The following is an intervention to the Canadian Radio-Television Telecommunications Commission objecting to full control of CTVglobemedia being taken over by Bell Canada Enterprises. The hearing commences on February 1, 2011 in Gatineau, Quebec and the writer would appreciate any suggestions you might wish to add before that date. The following is the submission:
Response to Broadcasting Consultation CRTC 2010-926
Regarding change of effective control of CTVglobemedia
The commission has asked for comments on Bell Canada Enterprises (BCE) taking over effective control of CTVglobemedia. This response is opposed to the take over and will deal with questions related to value of the action for Canadians, BCE’s declared rationale for the action and the ability of BCE management to manage a broadcasting enterprise.
VALUE FOR CANADIANS
It is the opinion of the writer that BCE offers no value to Canadians in taking full control of CTVglobemedia. For the same reason that the CRTC divides its activities into separate functions when regulating telecommunications and broadcasting in Canada, BCE’s presence in both areas creates an increased conflict of interest and raises a growing potential for anti-competition concerns. While BCE has long had a declared interest in what it calls ‘convergence’ (a coming together of the technologies involved), the company’s experience and knowledge in the area of broadcast content and broadcasting is quite limited. BCE has yet to realize that there is a critical difference between financial acquisition and adding value. Instead of bringing value to CTVglobemedia, BCE is creating many potential problems for the broadcast industry and for Canadians.
BCE’S RATIONALE
BCE spokespeople have stated that BCE wants to acquire CTVglobemedia to provide BCE with content for new hand-held broadcast and communication devices. Hand-held communication devices appear to deal effectively with content of no more than two to three minutes duration. The best people at creating content for these devices do not work for CTVglobemedia. They are mostly, at this time, neither out of puberty nor out of school. Even if CTVglobemedia’s expertise was in content for these devices, why would the CRTC want to support BCE’s attempt to do an end run on their competition to lock in the content of the largest English-language television network in Canada?
BCE MANAGEMENT
There is a serious disconnect today between BCE management and its telecommunications customers. In its long-term efforts to downsize staff and outsource communication functions, BCE has lost contact with its publics. The company has to rely on research firms to confirm how much it is despised by customers and former customers. It is negligent in its provision of services, its billing practices and in delivering quality of service. It uses automated telemarketing equipment day and night to harass people whom it thinks owe it money. It provides the public with no access to the company other than through thoroughly bureaucratic call centres.
DISCUSSION
As a long-time public relations professional, the writer appreciates that BCE’s public relations firms have done a thorough job of writing letters of support for this undertaking on behalf of many charities. The letters would even be convincing if the supposed writers had any knowledge or understanding of how CTV network functions or the corporate structure of today’s BCE. It is embarrassing for the charities to have to send these letters as they are, in effect, coerced into sending them.
Having once worked for BCE, the writer has a great appreciation for the real employees of Bell Canada who built a strong and lasting company in Ontario and Quebec. Historically, Bell Canada has served millions of Canadians well over the years. For BCE management to be concentrating efforts on this take-over activity is time and effort not being spent on rebuilding and strengthening Bell Canada in its many telecommunications, network and satellite-related services. It needs the concentration of all those public relations people and management on rebuilding the credibility of Bell Canada with all Canadians.
This is not to say that CTVglobemedia is less needful of better management. A single viewing of CTV news out of Toronto at 6 pm on any weeknight will convince you of the poor management that allows continual self promotion for network programming, self aggrandizement for management, inside jokes for on-air staff and generally shallow coverage of Canadian news events.
It is obvious that under BCE control, CTV would quickly want to divest itself of the CTV secondary television stations in markets such as Barrie, Ontario. Despite the vital need for these stations to train, develop and provide experience for the future major market announcers, news people, anchors, technical staff and support staff needed by the industry, BCE management would consider this a needless expense for it to sustain.
Canada has some excellent independent television production companies. CTVglobemedia is expected to produce news and sports programming but need not be in competition with this primary source of Canadian entertainment programming. If BCE intends to own and control exclusive rights to CTV’s news and sports programming for transmission to hand-held devices, it would mean a serious restraint of competition. CTV has already established its intentions in overpaying for events such as the Olympics to eliminate competition for this type of programming.
Respectfully submitted, January 2011,
Peter Lowry
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