Canadian Cable Companies Continue to Shaft their Customers

As I live in a relatively small town in eastern Canada, our choices for cable, phone and Internet service is limited. It comes down to two main choices, Rogers and Bell, both which feature certain trade-offs (like reliability and junk mail en masse). As a subscriber of Rogers, I received a letter in the mail a few weeks ago that stated that the cable portion of our bill would be increased 1.5% to comply with the CRTC’s new LPIF fund. Let me give you some quick background.

The CRTC is the “Canadian Radio/Television and Telecommunications Commission”, who oversee the regulation of media all over Canada. The LPIF is the “Local Programming Improvement Fund” which the CRTC established in order to help both improve and support local programming. To make this happen, the CRTC ruled that Canadian cable/satellite companies were required to contribute 1.5% of their gross broadcasting revenues, which would amount to around $100 million total for the year.

That sounds great for local programming, but it turns out it’s bad for cable and satellite subscribers, since most of these companies are, rather than taking the hit themselves, continuing to nickel and dime their customers by passing the fee onto them, as mentioned above. So far, Rogers Cable and Bell have been verified to be doing this, but in checking with people who subscribe to services in other parts of Canada, I’ve yet to find another company to do this.

The LPIF was established as a way to have these mammoth companies contribute to local programming, which many find integral and important. But rather, they shift the cost over to their faithful customers, which I find truly ridiculous. Sure, it’s 1.5%, but it’s not the money that matters. It’s the principle. I contacted the CRTC to get their comment on things, and the response I received was, (bold is theirs) “Given their reported profits, the CRTC is of the view that there is no justification to pass the cost on to consumers.

Enough said. I find it insane that companies as rich as these, are forcing their loyal customers, who already pay out the rear, for something that they are supposed to be paying themselves. If you’re a Canadian reader, I’d love to know if your cable provider is forcing the fee on you, or not, and if you are in the US, please let us know if companies down there are like they are up here.