GREENFIELD - Despite realizing billions of dollars in revenue last year, television broadcast companies are downloading a new fee onto customers against a CRTC recommendation.
And that has EastLink customer Lloyd Gibbs spitting mad over what he views as nothing short of corporate greed.
"I tell you, greed is killing this country," the Greenfield resident said. "As a consumer I'm tired of getting nickel and dimed by EastLink."
Included on his latest EastLink bill is a new cost referred to as the Local Programming Improvement Fund (LPIF). The fund was imposed against broadcast companies by the commission as a way to improve the quality of local programming in smaller, non-metropolitan television markets across Canada.
But given that total revenues from the country's broadcasting services in 2008 totalled approximately $14 billion, an increase of 7.3 per cent over the previous year, the CRTC said there was no rationalization for broadcast companies to pass the LPIF on to their customers.
"In light of the performance levels of the BDU (broadcasting distribution undertakings) sector and the benefits accruing to BDUs as a result of other changes being made to the regulatory framework, the Commission is of the view that there is no justification for BDUs to pass along any increased costs relating to the LPIF ..." the commission said in its hearing report.
The fee imposed on the BDUs was initially set at one per cent but that has since increased to 1.5 per cent.
For Gibbs, that represents an additional fee of $1.09 per month. Some fees could be less or more, depending on individual service levels. While Gibbs acknowledges that is not a lot of extra money for each customer to absorb, his argument is with the fact the CRTC recommended against it being passed on at all.
"I care about the principle and the greed and I'm tired of these guys," he said. "They were told by the CRTC at the hearings not to pass this on to the consumer, it's not justified, that they should pay it directly out of their big profits."
A spokesperson from EastLink did not address the CRTC recommendation specifically, choosing instead to respond with an e-mailed statement.
"This is a new fee mandated by the CRTC and is therefore an additional charge," Joanne Elliott said. "Otherwise a reduction in the services we provide would have been required to offset this fee. We are a service company and choose not to reduce the services we provide to our customers."
Heavy sarcasm was evident in Gibbs's voice when he heard the EastLink response.
"A reduction in services?" he guffawed. "Their back's against the wall and they want to charge this so they can make more profit... Well, to me, it's all based on greed. I mean when the regulatory body tells you that, given their profits, there's no need of passing this small fee on to their customers, that tells you something."
After complaining to the company directly, Gibbs said he was eventually offered a five per cent "customer loyalty" discount on his bill, although he was told specifically it had nothing to do with the imposition of the LPIF fee.
And while not wanting to look a gift horse in the mouth, he said, the offer was hardly appeasing because of the principle involved regarding the LPIF charge and the fact that EastLink customers are being levied a fee he believes should not have been passed on.
After checking with satellite company Shaw Direct regarding its LPIF fee, Gibbs said he was informed that company bills a flat rate of $3 per month. Messages left with that company by the Truro Daily News were not returned by press time.
In addition to the LPIF fee, in May, EastLink also sent out a notice to customers informing them of a $1.50 increase to its monthly rates, "required to cover higher operational and maintenance costs" associated with maintaining digital service.
Local man outraged over getting nickel and dimed by EastLink
Local man outraged over getting nickel and dimed by EastLink
- Published on September 2nd, 2009
- Published on December 31st, 2009
-
Harry Sullivan
- Number of views : 3033
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Comments
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- Paul
- - January 18th, 2010 at 10:18:11
Me, thats the kind of attitude the corporations like,isnt it time to speak out against them.....
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- Me
- - January 18th, 2010 at 10:17:40
$1.09? I don't even see the need for a huge fuss over that.
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- dave
- - January 18th, 2010 at 10:13:56
so the governement imposes a fee - and expects the company to pay. remember this when the governement says they are rasing taxes on business - a compant does not pay the tax - they collect it. i also find it interesting how the daily news always seems to go after their local competition for advertising dollars whenever possible, all in the guise of news.
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- Aurora
- - January 18th, 2010 at 10:13:25
(quote)From the article This is a new fee mandated by the CRTC and is therefore an additional charge. (quote)
No, this is a *regulatory obligation* that Eastlink and other providers have decided to pass on to customers.
The big kicker is that cable subscribers (consumers) have been paying for this local programming on their bills for years already (hence the $39.99 bill for basic cable service which includes your local programming channels).
The $1.09 addition for local programming should be deducted from basic cable service fees already being charged and then diverted to local programming.
This is why the CRTC recommended that this regulatory obligation not be passed on to consumers. -
- Gail
- - January 18th, 2010 at 10:12:41
I think this fee is rediculous!!! I will not pay the fee. The fee is illegal
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- Charles
- - January 18th, 2010 at 10:12:36
Eastlink television priced themselves out of my home about a month ago.
I signed up for a satellite service (shaw direct) and was given free receivers and a 38.98 monthly fee. I checked just to be sure and to get the same level of service from eastlink would cost 85.95 monthly. Plus I get several channels eastlink does not offer.
I now pay
57.95 for 15Mbs internet (higest price in canada)
38.98 sat tv (free HD)
or 96.93
eastlinks best offer was
129.95 in a bundle and xtra for HD channels.
They simply priced themselves out of my home.
lets not forget their regular every august increases
Charles -
- Aurora
- - January 18th, 2010 at 10:12:22
ED -- The problem is that Eastlink and all providers already collect the fees from consumers.
Right up until this year, when a subscriber pays for basic cable, for example at $23.01 a portion of that is for the provider's service and the remainder is fees to get the specific programs in your package. Until now, cable providers have not passed along any fee they have collected from you to get the local stations because they were not required to do so. The providers are simply being forced to pay for something they have always charged consumers for in basic service packages but considered a freebie.
I know, 3 posts. I promise I'm done now. I guess sometimes a topic just hits you the wrong way... and for me, this is one of them. :) -
- haha
- - January 18th, 2010 at 10:12:17
Bell Aliant Digital TV Local Programming Improvement Fund
In October of last year, the CRTC issued a decision which, in part, created the Local Programming Improvement Fund (LPIF). According to the CRTC, the objectives of the LPIF are:
to ensure viewers in smaller Canadian markets continue to receive a diversity of local programming - particularly local news programming,
to improve the quality and diversity of local programming broadcasts in these markets; and
to ensure viewers in French-language markets are not disadvantaged by the smaller size of those markets.
On July 6, 2009 the CRTC confirmed that TV service providers, such as Bell Aliant, will be required to contribute 1.5% of their gross television revenues to the Fund.
Customer service is our top priority and Bell Aliant's TV service provides customers with 70+ SD channels, 98 music stations, 40 HD channels and personal video recording (PVR). Commencing on November 1st, 2009 Bell Aliant will apply a CRTC Local Programming Improvement Fund charge to monthly billing which, will not exceed 1.5 % of monthly Bell Aliant TV charges. This will allow us to meet our obligation to the CRTC without impacting the current and future quality of our products and services -
- Dixon
- - January 18th, 2010 at 10:11:45
keep crying, you know its not just eastlink charging this, call aliant they charge it too...
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- Cindy
- - January 18th, 2010 at 10:08:04
I agree 100% with Roger! Lets focus on NS Power.
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- ha ha
- - January 18th, 2010 at 10:06:35
New TV Taxes!
The CRTC has betrayed Canadians' trust with the announcement of two new taxes on consumers. Beginning September 1, 2009, the CRTC will require cable and satellite companies to contribute an extra 1.5% of their gross broadcast revenues to a new Local Programming Improvement Fund (LPIF). In addition, the CRTC has reintroduced the idea of having a fee-for-carriage: a payment to broadcasters that could ultimately end up costing consumers up to $6 more per month.
You can put a STOP to these fees. Send your comments to the CRTC!
Both of these new taxes will result in significant new costs for cable and satellite customers. Shaw will continue to aggressively fight these new regulatory fees, but your voice counts and still needs to be heard.
Send a comment to the CRTC before September 14, 2009, and let them know that you oppose any new taxes to bailout broadcasters. All comments are taken under serious consideration by the CRTC and they contribute to a public file on the issue. Your views will be heard.
Become part of the public process and express your opinion on whether or not you support an increase to the Local Programming Improvement Fund and the CRTC's proposed TV tax known as fee-for-carriage/value for signal:
+ Email the Secretary General of the CRTC today!
Use the Broadcasting Intervention Comments Form online to send your comments to the Secretary General of the Commissionof the CRTC:
http://support.crtc.gc.ca/rapidscin/default.aspx?lang=En
Click on the 2009-411-3 process
Select the Comment option in the drop box
Fill out your comment (i.e. Enough is enough. I do not support an increase to the Local Programming Improvement Fund to support Canadian broadcasters. They have failed to run their business in an effective and credible way. I am also against the CRTC imposing an additional tax in the form of fee-for-carriage/value for signal. There is no justification for this additional tax since broadcasters receive just as much benefit, if not more, from having their local signals carried by cable and satellite companies.)
Or upload your own document to submit to the CRTC
Follow the remaining instructions until you are done.
+ Mail a Letter
Let the Secretary General of the CRTC know what you think by mailing a letter.
Wondering what to write?
Enough is enough. I do not support an increase to the Local Programming Improvement Fund to support Canadian broadcasters. They have failed to run their business in an effective and credible way. I am also against the CRTC imposing an additional tax in the form of fee-for-carriage/value for signal. There is no justification for this additional tax since broadcasters receive just as much benefit, if not more, from having their local signals carried by cable and satellite companies.
Mr. Robert Morin
Secretary General
Canadian Radio-television and Telecommunications Commission
1 Promenade du Portage
Ottawa, ON
K1A 0N2
+ Send a Fax
Let the Secretary General know what you think by faxing your comments to 1.819.994.0218.
Wondering what to write?
Enough is enough. I do not support an increase to the Local Programming Improvement Fund to support Canadian broadcasters. They have failed to run their business in an effective and credible way. I am also against the CRTC imposing an additional tax in the form of fee-for-carriage/value for signal. There is no justification for this additional tax since broadcasters receive just as much benefit, if not more, from having their local signals carried by cable and satellite companies.
You have until 11:59 p.m. (ET), Monday, September 14, 2009, to file your letter. Letters received after this date will not be accepted by the CRTC.
Let the CRTC know that you have had enough and will not support these taxes to support Canadian broadcasters who have failed to run their business in an effective and credible way!
send letter here
http://www.shaw.ca/en-ca/AboutShaw/CRTCTaxRegime.htm -
- Information
- - January 18th, 2010 at 10:05:37
Local Programming Improvement Fund
What is the Local Programming Improvement Fund (LPIF)?
Created by the CRTC in 2008, the LPIF is a fund that supports local programming for conventional television stations [1] operating in non-metropolitan markets.
Why did the CRTC create the LPIF?
Conventional TV stations in non-metropolitan markets are in difficulty because of their precarious economic situation. The CRTC created the LPIF to maintain and improve the quality of local TV programming.
Why has the CRTC increased the percentage of the LPIF contribution from 1% to 1.5%?
The impact of the economic situation is more severe now than when the initial decision was taken. As such, the CRTC has increased the contributions of cable and satellite companies from 1% to 1.5% for one year.
How has the CRTC distributed the funds among broadcasters?
The first third will be divided into equal amounts among all eligible local TV stations. The remaining two thirds will be allocated based on the amount each station has devoted to local programming over the past three years.
How does the CRTC determine which stations are eligible for the Fund?
Local TV stations outside of metropolitan markets are eligible for the Fund.
How will the CRTC ensure that money from the Fund is used for local programming?
In the annual report they submit to the CRTC, local TV stations will have to indicate the amount of contribution funds they receive and the expenditures paid from this amount.
Several cable and satellite companies want to increase their customers rates by 1.5%. Can the CRTC prevent this?
In Public Notice 2008-100 (paragraph 357), the CRTC indicated that it saw no reason why the cost should be borne by cable and satellite subscribers. The CRTC considers that these companies can absorb a contribution of this size, given their strong financial performance. [2]
What can I do to avoid paying such an increase?
Consumers must contact their service suppliers, since this increase is not required or regulated by CRTC. The CRTC considers that these companies can absorb a contribution to the LPIF of this size and does not see a reason why these supplemental costs should be transferred to their subscribers.
--------------------------------------------------------------------------------
1 SRC, the CBC, TVA, V (formerly TQS), CTV, Global, Canwest and some 20 independent stations.
2 Programming distribution revenues totalled $7 billion in 2008 an increase of 10.2% over 2007. See the Communications Monitoring Report 2009. -
- Ed
- - January 18th, 2010 at 10:05:15
Aurora - EastLink and all other television providers are already required to spend at least 5% of their gross income on community programming. This is usually sent to your local community channel (think the old RuSH/new ELTV channel), or 'donated' to a local CTV/ATV/CBC/etc. channel if your provider doesn't have their own station.
This fee is jacking that up to a total of 6.5%, with the LPIF portion of the fees being earmarked by the CRTC instead of the provider.
Why do we need the LPIF? ATV/CTV/CBC take in some pretty massive profits off of advertising. The reason for the 'Save Local TV' ads are because some providers (CTV) are pouring all of their funds into national broadcasting and neglecting their local stations. Frankly, I don't feel it's fair that I have to pay to keep my local station alive, while CTV's national broadcast groups are printing money.
Roger - I agree. Mr. Gibbs should have bigger concerns.
Bottom line: Why doesn't the CRTC just reallocate some of the 5% that's already set aside, rather than ask for more and give providers a reason to pass on more fees? And why does Mr. Gibbs get TWO articles about his spat with his cable provider? Surely there's more significant front-page news than a man and his bill. -
- Information
- - January 18th, 2010 at 10:05:03
And to note,.. starchoice (Direct TV) is fighting it so hard they added their normal fee increase to customers as normal however their normal rate increase,.. increased this year at the same time the LPIF came into affect,.. LOL
Everyone is being charged it,.. no one is avoiding it,.. pretend all you like,.. fact is they are all charging you extra,.. not just EastLink,.. at least they have no problem coming out saying where it is coming from rather then hiding it in rate increases. -
- Ed
- - January 18th, 2010 at 10:04:38
It's unrealistic to expect EastLink to eat the LPIF and not pass the charge down. Does Tim Horton's lower the cost of a large double-double proportional to an increase in taxes? I think not.
We should expect to pay more for goods and services if the government is imposing any sort of tax or fee on a business or product. Consider it the cost of a capitalist economy. -
- Aurora
- - January 18th, 2010 at 10:03:53
A perfect example of being mislead by your provider is on Shaw's page where it says What exactly is the LPIF and why are consumers contributing? Funny, according to the CRTC, the consumers should NOT be contributing, only the cable provider should.
Cable providers are suposed to take 1.5% of therir gross 08/09 revenues and give it back to the local programming via the LPIF fund who they make money off of, and have for years, but have never paid them a dime for that programming before now.
It isn't a tax. The cable providers are calling it a tax ONLY so consumers will suck it up and blame the government instead of the cable provider. -
- ns mom
- - January 18th, 2010 at 10:00:24
It's not just Eastlink putting up fees. I received my Shaw Sat bill today and our package has gone up $3 plus tax effective Sept 1st. When we first got our dish from Star Choice in 2001, we paid $17.99 for the Basic package. Today, in 2009 that same package is now $39.99!!! No matter who you are with, they are all greedy and they just keep putting the packages up.
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- Rob
- - January 18th, 2010 at 09:59:58
EASTLINK RULES! GOD BLESS CABLE!
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- Flip
- - January 18th, 2010 at 09:58:23
Do you realize how much cheaper it is to stare at your own reflection in the glass door of your microwave? Plus, it's just about as entertaining as what any cable company offers.
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- Officer Barbrady
- - January 18th, 2010 at 09:57:34
Hey....wow...you get a paper bill? They don't even bother to send me one of those...they just take whatever they see fit out of my account with no explanation.....
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- el
- - January 18th, 2010 at 09:55:33
I left Eastlink a long long time ago. Terrible service, late fees even if the payment was 1 day late. Terrible customer service too. Never again, I am with Star Choice (Shaw)now and forever. They are much cheaper and much much nicer to deal with!
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- Mr
- - January 18th, 2010 at 09:51:30
they certainly are not passing on any profits to their employees. I have a friend who works there and they used the recession as an excuse to give their employees a 1% pay increase this year. Corporate greed again at its finest
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- Charles
- - January 18th, 2010 at 09:50:53
Just got off the phone with CRTC
LPIF is neither required or regulated
CRTC sees no reason why this should be passed onto consumers considering
the strong financial performances demonstrated by these companies.
quote from CRTC website:
What can I do to avoid paying such an increase?
Consumers must contact their service suppliers, since this increase is not required or regulated by CRTC. The CRTC considers that these companies can absorb a contribution to the LPIF of this size and does not see a reason why these supplemental costs should be transferred to their subscribers.
quote from CRTC person on the phone
While the CRTC is sympathetic with your cause, as a non required or regulated fee. We can do nothing to influence private company policies
So it's just a money grab.
With a lot of smoke and mirrors from providers. -
- G.L.
- - January 18th, 2010 at 09:50:27
Don't blame Eatlink for a stance the CRTC mandated to them. Complain to the CRTC.
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- Roger
- - January 18th, 2010 at 09:47:58
If I was Mr. Gibbs I'd be more upset with NS Power and their huge increases instead of hid cable bill. Power is very hard to do without, it's very easy to go without television.
NS Power has no competition, while Eastlink does. Instead of having the attitude that Eastlink should bow to his every whim, he should switch to a different company that offers the same services. If enough people switch then maybe they'll change. -
- Paul
- - January 18th, 2010 at 09:42:41
I called Eastlink looking for the 5% Customer Loyalty Discount,spent 20 minutes waiting on the phone while Eastlink read the article in the paper,at this point i was transferred to a supervisor who pretened not to know what i was calling about,i was informed by her that she would have to check this out and call me back,that was 2 hours ago and i'm still waiting,maybe everybody should call looking for the CUSTOMER LOYALTY discount and see just how EASTLINK treat them as a customer...............i will post again when i get the call back......
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- Information
- - January 18th, 2010 at 09:42:13
Bell Express Vu Too:
Bell Canada sent out similar letters during the tail end of July.
Bell is extremely disappointed by the CRTC's latest decisions regarding this TV tax and, in order to meet the CRTC's orders without impacting the current and future quality of its products and services, Bell will apply a monthly fee to customer billing which will not exceed 1.5 per cent of Bell TV charges incurred on and after September 1, 2009, Bell said in a July release. -
- Gilliad
- - January 18th, 2010 at 09:42:07
To be quite honest, folks, if it wasn't for my wife's addiction to Oprah, Dr. Phil, the upcoming Dr. Oz show (does anyone see a pattern with the initials OW prominently displayed?) and Ann of Green Gables - please note this one has been around for more years than I'm sure some of us can remember, and is still a fine CANADIAN show - + no more than five or six other series that we semi agree on, we wouldn't have a TV in our house.
Of course, that's the male of the household speaking, not the one who normally controls the switcher.
I think I'm going to look at the deal Charles has chosen. Thanks for your input, although I'm sure Eastlink won't join in that congratulatory sentiment. -
- silent
- - January 18th, 2010 at 09:40:13
There seems to be some confusion amongst the readers, YES it is a tax. CRTC mandated the tax, Eastlink said ok, we'll just pass that (tax)on to our customers, and the CRTC said NO, thats not fair, your making too much money as it is. Eastlink walked out of the meeting and did egg-zakly as they wanted to do anyways.
Now for my scarism, I would think people from Nova Scotia would be use to price gouging by now !!! Gasoline is at 4 dollars a gallon here, DOUBLE what it costs anywhere else. Did I mention chicken yet?
Whoever heard of 5 dollar a lb chicken besides people from nova scotia?
Being fairly new to the area, I see MOST items here cost atleast double, and sometimes 4 to 5 times what they would normally cost. -
- Michelle
- - January 18th, 2010 at 09:39:04
perhaps someone should get thier facts straight, this is a tax people! The CRTC has mandated that all Cable consumers whether with Sat or Eastlink will have to pay a 1.5% tax until at least Sept 2010 this is not something that television providers have just added to the bill.
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- Jon
- - January 18th, 2010 at 09:38:10
G.L. - Did you even read the article? The CRTC ruled there was no reasonable grounds to stick customers with this cost.
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- jason
- - January 18th, 2010 at 09:36:58
we have been with eastlink for quite some time and they are the cheapest around this area for local phone, internet, and cable. we are happy with the rate that we are paying but we will not pay this new fee.
