CRTC ends laissez-faire stance on the Internet Watchdog to launch major reviews of online broadcasting content, technology
Vito Pilieci The Ottawa Citizen Saturday, May 17, 2008
After almost a decade of taking a hands-off approach to the issue, Canada's broadcast industry watchdog is preparing to wade into the murky area of Internet regulation.
Yesterday, the Canadian Radio-television and Telecommunications Commission announced it has launched two major reviews of Internet technologies that could radically change Internet connections in Canada and the content Canadians view online.
The CRTC will immediately look into issues pertaining to the TV and radio content Canadians receive through their computers or mobile devices.
It will also address the issue of "Net neutrality" -- the idea that all content on the Internet should be equal regardless of the topic -- by reviewing the controversial practice called "traffic shaping," in which some Internet providers slow the connection speeds of certain customers.
The decision to become involved in Canadian Internet regulation runs counter to a CRTC decision in 1999, when the commission decided it would not impose rules on Canadian Internet businesses.
With the increasing popularity of online broadcasters such as Joost, Hulu and even YouTube, the CRTC has grown concerned that traditional broadcasting regulations outlining required levels of Canadian content are threatened.
"The commission has a responsibility to ensure that the broadcasting system is in a position to achieve the objectives of the Broadcasting Act, today as well as in the future," said Konrad von Finckenstein, chairman of the CRTC. "Our intention is not to regulate new media, but rather to gain a better understanding of this environment and, if necessary, to propose measures that would support the continued achievement of the Broadcasting Act's objectives."
The commission already has rules governing content on TV and radio broadcasts. Those rules dictate how much made-in-Canada content must appear on TV and radio stations. The rules have also created a fund that collects money from major Canadian broadcasters and uses the cash to support Canadian TV and music productions.
Thanks to the high-speed Internet connections in many Canadian homes, the CRTC claims people are spending more time accessing broadcast content over the Internet and on mobile devices. The trend is diverting people away from traditional forms of broadcasting.
The commission also said that more professionally-produced content -- such as FunnyOrDie.com, which is owned and operated by former Saturday Night Live funnyman Will Ferrell -- is being made exclusively for the Internet.
The CRTC feels Canadian participation in this area is falling behind. It also notes advertisers are increasingly embracing marketing strategies tailored to broadcasting in new media and targeting individual Internet users.
"Since 1999, there has been a lot of debate over what extent the government needs to intervene," said Philippa Lawson, director of the Canadian Internet Policy and Public Interest Clinic at the University of Ottawa. "I think there is a role for government. I think the CRTC and the government are beginning to realize that. Problems with spam, privacy, network neutrality -- those are things the free market and industry are unable to resolve in a way that we as society want and need."
The commission said it plans to begin public hearings on the issue next year, it is already asking for written input from parties who are interested in speaking about the topic.
The outcome of the hearing, which is expected late 2009, could eventually limit Canadians' access to online broadcasters and Internet-based radio stations. It may also see a levy charged to Internet service providers to pay for the creation of more Canadian content online.
In its second announcement yesterday, the CRTC said it will also be looking into the practice of "traffic shaping." Bell Canada has been caught at the centre of the controversial practice, which sees the company slow the connections of customers suspected of using the Internet to download music and movies without paying for them. However, other Internet providers have also reportedly taken part in the activity.
Bell argues its network has been gummed up by people trying to download and share large files and, as a result, the company makes it more difficult for people to do so.
Bell had argued that 95 per cent of its network traffic is being generated by five per cent of its subscribers.
The commission has asked Bell to prove that its network is being affected by people engaged in file-sharing activities and what proportion of its subscribers are actively involved in the practice.
Earlier this week, the CRTC said it would allow Bell to continue engaging in traffic shaping until the formal review is completed.
The hearing will likely delve into the topic of "net neutrality" and may see the commission outline how much, if any, control an ISP can have over a customer's Internet connection.
The Canadian Association of Internet Providers, Primus Telecommunications, the National Union of Public and General Employees as well as the New Democratic Party have spoken out against the traffic shaping. More than 1,100 individuals have also already written letters opposing the practice.
A decision regarding traffic shaping is expected in the fall.
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