The Canadian Radio-Television and Telecommunications Commission (CRTC) rejected a 12% increase in rates for basic cable and satellite television, according to Blacklock’s Reporter. .“There is not a financial justification for the proposed increase that would outweigh the goal of providing Canadians with an affordable entry level basic service,” said the CRTC in a statement. .“In the Commission’s view, the applicants have not demonstrated compelling evidence justifying the proposed increase to the maximum price for the small basic service and sees no direct benefit to approving the application for Canadians.”.Data shows more than one million Canadians subscribe to $25 monthly packages introduced in 2015. .Bell Canada, Bragg Communications, Cogeco Communications, and Saskatchewan Telecom applied to increase the basic cable rate from $25 to $28 per month and introduce an inflation calculator to adjust it annually. Intervenors supporting the increase included Rogers Communications, Corus Entertainment, and the Weather Network. .“Almost all the individual Canadians who commented opposed the application,” said the CRTC. .The CRTC went on to say cable and satellite providers submitted no evidence the cost of basic service has risen to justify a permanent increase of 12%. It added operating profit margins for providers averaged 14%. .It said the majority of basic package subscribers combine with another service and gain a credit to their accounts. In the end, this provides additional revenues to broadcast distribution undertakings. .Former Canadian Heritage Minister Shelly Glover introduced the basic package in 2015..“We are going back to frankly what used to exist, and I think it’s a good step,” said Glover. .Conventional TV is on a downward trajectory that will see networks fight over an ever-dwindling pool of revenue, according to a March report conducted by the CRTC. .READ MORE: CRTC report says conventional TV in 'downward trajectory'.It said all TV programming, with the exception of sports, is now a money loser. .“Each year, a larger share of ad spending in Canada is flowing to the internet and other digital platforms,” it said.
