CONSUMERS TO PAY MORE UNDER NEW VALUE-FOR-SIGNAL REGIME BARRING COURT OF APPEAL REVERSAL
COMMUNIQUÉ
For immediate release
Consumers to pay more under new value-for-signal regime
barring Court of Appeal reversal
Montréal, March 22, 2010 – In reference to today’s decision by the Canadian Radio-television and
Telecommunications Commission (CRTC) to establish a new value-for-signal regime for private
conventional TV broadcasters, Cogeco Cable Inc. (TSX: CCA) reiterates its position that the
proposal provides no solution and will ultimately see consumers footing the bill. Cogeco Cable, as
the regulator itself, questions the CRTC’s authority to implement such a regime. Cogeco Cable
intends to be a party to Federal Court of Appeal proceedings on this matter.
“Canadians would gain nothing with this proposal, which would eventually force them to pay more
for TV from conventional broadcasters with no assurance of improved quality or quantity of content,”
stated Yves Mayrand, Vice-President, Corporate Affairs of Cogeco Cable.
Such a proposal is blatantly unfair since it would allow private conventional TV broadcasters to
collect a fee for their programming when viewed on cable or satellite systems, while it is available
free of charge to all Canadians over the air and, increasingly, via the Internet.
“In our opinion, the CRTC has no authority to establish new intellectual property rights. That is the
role of government and elected officials. As a result, we intend to be a party to Federal Court of
Appeal proceedings regarding the CRTC’s jurisdiction in this matter,” added Mr. Mayrand.
In Cogeco Cable’s assessment, the CRTC proposal fails to solve the conventional broadcasting
industry’s real problem: excessive spending on major network programming from U.S. studios and
networks. This is confirmed by the CRTC’s March 18, 2010 statistical report on the financial results
of the conventional TV broadcasting industry, which indicates that these expenditures reached
unparalleled heights in 2009, accounting for nearly two thirds of all spending on programming by
Canadian conventional TV networks.
The Canadian TV broadcast industry already receives significant subsidies, including over
$102 million under the Local Programming Improvement Fund (LPIF), to be maintained by the
CRTC, in addition to nearly $300 million under the Canada Media Fund for the production of
Canadian programming.
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca) is a telecommunications company and is the second largest cable
operator in Ontario, Québec and Portugal, in terms of the number of Basic Cable service customers
served. Through its two-way broadband cable networks, Cogeco Cable provides its residential
customers with Audio, Analogue and Digital Television, as well as HSI and Telephony services.
Cogeco Cable also provides, to its commercial customers, data networking, e-business applications,
video conferencing, hosting services, Ethernet, private line, VoIP, HSI access, dark fibre, data
storage, data security and co-location services and other advanced communication solutions.
Cogeco Cable’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
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Information: Marie Carrier
Director, Corporate Communications
Tel.: (514) 764-4700