduct for commercial interactions, the standstill rule, and the requirement for a non-disclosure agreement, adequately balance the interests of consumers, broadcasters and BDUs.
9. In light of the above, the Commission considers that the conditions of licence identified in paragraph 1 above are no longer warranted. Accordingly, the Commission approves the application by Shaw Communications Inc., on behalf of Star Choice Television Network Incorporated, to delete the conditions of licence relating to structural separation for the national DTH satellite distribution undertaking Shaw Direct.
10. The Commission notes that the present decision pertains to Shaw’s DTH operations only, as it considers that the issue of structural separation as it relates to Shaw’s SRDU operations lies outside the scope of this proceeding. The Commission further notes that TELUS’s comment regarding Shaw’s alleged anti-competitive behaviour is the subject of a separate complaint and, therefore, also lies outside the scope of the present proceeding.
Secretary General
__________________
As of January 2012, I am no longer the owner of the Digital Home website. My comments and opinions are my own and not those of the current site owners.
I have disabled private messaging so for personal inquiries contact me at the Hugh Thompson website or via twitter.
hugh is offline  
Sponsored Links
Advertisement
 
Old 2011-09-22, 01:52 PM   #2
hugh
Member #1
 
Join Date: Dec 2001
Location: Toronto
Posts: 47,716
Default

I'm shocked that after almost 24 hours, no one responded to this. I thought it would generate a lot of conversation. Pro, now Shaw Direct can bundle with Shaw products. Con, the CRTC is saying the BDU's are competitive in this country!

Oh well
__________________
As of January 2012, I am no longer the owner of the Digital Home website. My comments and opinions are my own and not those of the current site owners.
I have disabled private messaging so for personal inquiries contact me at the Hugh Thompson website or via twitter.
hugh is offline  
Old 2011-09-22, 01:56 PM   #3
doomy
 
Join Date: Aug 2011
Location: Oshawa, just off the 401, under a cellphone tower, in the shadow of the GM plant
Posts: 233
Default

I will agree that a lack of bundling opportunities put Shaw at a disadvantage compared to Bell, but to say the BDU's are competitive is like saying the gas stations are competitive.
doomy is offline  
Old 2011-09-22, 02:06 PM   #4
alpha7
 
Join Date: Nov 2006
Posts: 23
Default

Does anyone have any information on whether there will be further bundling? Right away I'm switching back to internet/phone service from Shaw and am saving $10 a month from bundling those services. I've had Shaw Direct forever and hope they can treat satellite customers as generously as digital cable people ie. their personalizer options.
__________________
Pioneer 5020 / Sony VPL-VW60 / Onkyo 875 / Energy Veritas
alpha7 is offline  
Old 2011-09-22, 02:09 PM   #5
hugh
Member #1
 
Join Date: Dec 2001
Location: Toronto
Posts: 47,716
Default

Give it some time. The decision just got handed down yesterday.
__________________
As of January 2012, I am no longer the owner of the Digital Home website. My comments and opinions are my own and not those of the current site owners.
I have disabled private messaging so for personal inquiries contact me at the Hugh Thompson website or via twitter.
hugh is offline  
Old 2011-09-22, 02:49 PM   #6
madhi19
 
Join Date: Jun 2010
Posts: 369
Default

While there is little to no real competition between the BDU this will maybe help create some.
madhi19 is offline  
Old 2011-09-23, 09:13 AM   #7
classicsat
Veteran
 
Join Date: Nov 2003
Location: Kincardine ON.
Posts: 4,250
Default

Frankly I see no problem with more integration of the cable and satellite properties.

The problem I and likely others have, is that Shaw Media (as in the channels, specifically Canwest Global), is too tight with the providers.
classicsat is offline  
Old 2011-09-25, 03:50 PM   #8
DanJ
 
Join Date: Jun 2010
Posts: 148
Default

I don't see Shaw being any different than Bell is with their channels and Rogers with theirs.
DanJ is offline  
Old 2011-09-26, 07:44 AM   #9
mr weather
Veteran
 
Join Date: Nov 2002
Location: Mississauga, Ontario
Posts: 1,950
Default

Quote:
Originally Posted by classicsat View Post
The problem I and likely others have, is that Shaw Media (as in the channels, specifically Canwest Global), is too tight with the providers.
This. I have no problem with content distributors looking to make things more efficient but having them in bed with content creators just smells too much like a conflict of interest.
mr weather is offline  
Old 2011-09-27, 01:24 PM   #10
cdncableguy
 
Join Date: May 2011
Location: Fernie, BC
Posts: 73
Default

If you have Shaw direct and Shaw Internet, you can "bundle" it. A csr should be able to give you $5 off a month on your internet bill. They have been able to do this for a while now. But now with the 'merger' it should become even easier. Just have to get the 2 systems operating together.
cdncableguy is offline  
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -4. The time now is 06:44 AM.

Search Digital Home

Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.