Hidden Tax Collection: CRTC LPIF

October 29, 2009

Rogers Cable has the following to say about the CRTC LPIF (Local Programming Improvement Fund):

New Fee on your Bill
Beginning September 1, 2009, customers will see a new line on their invoice called CRTC LPIF Fee, and a corresponding charge of 1.5% of their recurring TV monthly service fee. Rogers Cable does NOT benefit from the LPIF fees collected. These fees are directly remitted to the CRTC’s Local Programming Improvement Fund, for the use solely by broadcasters like CTV and Global serving markets with less than 1 million people.

The CRTC has the following to say about cable companies passing on the LPIF fee to customers:

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 in light of the performance2 level of the cable and satellite sector and the benefits accruing to broadcasting distribution undertakings (BDUs) as a result of other changes being made to the regulatory framework, the Commission saw no justification for BDUs to pass along any increased costs relating to the LPIF to their subscribers.

This is an example of a non-intuitive economic principle. You can not tax companies. You can only force companies to collect tax from customers on behalf of the government. Not only do you have hidden taxes but you also have hidden tax collection.

Actually, Rogers is making it a little less hidden but the principle still holds. Consumers always pay one way or another.


3 Responses to “Hidden Tax Collection: CRTC LPIF”

  1. Uzoecji Says:

    I am trying to miorrr one port to multiple destination ports. We have multiple monitoring solutions with different functions on our network. All examples I have found online show one to one configurations. How do I create a 1 to many port miorrr and for future reference how do I create a many to 1 miorrr? Cards I’m using are 8648GTR and 8630GBR. The software is for any help you can give me.

  2. Juniper Says:

    Greetings Michael, my question to you is this . I prsuleoviy able to config our ERS 8300 for port mirroring. (mirror-by-port). But i am now being asked to monitor not just a port but an entire VLAN. Can you provide an example of what those config lines would look like?Thank you so much, greatly appreciated.

  3. I used to be an avid TV viewer back in the 70s and 80s. Of course, that's when there were TV shows well worth watching, like "MASH", "All in the Family", "The Carol Burnett show", etc. Today, however, I find there is absolutely nothing on network TV to my taste, as everything has been dumbed down to cater to the idiotic "rock 'n' roll" mindset so prevalent out there. If network TV insists on generating more and more inane "Reality" shows, then I suspect that many of my generation will simply stop watching TV altogether. As it is, I've been buying up tons of old TV series on DVD in order to recreate the program schedule of the glorious 60s and 70s. If I can do that, why do I need to keep paying for cable? The networks, both American and Canadian, have got to face the fact that there is a growing mass exodus of disgusted older viewers happening now in addition to the younger ones who prefer the internet over TV. If they were to start putting some real money into developing shows with real longterm entertainment value, maybe they could turn the tide around. But I am not optimistic, as I suspect TV execs have neither the integrity nor the good taste to do that. Instead, they will continue to churn out cheap crap that fewer and fewer people want to watch.

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