Regulators have slapped Shaw Communications Inc. with one of their strictest penalties possible, short of revoking its licence, by placing Canada's second-largest cable company on probation for flouting federal rules.
The Canadian Radio-television and Telecommunications Commission took the unusual step yesterday of only renewing Shaw's operating licences for two years, well short of the standard seven-year term most companies are afforded, following recent clashes with the cable operator.
With 3.3 million customers and a $10-billion market value, Shaw is the largest company to have its licence put on probation by the regulator.
"If there had been only one or two instances, the commission might not have been as upset," CRTC vice-chair Michel Arpin said yesterday.
"The commission felt that the file was thick enough to have special conditions. We're expecting everybody to abide to these rules. The others are doing it. Why not Shaw?"
The decision comes after several run-ins between Shaw and the CRTC. The regulator said Shaw has breached at least two rules.
Shaw has also failed to prove it has rectified the problems, the CRTC said, noting that Shaw has also drawn numerous other complaints.
The breaches include dropping or reassigning channels to other spots on the dial without properly warning the networks involved, usually small broadcasters such as the aboriginal affairs channel APTN.
Shaw was also found to be putting too many commercial messages on its community channel, which has strict limitations on advertising.
But the CRTC cited other complaints it received about Shaw beyond those infractions, including concerns about a lack of weather warnings on its cable feed and ignoring simulcast rules for U.S. network signals.
Ken Stein, senior vice-president of regulatory affairs at Shaw, said the company could not comment on the ruling. "We're still going through it," Mr. Stein said. Shaw has argued to the CRTC before that it complies with all rules and works to resolve issues when they arise.
During the two-year probationary period, Shaw must file monthly reports showing its compliance with such rules.
However, other than the headache of incurring more regulatory costs and paperwork, there is little other punishment the CRTC can inflict without cancelling Shaw's licence.
The regulator has faced criticism over this by smaller industry players and special interest groups who say it isn't doing enough to enforce rules with the largest companies. Mr. Arpin disagreed.
"Having a short-term renewal is surely an impediment," he said. "They [Shaw] have to speak with the financial analysts and tell them not to worry. What else will they say than that they will abide by the rules?"
Shaw's chief executive officer Jim Shaw has butted heads with the CRTC before, refusing to show up at federal hearings last year on the Canadian Television Fund as a protest against how the process was being handled.
Two-year renewals are more common in radio, where stations that are repeat offenders can be put on probation.
Only once has the CRTC revoked a licence, when it refused to renew the term of French radio station CHOI in 2004 for failing to change its on-air conduct, following repeated complaints about racist and sexist remarks.
The CRTC is reluctant to pull licences for several reasons. In the case of CHOI, station employees unrelated to the complaints were left without jobs.
CRTC chairman Konrad von Finckenstein wants the regulator to be given powers to fine companies, but there's no evidence the government will entertain the idea.
Home
Calendar
Search
Register
Login
Logged