Thank you, John.
Now I'd like to turn the focus to the framework for Internet traffic management practices.
Traffic over Internet networks has been increasing at a steady clip, with online video content now emerging as the largest category of data. With more and more people accessing the Internet through broadband connections, there is the likelihood that demand will exceed capacity. When that happens, users may find themselves in the cyberspace equivalent of a rush-hour traffic jam.
In October 2009, the CRTC announced a framework for Internet traffic management practices. As a starting point, the commission recognized that users should have as much freedom as possible to explore the Internet. But at the same time, Internet service providers, ISPs, should have the flexibility to manage the flow of data over their networks to ensure that their users receive an acceptable level of service.
The framework makes it clear that when congestion occurs, an ISP's first response should always be to invest in more network capacity. That being said, the commission recognizes that expanding and upgrading a network is not always the most practical solution. Other practices can be employed to ensure a network's integrity at peak usage times. These practices fall into two categories: economic measures and technical measures.
The main points of our framework can be summarized in the following way.
When traffic management is necessary, it should be done through economic means. Consumers should know in advance what they will be charged for the amount of bandwidth they need.
Technical measures should only be used as a last resort. The means employed must be as targeted and minimal as possible to achieve the desired results. They also must be non-discriminatory and cannot give an advantage to the network operator employing the measures.
We now require ISPs to inform their customers in advance if they intend to use an Internet traffic management practice. Customers must be told how the practice will affect their service, including the specific impact on speeds.
We developed a framework to review Internet traffic management practices that raise concerns or generate complaints. The framework spells out how we will judge complaints. The commission has received only a small number of complaints over the course of implementing the framework this past year. They have been resolved with minimal regulatory intervention.
Now I would like to address the new media exemption.
The CRTC has also been working to ensure that its regulatory approach to digital media remains effective in the context of changing needs and technological developments. In June 2009, the Commission announced that it would continue to exempt from its licensing requirements services that deliver broadcasting content over the Internet or through mobile devices. This decision reflects the Commission's view that these platforms currently act in complementary fashion to the traditional broadcasting system. Any regulatory intervention would only get in the way of innovation.
The Commission also made a reference to the Federal Court of Appeal to find out whether the Broadcasting Act applies to ISPs to the extent that they provide access to broadcasting content. In July, the court ruled that the Broadcasting Act's reach does not extend to ISPs. Given the dynamic nature of the digital media environment, the Commission expects to review the regulatory approach within the next four years.
The Commission also looks forward to the results of the recent consultation on a digital economy strategy and will consider how it can best contribute to the government's efforts in this area.
In conclusion, digital media continue to change our world at a rapid pace. The CRTC recognizes this new reality. We are working to ensure that our regulatory approaches continue to be appropriate for the competitive and technologically driven environment of today. We will continue to look for modern tools with which we can do this effectively.
In particular, one of the tools we are hoping to acquire is the ability to impose administrative monetary penalties across all our activities. This would allow the commission to adopt a less restrictive approach to regulation and ensure a level playing field for all competitors as we move forward into the opportunities of tomorrow.
Thank you very much. We would be pleased to take your questions.