The CRTC has approved an application by CPAC (Cable Public Affairs Channel) to increase its mandatory per subscriber monthly wholesale rate as the channel’s financial situation continues to deteriorate.
CPAC applied for the increase back in August 2024 to raise its regulated wholesale fee for basic carriage by three cents to a total of 16 cents per subscriber per month. In its application, the channel said the proposed fee increase was “essential for CPAC to continue to provide its foundational public service to Canadians,” including daily coverage of parliamentary proceedings, in addition to CPAC’s own public affairs content.
Last November, the commission decided to defer the application, alongside two others from TV5 and Canal M, while it completed a broader policy review.
In this week’s decision granting the increase, the CRTC noted that since the deferral, CPAC’s financial situation “has continued to deteriorate and is now critical, jeopardizing the fulfillment of its mandate and the sustainability of its public interest mission.”
“Therefore, the Commission has considered the application in order to address the pressing financial issues raised by the applicant,” the decision continued.
The new rate will come into effect on Sept. 1.
Commissioners Ellen Desmond and Stéphanie Paquette disagreed with the decision, writing that in their opinion, relief should continue to be suspended until the commission’s new regulatory framework is established and implemented, “allowing for a sustained and more permanent solution.”
Desmond and Paquette went further to note that several intervenors submitted that BDUs can no longer bear an additional financial burden, including Bell, Quebecor Media and TELUS, who believe online undertakings should also contribute to the funding of 9.1(1)(h) services.
“Bell Canada, TELUS Communications Inc., and Quebecor Media Inc. submitted that CPAC Inc.’s application comes at an inopportune time, when the regulatory framework is being restructured and future decisions could significantly change CPAC Inc.’s financial situation,” Desmond and Paquette continued.
CPAC President & CEO Christa Dickenson was on Broadcast Dialogue – The Podcast earlier this year discussing the deferral and the channel’s precarious financial position. Listen here:
