MANAGEMENT’S DISCUSSION AND ANALYSIS
Regulation in Our Industry
Our business, except for the non-broadcasting operations of Media, is
regulated by two groups:
 the Canadian Federal Department of Industry on behalf of the
Minister of Industry (Canada) (together, Industry Canada)
 the CRTC, under the Telecommunications Act (Canada)
(Telecommunications Act) and the Broadcasting Act (Canada)
(Broadcasting Act).
Regulation relates to the following, among other things:
 wireless spectrum and broadcasting licensing
 competition
 the cable television programming services we must, and can,
distribute
 wireless and wireline interconnection agreements
 rates we can charge third parties for access to our network
 the resale of our networks
 roaming on our networks
 ownership and operation of our communications systems
 our ability to acquire an interest in other communications systems.
Regulatory changes or decisions can adversely affect our consolidated
results of operations.
Our costs of providing services may increase from time to time as we
comply with industry or legislative initiatives to address consumer
protection concerns or Internet-related issues like copyright
infringement, unsolicited commercial e-mail, cybercrime and lawful
access.
Generally, our spectrum and broadcast licences are granted for a
specified term and are subject to conditions for maintaining these
licences. The regulators can modify these licensing conditions at any
time, and they can decide not to renew a licence when it expires. If we
do not comply with the conditions, a licence may be forfeited or
revoked, or we may be fined.
The licences have conditions that require us, amongst other things, to
comply with Canadian ownership restrictions of the applicable
legislation, and we are currently in compliance with them. If we violate
the requirements, we would be subject to various penalties and it could
include losing a licence in extreme cases.
Cable, wireless and broadcasting licences generally cannot be
transferred without regulatory approval.
Canadian Broadcasting Operations
Our Canadian broadcasting operations – including our cable television
systems, radio and television stations, and specialty services – are
licenced (or operated under an exemption order) and regulated by the
CRTC under the Broadcasting Act.
The CRTC is responsible for regulating and supervising all aspects of the
Canadian broadcasting system. It is also responsible under the
Telecommunications Act for the regulation of telecommunications
carriers, including:
 Wireless’ mobile voice and data operations
 Cable’s Internet and telephone services.
Our cable and telecommunications retail services are not subject to
price regulation, because the CRTC believes there is enough
competition for these services provided by other carriers to protect the
interests of users, so has forborne from regulating them. Regulations
can and do, however, affect the terms and conditions under which we
offer these services.
Spectrum Licences
Industry Canada sets technical standards for telecommunications under
theRadiocommunication Act (Canada) (Radiocommunication Act) and
the Telecommunications Act. It licences and oversees:
 the technical aspects of the operation of radio and television stations
 the frequency-related operations of cable television networks
 awarding and supervising spectrum for wireless communications
systems in Canada.
Royalties
The Copyright Board of Canada (Copyright Board) oversees the
administration of copyright royalties in Canada and establishes the
royalties to be paid for the use of certain copyrighted works. It sets the
copyright tariff royalties that Canadian broadcasting undertakings,
including cable, radio, television and specialty services, pay to copyright
collectives.
Billing and Contracts
The Quebec Consumer Protection Act amendments, effective June
2010, introduced new provisions applicable to wireless, wireline and