Regulation in Our Industry S pectrum Licences Royalties Billing and Contracts Canadian Broadcasting Operations Foreign Ownership and Control 2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 67 MANAGEMENT’S DISCUSSION  AN D ANALYSIS can and do, however, affect the terms and conditions under which we offer these services. Our business, except for the non-broadcasting operations of Media, is regulated by two groups: Regulation relates to the following, among other things: Regulatory changes or decisions can adversely affect our consolidated results of operations. The Copyright Board of Canada (Copyright Board) oversees the administration of copyright royalties in Canada and establishes the royalties to be paid for the use of certain copyrighted works. It sets the copyright tariff royalties that Canadian broadcasting undertakings, including cable, radio, television and specialty services, pay to copyright collectives. Industry Canada sets technical standards for telecommunications under the Radiocommunication Act (Canada) (Radiocommunication Act) and the Telecommunications Act. It licences and oversees: The Quebec Consumer Protection Act amendments, effective June 2010, introduced new provisions applicable to wireless, wireline and Internet service contracts. These amendments include new rules on the content of such contracts, the determination of the early cancellation fees that can be charged to customers, the use of security deposits and the cancellation and renewal rights of the consumers. The amendments also established new provisions on the sale of prepaid cards and the disclosure of related costs. Amendments to the Manitoba Consumer Protection Act took effect in September 2012 and parallel the changes to the Quebec Consumer Protection Act. Similar legislation also came into effect in September 2012 in Newfoundland and Labrador and has been tabled in Nova Scotia. A private member’s bill proposing similar legislation has been introduced in New Brunswick. Our costs of providing services may increase from time to time as we comply with industry or legislative initiatives to address consumer protection concerns or Internet-related issues like copyright infringement, unsolicited commercial e-mail, cybercrime and lawful access. Generally, our spectrum and broadcast licences are granted for a specified term and are subject to conditions for maintaining these licences. The regulators can modify these licensing conditions at any time, and they can decide not to renew a licence when it expires. If we do not comply with the conditions, a licence may be forfeited or revoked, or we may be fined. The licences have conditions that require us, amongst other things, to comply with Canadian ownership restrictions of the applicable legislation, and we are currently in compliance with them. If we violate the requirements, we would be subject to various penalties and it could include losing a licence in extreme cases. Cable, wireless and broadcasting licences generally cannot be transferred without regulatory approval. In April 2012, the Ontario government announced that it would be introducing legislation addressing wireless bills and contracts. The legislation seeks to ensure that contracts are written in plain language and spell out which services come with the basic fee and which would result in a higher bill. It requires providers to obtain consent in writing before they renew or amend a contract. The legislation also seeks a cap on the cost of cancelling a fixed-term contract that would vary depending on the circumstances of the contract. The proposed legislation, which would affect new contracts, would take effect six months after being passed and would also cover existing agreements that are amended, renewed or extended after that date. The legislation was passed into law in October 2013. Our Canadian broadcasting operations – including our cable television systems, radio and television stations, and specialty services – are licenced (or operated under an exemption order) and regulated by the CRTC under the Broadcasting Act. See also “CRTC Wireless Code” section under Wireless Regulation. The CRTC is responsible for regulating and supervising all aspects of the Canadian broadcasting system. It is also responsible under the Telecommunications Act for the regulation of telecommunications carriers, including: Our cable and telecommunications retail services are not subject to price regulation, because the CRTC believes there is enough competition for these services provided by other carriers to protect the interests of users, so has forborne from regulating them. Regulations Non-Canadians can own and control directly or indirectly: GLYPH<129>u pt o2 0 % of the voting shares and the related votes of the operating licensee company may be owned and controlled directly or indirectly by non-Canadians. GLYPH<129> up to 33.3 % of the voting shares and the related votes of a holding company that has a subsidiary operating company licenced under the Broadcasting Act, and GLYPH<129> Cable’s Internet and telephone services. GLYPH<129> Wireless’ mobile voice and data operations GLYPH<129> our ability to acquire an interest in other communications systems. GLYPH<129> ownership and operation of our communications systems GLYPH<129> roaming on our networks GLYPH<129> the resale of our networks GLYPH<129> rates we can charge third parties for access to our network GLYPH<129> wireless and wireline interconnection agreements GLYPH<129> the cable television programming services we must, and can, distribute GLYPH<129> wireless spectrum and broadcasting licensing GLYPH<129> competition GLYPH<129> awarding and supervising spectrum for wireless communications systems in Canada. GLYPH<129> the frequency-related operations of cable television networks GLYPH<129> the technical aspects of the operation of radio and television stations GLYPH<129> the CRTC, under the Telecommunications Act (Canada) (Telecommunications Act) and the Broadcasting Act (Canada) (Broadcasting Act). GLYPH<129> the Canadian Federal Department of Industry on behalf of the Minister of Industry (Canada) (together, Industry Canada)