With respect to vertical integration, some intervenors have incorrectly described this as a threat to the system. The opposite is true.
To compete in the digital universe, we need an industry structure that allows us to remain at the leading edge of innovation. Our ownership of Shaw Media creates a strong entity that can compete for and maximize the value of multi-platform content rights.
Furthermore, the CRTC has already introduced a comprehensive framework to protect unaffiliated broadcasters and support independent producers. Existing CRTC protections include undue preference rules and extensive distribution and access regulations. Because of the commission's rules, we have already added several independent and unaffiliated programming services on both Shaw Direct, our satellite service, and Shaw Cable, and will be required to add more.
In the uncertain digital future, regulated Canadian companies need maximum flexibility to serve their customers. We should be considering steps to further strengthen the system by decreasing our financial and regulatory burden, not increasing it. Demands for additional regulation and taxation, such as an ISP tax, must be rejected.
We compete in a dynamic environment. We are responding to our customers' demands for choice, quality, and value. To remain competitive, the Canadian broadcasting industry needs strong integrated companies, which must invest billions and focus on offering new services.
Canadian broadcasters and distributors make significant investments in the system, support and exhibit unique Canadian programming, and create thousands of high-quality Canadian jobs. These contributions have been supported by a detailed regulatory framework that achieves the objectives of the Broadcasting Act and preserves the health of the Canadian broadcasting system. However, achieving the objectives of the act and preserving the strength of the system are now challenged by the entry of new media broadcasters who are competing for content and consumers. These entities are not Canadian.
Peter.